Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Moss Adams LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 659 |
Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-32987 | ||
Entity Registrant Name | UNITED SECURITY BANCSHARES | ||
Entity Tax Identification Number | 91-2112732 | ||
Entity Address, Address Line One | 2126 Inyo Street | ||
Entity Address, City or Town | Fresno | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 93721 | ||
City Area Code | 559 | ||
Local Phone Number | 490-6261 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 104,165,322 | ||
Entity Common Stock, Shares Outstanding | 17,255,505 | ||
Documents Incorporated by Reference | The information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K will be found in the Company’s definitive proxy statement for its 2024 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and such information is incorporated herein by this reference. | ||
Entity Central Index Key | 0001137547 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Assets | ||||
Cash and noninterest-bearing deposits in other banks | $ 40,577 | $ 31,650 | ||
Due from Federal Reserve Bank (FRB) | 207 | 6,945 | ||
Cash and cash equivalents | 40,784 | 38,595 | ||
Investment securities (at fair value) | ||||
Debt securities, available-for-sale | 181,265 | 207,545 | ||
Marketable equity securities | 3,354 | 3,315 | ||
Total investment securities | 184,620 | 210,860 | ||
Loans | ||||
Loans | 921,341 | 981,772 | ||
Unearned fees and unamortized loan origination costs - net | 1,299 | 1,594 | ||
Allowance for credit losses - loans | (15,658) | (10,182) | ||
Net loans | 904,384 | 969,996 | ||
Premises and equipment - net | 9,098 | 9,770 | ||
Accrued interest receivable | 7,928 | 8,489 | ||
Other real estate owned (“OREO”) | 4,582 | 4,582 | ||
Goodwill | 4,488 | 4,488 | ||
Deferred tax assets - net | 14,055 | 12,825 | ||
Cash surrender value of life insurance - net | 21,954 | 22,893 | ||
Investment in limited partnership | 3,200 | 2,800 | ||
Operating lease right-of-use assets | 1,338 | 1,984 | ||
Other assets | 14,614 | 11,911 | ||
Total assets | 1,211,045 | 1,299,193 | ||
Deposits | ||||
Noninterest-bearing | 403,225 | 481,629 | ||
Interest-bearing | 601,252 | 683,855 | ||
Total deposits | 1,004,477 | 1,165,484 | ||
Short-term borrowings | 62,000 | 0 | ||
Operating lease liabilities | 1,437 | 2,093 | ||
Other liabilities | 9,376 | 8,270 | ||
Junior subordinated debentures (at fair value) | 11,213 | 10,883 | ||
Total liabilities | 1,088,503 | 1,186,730 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders’ Equity | ||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,167,895 at December 31, 2023 and 17,067,253 at December 31, 2022 | 60,585 | 60,030 | ||
Retained earnings | 76,995 | 69,928 | ||
Accumulated other comprehensive loss, net of tax | (15,038) | (17,495) | ||
Total shareholders’ equity | 122,542 | [1] | 112,463 | [2] |
Total liabilities and shareholders’ equity | 1,211,045 | 1,299,193 | ||
Taxable AFS Securities | ||||
Investment securities (at fair value) | ||||
Debt securities, available-for-sale | 179,016 | 204,173 | ||
Tax-exempt municipal bonds | ||||
Investment securities (at fair value) | ||||
Debt securities, available-for-sale | $ 2,250 | $ 3,372 | ||
[1] (3) Excludes 21,435 unvested restricted shares (2) Excludes 13,974 unvested restricted shares |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | $ 204,389 | $ 234,610 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 17,167,895 | 17,067,253 |
Common stock, shares, outstanding (in shares) | 17,167,895 | 17,067,253 |
Fair Value (Carrying Amount) | $ 181,265 | $ 207,545 |
Taxable AFS Securities | ||
Allowance for credit loss | 0 | 0 |
Amortized cost | 201,845 | 230,557 |
Fair Value (Carrying Amount) | 179,016 | 204,173 |
Tax-exempt municipal bonds | ||
Allowance for credit loss | 0 | 0 |
Amortized cost | 2,544 | 4,053 |
Fair Value (Carrying Amount) | $ 2,250 | $ 3,372 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest Income: | ||
Interest and fees on loans | $ 54,183 | $ 43,039 |
Interest on investment securities | 5,870 | 4,613 |
Interest on deposits in FRB | 324 | 1,605 |
Total interest income | 60,377 | 49,257 |
Interest Expense: | ||
Interest on deposits | 6,758 | 2,815 |
Interest on other borrowed funds | 4,298 | 380 |
Total interest expense | 11,056 | 3,195 |
Net Interest Income | 49,321 | 46,062 |
Provision for credit losses | 1,460 | 1,802 |
Net Interest Income after Provision for Credit Losses | 47,861 | 44,260 |
Noninterest Income: | ||
Customer service fees | 2,918 | 3,027 |
Increase in cash surrender value of bank-owned life insurance | 557 | 555 |
Unrealized gain (loss) on fair value of marketable equity securities | 39 | (429) |
Gain on proceeds from bank-owned life insurance | 907 | 0 |
Gain (loss) on fair value of junior subordinated debentures | 274 | (2,533) |
Gain on sale of investment securities | 0 | 30 |
Loss on sale of assets | 0 | (10) |
Other | 874 | 1,198 |
Total noninterest income | 5,569 | 1,838 |
Noninterest Expense: | ||
Salaries and employee benefits | 13,157 | 11,833 |
Occupancy expense | 3,739 | 3,467 |
Data processing | 784 | 686 |
Professional fees | 4,366 | 4,058 |
Regulatory assessments | 727 | 794 |
Director fees | 438 | 452 |
Correspondent bank service charges | 80 | 93 |
Net cost of operation of OREO | 201 | 102 |
Other | 2,462 | 2,554 |
Total noninterest income | 25,954 | 24,039 |
Income before provision for taxes | 27,476 | 22,059 |
Provision for income taxes | 7,680 | 6,373 |
Net income | $ 19,796 | $ 15,686 |
Net income per common share | ||
Basic (in dollars per share) | $ 1.16 | $ 0.92 |
Diluted (in dollars per share) | $ 1.16 | $ 0.92 |
Weighted average common shares outstanding | ||
Basic (in shares) | 17,114,214 | 17,040,241 |
Diluted (in shares) | 17,125,186 | 17,061,833 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 19,796 | $ 15,686 |
Unrealized holdings gains (loss) on AFS debt securities | 3,941 | (26,730) |
Unrealized gains on unrecognized post-retirement costs | 88 | 615 |
Unrealized (loss) gain on junior subordinated debentures | (544) | 2,947 |
Other comprehensive income (loss), before tax | 3,485 | (23,168) |
Tax (expense) benefit related to AFS debt securities | (1,165) | 7,900 |
Tax expense related to unrecognized post-retirement costs | (24) | (182) |
Tax benefit (expense) related to junior subordinated debentures | 161 | (871) |
Total other comprehensive income (loss) | 2,457 | (16,321) |
Comprehensive income (loss) | $ 22,253 | $ (635) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Adjustment | Common Stock | Retained Earnings | Retained Earnings Adjustment | Accumulated Other Comprehensive Loss | |||||
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 17,028,239 | |||||||||
Beginning balance at Dec. 31, 2021 | [1] | $ 120,207 | $ 59,636 | $ 61,745 | $ (1,174) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Other comprehensive income (loss) | (16,321) | (16,321) | |||||||||
Dividends on common stock | (5,625) | (5,625) | |||||||||
Dividends payable | (1,878) | (1,878) | |||||||||
Restricted stock units released (in shares) | 33,435 | ||||||||||
Tax expense from restricted stock units released | $ (1) | $ (1) | |||||||||
Stock option exercised (in shares) | 5,579 | 5,579 | |||||||||
Stock options exercised | $ 29 | $ 29 | |||||||||
Stock-based compensation expense | 366 | $ 366 | |||||||||
Net Income | $ 15,686 | 15,686 | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 17,067,253 | 17,067,253 | [2] | ||||||||
Ending balance at Dec. 31, 2022 | $ 112,463 | [2] | $ (4,678) | $ 60,030 | [2] | 69,928 | [2] | $ (4,678) | (17,495) | [2] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Other comprehensive income (loss) | 2,457 | 2,457 | |||||||||
Dividends on common stock | (5,992) | (5,992) | |||||||||
Dividends payable | (2,059) | (2,059) | |||||||||
Restricted stock units released (in shares) | 57,185 | ||||||||||
Tax expense from restricted stock units released | $ (29) | $ (29) | |||||||||
Stock option exercised (in shares) | 29,022 | 29,022 | |||||||||
Restricted stock award granted (in shares) | 14,435 | ||||||||||
Stock options exercised | $ 106 | $ 106 | |||||||||
Stock-based compensation expense | 478 | $ 478 | |||||||||
Net Income | $ 19,796 | 19,796 | |||||||||
Ending balance (in shares) at Dec. 31, 2023 | 17,167,895 | 17,167,895 | [3] | ||||||||
Ending balance at Dec. 31, 2023 | [3] | $ 122,542 | $ 60,585 | $ 76,995 | $ (15,038) | ||||||
[1] (1) Excludes 27,949 unvested restricted shares (2) Excludes 13,974 unvested restricted shares (3) Excludes 21,435 unvested restricted shares |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock (in dollars per share) | $ 0.35 | $ 0.33 |
Dividends payable (in dollars per share) | $ 0.12 | $ 0.11 |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | |
Non-vested awards (in shares) | 21,435 | 13,974 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 19,796 | $ 15,686 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for credit losses | 1,460 | 1,802 |
Depreciation and amortization | 1,459 | 1,320 |
Amortization of operating lease right-of-use assets | 646 | 611 |
Amortization of premium/discount on investment securities, net | 499 | 606 |
Accretion of lease liability | (656) | (611) |
Gain on sale of investment securities | 0 | (30) |
Decrease (increase) in accrued interest receivable | 561 | (959) |
Increase in accrued interest payable | 45 | 48 |
(Increase) decrease in unearned fees and unamortized loan origination costs, net | (295) | 3,791 |
(Increase) decrease in income taxes receivable | (1,755) | 1,970 |
Stock-based compensation expense and tax benefit | 478 | 366 |
Benefit for deferred income taxes | (297) | (2,362) |
Increase in accounts payable and accrued liabilities | 727 | 213 |
(Gain) loss on marketable equity securities | (39) | 429 |
(Gain) loss on fair value option of junior subordinated debentures | (274) | 2,533 |
Gain on bank owned life insurance | (907) | 0 |
Increase in cash surrender value of bank-owned life insurance | (557) | (555) |
Loss on sale of assets | 0 | 10 |
Net increase in other assets | 485 | (1,168) |
Net cash provided by operating activities | 21,376 | 23,700 |
Cash Flows From Investing Activities: | ||
Purchases of FHLB stock, FRB stock, and other securities | (1,438) | (2,434) |
Maturities and calls on available-for-sale securities | 17,600 | 0 |
Principal payments on available-for-sale securities | 12,121 | 10,136 |
Purchases of available-for-sale securities | 0 | (81,762) |
Proceeds from sales of available-for-sale securities | 0 | 15,676 |
Net decrease (increase) in loans | 58,085 | |
Net decrease (increase) in loans | (113,389) | |
Proceeds from bank-owned life insurance | 2,402 | 0 |
Capital expenditures of premises and equipment | (787) | (2,140) |
Investment in limited partnership | (400) | (320) |
Net cash provided by (used in) investing activities | 87,583 | (174,233) |
Cash Flows From Financing Activities: | ||
Decrease in demand deposit and savings accounts | (174,805) | (13,087) |
Net increase (decrease) in time deposits | 13,799 | (9,537) |
Net increase is short-term borrowings | 62,000 | 0 |
Proceeds from exercise of stock options | 106 | 29 |
Dividends on common stock | (7,870) | (7,496) |
Net cash used in financing activities | (106,770) | (30,091) |
Net increase (decrease) in cash and cash equivalents | 2,189 | (180,624) |
Cash and cash equivalents at beginning of year | 38,595 | 219,219 |
Cash and cash equivalents at end of year | $ 40,784 | $ 38,595 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting and Reporting Policies | Organization and Summary of Significant Accounting and Reporting Policies Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, with rules and regulations of the Securities and Exchange Commission (SEC), and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly-owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the “Trust”). The Trust is deconsolidated pursuant to Accounting Standards Codification (ASC) 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures and are presented as a separate liability category (see Note 10 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. The Company’s participation loans with other financial institutions are primarily in the state of California. Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. United Security Bancshares has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. The Bank was founded in 1987 and currently operates twelve branches, one commercial lending office, one consumer lending office, and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank’s primary source of revenue is interest income from loans to customers, who are predominantly small- and middle-market businesses and individuals. The Bank engages in a full complement of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural, and consumer loans, with particular emphasis on short- and medium-term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank’s deposits are attracted from small- and medium-sized business-related sources and from individuals. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, foreign drafts, and person-to-person and bank-to-bank transfers for consumer customers. In addition, the Bank offers internet banking services to its commercial and retail customers. The Bank does not operate a trust department; however, it makes arrangements with its correspondent bank to offer trust services to its customers upon request. The Bank’s wholly-owned subsidiary, York Monterey Properties, Inc. (YMP), was incorporated in California on April 17, 2019, for the purpose of holding specific parcels of real estate acquired by the Bank through, or in lieu of, loan foreclosures in Monterey County. These properties exceeded the 10-year holding period for other real estate owned, or “OREO.” YMP was funded with a $250,000 cash investment and the transfer of those parcels by the Bank to YMP. As of December 31, 2023 and 2022, these properties are included within the consolidated balance sheets as part of OREO. Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of junior subordinated debt (TRUPs). Subsequent events - The Company has evaluated events and transactions for potential recognition or disclosure through the day the consolidated financial statements were issued. Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification , sometimes referred to as the Codification, or ASC. The following is a summary of significant policies: a. Cash and cash equivalents – Cash and cash equivalents include cash on hand and amounts due from correspondent banks. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2023 or 2022. All cash and cash equivalents have maturities when purchased of three months or less. b. Securities - Debt securities classified as available-for-sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income (loss) and shareholders’ equity. Debt securities classified as held-to-maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time are classified as available-for-sale. Those include, but are not limited to, securities that management intends to use as part of its asset/liability management strategy, as well as those which may be sold in response to changes in interest rates, changes in prepayments, or other factors. Securities which the Company has the ability and intent to hold to maturity are classified as held-to-maturity. There were no securities classified as held-to-maturity as of December 31, 2023. Available-for-sale debt securities in an unrealized loss position are evaluated when the amortized cost of a security exceeds its fair value. If it is determined that it will be necessary to sell a security before the fair value increases to the amortized cost, the amortized cost will be written down to fair value through income. At that point, any previously recorded allowance for credit loss (ACL) would be written off and any additional impairment would be recognized through earnings. If it is believed that the Company will not be required to sell a security before the fair value recovers, a determination will be made as to whether or not the decline in fair value is the result of a credit loss or noncredit factors such as changes in current market rates. If it is determined that the decline is due to a credit loss, the amount recognized as the credit loss will be determined using a discounted cash flow approach. Cash flows expected to be collected would be discounted at the effective interest rate established at acquisition. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses would be recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses on investments are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Marketable equity securities are reported at fair value with gains and losses included in noninterest income on the Consolidated Statements of Income. c. Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. With the exception of student loans, loans are typically placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. Student loans are typically placed on non-accrual status when principal or interest is past due for 120 days. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed based upon management’s assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan’s term using the simple interest method. Other credit-related fees, such as standby letters of credit fees and loan placement fees, are recognized as noninterest income during the period the related service is performed. d. Allowance for credit losses on loans and r eserve for unfunded loan commitments - The Company adopted ASU 2016-13, effective January 1, 2023, and utilizes the CECL cohort methodology analysis which relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience. Management estimates the allowance for credit loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2023. The Company expects that the markets in which it operates will experience a slight decline in economic conditions and an increase in unemployment rate and level and trend of delinquencies over the next year. Management adjusted the historical loss experience through qualitative factors for these expectations. The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the ten segments of the loan portfolio (Consumer loans include three segments): Commercial and business loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if an economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balance in the overall portfolio. Government program loans – This is a relatively small part of the Company’s loan portfolio, but has historically had a high percentage of loans that have migrated from pass to substandard given their vulnerability to economic cycles. Commercial real estate loans – This segment is considered to have more risk in part because of the vulnerability of commercial businesses to economic cycles as well as the exposure to fluctuations in real estate prices because most of these loans are secured by real estate. Losses in this segment have however been historically low because most of the loans are real-estate secured, and the bank maintains appropriate loan-to-value ratios. Residential mortgages – This segment is considered to have low risk factors based on the Company’s experience and peer statistics. These loans are secured by first deeds of trust. Home improvement and home equity loans – Because of their junior lien position, these loans have an inherently higher risk level. Real estate construction and development loans –This segment of loans is considered to have a higher risk profile due to construction and market value issues in conjunction with normal credit risks. Agricultural loans – This segment is considered to have risks associated with weather, insects, and marketing issues. In addition, concentrations in certain crops or certain agricultural areas can increase risk. Additionally, California may experience severe droughts, which can significantly harm the business of customers and the credit quality of the loans to those customers. Water resources and related issues affecting customers are closely monitored. Signs of deterioration within the loan portfolio are also monitored in an effort to manage credit quality and work with borrowers where possible to mitigate any losses. Installment and student loans – This segment, which includes consumer loans, student loans, overdrafts, and overdraft protection lines, is considered higher risk because most of the loans are unsecured. Additionally, in the case of student loans, there are increased risks associated with liquidity due to the time lag between funding of a student loan and eventual repayment. e. Nonaccrual loans - Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: • When there is doubt regarding the full repayment of interest and principal. • When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. • When the loan is identified as having loss elements and/or is risk rated “8” Doubtful. When loans are placed on nonaccrual status, the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. Student loans past due more than 90-days are not placed on nonaccrual status, but are charged-off once 120-days past due. See “ Note 4 - Student Loans” for specific information on the student loan portfolio. When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method : If the loan is in doubt as to full collection, the interest received in subsequent payments is reversed out of interest income and treated as a reduction of principal for financial reporting purposes. Cash basis : This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest is credited to interest income as received. Loans on non-accrual status may be returned to accruing status when all delinquent principal and/or interest has been brought current, there is no identified element of loss (on the contractual amount of the loan), and current and continued satisfactory performance is expected. Repayment ability is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. f. Individually-evaluated loans - When a financial asset does not share similar risk characteristics with the pool being evaluated, it is evaluated individually. g. Collateral-dependent loans - A loan is deemed collateral-dependent when either, it enters foreclosure, or it is determined that the borrower is experiencing financial difficulties. R epayment of these loans is expected to be provided substantially through the operation or sale of the collateral. h. Ba nk -owned life insurance and company-owned life insurance policies - The Company owns bank-owned life insurance policies (BOLI) and company-owned life insurance policies (COLI) on certain officers, including those covered under the salary continuation plan, with a portion of the post-retirement benefit available to the officers’ beneficiaries. The initial net cash surrender value of BOLI and COLI policies is equivalent to the premium paid, and adds income through non-taxable increases in cash surrender value, net of the cost of insurance, plus any death benefits ultimately received by the Company. i. Off-balance sheet financial instruments - In order to meet the needs of its customers, the Company offers financial instruments including commitments to extend credit and standby letters of credit (SBLC). SBLCs are used to guarantee financing arrangements or performance with third parties. j. Premises and equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years k. Other-real-estate-owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other-real-estate-owned, along with related revenue and expenses from operations, are charged to noninterest expense. l. Investment in Limited Partnership - The Bank owns an interest in a local area limited partnership which provides private capital for small- to mid-sized businesses. The investment is accounted for under the cost method. m. Goodwill - Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2023 and 2022, the Company reported goodwill totaling $4.5 million. The Company did not recognize any impairment charges on goodwill during 2023 or 2022. n. Income taxes - Deferred income taxes result from the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities using the liability method, and are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. Estimates are based on the enacted tax rate of the applicable period. o. Net income per common share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method. If applicable, net income per common share is retroactively adjusted for all stock dividends declared. p. Cash flow reporting - For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for a one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, deposits held for customers, and short-term borrowings. q. Transfers of financial assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain the taking advantage of that right, beyond a trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase before maturity. r. Stock based compensation - The Company maintains a stock-based employee compensation plan, which is described more fully in “ Note 12 - Stock Based Compensation.” All share-based payments to employees, including grants of employee stock options and restricted stock units and awards, are recognized in the consolidated financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2023 and 2022 were $141,000 and $185,000, respectively, of stock-based compensation. Also included in stock-based compensation were $337,000 and $181,000 in stock grants to Company directors for the years ended December 31, 2023 and 2022, respectively. s. Federal Home Loan Bank stock and Federal Reserve Bank stock - As a member of the Federal Home Loan Bank of San Francisco (FHLB), the Company is required to maintain an investment in the capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank of San Francisco (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost in the accompanying consolidated balance sheets, are included in other assets, and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock; therefore, the shares are considered restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment through an assessment of the ultimate recoverability of cost rather than the recognition of temporary declines in value. The determination of the ultimate recoverability of cost is based upon (i) the significance and length of time of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB, (ii commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (iii) the impact of legislative and regulatory changes on institutions, and (iv) the liquidity position of the FHLB or FRB. t. Comprehensive income (loss) - Comprehensive income (loss) is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans, and unrealized gains and losses on trust preferred securities related to instrument-specific credit risk. Comprehensive income (loss) is presented in the “Consolidated Statements of Other Comprehensive Income (Loss).” u. Segment reporting - The Company’s operations solely in the financial services industry and provides its customers traditional banking and other financial services. The Company operates primarily in California’s San Joaquin Valley. Management’s operating decisions and performance assessment are based on an ongoing review of the Company’s consolidated financial results. The Company is considered one operating segment for financial reporting purposes. v. Revenue from contracts with customers - The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (Topic 606). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the “Consolidated Statements of Income” is not warranted. The Company, in general, satisfies its performance obligations on its contracts with customers as services are rendered. Transaction prices are typically fixed and are charged either on a periodic basis or as activity warrants. Contracts evaluated under the scope of Topic 606 are primarily related to service charges, fees on deposit accounts, debit card fees, ITM processing fees, and other service charges, commissions and fees. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 to the determination of the amount and timing of revenue from contracts with customers. w. Leases - The Company recognizes lease assets and lease liabilities on the consolidated balance sheet. Disclosures related to key lease components and leasing arrangements are included within the footnotes. The Company combines lease and associated non-lease components by class of underlying asset in contract that meet certain criteria. The lease and related non-lease components have the same timing and pattern of transfer, and the lease component, when accounted for on a stand-alone basis, is classified as an operating lease. x. Recently Issued Accounting Standards - On January 1, 2023, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model referred to as the current expected credit loss, or CECL, model. The CECL model applies to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost, with any estimated credit losses recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income (loss). The Company adopted this standard using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at January 1, 2023. While the Company held no other-than-temporarily-impaired securities at that time, a prospective transition was required for debt securities previously classified as such. The Company is phasing the regulatory capital impact of Topic 326 over three years. The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. In March 2020, FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848).” This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU was effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06, “ Deferral of the Sunset Date of Topic 848.” This ASU amends ASU 2020-04 by extending the sunset provision for use of LIBOR as a reference rate until December 31, 2024, due to an extension of the intended cessation of USD LIBOR. During 2023, the Company chose to use the “Secured Overnight Financing Rate,” or SOFR, as a replacement for LIBOR. This change resulted in minimal impact to junior subordinated debt and floating rate loans tied to LIBOR. In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. This ASU provides new guidance on the treatment of troubled debt restructurings (TDRs) in relation to the adoption of the CECL model for the accounting for credit losses (see note above regarding ASU 2016-13). Previous accounting guidance related to troubled debt restructurings is eliminated and new disclosure requirements are adopted in regard to loan refinancing and restructurings made to borrowers experiencing financial difficulties under the assumption that the CECL model will capture credit losses related to troubled debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update has been adopted as of January 1, 2023. The Bank will no longer report troubled debt restructurings or classify loans as such. TDRs previously recognized have been incorporated into the CECL methodology as it applies to loan loss reserves as of January 1, 2023. y. Subsequent events - Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Following is a comparison of the amortized cost and approximate fair value of available-for-sale debt securities at December 31, 2023 and December 31, 2022: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2023 Securities available for sale: U.S. Government agencies $ 6,197 $ 4 $ (45) $ 6,156 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 100,487 4 (12,307) 88,184 Municipal bonds 47,838 — (7,723) 40,115 Tax-exempt municipal bonds 2,544 — (294) 2,250 Corporate bonds 34,813 24 (2,715) 32,122 U.S. Treasury securities 12,510 — (72) 12,438 Total securities available for sale $ 204,389 $ 32 $ (23,156) $ 181,265 December 31, 2022 Securities available for sale: U.S. Government agencies $ 8,275 $ 7 $ (51) $ 8,231 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 110,908 5 (13,695) 97,218 Municipal bonds 46,625 — (9,827) 36,798 Tax-exempt municipal bonds 4,053 — (681) 3,372 Corporate bonds 34,745 5 (2,048) 32,702 U.S. Treasury securities 30,004 — (780) 29,224 Total securities available for sale $ 234,610 $ 17 $ (27,082) $ 207,545 At December 31, 2023, and at December 31, 2022, an allowance for credit losses was neither required nor recorded for any investment securities. Proceeds and gross realized gains (losses) from sales of available-for-sale debt securities for the years ended December 31, 2023 and 2022 are as follows: Years Ended December 31, (In thousands) 2023 2022 Proceeds from sales or calls $ — $ 15,676 Gross realized gains from sales or calls — 78 Gross realized losses from sales or calls — (48) During the years ended December 31, 2023 and December 31, 2022, the Company sold no equity securities. As market interest rates or risks associated with a security’s issuer continue to change and impact the actual or perceived values of investment securities, the Company may determine that selling these securities and using the proceeds to purchase securities that better suit the Company’s current risk profile is appropriate and beneficial to the Company. There were no losses recorded due to credit-related factors for the periods ended December 31, 2023 or December 31, 2022. The amortized cost and fair value of securities available for sale at December 31, 2023, by contractual maturity, are shown below: December 31, 2023 (In thousands) Amortized Cost Fair Value (Carrying Amount) Due in one year or less $ 12,610 $ 12,534 Due after one year through five years 28,770 27,466 Due after five years through ten years 60,018 50,579 Due after ten years 2,505 2,501 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 100,486 88,185 $ 204,389 $ 181,265 Actual cash flows may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. At December 31, 2023 and 2022, available-for-sale debt securities with an amortized cost of approximately $94.3 million and $78.8 million (fair value of $82.9 million and $69.0 million, respectively) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. The following summarizes available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2023 and 2022: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2023 Securities available for sale: U.S. Government agencies $ — $ — $ 4,064 $ (45) $ 4,064 $ (45) U.S. Government sponsored entities and agencies collateralized by mortgage obligations — — 87,904 (12,307) 87,904 (12,307) Municipal bonds — — 42,366 (8,016) 42,366 (8,016) Corporate bonds — — 27,286 (2,715) 27,286 (2,715) U.S. Treasury securities — — 12,438 (72) 12,438 (72) Total available-for-sale $ — $ — $ 174,058 $ (23,155) $ 174,058 $ (23,155) December 31, 2022 Securities available for sale: U.S. Government agencies $ — $ — $ 5,831 $ (51) $ 5,831 $ (51) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 47,968 (3,949) 48,763 (9,746) 96,731 (13,695) Municipal bonds — — 40,170 (10,508) 40,170 (10,508) Corporate bonds 24,424 (1,491) 5,443 (557) 29,867 (2,048) U.S. Treasury securities 14,714 (190) 14,510 (590) 29,224 (780) Total available-for-sale $ 87,106 $ (5,630) $ 114,717 $ (21,452) $ 201,823 $ (27,082) The following summarizes the number of available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2023 and 2022 December 31, 2023 2022 Securities available for sale: U.S. Government agencies 4 4 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 46 51 Municipal bonds 45 46 Corporate bonds 8 9 U.S. Treasury securities 2 4 Total available-for-sale 105 114 Management has evaluated each available-for-sale investment security in an unrealized loss position to determine if it would be required to sell the security before the fair value increases to amortized cost and whether any unrealized losses are due to credit losses or noncredit factors such as current market rates, which would not require the establishment of an allowance for credit losses. At December 31, 2023, the decline in fair value of the available-for-sale securities is attributed to changes in interest rates and not credit quality. These declines are primarily the result of the fast pace and large increases in interest rates during the last two years, which have led to decreases in bond prices and increases in yields. Because the Company does not intend to sell these securities, and because it is more likely than not that it will not be required to sell these securities before their anticipated recovery, the Company does not consider it necessary to provide an allowance for any available-for-sale security at December 31, 2023. During the year ended December 31, 2023, the Company recognized $39,000 in unrealized gains related to one marketable equity security compared to an unrealized loss of $429,000 recognized during the year ended December 31, 2022. The Company had no held-to-maturity securities at December 31, 2023 or December 31, 2022. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans Loans, net of unearned fees and unamortized loan origination costs, are comprised of the following: December 31, 2023 2022 (In thousands) Loan Balance % of Total Loans Loan Balance % of Total Loans Commercial and business loans $ 53,273 5.8 % $ 57,770 5.9 % Government program loans 74 <0.01 % 132 <0.01 % Total commercial and industrial 53,347 5.8 % 57,902 5.9 % Real estate – mortgage: Commercial real estate 386,134 42.0 % 398,115 40.6 % Residential mortgages 260,539 28.3 % 273,357 27.9 % Home improvement and home equity loans 36 <0.01 % 49 <0.01 % Total real estate mortgage 646,709 70.3 % 671,521 68.5 % Real estate construction and development 127,944 13.9 % 153,374 15.6 % Agricultural 49,795 5.4 % 52,722 5.4 % Installment and student loans 42,247 4.6 % 44,659 4.6 % Total loans $ 920,042 $ 980,178 The Company’s loans are predominantly in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. The Company’s participation loans with other financial institutions are primarily in the state of California. Commercial and industrial loans are generally made to support the ongoing operations of small- and medium-sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral, including real estate. While the remainder are unsecured, those extensions of credit are predicated upon the financial capacity of the borrower. Repayment of commercial and industrial loans generally comes from the cash flow of the borrower. Real estate mortgage loans are secured by trust deeds on primarily commercial property and by trust deeds on single family residences. Repayment of real estate mortgage loans is generally from the cash flow of the borrower. • Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and commercial properties, including: office buildings and shopping centers, apartments and motels, owner-occupied buildings, manufacturing facilities, and other properties. Commercial real estate mortgage loans can also be used to refinance existing debt. Commercial real estate loans typically receive payment from the borrower’s business operations, rental income associated with the real property, or personal assets. • Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and a majority are conventional mortgages that were purchased as a pool. • Home improvement and home equity loans comprise a relatively small portion of total real estate mortgage loans. Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. Real estate construction and development loans consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans generally comes from long-term mortgages with other lending institutions obtained at completion of the project or from the sale of the constructed homes to individuals. Agricultural loans are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans consist primarily of student loans as well as loans to individuals for household, family, and other personal expenditures such as credit cards, automobiles or other consumer items. See “ Note 4 - Student Loans” for specific information on the student loan portfolio. In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At December 31, 2023 and 2022, these financial instruments include commitments to extend credit of $183.5 million and $190.2 million, respectively, and standby letters of credit of $2.9 million and $1.6 million, respectively. These instruments involve elements of credit risk in excess of the amount recognized on the consolidated balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company applies the same credit policies as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if necessary, is based on management’s credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Loans to directors, officers, principal shareholders and their affiliates are summarized below: (In thousands) 2023 2022 Aggregate amount outstanding, beginning of year $ 3,610 $ 13,100 Retirement of director during 2022 — (8,899) New loans or advances during year 825 980 Repayments during year (1,396) (1,571) Aggregate amount outstanding, end of year $ 3,039 $ 3,610 Undisbursed commitments, end of year $ 1,525 $ 1,050 Key terms and conditions for loans to directors, officers, principal shareholders and their affiliates do not differ from those of other borrowers. Past Due Loans The Company monitors delinquent and potentially problematic loans on an ongoing basis through weekly reports to the loan committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans, net of unearned fees, at December 31, 2023 (in thousands): December 31, 2023 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 53,273 $ 53,273 $ — Government program loans — — — — 74 74 — Total commercial and industrial — — — — 53,347 53,347 — Commercial real estate loans — — — — 386,134 386,134 — Residential mortgages — — — — 260,539 260,539 — Home improvement and home equity loans — — — — 36 36 — Total real estate mortgage — — — — 646,709 646,709 — Real estate construction and development loans — — 11,390 11,390 116,554 127,944 — Agricultural loans — — 45 45 49,750 49,795 — Installment and student loans 791 328 426 1,545 40,702 42,247 426 Total loans $ 791 $ 328 $ 11,861 $ 12,980 $ 907,062 $ 920,042 $ 426 The following is a summary of delinquent loans, net of unearned fees, at December 31, 2022 (in thousands): December 31, 2022 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 Nonaccrual Loans The following table presents the amortized costs of loans on nonaccrual status and accruing loans more than 90 days past due: December 31, 2023 and 2022: December 31, 2023 December 31, 2022 (In thousands) Nonaccrual Loans With No Allowance For Credit Losses Total Nonaccrual Loans Accruing Loans 90 or More Days Past Due Nonaccrual Loans With No Allowance For Credit Losses Total Nonaccrual Loans Accruing Loans 90 or More Days Past Due Real estate construction and development loans 11,403 11,403 — 14,436 14,436 — Agricultural loans — 45 — — 108 — Installment and student loans — — 426 — — 252 Total $ 11,403 $ 11,448 $ 426 $ 14,436 $ 14,544 $ 252 There were no remaining undisbursed commitments to extend credit on nonaccrual loans at December 31, 2023 and 2022. Credit Quality Indicators As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences which might impact the credit facility and warrant a change in the risk rating. Each loan credit facility is given a risk rating that takes into account factors that materially affect credit quality. When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value, and the Company’s ability to dispose of the collateral. Guarantees - The value of third party support arrangements varies widely. Unconditional guarantees from persons with demonstrable ability to perform are more substantial than that of closely-related persons to the borrower who offer only modest support. Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. Borrower Rating: The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating applied is: - Grades 1 and 2 – These grades include loans which are given to high-quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower’s strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. - Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have characteristics which place them well above the minimum underwriting requirements for those departments. Asset-based borrowers assigned this rating must exhibit extremely favorable leverage and cash flow characteristics, and consistently demonstrate a high level of unused borrowing capacity. - Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. While the borrower may have recognized a loss over three - Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and these loans will usually be upgraded to an “acceptable” rating or downgraded to a “substandard” rating within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans which exhibit weaknesses inherent in the loan origination and loan servicing, and may have some technical deficiencies. The main theme in special mention credits is the distinct probability that the classification will deteriorate to a more adverse class if the noted deficiencies are not addressed by the loan officer or loan management. - Grade 7 – This grade includes “substandard” loans which are inadequately supported by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that may impair the regular liquidation of the debt. When a loan has been downgraded to “substandard,” there exists a distinct possibility that the Company will sustain a loss if the deficiencies are not corrected. - Grade 8 – This grade includes “doubtful” loans which exhibit the same characteristics as the “substandard” loans. Additionally, loan weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status can be determined. Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. - Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. The following table presents loans by class, net of deferred fees, by risk rating and period indicated as of December 31, 2023: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 40,929 $ 81,823 $ 52,019 $ 39,155 $ 60,626 $ 105,285 $ 501 $ — $ 380,338 Special Mention — — — 5,796 — — — — 5,796 Substandard — — — — — — — — — Total $ 40,929 $ 81,823 $ 52,019 $ 44,951 $ 60,626 $ 105,285 $ 501 $ — $ 386,134 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ 24,835 $ 206,257 $ 2,260 $ — $ 8,969 $ — $ — $ 242,321 Pass 4,189 1,925 5,253 1,579 3,494 1,778 — — 18,218 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,189 $ 26,760 $ 211,510 $ 3,839 $ 3,494 $ 10,747 $ — $ — $ 260,539 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 32 $ — $ — $ 32 Pass — — — — — 4 — — 4 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 36 $ — $ — $ 36 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Real estate construction and development Pass $ 27,951 $ 9,571 $ — $ 31,308 $ — $ 3,978 $ 43,734 $ — $ 116,542 Special Mention — — — — — — — — — Substandard — — — 3,524 — 7,878 — — 11,402 Total $ 27,951 $ 9,571 $ — $ 34,832 $ — $ 11,856 $ 43,734 $ — $ 127,944 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 2,086 $ 4,163 $ 457 $ 2,958 $ 1,592 $ 12,574 $ 22,556 $ — $ 46,386 Special Mention — 2,105 — 513 — 356 — — 2,974 Substandard — — — — — 45 390 — 435 Total $ 2,086 $ 6,268 $ 457 $ 3,471 $ 1,592 $ 12,975 $ 22,946 $ — $ 49,795 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 708 $ 250 $ 142 $ 74 $ 483 $ 38,519 $ 472 $ — $ 40,648 Pass 1,173 — — — — — — — 1,173 Special Mention — — — — — — — — — Substandard — — — — — 426 — — 426 Total $ 1,881 $ 250 $ 142 $ 74 $ 483 $ 38,945 $ 472 $ — $ 42,247 Current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 Total loans outstanding (risk rating): Not graded $ 708 $ 25,085 $ 206,399 $ 2,334 $ 483 $ 47,520 $ 472 $ — $ 283,001 Pass 82,317 102,548 59,323 75,818 65,718 124,624 105,660 — 616,008 Special Mention — 2,105 — 6,309 — 356 — — 8,770 Substandard — — — 3,524 — 8,349 390 — 12,263 Grand total loans $ 83,025 $ 129,738 $ 265,722 $ 87,985 $ 66,201 $ 180,849 $ 106,522 $ — $ 920,042 Total current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans at December 31, 2022. The Company did not carry any loans graded as loss at December 31, 2022 (in thousands): December 31, 2022 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total Grades 1 and 2 $ 216 $ — $ — $ — $ 216 Grade 3 — — — — — Grades 4 and 5 – pass 57,493 372,120 138,951 50,658 619,222 Grade 6 – special mention 197 25,995 — 1,021 27,213 Grade 7 – substandard — — 14,424 1,043 15,467 Grade 8 – doubtful — — — — — Total $ 57,906 $ 398,115 $ 153,375 $ 52,722 $ 662,118 The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2022 (in thousands): December 31, 2022 Residential Mortgages Home Installment and Student Loans Total Not graded $ 257,207 $ 41 $ 44,402 $ 301,650 Pass 16,150 8 — 16,158 Special Mention — — — — Substandard — — 252 252 Doubtful — — — — Total $ 273,357 $ 49 $ 44,654 $ 318,060 Allowance for Credit Losses on Loans The Company adopted ASU 2016-13, Financial Instrument-Credit Losses (Topic 326), effective January 1, 2023. This loss measurement, which uses the current expected credit loss (CECL) cohort methodology analysis, relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience. Management estimates the allowance for credit loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2023. The Company expects that the markets in which it operates will experience a slight decline in economic conditions and an increase in unemployment rates and levels and trends of delinquencies over the next year. Management has adjusted the historical loss experience for these expectations. Unfunded loan commitment reserves are included in other liabilities in the consolidated balance sheets. Provisions for unfunded loan commitments are included in provision for credit losses in the consolidated statements of income. Prior to adoption of ASC 326, provisions for unfunded loan commitments were included in other expenses in the consolidated statements of income. The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2023 and 2022 (in thousands). December 31, 2023 Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment & Student Loans Unallocated Total Beginning balance $ 955 $ 1,363 $ 3,409 $ 525 $ 2,898 $ 1,032 $ 10,182 CECL adjustment 1,336 2,359 720 1,025 1,959 (1,032) 6,367 Provision for (reversal of) credit losses (1) (390) (1,253) (515) (300) 3,888 — 1,430 Charge-offs — — — — (2,588) — (2,588) Recoveries 2 55 — — 210 — 267 Ending balance $ 1,903 $ 2,524 $ 3,614 $ 1,250 $ 6,367 $ — $ 15,658 (1) Excludes a $30,000 provision for unfunded loan commitments during the year. December 31, 2022 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Agricultural Installment & Student Loans Unallocated Total Beginning balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 2,720 $ 769 $ 9,333 Provision for (reversal of) credit losses (1) 87 147 569 (744) 1,480 263 1,802 Charge-offs 1 — — — (1,364) — (1,363) Recoveries 270 42 — 36 62 — 410 Ending balance $ 955 $ 1,363 $ 3,409 $ 525 $ 2,898 $ 1,032 $ 10,182 (1) Includes a $137,000 reversal of provision for unfunded loan commitments during the year. Collateral-Dependent Loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loan: December 31, 2023 December 31, 2022 (Dollars in thousands) Amount Number of Collateral-Dependent Loans Amount Number of Collateral-Dependent Loans Real estate construction and development loans $ 11,390 3 $ 14,436 4 Agricultural loans 390 1 108 2 Total $ 11,780 4 $ 14,544 6 At December 31, 2023, two of the real estate and construction and development loans were secured by land and one was secured by a multifamily property, and the agricultural loan was secured by farmland. At December 31, 2022, three of the real estate and construction and development loans were secured by land and one was secured by a multifamily property, and the agricultural loan was secured by farmland. Reserve for Unfunded Commitments The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit, and undisbursed funds on lines of credit. The Company evaluates credit risk associated with the off-balance sheet loan commitments in the same manner as it evaluates credit risk within the loan portfolio. The reserve for the unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The following table represents the impact to the unfunded commitments liability after the adoption of CECL: 12/31/2023 12/31/2022 Beginning Liability $ 532 $ 669 CECL Day 1 Adjustment 273 — Provision (Reversal of Provision) 30 (137) Ending Liability $ 835 $ 532 Loan Modifications Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses. There were no loan modifications at December 31, 2023. Troubled Debt Restructurings Prior to the implementation of CECL, loan modifications were classified as troubled debt restructurings. When the Company granted a concession to a borrower as part of a loan restructuring, the restructuring was accounted for as a troubled debt restructuring (TDR). TDRs were reported as a component of impaired loans. A TDR was a type of restructuring in which the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise have considered. Although the restructuring took different forms, the Company’s objective was to maximize recovery of its investment by granting relief to the borrower. There were no TDR modifications or defaults during the year ended December 31, 2022. The following tables summarizes all TDR activity by loan category for the years ended December 31, 2022 (in thousands). 2022 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Defaults — — — — — — — — Additions — — — — — — — — Principal reductions — — (6) — (330) (134) — (470) Charge-offs — — — — — — — — Ending balance $ — $ — $ 140 $ — $ 1,876 $ 108 $ — $ 2,124 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 48 $ — $ 52 The Company made various types of concessions when structuring TDRs including rate reductions, payment extensions, and forbearance. At December 31, 2022, the Company had 4 restructured loans totaling $2.1 million. The Company had no unfunded commitments outstanding for TDRs at December 31, 2022. |
Student Loans
Student Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Student Loans | Student Loans Included in installment loans are $38.5 million and $42.1 million in student loans at December 31, 2023 and 2022, made to medical and pharmacy school students. Upon graduation the loan is automatically placed on deferment for six months. This may be extended up to 48 months for graduates enrolling in internship, medical residency, or fellowship. As approved, the student may receive additional deferment for hardship or administrative reasons in the form of forbearance for a maximum of 36 months throughout the life of the loan. Student loans have not been originated or purchased since 2019. As of December 31, 2023 and December 31, 2022, the allowance for credit losses for the student loan portfolio was $6.3 million and $2.6 million, respectively. At December 31, 2023 and December 31, 2022, student loans totaling $426,000 and $252,000 were included in the substandard category, respectively. The following tables summarize the credit quality indicators for outstanding student loans as of December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (In thousands, except number of loans) Number of Loans Principal Amount Accrued Interest Number of Loans Principal Amount Accrued Interest School 44 $ 1,242 $ 734 70 $ 2,056 $ 908 Grace 18 473 296 27 667 348 Repayment 444 20,833 289 516 23,414 857 Deferment 237 10,163 2,022 268 10,974 1,732 Forbearance 98 5,782 133 91 5,019 237 Total 841 $ 38,493 $ 3,474 972 $ 42,130 $ 4,082 School - The time in which the borrower is still actively in school at least half time. No payments are expected during this stage, though the borrower may begin immediate payments. Grace - A six month period of time granted to the borrower immediately upon graduation, or withdrawal from school. Interest continues to accrue. Upon completion of the six month grace period the loan is transferred to repayment status. This status may also represent a borrower activated to military duty during their time in school. The borrower must return to at least half-time status within six-months of the active duty end-date in order to return to in-school status. Repayment - The time in which the borrower is no longer actively in school at least half time, and has not received an approved grace, deferment, or forbearance. Regular payment is expected from these borrowers under an allotted payment plan. Deferment - May be granted up to 48 months for borrowers who have begun the repayment period on their loans but are (1) actively enrolled in an eligible school at least half time, or (2) are actively enrolled in an approved and verifiable medical residency, internship, or fellowship program. Forbearance - The period of time during which the borrower may postpone making principal and interest payments due to hardship or administrative reasons. Interest continues to accrue on loans during periods of authorized forbearance. If the borrower is delinquent at the time the forbearance is granted, accrued and unpaid interest from the date of delinquency, if any, will be capitalized at the end of the forbearance period. The loan-term will not change and payments may be increased to allow the loan to pay off in the required time frame. A forbearance that results in and insignificant payment delay is not considered a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation; this designation is standard industry practice, and is consistent with a student’s migration to the medical profession. However, additional risk is associated with this designation. Student Loan Aging Student loans are generally charged off at the end of the month during which an account becomes 120 days contractually past due. Accrued but unpaid interest related to charged off student loans is reversed and charged against interest income. For the year ended December 31, 2023, $252,000 in accrued interest receivable was reversed due to charge-offs of $2.6 million within the student loan portfolio. For the year ended December 31, 2022, $141,000 in accrued interest receivable was reversed due to charge-offs of $1.3 million within the student loan portfolio. The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2023 and December 31, 2022 : December 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Principal Amount Number of Borrowers Principal Amount Current or less than 31 days 221 $ 25,070 251 $ 26,993 31 - 60 days 6 791 8 546 61 - 90 days 2 328 5 642 Greater than 90 days 3 426 4 252 Total 232 $ 26,615 268 $ 28,433 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The components of premises and equipment are as follows: (In thousands) December 31, 2023 December 31, 2022 Land $ 968 $ 968 Buildings and improvements 16,502 16,288 Furniture and equipment 11,105 11,024 28,575 28,280 Less accumulated depreciation and amortization (19,477) (18,510) Total $ 9,098 $ 9,770 |
Investment in Limited Partnersh
Investment in Limited Partnership | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Limited Partnership | Investment in Limited Partnership The Bank owns a 2.22% interest in a limited partnership which provides private capital for small to mid-sized businesses used to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations, or mezzanine capital. At December 31, 2023 and December 31, 2022, the total investment in this limited partnership was $3.2 million, and $2.8 million, respectively. The investment is accounted for under the cost method. No income was received from the partnership during the year ended December 31, 2023. During the year ended December 31, 2022, $566,000 was recognized and reflected in non-interest income on the consolidated statement of income. Remaining unfunded commitments as of December 31, 2023 and 2022, totaled $800,000 and $1.2 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits include the following: (In thousands) December 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 403,225 $ 481,629 Interest-bearing deposits: NOW and money market accounts 406,857 499,861 Savings accounts 122,547 125,946 Time deposits: Under $250,000 48,098 42,933 $250,000 and over 23,750 15,115 Total interest-bearing deposits 601,252 683,855 Total deposits $ 1,004,477 $ 1,165,484 The scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2023 December 31, 2022 One year or less $ 44,887 $ 46,224 More than one year, but less than or equal to two years 26,046 10,352 More than two years, but less than or equal to three years 611 723 More than three years, but less than or equal to four years 86 610 More than four years, but less than or equal to five years 218 139 Greater than five years — — $ 71,848 $ 58,048 Deposit balances representing overdrafts reclassified as loan balances totaled $387,000 and $487,000 as of December 31, 2023 and 2022, respectively. Deposits of directors, officers and other related parties to the Bank totaled $10.3 million and $13.8 million at December 31, 2023 and 2022, respectively. The rates paid on these deposits were similar to those customarily paid to the Bank’s customers in the normal course of business. There were no brokered deposits held at December 31, 2023 or December 31, 2022. |
Short-term Borrowings_Other Bor
Short-term Borrowings/Other Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings The Bank maintains lines of credit with the Federal Reserve Bank, the Federal Home Loan Bank, and corespondent banks which may be drawn upon, as needed, to cover short-term financial obligations, or for investment or capital utilization purposes. The following table sets forth the Bank’s outstanding and available credit lines for the periods indicated: (In thousands) December 31, 2023 December 31, 2022 Unsecured credit lines: Credit limit $ 80,000 $ 120,000 Balance outstanding 2,000 — Federal Home Loan Bank: Credit limit 128,935 2,151 Balance outstanding 60,000 — Collateral pledged 232,144 2,307 Federal Reserve Bank: Credit limit 463,501 435,599 Balance outstanding — — Collateral pledged 608,045 590,427 At December 31, 2023, the Company’s available lines of credit totaled $672.4 million. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or SOFR. FHLB advances are collateralized by the Company’s stock in the FHLB and investment securities. At December 31, 2023, $230.1 million in loans and $2.1 million in investment securities were pledged as collateral for FHLB advances. Additionally, $604.0 million in loans and $4.1 million in investment securities were pledged at December 31, 2023 as collateral for advances with the Federal Reserve Bank. At December 31, 2022, the Company’s available lines of credit totaled $557.8 million. As of December 31, 2022, $2.3 million in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $590.4 million in real-estate secured loans were pledged at December 31, 2022, as collateral at the Federal Reserve Bank. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases land and premises for its branch banking offices, administration facilities, and ITMs. The initial terms of these leases expire at various dates through 2032. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of December 31, 2023, the Company had 13 operating leases and no financing leases. Upon adoption of ASC Topic 842, Leases , the Bank chose to apply the incremental borrowing rate in its determination of the lease liability. The incremental borrowing rate approximates the Bank’s current rates for fully secured loans where the amount and terms applied are similar to the amount and terms of the lease. The components of lease expense were as follows for the yeas ended: (In thousands) December 31, 2023 December 31, 2022 Operating lease expense $ 711 $ 728 Short-term lease expense — — Variable lease expense — — Sublease income — — Total lease cost $ 711 $ 728 Supplemental balance sheet information related to leases is as follows: (In thousands) December 31, 2023 December 31, 2022 Operating cash flows used in operating leases $ 720 $ 729 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Weighted-average remaining lease terms in years for operating leases 4.23 4.49 Weighted-average discount rate for operating leases 5.09 % 5.12 % Maturities of lease liabilities are as follows as of December 31, 2023 (in thousands): Years Ending December 31, Lease Liabilities 2024 $ 580 2025 402 2026 183 2027 112 2028 108 Thereafter 211 Total undiscounted cash flows 1,596 Less: present value discount (159) Present value of net future minimum lease payments $ 1,437 |
Junior Subordinated Debt_Trust
Junior Subordinated Debt/Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Debt/Trust Preferred Securities [Abstract] | |
Junior Subordinated Debt/Trust Preferred Securities | Junior Subordinated Debt/Trust Preferred Securities The contractual principal balance of the Company’s debentures relating to its trust preferred securities is $12 million as of December 31, 2023 and 2022. The Company may redeem the junior subordinated debentures at any time at par. The Company accounts for its junior subordinated debt issued under USB Capital Trust II at fair value. The Company believes the election of fair value accounting for the junior subordinated debentures better reflects the true economic value of the debt instrument on the consolidated balance sheet. As of December 31, 2023, the rate paid on the junior subordinated debt issued under USB Capital Trust II is 3-month SOFR plus 129 basis points, and is adjusted quarterly. At December 31, 2023, the Company performed a fair value measurement analysis on its junior subordinated debt using a cash flow model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month SOFR curve to estimate future quarterly interest payments due over remaining life of the debt instrument. These cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with junior subordinated debt. The 6.14% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At December 31, 2023 and December 31, 2022, the total cumulative gain recorded on the debt was $1.5 million and $1.7 million, respectively. (In thousands) December 31, 2023 December 31, 2022 Net fair value calculation (loss) gain $ (270) $ 413 Other comprehensive income (loss) gain (544) 2,947 Recognized gain (loss) on fair value 274 (2,533) Cumulative gain recorded 1,461 1,732 Discount rate 6.14 % 6.63 % The net fair value calculation performed as of December 31, 2023 resulted in a pretax loss adjustment of $270,000 for the year ended December 31, 2023, compared to a pretax gain adjustment of $413,000 for the year ended December 31, 2022. For the year ended December 31, 2023, the $270,000 fair value loss adjustment was separately presented as a $274,000 gain recognized on the consolidated statements of income, and a $544,000 loss associated with the instrument-specific credit risk recognized in other comprehensive income. For the year ended December 31, 2022, the $413,000 fair value gain adjustment was separately presented as a $2.5 million loss recognized on the consolidated statements of income, and a $2.9 million gain associated with the instrument-specific credit risk recognized in other comprehensive income. The Company calculated the change in the discounted cash flows based on updated market credit spreads for the periods ended. |
Deferred Taxes
Deferred Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Deferred Taxes | Deferred Taxes The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2023 2022 Deferred tax assets: Credit losses not currently deductible $ 4,985 $ 3,411 Deferred compensation 1,757 1,352 Depreciation 92 167 Accrued reserves — 75 Write-down on other real estate owned 291 291 Unrealized gain on retirement obligation 56 83 Deferred loss ASC 825 – fair value option 159 245 Unrealized loss on available for sale securities 6,835 8,000 Interest on nonaccrual loans 1,513 833 Lease liability 458 667 Other 848 815 Total deferred tax assets 16,994 15,939 Deferred tax liabilities: State tax (596) (433) FHLB dividend (46) (46) Loss on limited partnership investment (650) (507) Fair value adjustments for purchase accounting (93) (98) Unrealized loss on TRUPs (579) (740) Deferred loan costs (414) (508) Prepaid expenses (135) (150) Right-of-use asset (426) (632) Total deferred tax liabilities (2,939) (3,114) Net deferred tax assets $ 14,055 $ 12,825 The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. The Company did not record a valuation allowance at December 31, 2023 or December 31, 2022. Income tax expense for the years ended December 31, consist of the following: (In thousands) Federal State Total 2023 Current $ 5,103 $ 2,874 $ 7,977 Deferred (238) (59) (297) $ 4,865 $ 2,815 $ 7,680 2022 Current $ 5,489 $ 3,246 $ 8,735 Deferred (1,457) (905) (2,362) $ 4,032 $ 2,341 $ 6,373 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % State franchise tax, net of federal income tax benefit 8.1 8.1 Other (1.1) (0.2) Effective income tax rate 28.0 % 28.9 % The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term “more likely than not” means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. As of December 31, 2023 and 2022, the Company has no uncertain tax positions. The Company and its subsidiary file income tax returns in the U.S federal jurisdiction and California. There are no filings in foreign jurisdictions. The Company is no longer subject to income tax examinations by taxing authorities for years before 2020 and 2019 for Federal and California jurisdictions, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Options and restricted stock units and awards have been granted to directors, officers and key employees at an exercise price equal to estimated fair value at the date of grant as determined by the Board of Directors. All options, units, and awards granted are service awards, and are based solely upon fulfilling a requisite service period (the vesting period). At December 31, 2023, the Company had one shareholder approved stock based compensation plan. In May 2015, the Company adopted the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan). The 2015 Plan provides for the granting of up to 758,000 shares of authorized and unissued shares of common stock in the form of stock options, restricted stock units, and restricted stock awards. The 2015 Plan requires that the exercise price may not be less than the fair value of the stock at the date the option is granted, and that the option price must be paid in-full at the time it is exercised. The options granted (incentive stock options for employees and non-qualified stock options for Directors) have an exercise price at the prevailing market price on the date of grant. All options granted are exercisable 20% each year commencing one year after the date of grant and expire ten years after the date of grant. Restricted stock units are granted at the prevailing market price of the Company’s stock, subject to time-based vesting. Restricted stock awards are subject to forfeiture if employment terminates prior to vesting. The cost of these awards is recognized over the vesting period of the awards based on the fair value of the common stock on the date of the grant. Under the 2015 Plan, 96,435 granted stock instruments are outstanding as of December 31, 2023, of which 51,000 are exercisable. Of the 96,435 granted stock instruments, 7,000 are restricted stock units, 14,435 are restricted stock awards, and 75,000 are nonqualified stock options. At December 31, 2023, there were 411,590 shares available for future issuance under equity compensation plans. A summary of the status of the Company’s stock option plan and changes during the year are presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding December 31, 2021 94,601 $ 7.87 Granted during the year 30,000 8.17 Exercised during the year (5,579) 5.22 Forfeited during the year — — Options outstanding December 31, 2022 119,022 8.07 4.78 $ 105,334 Granted during the year — — Exercised during the year (29,022) 3.68 Forfeited during the year (15,000) 9.25 Options outstanding December 31, 2023 75,000 $ 9.54 5.50 $ 7,200 As of December 31, 2023 and 2022 there was $78,000 and $104,000, respectively, of total unrecognized compensation expense related to non-vested stock options. Non-vested stock options totaled 24,000 shares at December 31, 2023, with a weighted average remaining vesting period of approximately 3.07 years. The aggregate intrinsic value of the non-vested stock options was $5,760 at December 31, 2023. Non-vested stock options totaled 30,000 shares at December 31, 2022, with a weighted average remaining vesting period of approximately 4.07 years. Their was no aggregate intrinsic value of the non-vested stock options at December 31, 2022. A summary of the status of the Company’s restricted stock units and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2021 27,949 $ 8.45 Granted during the year 26,492 $ 7.52 Vested during the year (35,967) $ 7.90 Forfeited during the year (4,500) $ 7.85 Non-vested units at December 31, 2022 13,974 $ 8.29 Granted during the year 52,477 7.53 Vested during the year (59,451) 7.68 Non-vested units at December 31, 2023 7,000 $ 7.79 As of December 31, 2023 and 2022 there was $40,000 and $90,000, respectively, of total unrecognized compensation expense related to restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 3.57 years. A summary of the status of the Company’s restricted stock awards and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2022 — $ — Granted during the year 14,435 7.99 Vested during the year — — Forfeited during the year — — Non-vested units at December 31, 2023 14,435 $ 7.99 As of December 31, 2023, there was $113,000 of total unrecognized compensation expense related to restricted stock awards. There were no outstanding restricted stock awards at December 31, 2022. This cost is expected to be recognized over a weighted-average period of approximately 4.93 years. Included in total outstanding options at December 31, 2023, are 51,000 exercisable shares at a weighted average price of $7.01, a weighted average remaining contract term of 4.28 and intrinsic value of $1,440. Included in salaries and employee benefits for the years ended December 31, 2023 and 2022 are $141,000 and $185,000 of stock-based compensation, respectively. Director’s fees totaling $337,000 and $181,000 for the same periods, respectively, are also included in stock-based compensation as reflected in the Consolidated Statement of Changes in Shareholders’ Equity. The related tax benefit on share-based compensation recorded in the provision for income taxes was not material to any year. A summary of the status of the Company’s stock option values and activity is presented below: December 31, 2023 December 31, 2022 Weighted average grant-date fair value per share of stock options granted $ — $ 127,644 Weighted average fair value of stock options vested $ 26,000 $ 86,000 Total intrinsic value of stock options exercised $ 85,000 $ 10,555 The Bank determines fair value of stock options at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option. The Bank determines fair value of restricted stock based on the quoted stock price as of the grant date. The expected term of options granted is derived from management’s experience, which is based upon historical data on employee exercise and post-vesting behavior. The risk free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the Bank’s stock over a period commensurate with the expected term of the options. The Company believes that historical volatility is indicative of expectations about its future volatility over the expected term of the options. The Bank expenses the fair value of the option on a straight-line basis over the vesting period for each separate service period portion of the award. The fair value of options granted was determined using the following weighted-average assumptions as of the grant date: December 31, 2023 December 31, 2022 Risk-free interest rate — % 1.23 % Expected term in years 0 10 Expected stock price volatility — % 41.63 % Dividend yield — — |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401K Plan The Company has a Cash or Deferred 401(k) Stock Ownership Plan (the “401(k) Plan”) organized under Section 401(k) of the Code. All employees of the Company are initially eligible to participate in the 401(k) Plan upon the first day of the month after date of hire. Under the terms of the plan, the participants may elect to make contributions to the 401(k) Plan as determined by the Board of Directors. Participants are automatically vested 100% in all employee contributions. Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are immediately 100% vested at the time of contribution. The Company made matching contributions of $282,000 and $263,000 to the 401(k) Plan for the years ended December 31, 2023 and 2022, respectively. Salary Continuation Plan The Company has an unfunded, non-qualified Salary Continuation Plan for senior executive officers and certain other key officers of the Company, which provides additional compensation benefits upon retirement for a period of at least 15 years. Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 32 years. As of December 31, 2023, the Company maintained a total of twelve Salary Continuation agreements. The Company’s current benefit liability is determined based upon vesting and the present value of the benefits at a corresponding discount rate. The discount rate used is an equivalent rate for high-quality investment-grade bonds with lives matching those of the service periods remaining for the salary continuation contracts, which averages approximately 20 years. At December 31, 2023 and 2022, $4,255,000 and $4,245,000, respectively, had been accrued to date, based on a discounted cash flow using an average discount rate of 5.30% a nd 4.83%, respectively, and is included in other liabilities on the consolidated balance sheets. Salary continuation expense is included in salaries and benefits expense, and totaled $314,000 and $310,000 for the years ended December 31, 2023 and 2022, respectively. Included within the twelve total Salary Continuation agreements, the Company has four separate agreements with officers of the Bank and accrues for this salary continuation liability based on anticipated years of service and vesting schedules provided under the individual agreements. The four policies are considered individual contracts, and the Company applies guidance contained in ASC Topic 710. Additionally, the Company purchased company owned life insurance (COLI) and bank owned life insurance policies (BOLI) on the life of the officers in connection with the salary continuation agreements. The COLI policy premiums were paid over a seven For the other eight Salary Continuation agreements in place prior to 2015, the Company recognizes in accumulated other comprehensive (loss) income, the amounts that have not yet been recognized as components of net periodic benefit costs, per the guidance contained in ASC Topic 715 “ Compensation ”. These unrecognized costs arise from changes in estimated interest rates used in the calculation of net liabilities under the Plan. As of December 31, 2023 and 2022, the Company had approximately $130,000 and $195,000, respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the Plan. This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2023 and 2022. Officer Supplemental Life Insurance Plan The Company owns Bank-owned life insurance policies (BOLI) and Company-owned life insurance policies (COLI) on certain officers, including those covered under the Salary Continuation Plan above, with a portion of the post-retirement benefit available to the officers’ beneficiaries. The BOLI and COLI initial net cash surrender value is equal to the premium paid. Non-taxable increases in the cash surrender value, net of the cost of insurance, plus any death benefits ultimately received by the Company, are recorded as income. The cash surrender value of the policies totaled $22.0 million and $22.9 million at December 31, 2023 and 2022, and are included on the consolidated balance sheet as cash surrender value of life insurance. Income, net of expense, totaled $557,000 and $555,000 for the years ended December 31, 2023 and 2022, respectively. As the Salary Continuation Plan remains unfunded, it is the Company’s intention to utilize the policy proceeds to settle Plan obligations. Under Internal Revenue Service regulations, the life insurance policies are the property of the Company and are available, if necessary, to satisfy the Company’s creditors |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: December 31, (In thousands) 2023 2022 Commitments to extend credit $ 183,537 $ 190,183 Standby letters of credit 2,940 1,570 Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the prime rate, and most have fixed expiration dates. The Company evaluates each customer’s creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company’s letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At December 31, 2023, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $2.9 million. Remaining unfunded commitments for the investment in limited partnership as of December 31, 2023 and 2022, totaled $800,000 and $1.2 million, respectively. In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material to the financial position of the Company. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosure | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825 “ Fair Value Measurements and Disclosures ” which requires the disclosure of fair value information for both on- and off-balance sheet financial instruments where it is practicable to estimate that value. GAAP guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s assumptions regarding the pricing of an asset or liability by a market participant (including assumptions about risk). The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2023 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 181,266 $ 179,016 $ 12,438 $ 166,578 $ — Marketable equity securities 3,354 3,354 3,354 — — Loans, net 904,384 871,681 — — 871,681 Financial Liabilities: Time deposits 71,848 71,414 — — 71,414 Short-term borrowings 62,000 62,000 62,000 — — Junior subordinated debt 11,213 11,213 — — 11,213 December 31, 2022 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 207,545 $ 207,545 $ 29,224 $ 178,321 $ — Marketable equity securities 3,315 3,315 3,315 — — Loans, net 969,996 906,050 — — 906,050 Financial Liabilities: Time deposits 58,048 57,056 — — 57,056 Junior subordinated debt 10,883 10,883 — — 10,883 The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as investment securities and junior subordinated debt are performed on a recurring basis, while others, such as impairment of loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. • Level 1 financial assets consist of money market funds and highly liquid mutual funds for which fair values are based on quoted market prices. • Level 2 financial assets include highly liquid debt instruments of U.S. Government agencies, collateralized mortgage obligations, corporate debt instruments, and debt obligations of states and political subdivisions, whose fair values are obtained from readily-available pricing sources for the identical or similar underlying security that may, or may not, be actively traded. • Level 3 financial assets include certain instruments where the assumptions may be made by the Company or third parties about assumptions that market participants would use in pricing the asset or liability. The Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the year ended December 31, 2023. The following methods and assumptions were used in estimating the fair values of financial instruments measured at fair value on a recurring and non-recurring basis: Investment Securities - Available-for-sale and marketable equity security values are based on open-market price quotes obtained from reputable third-party brokers. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine the fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing-approach, based on comparable securities in the market, is utilized. Level 2 pricing may include the use of a forward spread from the last observable trade or may use a proxy bond, such as a TBA mortgage, to determine the price for the security being valued. Changes in fair market value are recorded through other-accumulated-comprehensive-income as an unrecognized gain or loss on fair value. Individually-Evaluated Loans - Fair value measurements for individually-evaluated loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by third party appraisals or observed market prices. Collateral-dependent loans are measured for impairment using the fair value of the collateral. There were no individually-evaluated loans measured at fair value as of December 31, 2023 or December 31, 2022. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. No OREO properties were measured at fair value as of December 31, 2023 or December 31, 2022. Junior Subordinated Debt - The fair value of the junior subordinated debt is based on a discounted cash flow model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company uses characteristics that market participants would generally use, and considers factors specific to the liability and the principal, or most advantageous, market for the liability. Cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of these inputs, credit concerns in the capital markets, and inactivity in the trust preferred markets, limit the observability of market spreads, requiring the junior subordinated debt to be classified at a Level 3 fair value. The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.14% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.63% Management believes that the credit risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the nonperformance risk premium a willing market participant would require under current, inactive market conditions. Management attributes the change in fair value of the junior subordinated debentures to market changes in the nonperformance expectations and pricing of this type of debt. Generally, an increase in the credit risk adjusted spread and/or a decrease in the forward three-month SOFR curve will result in a positive fair value adjustment and a decrease in the fair value measurement. Conversely, a decrease in the credit risk adjusted spread and/or an increase in the forward three-month SOFR curve will result in a negative fair value adjustment and an increase in the fair value measurement. The decrease in discount rate between the periods ended December 31, 2023 and December 31, 2022, is primarily due to decreases in rates for similar debt instruments. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2023: (In thousands) December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: AFS Securities: U.S. Government agencies $ 6,156 $ — $ 6,156 $ — U.S. Government collateralized mortgage obligations 88,184 — 88,184 — Municipal bonds 40,116 — 40,116 — U.S. Treasury securities 12,438 — 12,438 — Corporate bonds 32,122 — 32,122 — Total AFS securities 179,016 — 179,016 — Marketable equity securities 3,354 3,354 — — Total assets $ 182,370 $ 3,354 $ 179,016 $ — Liabilities: Junior subordinated debt $ 11,213 $ — $ — $ 11,213 Total liabilities $ 11,213 $ — $ — $ 11,213 There were no non-recurring fair value adjustments at December 31, 2023. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2022: (In thousands) December 31, 2022 Quoted Prices Significant Significant Assets: AFS Securities: U.S. Government agencies $ 8,231 $ — $ 8,231 $ — U.S. Government collateralized mortgage obligations 97,218 — 97,218 — Municipal bonds 40,170 — 40,170 — U.S. Treasury securities 29,224 — 29,224 — Corporate bonds 32,702 — 32,702 — Total AFS securities 207,545 — 207,545 — Marketable equity securities 3,315 3,315 — — Total assets $ 210,860 $ 3,315 $ 207,545 $ — Liabilities: Junior subordinated debt $ 10,883 $ — $ — $ 10,883 Total liabilities $ 10,883 $ — $ — $ 10,883 The were no non-recurring fair value adjustments at December 31, 2022. The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended: Junior Subordinated Debt (in thousands) December 31, 2023 December 31, 2022 Beginning balance $ 10,883 $ 11,189 Total (gains) losses included in earnings (274) 2,533 Total gains (losses) included in other comprehensive income 544 (2,947) Capitalized interest 60 108 Ending balance $ 11,213 $ 10,883 The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ (274) $ 2,533 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flows Disclosures Year Ended December 31, (In thousands) 2023 2022 Cash paid during the period for: Interest $ 11,010 $ 3,148 Income Taxes 9,732 6,765 Noncash activities: Unrealized (losses) gains on junior subordinated debentures, net of tax (544) 2,947 Unrealized gains (losses) on available for sale securities, net of tax 3,941 (26,730) Unrealized losses on unrecognized post-retirement costs, net of tax 88 615 Cash dividend declared 2,059 1,878 |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table provides a reconciliation of the numerator and the denominator of the basic net income per share computation with the numerator and the denominator of the diluted net income per share computation. Year Ended December 31, (In thousands, except share and per share data) 2023 2022 Net income available to common shareholders $ 19,796 $ 15,686 Weighted average shares outstanding 17,114,214 17,040,241 Add: dilutive effect of stock options and unvested restricted stock 10,972 21,592 Weighted average shares outstanding adjusted for potential dilution 17,125,186 17,061,833 Basic earnings per share $ 1.16 $ 0.92 Diluted earnings per share $ 1.16 $ 0.92 Weighted average anti-dilutive shares excluded from earnings per share calculation 91,000 96,000 Dilutive income per share includes the effect of stock options, unvested restricted stock units, and other potentially dilutive securities using the treasury stock method. There is only one form of outstanding common stock. Holders of unvested restricted stock units do not receive dividends while holders of unvested restricted stock awards do receive dividends. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows for the years ended: December 31, 2023 December 31, 2022 (in thousands) Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Beginning balance $ (19,066) $ (194) $ 1,765 $ (236) $ (627) $ (311) Current period comprehensive (loss) income, net of tax 2,776 64 (383) $ (18,830) $ 433 $ 2,076 Ending balance $ (16,290) $ (130) $ 1,382 $ (19,066) $ (194) $ 1,765 Accumulated other comprehensive loss $ (15,038) $ (17,495) |
Investment in York Monterey Pro
Investment in York Monterey Properties | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in York Monterey Properties | Investment in York Monterey Properties The Bank wholly-owns the subsidiary, York Monterey Properties, Inc. (“Properties”), organized as a California corporation. The Bank capitalized the subsidiary through the transfer of eight unimproved lots at a historical cost of $5.3 million comprised of approximately 186.97 acres in the York Highlands subdivision of the Monterra Ranch residential development in Monterey County, California, together with cash contributions. The Bank transferred the properties to York Monterey Properties, Inc., in order to maintain ownership beyond the ten-year regulatory holding period applicable to a state bank. The Bank acquired five of the lots through a non-judicial foreclosure on or about May 29, 2009. In addition, the Bank purchased three of the lots from another bank. The Bank has continuously held the Properties since the date of foreclosure and acquisition until the time of transfer. At the time of transfer, the Properties had reached the end of the ten-year regulatory holding period limit. As of December 31, 2023 and 2022, the Bank’s investment in York Monterey Properties, Inc. totaled $5.0 million. York Monterey Properties, Inc. is included within the consolidated financial statements of the Company, with $4.6 million of the total investment recognized within the balance of OREO on the consolidated balance sheets. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2023 and 2022 (In thousands) 2023 2022 Assets Cash and equivalents $ 2,902 $ 2,940 Investment in bank subsidiary 131,810 121,159 Other assets 1,102 1,154 Total assets $ 135,814 $ 125,253 Liabilities & Shareholders’ Equity Liabilities: Junior subordinated debt securities (at fair value) $ 11,213 $ 10,883 Dividends declared 2,059 1,878 Other liabilities — 29 Total liabilities 13,272 12,790 Shareholders’ Equity: Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,167,895 at December 31, 2023 and 17,067,253 at December 31, 2022 60,585 60,030 Retained earnings 76,995 69,928 Accumulated other comprehensive loss, net of tax (15,038) (17,495) Total shareholders’ equity 122,542 112,463 Total liabilities and shareholders’ equity $ 135,814 $ 125,253 United Security Bancshares – (parent only) Years ended December 31, Income Statements (In thousands) 2023 2022 Income Gain (loss) on fair value of junior subordinated debentures $ 274 $ (2,533) Dividends from subsidiary 8,451 7,902 Total income 8,725 5,369 Expense Interest expense 799 376 Other expense 460 450 Total expense 1,259 826 Income before taxes and equity in undistributed income of subsidiary 7,466 4,543 Benefit for income taxes (291) (993) Equity in undistributed income of subsidiary 12,039 10,150 Net Income $ 19,796 $ 15,686 United Security Bancshares – (parent only) Years ended December 31, Statement of Cash Flows (In thousands) 2023 2022 Cash Flows From Operating Activities Net income $ 19,796 $ 15,686 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (12,039) (10,150) (Benefit) provision for deferred income taxes (70) 128 (Gain) loss on fair value of junior subordinated debentures (274) 2,533 Decrease in income tax receivable 200 213 Net increase (decrease) in other assets 800 (797) Net cash provided by operating activities 8,413 7,613 Cash Flows From Financing Activities Dividends paid (8,451) (7,486) Net cash used in financing activities (8,451) (7,486) Net (decrease) increase in cash and cash equivalents (38) 127 Cash and cash equivalents at beginning of year 2,940 2,813 Cash and cash equivalents at end of year $ 2,902 $ 2,940 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters Capital Adequacy The Company and Bank are subject to various regulatory capital requirements adopted by the Board of Governors of the Federal Reserve System and the FDIC. Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework, the consolidated Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, includes quantitative measures designed to ensure capital adequacy. The Basel III Rules require the Company and the Bank to maintain: • (i) a minimum common equity Tier 1 ratio minimum of 4.50 percent plus a 2.50 percent “capital conservation buffer,” • (ii) Tier 1 risk-based capital minimum of 6.00 percent plus the capital conservation buffer, • (iii) total risk-based capital ratio minimum of 8.00 percent plus the capital conservation buffer and, • (iv) Tier 1 leverage capital ratio minimum of 4.00 percent. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to meet minimum capital requirements may result in certain actions by regulators that could have a direct material effect on the consolidated financial statements. Community Bank Leverage Ratio : The federal banking agencies published a final rule on November 13, 2019, that provided a simplified measure of capital adequacy for qualifying community banking organizations. A qualifying community banking organization that opts into the community bank leverage ratio framework and maintains a leverage ratio greater than nine percent will be considered to have met the minimum capital requirements, the capital ratio requirements for the well capitalized category under the Prompt Corrective Action framework, and any other capital or leverage requirements to which the qualifying banking organization is subject. A qualifying community banking organization with a leverage ratio of greater than nine percent may opt into the community bank leverage ratio framework if it has average consolidated total assets of less than $10 billion, has off-balance-sheet exposures of 25% or less of total consolidated assets, and has total trading assets and trading liabilities of five percent or less of total consolidated assets. Further, the bank must not be an advance approaches banking organization. The final rule became effective January 1, 2020, and was adopted by the Bank on September 30, 2020. As of December 31, 2023 and December 31, 2022, the Company and Bank met all capital adequacy requirements to which they were subject. The following table shows the Company’s and the Bank’s regulatory capital and regulatory capital ratios at December 31, 2023 and 2022 as compared to the applicable capital adequacy guidelines: Actual Minimum requirement for Community Bank Leverage Ratio (1) (In thousands) Amount Ratio Amount Ratio As of December 31, 2023 (Company): Tier 1 Leverage (to Average Assets) $147,350 11.82% $112,035 9.00% As of December 31, 2023 (Bank): Tier 1 Leverage (to Average Assets) 147,249 11.83% $112,152 9.00% As of December 31, 2022 (Company): Tier 1 Leverage (to Average Assets) 135,889 10.10% $121,064 9.00% As of December 31, 2022 (Bank): Tier 1 Leverage (to Average Assets) 135,930 10.11% $120,968 9.00% (1) If the subsidiary bank’s leverage ratio exceeds the minimum ratio under the Community Bank Leverage Ratio Framework , it is deemed to be “well capitalized” under all other regulatory capital requirements. The Company may revert back to the regulatory framework for “Prompt Corrective Action” if the subsidiary bank’s leverage ratio falls below the minimum under the Community Bank Leverage Ratio Framework . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsDuring 2022, a member of the Board of Directors was hired to act as Chief Information Officer (CIO) on an interim basis, for which the director was paid a consulting fee of $200,000. As a result, the director is currently not considered an independent director. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, with rules and regulations of the Securities and Exchange Commission (SEC), and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly-owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the “Trust”). The Trust is deconsolidated pursuant to Accounting Standards Codification (ASC) 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures and are presented as a separate liability category (see Note 10 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. The Company’s participation loans with other financial institutions are primarily in the state of California. |
Nature of Operations | Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. United Security Bancshares has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. The Bank was founded in 1987 and currently operates twelve branches, one commercial lending office, one consumer lending office, and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank’s primary source of revenue is interest income from loans to customers, who are predominantly small- and middle-market businesses and individuals. The Bank engages in a full complement of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural, and consumer loans, with particular emphasis on short- and medium-term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank’s deposits are attracted from small- and medium-sized business-related sources and from individuals. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, foreign drafts, and person-to-person and bank-to-bank transfers for consumer customers. In addition, the Bank offers internet banking services to its commercial and retail customers. The Bank does not operate a trust department; however, it makes arrangements with its correspondent bank to offer trust services to its customers upon request. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of junior subordinated debt (TRUPs). |
Subsequent events | Subsequent events - The Company has evaluated events and transactions for potential recognition or disclosure through the day the consolidated financial statements were issued. Subsequent events - Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. |
Significant Accounting Policies | Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents include cash on hand and amounts due from correspondent banks. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2023 or 2022. All cash and cash equivalents have maturities when purchased of three months or less. |
Securities | Securities - Debt securities classified as available-for-sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income (loss) and shareholders’ equity. Debt securities classified as held-to-maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time are classified as available-for-sale. Those include, but are not limited to, securities that management intends to use as part of its asset/liability management strategy, as well as those which may be sold in response to changes in interest rates, changes in prepayments, or other factors. Securities which the Company has the ability and intent to hold to maturity are classified as held-to-maturity. There were no securities classified as held-to-maturity as of December 31, 2023. Available-for-sale debt securities in an unrealized loss position are evaluated when the amortized cost of a security exceeds its fair value. If it is determined that it will be necessary to sell a security before the fair value increases to the amortized cost, the amortized cost will be written down to fair value through income. At that point, any previously recorded allowance for credit loss (ACL) would be written off and any additional impairment would be recognized through earnings. If it is believed that the Company will not be required to sell a security before the fair value recovers, a determination will be made as to whether or not the decline in fair value is the result of a credit loss or noncredit factors such as changes in current market rates. If it is determined that the decline is due to a credit loss, the amount recognized as the credit loss will be determined using a discounted cash flow approach. Cash flows expected to be collected would be discounted at the effective interest rate established at acquisition. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses would be recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses on investments are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Marketable equity securities are reported at fair value with gains and losses included in noninterest income on the Consolidated Statements of Income. |
Loans | Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. With the exception of student loans, loans are typically placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. Student loans are typically placed on non-accrual status when principal or interest is past due for 120 days. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed based upon management’s assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan’s term using the simple interest method. Other credit-related fees, such as standby letters of credit fees and loan placement fees, are recognized as noninterest income during the period the related service is performed. d. Allowance for credit losses on loans and r eserve for unfunded loan commitments - The Company adopted ASU 2016-13, effective January 1, 2023, and utilizes the CECL cohort methodology analysis which relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience. Management estimates the allowance for credit loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2023. The Company expects that the markets in which it operates will experience a slight decline in economic conditions and an increase in unemployment rate and level and trend of delinquencies over the next year. Management adjusted the historical loss experience through qualitative factors for these expectations. The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the ten segments of the loan portfolio (Consumer loans include three segments): Commercial and business loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if an economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balance in the overall portfolio. Government program loans – This is a relatively small part of the Company’s loan portfolio, but has historically had a high percentage of loans that have migrated from pass to substandard given their vulnerability to economic cycles. Commercial real estate loans – This segment is considered to have more risk in part because of the vulnerability of commercial businesses to economic cycles as well as the exposure to fluctuations in real estate prices because most of these loans are secured by real estate. Losses in this segment have however been historically low because most of the loans are real-estate secured, and the bank maintains appropriate loan-to-value ratios. Residential mortgages – This segment is considered to have low risk factors based on the Company’s experience and peer statistics. These loans are secured by first deeds of trust. Home improvement and home equity loans – Because of their junior lien position, these loans have an inherently higher risk level. Real estate construction and development loans –This segment of loans is considered to have a higher risk profile due to construction and market value issues in conjunction with normal credit risks. Agricultural loans – This segment is considered to have risks associated with weather, insects, and marketing issues. In addition, concentrations in certain crops or certain agricultural areas can increase risk. Additionally, California may experience severe droughts, which can significantly harm the business of customers and the credit quality of the loans to those customers. Water resources and related issues affecting customers are closely monitored. Signs of deterioration within the loan portfolio are also monitored in an effort to manage credit quality and work with borrowers where possible to mitigate any losses. Installment and student loans – This segment, which includes consumer loans, student loans, overdrafts, and overdraft protection lines, is considered higher risk because most of the loans are unsecured. Additionally, in the case of student loans, there are increased risks associated with liquidity due to the time lag between funding of a student loan and eventual repayment. e. Nonaccrual loans - Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: • When there is doubt regarding the full repayment of interest and principal. • When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. • When the loan is identified as having loss elements and/or is risk rated “8” Doubtful. When loans are placed on nonaccrual status, the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. Student loans past due more than 90-days are not placed on nonaccrual status, but are charged-off once 120-days past due. See “ Note 4 - Student Loans” for specific information on the student loan portfolio. When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method : If the loan is in doubt as to full collection, the interest received in subsequent payments is reversed out of interest income and treated as a reduction of principal for financial reporting purposes. Cash basis : This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest is credited to interest income as received. Loans on non-accrual status may be returned to accruing status when all delinquent principal and/or interest has been brought current, there is no identified element of loss (on the contractual amount of the loan), and current and continued satisfactory performance is expected. Repayment ability is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. f. Individually-evaluated loans - When a financial asset does not share similar risk characteristics with the pool being evaluated, it is evaluated individually. g. Collateral-dependent loans - A loan is deemed collateral-dependent when either, it enters foreclosure, or it is determined that the borrower is experiencing financial difficulties. R |
Bank-Owned Life Insurance and Company-Owned life insurance policies | Ba nk -owned life insurance and company-owned life insurance policies - The Company owns bank-owned life insurance policies (BOLI) and company-owned life insurance policies (COLI) on certain officers, including those covered under the salary continuation plan, with a portion of the post-retirement benefit available to the officers’ beneficiaries. The initial net cash surrender value of BOLI and COLI policies is equivalent to the premium paid, and adds income through non-taxable increases in cash surrender value, net of the cost of insurance, plus any death benefits ultimately received by the Company. |
Off-balance sheet financial instruments | Off-balance sheet financial instruments - |
Premises and Equipment | Premises and equipment |
Other Real Estate Owned | Other-real-estate-owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other-real-estate-owned, along with related revenue and expenses from operations, are charged to noninterest expense. |
Investment in Limited Partnership | Investment in Limited Partnership - The Bank owns an interest in a local area limited partnership which provides private capital for small- to mid-sized businesses. The investment is accounted for under the cost method. |
Intangible Assets and Goodwill | Goodwill - Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2023 and 2022, the Company reported goodwill totaling $4.5 million. The Company did not recognize any impairment charges on goodwill during 2023 or 2022. |
Income Taxes | Income taxes - Deferred income taxes result from the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities using the liability method, and are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. Estimates are based on the enacted tax rate of the applicable period. |
Net Income per Share | Net income per common share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method. If applicable, net income per common share is retroactively adjusted for all stock dividends declared. |
Cash Flow Reporting | Cash flow reporting - For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for a one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, deposits held for customers, and short-term borrowings. |
Transfers of Financial Assets | Transfers of financial assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain the taking advantage of that right, beyond a trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase before maturity. |
Stock Based Compensation | Stock based compensation - The Company maintains a stock-based employee compensation plan, which is described more fully in “ Note 12 - Stock Based Compensation.” All share-based payments to employees, including grants of employee stock options and restricted stock units and awards, are recognized in the consolidated financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2023 and 2022 were $141,000 and $185,000, respectively, of stock-based compensation. Also included in stock-based compensation were $337,000 and $181,000 in stock grants to Company directors for the years ended December 31, 2023 and 2022, respectively. |
Federal Home Loan Bank stock and Federal Reserve Stock | Federal Home Loan Bank stock and Federal Reserve Bank stock - As a member of the Federal Home Loan Bank of San Francisco (FHLB), the Company is required to maintain an investment in the capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank of San Francisco (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost in the accompanying consolidated balance sheets, are included in other assets, and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock; therefore, the shares are considered restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment through an assessment of the ultimate recoverability of cost rather than the recognition of temporary declines in value. The determination of the ultimate recoverability of cost is based upon (i) the significance and length of time of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB, (ii commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (iii) the impact of legislative and regulatory changes on institutions, and (iv) the liquidity position of the FHLB or FRB. |
Comprehensive Income | Comprehensive income (loss) - Comprehensive income (loss) is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans, and unrealized gains and losses on trust preferred securities related to instrument-specific credit risk. Comprehensive income (loss) is presented in the “Consolidated Statements of Other Comprehensive Income (Loss).” |
Segment Reporting | Segment reporting - The Company’s operations solely in the financial services industry and provides its customers traditional banking and other financial services. The Company operates primarily in California’s San Joaquin Valley. Management’s operating decisions and performance assessment are based on an ongoing review of the Company’s consolidated financial results. The Company is considered one operating segment for financial reporting purposes. |
Revenue from Contracts with Customers | Revenue from contracts with customers - The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (Topic 606). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the “Consolidated Statements of Income” is not warranted. The Company, in general, satisfies its performance obligations on its contracts with customers as services are rendered. Transaction prices are typically fixed and are charged either on a periodic basis or as activity warrants. Contracts evaluated under the scope of Topic 606 are primarily related to service charges, fees on deposit accounts, debit card fees, ITM processing fees, and other service charges, commissions and fees. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 to the determination of the amount and timing of revenue from contracts with customers. |
Leases | Leases - |
Recently Issued Accounting Standards | Recently Issued Accounting Standards - On January 1, 2023, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model referred to as the current expected credit loss, or CECL, model. The CECL model applies to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost, with any estimated credit losses recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income (loss). The Company adopted this standard using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at January 1, 2023. While the Company held no other-than-temporarily-impaired securities at that time, a prospective transition was required for debt securities previously classified as such. The Company is phasing the regulatory capital impact of Topic 326 over three years. The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. In March 2020, FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848).” This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU was effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06, “ Deferral of the Sunset Date of Topic 848.” This ASU amends ASU 2020-04 by extending the sunset provision for use of LIBOR as a reference rate until December 31, 2024, due to an extension of the intended cessation of USD LIBOR. During 2023, the Company chose to use the “Secured Overnight Financing Rate,” or SOFR, as a replacement for LIBOR. This change resulted in minimal impact to junior subordinated debt and floating rate loans tied to LIBOR. In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. This ASU provides new guidance on the treatment of troubled debt restructurings (TDRs) in relation to the adoption of the CECL model for the accounting for credit losses (see note above regarding ASU 2016-13). Previous accounting guidance related to troubled debt restructurings is eliminated and new disclosure requirements are adopted in regard to loan refinancing and restructurings made to borrowers experiencing financial difficulties under the assumption that the CECL model will capture credit losses related to troubled debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update has been adopted as of January 1, 2023. The Bank will no longer report troubled debt restructurings or classify loans as such. TDRs previously recognized have been incorporated into the CECL methodology as it applies to loan loss reserves as of January 1, 2023. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Premises and Equipment | Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years The components of premises and equipment are as follows: (In thousands) December 31, 2023 December 31, 2022 Land $ 968 $ 968 Buildings and improvements 16,502 16,288 Furniture and equipment 11,105 11,024 28,575 28,280 Less accumulated depreciation and amortization (19,477) (18,510) Total $ 9,098 $ 9,770 |
Schedule of Impact of the Adoption of ASU 2016-13 by Loan Category | The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Comparison of Amortized Cost and Fair Value of Securities Available for Sale | Following is a comparison of the amortized cost and approximate fair value of available-for-sale debt securities at December 31, 2023 and December 31, 2022: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2023 Securities available for sale: U.S. Government agencies $ 6,197 $ 4 $ (45) $ 6,156 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 100,487 4 (12,307) 88,184 Municipal bonds 47,838 — (7,723) 40,115 Tax-exempt municipal bonds 2,544 — (294) 2,250 Corporate bonds 34,813 24 (2,715) 32,122 U.S. Treasury securities 12,510 — (72) 12,438 Total securities available for sale $ 204,389 $ 32 $ (23,156) $ 181,265 December 31, 2022 Securities available for sale: U.S. Government agencies $ 8,275 $ 7 $ (51) $ 8,231 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 110,908 5 (13,695) 97,218 Municipal bonds 46,625 — (9,827) 36,798 Tax-exempt municipal bonds 4,053 — (681) 3,372 Corporate bonds 34,745 5 (2,048) 32,702 U.S. Treasury securities 30,004 — (780) 29,224 Total securities available for sale $ 234,610 $ 17 $ (27,082) $ 207,545 At December 31, 2023, and at December 31, 2022, an allowance for credit losses was neither required nor recorded for any investment securities. Proceeds and gross realized gains (losses) from sales of available-for-sale debt securities for the years ended December 31, 2023 and 2022 are as follows: Years Ended December 31, (In thousands) 2023 2022 Proceeds from sales or calls $ — $ 15,676 Gross realized gains from sales or calls — 78 Gross realized losses from sales or calls — (48) |
Schedule of Contractual Maturities on Collateralized Mortgage Obligations | The amortized cost and fair value of securities available for sale at December 31, 2023, by contractual maturity, are shown below: December 31, 2023 (In thousands) Amortized Cost Fair Value (Carrying Amount) Due in one year or less $ 12,610 $ 12,534 Due after one year through five years 28,770 27,466 Due after five years through ten years 60,018 50,579 Due after ten years 2,505 2,501 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 100,486 88,185 $ 204,389 $ 181,265 |
Schedule of Available for Sale Debt Securities | The following summarizes available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2023 and 2022: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2023 Securities available for sale: U.S. Government agencies $ — $ — $ 4,064 $ (45) $ 4,064 $ (45) U.S. Government sponsored entities and agencies collateralized by mortgage obligations — — 87,904 (12,307) 87,904 (12,307) Municipal bonds — — 42,366 (8,016) 42,366 (8,016) Corporate bonds — — 27,286 (2,715) 27,286 (2,715) U.S. Treasury securities — — 12,438 (72) 12,438 (72) Total available-for-sale $ — $ — $ 174,058 $ (23,155) $ 174,058 $ (23,155) December 31, 2022 Securities available for sale: U.S. Government agencies $ — $ — $ 5,831 $ (51) $ 5,831 $ (51) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 47,968 (3,949) 48,763 (9,746) 96,731 (13,695) Municipal bonds — — 40,170 (10,508) 40,170 (10,508) Corporate bonds 24,424 (1,491) 5,443 (557) 29,867 (2,048) U.S. Treasury securities 14,714 (190) 14,510 (590) 29,224 (780) Total available-for-sale $ 87,106 $ (5,630) $ 114,717 $ (21,452) $ 201,823 $ (27,082) The following summarizes the number of available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2023 and 2022 December 31, 2023 2022 Securities available for sale: U.S. Government agencies 4 4 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 46 51 Municipal bonds 45 46 Corporate bonds 8 9 U.S. Treasury securities 2 4 Total available-for-sale 105 114 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans | Loans, net of unearned fees and unamortized loan origination costs, are comprised of the following: December 31, 2023 2022 (In thousands) Loan Balance % of Total Loans Loan Balance % of Total Loans Commercial and business loans $ 53,273 5.8 % $ 57,770 5.9 % Government program loans 74 <0.01 % 132 <0.01 % Total commercial and industrial 53,347 5.8 % 57,902 5.9 % Real estate – mortgage: Commercial real estate 386,134 42.0 % 398,115 40.6 % Residential mortgages 260,539 28.3 % 273,357 27.9 % Home improvement and home equity loans 36 <0.01 % 49 <0.01 % Total real estate mortgage 646,709 70.3 % 671,521 68.5 % Real estate construction and development 127,944 13.9 % 153,374 15.6 % Agricultural 49,795 5.4 % 52,722 5.4 % Installment and student loans 42,247 4.6 % 44,659 4.6 % Total loans $ 920,042 $ 980,178 |
Schedule of Loans to Affiliates | Loans to directors, officers, principal shareholders and their affiliates are summarized below: (In thousands) 2023 2022 Aggregate amount outstanding, beginning of year $ 3,610 $ 13,100 Retirement of director during 2022 — (8,899) New loans or advances during year 825 980 Repayments during year (1,396) (1,571) Aggregate amount outstanding, end of year $ 3,039 $ 3,610 Undisbursed commitments, end of year $ 1,525 $ 1,050 |
Schedule of Delinquent Loans | The following is a summary of delinquent loans, net of unearned fees, at December 31, 2023 (in thousands): December 31, 2023 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 53,273 $ 53,273 $ — Government program loans — — — — 74 74 — Total commercial and industrial — — — — 53,347 53,347 — Commercial real estate loans — — — — 386,134 386,134 — Residential mortgages — — — — 260,539 260,539 — Home improvement and home equity loans — — — — 36 36 — Total real estate mortgage — — — — 646,709 646,709 — Real estate construction and development loans — — 11,390 11,390 116,554 127,944 — Agricultural loans — — 45 45 49,750 49,795 — Installment and student loans 791 328 426 1,545 40,702 42,247 426 Total loans $ 791 $ 328 $ 11,861 $ 12,980 $ 907,062 $ 920,042 $ 426 The following is a summary of delinquent loans, net of unearned fees, at December 31, 2022 (in thousands): December 31, 2022 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2023 and December 31, 2022 : December 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Principal Amount Number of Borrowers Principal Amount Current or less than 31 days 221 $ 25,070 251 $ 26,993 31 - 60 days 6 791 8 546 61 - 90 days 2 328 5 642 Greater than 90 days 3 426 4 252 Total 232 $ 26,615 268 $ 28,433 |
Schedule of Nonaccrual Loan Balances | The following table presents the amortized costs of loans on nonaccrual status and accruing loans more than 90 days past due: December 31, 2023 and 2022: |
Schedule of Troubled Debt Restructuring Activity | The following tables summarizes all TDR activity by loan category for the years ended December 31, 2022 (in thousands). 2022 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Defaults — — — — — — — — Additions — — — — — — — — Principal reductions — — (6) — (330) (134) — (470) Charge-offs — — — — — — — — Ending balance $ — $ — $ 140 $ — $ 1,876 $ 108 $ — $ 2,124 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 48 $ — $ 52 |
Schedule of Credit Quality Indicators for Outstanding Student Loans | The following table presents loans by class, net of deferred fees, by risk rating and period indicated as of December 31, 2023: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 40,929 $ 81,823 $ 52,019 $ 39,155 $ 60,626 $ 105,285 $ 501 $ — $ 380,338 Special Mention — — — 5,796 — — — — 5,796 Substandard — — — — — — — — — Total $ 40,929 $ 81,823 $ 52,019 $ 44,951 $ 60,626 $ 105,285 $ 501 $ — $ 386,134 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ 24,835 $ 206,257 $ 2,260 $ — $ 8,969 $ — $ — $ 242,321 Pass 4,189 1,925 5,253 1,579 3,494 1,778 — — 18,218 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,189 $ 26,760 $ 211,510 $ 3,839 $ 3,494 $ 10,747 $ — $ — $ 260,539 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 32 $ — $ — $ 32 Pass — — — — — 4 — — 4 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 36 $ — $ — $ 36 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Real estate construction and development Pass $ 27,951 $ 9,571 $ — $ 31,308 $ — $ 3,978 $ 43,734 $ — $ 116,542 Special Mention — — — — — — — — — Substandard — — — 3,524 — 7,878 — — 11,402 Total $ 27,951 $ 9,571 $ — $ 34,832 $ — $ 11,856 $ 43,734 $ — $ 127,944 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 2,086 $ 4,163 $ 457 $ 2,958 $ 1,592 $ 12,574 $ 22,556 $ — $ 46,386 Special Mention — 2,105 — 513 — 356 — — 2,974 Substandard — — — — — 45 390 — 435 Total $ 2,086 $ 6,268 $ 457 $ 3,471 $ 1,592 $ 12,975 $ 22,946 $ — $ 49,795 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 708 $ 250 $ 142 $ 74 $ 483 $ 38,519 $ 472 $ — $ 40,648 Pass 1,173 — — — — — — — 1,173 Special Mention — — — — — — — — — Substandard — — — — — 426 — — 426 Total $ 1,881 $ 250 $ 142 $ 74 $ 483 $ 38,945 $ 472 $ — $ 42,247 Current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 Total loans outstanding (risk rating): Not graded $ 708 $ 25,085 $ 206,399 $ 2,334 $ 483 $ 47,520 $ 472 $ — $ 283,001 Pass 82,317 102,548 59,323 75,818 65,718 124,624 105,660 — 616,008 Special Mention — 2,105 — 6,309 — 356 — — 8,770 Substandard — — — 3,524 — 8,349 390 — 12,263 Grand total loans $ 83,025 $ 129,738 $ 265,722 $ 87,985 $ 66,201 $ 180,849 $ 106,522 $ — $ 920,042 Total current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 December 31, 2022 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total Grades 1 and 2 $ 216 $ — $ — $ — $ 216 Grade 3 — — — — — Grades 4 and 5 – pass 57,493 372,120 138,951 50,658 619,222 Grade 6 – special mention 197 25,995 — 1,021 27,213 Grade 7 – substandard — — 14,424 1,043 15,467 Grade 8 – doubtful — — — — — Total $ 57,906 $ 398,115 $ 153,375 $ 52,722 $ 662,118 The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2022 (in thousands): December 31, 2022 Residential Mortgages Home Installment and Student Loans Total Not graded $ 257,207 $ 41 $ 44,402 $ 301,650 Pass 16,150 8 — 16,158 Special Mention — — — — Substandard — — 252 252 Doubtful — — — — Total $ 273,357 $ 49 $ 44,654 $ 318,060 The following tables summarize the credit quality indicators for outstanding student loans as of December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (In thousands, except number of loans) Number of Loans Principal Amount Accrued Interest Number of Loans Principal Amount Accrued Interest School 44 $ 1,242 $ 734 70 $ 2,056 $ 908 Grace 18 473 296 27 667 348 Repayment 444 20,833 289 516 23,414 857 Deferment 237 10,163 2,022 268 10,974 1,732 Forbearance 98 5,782 133 91 5,019 237 Total 841 $ 38,493 $ 3,474 972 $ 42,130 $ 4,082 |
Schedule of Allowance for Credit Loses by Loan Category | The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2023 and 2022 (in thousands). December 31, 2023 Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment & Student Loans Unallocated Total Beginning balance $ 955 $ 1,363 $ 3,409 $ 525 $ 2,898 $ 1,032 $ 10,182 CECL adjustment 1,336 2,359 720 1,025 1,959 (1,032) 6,367 Provision for (reversal of) credit losses (1) (390) (1,253) (515) (300) 3,888 — 1,430 Charge-offs — — — — (2,588) — (2,588) Recoveries 2 55 — — 210 — 267 Ending balance $ 1,903 $ 2,524 $ 3,614 $ 1,250 $ 6,367 $ — $ 15,658 (1) Excludes a $30,000 provision for unfunded loan commitments during the year. December 31, 2022 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Agricultural Installment & Student Loans Unallocated Total Beginning balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 2,720 $ 769 $ 9,333 Provision for (reversal of) credit losses (1) 87 147 569 (744) 1,480 263 1,802 Charge-offs 1 — — — (1,364) — (1,363) Recoveries 270 42 — 36 62 — 410 Ending balance $ 955 $ 1,363 $ 3,409 $ 525 $ 2,898 $ 1,032 $ 10,182 (1) Includes a $137,000 reversal of provision for unfunded loan commitments during the year. The following table represents the impact to the unfunded commitments liability after the adoption of CECL: 12/31/2023 12/31/2022 Beginning Liability $ 532 $ 669 CECL Day 1 Adjustment 273 — Provision (Reversal of Provision) 30 (137) Ending Liability $ 835 $ 532 |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following table presents the recorded investment in collateral-dependent loans by type of loan: December 31, 2023 December 31, 2022 (Dollars in thousands) Amount Number of Collateral-Dependent Loans Amount Number of Collateral-Dependent Loans Real estate construction and development loans $ 11,390 3 $ 14,436 4 Agricultural loans 390 1 108 2 Total $ 11,780 4 $ 14,544 6 |
Student Loans (Tables)
Student Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Credit Quality Indicators for Outstanding Student Loans | The following table presents loans by class, net of deferred fees, by risk rating and period indicated as of December 31, 2023: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 40,929 $ 81,823 $ 52,019 $ 39,155 $ 60,626 $ 105,285 $ 501 $ — $ 380,338 Special Mention — — — 5,796 — — — — 5,796 Substandard — — — — — — — — — Total $ 40,929 $ 81,823 $ 52,019 $ 44,951 $ 60,626 $ 105,285 $ 501 $ — $ 386,134 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ 24,835 $ 206,257 $ 2,260 $ — $ 8,969 $ — $ — $ 242,321 Pass 4,189 1,925 5,253 1,579 3,494 1,778 — — 18,218 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,189 $ 26,760 $ 211,510 $ 3,839 $ 3,494 $ 10,747 $ — $ — $ 260,539 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 32 $ — $ — $ 32 Pass — — — — — 4 — — 4 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 36 $ — $ — $ 36 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Real estate construction and development Pass $ 27,951 $ 9,571 $ — $ 31,308 $ — $ 3,978 $ 43,734 $ — $ 116,542 Special Mention — — — — — — — — — Substandard — — — 3,524 — 7,878 — — 11,402 Total $ 27,951 $ 9,571 $ — $ 34,832 $ — $ 11,856 $ 43,734 $ — $ 127,944 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 2,086 $ 4,163 $ 457 $ 2,958 $ 1,592 $ 12,574 $ 22,556 $ — $ 46,386 Special Mention — 2,105 — 513 — 356 — — 2,974 Substandard — — — — — 45 390 — 435 Total $ 2,086 $ 6,268 $ 457 $ 3,471 $ 1,592 $ 12,975 $ 22,946 $ — $ 49,795 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 708 $ 250 $ 142 $ 74 $ 483 $ 38,519 $ 472 $ — $ 40,648 Pass 1,173 — — — — — — — 1,173 Special Mention — — — — — — — — — Substandard — — — — — 426 — — 426 Total $ 1,881 $ 250 $ 142 $ 74 $ 483 $ 38,945 $ 472 $ — $ 42,247 Current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 Total loans outstanding (risk rating): Not graded $ 708 $ 25,085 $ 206,399 $ 2,334 $ 483 $ 47,520 $ 472 $ — $ 283,001 Pass 82,317 102,548 59,323 75,818 65,718 124,624 105,660 — 616,008 Special Mention — 2,105 — 6,309 — 356 — — 8,770 Substandard — — — 3,524 — 8,349 390 — 12,263 Grand total loans $ 83,025 $ 129,738 $ 265,722 $ 87,985 $ 66,201 $ 180,849 $ 106,522 $ — $ 920,042 Total current period gross write-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 December 31, 2022 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total Grades 1 and 2 $ 216 $ — $ — $ — $ 216 Grade 3 — — — — — Grades 4 and 5 – pass 57,493 372,120 138,951 50,658 619,222 Grade 6 – special mention 197 25,995 — 1,021 27,213 Grade 7 – substandard — — 14,424 1,043 15,467 Grade 8 – doubtful — — — — — Total $ 57,906 $ 398,115 $ 153,375 $ 52,722 $ 662,118 The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2022 (in thousands): December 31, 2022 Residential Mortgages Home Installment and Student Loans Total Not graded $ 257,207 $ 41 $ 44,402 $ 301,650 Pass 16,150 8 — 16,158 Special Mention — — — — Substandard — — 252 252 Doubtful — — — — Total $ 273,357 $ 49 $ 44,654 $ 318,060 The following tables summarize the credit quality indicators for outstanding student loans as of December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (In thousands, except number of loans) Number of Loans Principal Amount Accrued Interest Number of Loans Principal Amount Accrued Interest School 44 $ 1,242 $ 734 70 $ 2,056 $ 908 Grace 18 473 296 27 667 348 Repayment 444 20,833 289 516 23,414 857 Deferment 237 10,163 2,022 268 10,974 1,732 Forbearance 98 5,782 133 91 5,019 237 Total 841 $ 38,493 $ 3,474 972 $ 42,130 $ 4,082 |
Schedule of Student Loan Aging | The following is a summary of delinquent loans, net of unearned fees, at December 31, 2023 (in thousands): December 31, 2023 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 53,273 $ 53,273 $ — Government program loans — — — — 74 74 — Total commercial and industrial — — — — 53,347 53,347 — Commercial real estate loans — — — — 386,134 386,134 — Residential mortgages — — — — 260,539 260,539 — Home improvement and home equity loans — — — — 36 36 — Total real estate mortgage — — — — 646,709 646,709 — Real estate construction and development loans — — 11,390 11,390 116,554 127,944 — Agricultural loans — — 45 45 49,750 49,795 — Installment and student loans 791 328 426 1,545 40,702 42,247 426 Total loans $ 791 $ 328 $ 11,861 $ 12,980 $ 907,062 $ 920,042 $ 426 The following is a summary of delinquent loans, net of unearned fees, at December 31, 2022 (in thousands): December 31, 2022 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2023 and December 31, 2022 : December 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Principal Amount Number of Borrowers Principal Amount Current or less than 31 days 221 $ 25,070 251 $ 26,993 31 - 60 days 6 791 8 546 61 - 90 days 2 328 5 642 Greater than 90 days 3 426 4 252 Total 232 $ 26,615 268 $ 28,433 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years The components of premises and equipment are as follows: (In thousands) December 31, 2023 December 31, 2022 Land $ 968 $ 968 Buildings and improvements 16,502 16,288 Furniture and equipment 11,105 11,024 28,575 28,280 Less accumulated depreciation and amortization (19,477) (18,510) Total $ 9,098 $ 9,770 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits Summary | Deposits include the following: (In thousands) December 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 403,225 $ 481,629 Interest-bearing deposits: NOW and money market accounts 406,857 499,861 Savings accounts 122,547 125,946 Time deposits: Under $250,000 48,098 42,933 $250,000 and over 23,750 15,115 Total interest-bearing deposits 601,252 683,855 Total deposits $ 1,004,477 $ 1,165,484 |
Schedule of Time Deposit Maturities | The scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2023 December 31, 2022 One year or less $ 44,887 $ 46,224 More than one year, but less than or equal to two years 26,046 10,352 More than two years, but less than or equal to three years 611 723 More than three years, but less than or equal to four years 86 610 More than four years, but less than or equal to five years 218 139 Greater than five years — — $ 71,848 $ 58,048 |
Short-term Borrowings_Other B_2
Short-term Borrowings/Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the Bank’s outstanding and available credit lines for the periods indicated: (In thousands) December 31, 2023 December 31, 2022 Unsecured credit lines: Credit limit $ 80,000 $ 120,000 Balance outstanding 2,000 — Federal Home Loan Bank: Credit limit 128,935 2,151 Balance outstanding 60,000 — Collateral pledged 232,144 2,307 Federal Reserve Bank: Credit limit 463,501 435,599 Balance outstanding — — Collateral pledged 608,045 590,427 (In thousands) December 31, 2023 December 31, 2022 Net fair value calculation (loss) gain $ (270) $ 413 Other comprehensive income (loss) gain (544) 2,947 Recognized gain (loss) on fair value 274 (2,533) Cumulative gain recorded 1,461 1,732 Discount rate 6.14 % 6.63 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Supplemental Balance Sheet Information | The components of lease expense were as follows for the yeas ended: (In thousands) December 31, 2023 December 31, 2022 Operating lease expense $ 711 $ 728 Short-term lease expense — — Variable lease expense — — Sublease income — — Total lease cost $ 711 $ 728 Supplemental balance sheet information related to leases is as follows: (In thousands) December 31, 2023 December 31, 2022 Operating cash flows used in operating leases $ 720 $ 729 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Weighted-average remaining lease terms in years for operating leases 4.23 4.49 Weighted-average discount rate for operating leases 5.09 % 5.12 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows as of December 31, 2023 (in thousands): Years Ending December 31, Lease Liabilities 2024 $ 580 2025 402 2026 183 2027 112 2028 108 Thereafter 211 Total undiscounted cash flows 1,596 Less: present value discount (159) Present value of net future minimum lease payments $ 1,437 |
Junior Subordinated Debt_Trus_2
Junior Subordinated Debt/Trust Preferred Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Debt/Trust Preferred Securities [Abstract] | |
Schedule of Debt | The following table sets forth the Bank’s outstanding and available credit lines for the periods indicated: (In thousands) December 31, 2023 December 31, 2022 Unsecured credit lines: Credit limit $ 80,000 $ 120,000 Balance outstanding 2,000 — Federal Home Loan Bank: Credit limit 128,935 2,151 Balance outstanding 60,000 — Collateral pledged 232,144 2,307 Federal Reserve Bank: Credit limit 463,501 435,599 Balance outstanding — — Collateral pledged 608,045 590,427 (In thousands) December 31, 2023 December 31, 2022 Net fair value calculation (loss) gain $ (270) $ 413 Other comprehensive income (loss) gain (544) 2,947 Recognized gain (loss) on fair value 274 (2,533) Cumulative gain recorded 1,461 1,732 Discount rate 6.14 % 6.63 % |
Deferred Taxes (Tables)
Deferred Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2023 2022 Deferred tax assets: Credit losses not currently deductible $ 4,985 $ 3,411 Deferred compensation 1,757 1,352 Depreciation 92 167 Accrued reserves — 75 Write-down on other real estate owned 291 291 Unrealized gain on retirement obligation 56 83 Deferred loss ASC 825 – fair value option 159 245 Unrealized loss on available for sale securities 6,835 8,000 Interest on nonaccrual loans 1,513 833 Lease liability 458 667 Other 848 815 Total deferred tax assets 16,994 15,939 Deferred tax liabilities: State tax (596) (433) FHLB dividend (46) (46) Loss on limited partnership investment (650) (507) Fair value adjustments for purchase accounting (93) (98) Unrealized loss on TRUPs (579) (740) Deferred loan costs (414) (508) Prepaid expenses (135) (150) Right-of-use asset (426) (632) Total deferred tax liabilities (2,939) (3,114) Net deferred tax assets $ 14,055 $ 12,825 |
Schedule of Income Taxes | Income tax expense for the years ended December 31, consist of the following: (In thousands) Federal State Total 2023 Current $ 5,103 $ 2,874 $ 7,977 Deferred (238) (59) (297) $ 4,865 $ 2,815 $ 7,680 2022 Current $ 5,489 $ 3,246 $ 8,735 Deferred (1,457) (905) (2,362) $ 4,032 $ 2,341 $ 6,373 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % State franchise tax, net of federal income tax benefit 8.1 8.1 Other (1.1) (0.2) Effective income tax rate 28.0 % 28.9 % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Options Activity | A summary of the status of the Company’s stock option plan and changes during the year are presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding December 31, 2021 94,601 $ 7.87 Granted during the year 30,000 8.17 Exercised during the year (5,579) 5.22 Forfeited during the year — — Options outstanding December 31, 2022 119,022 8.07 4.78 $ 105,334 Granted during the year — — Exercised during the year (29,022) 3.68 Forfeited during the year (15,000) 9.25 Options outstanding December 31, 2023 75,000 $ 9.54 5.50 $ 7,200 |
Schedule of Restricted Stock Activity | A summary of the status of the Company’s restricted stock units and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2021 27,949 $ 8.45 Granted during the year 26,492 $ 7.52 Vested during the year (35,967) $ 7.90 Forfeited during the year (4,500) $ 7.85 Non-vested units at December 31, 2022 13,974 $ 8.29 Granted during the year 52,477 7.53 Vested during the year (59,451) 7.68 Non-vested units at December 31, 2023 7,000 $ 7.79 A summary of the status of the Company’s restricted stock awards and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2022 — $ — Granted during the year 14,435 7.99 Vested during the year — — Forfeited during the year — — Non-vested units at December 31, 2023 14,435 $ 7.99 |
Schedule of Intrinsic Value of Stock Options Exercised | A summary of the status of the Company’s stock option values and activity is presented below: December 31, 2023 December 31, 2022 Weighted average grant-date fair value per share of stock options granted $ — $ 127,644 Weighted average fair value of stock options vested $ 26,000 $ 86,000 Total intrinsic value of stock options exercised $ 85,000 $ 10,555 |
Schedule of Weighted Average Assumptions | The fair value of options granted was determined using the following weighted-average assumptions as of the grant date: December 31, 2023 December 31, 2022 Risk-free interest rate — % 1.23 % Expected term in years 0 10 Expected stock price volatility — % 41.63 % Dividend yield — — |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Off-Balance Sheet Risks | The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: December 31, (In thousands) 2023 2022 Commitments to extend credit $ 183,537 $ 190,183 Standby letters of credit 2,940 1,570 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2023 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 181,266 $ 179,016 $ 12,438 $ 166,578 $ — Marketable equity securities 3,354 3,354 3,354 — — Loans, net 904,384 871,681 — — 871,681 Financial Liabilities: Time deposits 71,848 71,414 — — 71,414 Short-term borrowings 62,000 62,000 62,000 — — Junior subordinated debt 11,213 11,213 — — 11,213 December 31, 2022 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 207,545 $ 207,545 $ 29,224 $ 178,321 $ — Marketable equity securities 3,315 3,315 3,315 — — Loans, net 969,996 906,050 — — 906,050 Financial Liabilities: Time deposits 58,048 57,056 — — 57,056 Junior subordinated debt 10,883 10,883 — — 10,883 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2023: (In thousands) December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: AFS Securities: U.S. Government agencies $ 6,156 $ — $ 6,156 $ — U.S. Government collateralized mortgage obligations 88,184 — 88,184 — Municipal bonds 40,116 — 40,116 — U.S. Treasury securities 12,438 — 12,438 — Corporate bonds 32,122 — 32,122 — Total AFS securities 179,016 — 179,016 — Marketable equity securities 3,354 3,354 — — Total assets $ 182,370 $ 3,354 $ 179,016 $ — Liabilities: Junior subordinated debt $ 11,213 $ — $ — $ 11,213 Total liabilities $ 11,213 $ — $ — $ 11,213 There were no non-recurring fair value adjustments at December 31, 2023. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2022: (In thousands) December 31, 2022 Quoted Prices Significant Significant Assets: AFS Securities: U.S. Government agencies $ 8,231 $ — $ 8,231 $ — U.S. Government collateralized mortgage obligations 97,218 — 97,218 — Municipal bonds 40,170 — 40,170 — U.S. Treasury securities 29,224 — 29,224 — Corporate bonds 32,702 — 32,702 — Total AFS securities 207,545 — 207,545 — Marketable equity securities 3,315 3,315 — — Total assets $ 210,860 $ 3,315 $ 207,545 $ — Liabilities: Junior subordinated debt $ 10,883 $ — $ — $ 10,883 Total liabilities $ 10,883 $ — $ — $ 10,883 |
Schedule of Description of the Valuation Technique, Unobservable Input, and Qualitative Information about the Unobservable Inputs for the Company's Assets and Liabilities Classified as Level 3 and Measured at Fair Value on a Recurring Basis | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.14% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.63% |
Schedule of Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended: Junior Subordinated Debt (in thousands) December 31, 2023 December 31, 2022 Beginning balance $ 10,883 $ 11,189 Total (gains) losses included in earnings (274) 2,533 Total gains (losses) included in other comprehensive income 544 (2,947) Capitalized interest 60 108 Ending balance $ 11,213 $ 10,883 The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ (274) $ 2,533 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | Year Ended December 31, (In thousands) 2023 2022 Cash paid during the period for: Interest $ 11,010 $ 3,148 Income Taxes 9,732 6,765 Noncash activities: Unrealized (losses) gains on junior subordinated debentures, net of tax (544) 2,947 Unrealized gains (losses) on available for sale securities, net of tax 3,941 (26,730) Unrealized losses on unrecognized post-retirement costs, net of tax 88 615 Cash dividend declared 2,059 1,878 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Income Per Share | The following table provides a reconciliation of the numerator and the denominator of the basic net income per share computation with the numerator and the denominator of the diluted net income per share computation. Year Ended December 31, (In thousands, except share and per share data) 2023 2022 Net income available to common shareholders $ 19,796 $ 15,686 Weighted average shares outstanding 17,114,214 17,040,241 Add: dilutive effect of stock options and unvested restricted stock 10,972 21,592 Weighted average shares outstanding adjusted for potential dilution 17,125,186 17,061,833 Basic earnings per share $ 1.16 $ 0.92 Diluted earnings per share $ 1.16 $ 0.92 Weighted average anti-dilutive shares excluded from earnings per share calculation 91,000 96,000 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows for the years ended: December 31, 2023 December 31, 2022 (in thousands) Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Beginning balance $ (19,066) $ (194) $ 1,765 $ (236) $ (627) $ (311) Current period comprehensive (loss) income, net of tax 2,776 64 (383) $ (18,830) $ 433 $ 2,076 Ending balance $ (16,290) $ (130) $ 1,382 $ (19,066) $ (194) $ 1,765 Accumulated other comprehensive loss $ (15,038) $ (17,495) |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Financial Statements of Parent | The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2023 and 2022 (In thousands) 2023 2022 Assets Cash and equivalents $ 2,902 $ 2,940 Investment in bank subsidiary 131,810 121,159 Other assets 1,102 1,154 Total assets $ 135,814 $ 125,253 Liabilities & Shareholders’ Equity Liabilities: Junior subordinated debt securities (at fair value) $ 11,213 $ 10,883 Dividends declared 2,059 1,878 Other liabilities — 29 Total liabilities 13,272 12,790 Shareholders’ Equity: Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,167,895 at December 31, 2023 and 17,067,253 at December 31, 2022 60,585 60,030 Retained earnings 76,995 69,928 Accumulated other comprehensive loss, net of tax (15,038) (17,495) Total shareholders’ equity 122,542 112,463 Total liabilities and shareholders’ equity $ 135,814 $ 125,253 United Security Bancshares – (parent only) Years ended December 31, Income Statements (In thousands) 2023 2022 Income Gain (loss) on fair value of junior subordinated debentures $ 274 $ (2,533) Dividends from subsidiary 8,451 7,902 Total income 8,725 5,369 Expense Interest expense 799 376 Other expense 460 450 Total expense 1,259 826 Income before taxes and equity in undistributed income of subsidiary 7,466 4,543 Benefit for income taxes (291) (993) Equity in undistributed income of subsidiary 12,039 10,150 Net Income $ 19,796 $ 15,686 United Security Bancshares – (parent only) Years ended December 31, Statement of Cash Flows (In thousands) 2023 2022 Cash Flows From Operating Activities Net income $ 19,796 $ 15,686 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (12,039) (10,150) (Benefit) provision for deferred income taxes (70) 128 (Gain) loss on fair value of junior subordinated debentures (274) 2,533 Decrease in income tax receivable 200 213 Net increase (decrease) in other assets 800 (797) Net cash provided by operating activities 8,413 7,613 Cash Flows From Financing Activities Dividends paid (8,451) (7,486) Net cash used in financing activities (8,451) (7,486) Net (decrease) increase in cash and cash equivalents (38) 127 Cash and cash equivalents at beginning of year 2,940 2,813 Cash and cash equivalents at end of year $ 2,902 $ 2,940 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Capital Requirements Under Banking Regulations | The following table shows the Company’s and the Bank’s regulatory capital and regulatory capital ratios at December 31, 2023 and 2022 as compared to the applicable capital adequacy guidelines: Actual Minimum requirement for Community Bank Leverage Ratio (1) (In thousands) Amount Ratio Amount Ratio As of December 31, 2023 (Company): Tier 1 Leverage (to Average Assets) $147,350 11.82% $112,035 9.00% As of December 31, 2023 (Bank): Tier 1 Leverage (to Average Assets) 147,249 11.83% $112,152 9.00% As of December 31, 2022 (Company): Tier 1 Leverage (to Average Assets) 135,889 10.10% $121,064 9.00% As of December 31, 2022 (Bank): Tier 1 Leverage (to Average Assets) 135,930 10.11% $120,968 9.00% (1) If the subsidiary bank’s leverage ratio exceeds the minimum ratio under the Community Bank Leverage Ratio Framework , it is deemed to be “well capitalized” under all other regulatory capital requirements. The Company may revert back to the regulatory framework for “Prompt Corrective Action” if the subsidiary bank’s leverage ratio falls below the minimum under the Community Bank Leverage Ratio Framework . |
Organization and Summary of S_4
Organization and Summary of Significant Accounting and Reporting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) office segment branch | Dec. 31, 2022 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of branches | branch | 12 | |
Number of commercial lending offices | office | 1 | |
Number of consumer lending offices | office | 1 | |
Number of construction lending offices | office | 1 | |
Investments by bank on real estate | $ 250 | |
Number of loan portfolio segment | segment | 10 | |
Goodwill | $ 4,488 | $ 4,488 |
Share-based compensation | 478 | 366 |
Employee Stock Option | Share-Based Payment Arrangement, Employee | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Shares granted | $ 337 | $ 181 |
Installment and student loans | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of loan portfolio segment | segment | 3 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting and Reporting Policies- Estimate life (Details) | Dec. 31, 2023 |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 31 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Organization and Summary of S_6
Organization and Summary of Significant Accounting and Reporting Policies - Schedule of Impact of the Adoption of ASU 2016-13 by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Assets [Abstract] | |||
Total loans | $ 920,042 | $ 980,178 | |
Total commercial and industrial | |||
Assets [Abstract] | |||
Total loans | 53,347 | 57,902 | |
Total commercial and industrial | Commercial and business loans | |||
Assets [Abstract] | |||
Total loans | 53,273 | 57,770 | |
Total commercial and industrial | Government program loans | |||
Assets [Abstract] | |||
Total loans | 74 | 132 | |
Total real estate mortgage | |||
Assets [Abstract] | |||
Total loans | 646,709 | 671,521 | |
Total real estate mortgage | Commercial real estate | |||
Assets [Abstract] | |||
Total loans | 386,134 | 398,115 | |
Total real estate mortgage | Residential mortgages | |||
Assets [Abstract] | |||
Total loans | 260,539 | 273,357 | |
Total real estate mortgage | Home improvement and home equity loans | |||
Assets [Abstract] | |||
Total loans | 36 | 49 | |
Real estate construction and development | |||
Assets [Abstract] | |||
Total loans | 127,944 | 153,374 | |
Agricultural loans | |||
Assets [Abstract] | |||
Total loans | 49,795 | 52,722 | |
Installment and student loans | |||
Assets [Abstract] | |||
Total loans | $ 42,247 | 44,659 | |
Accounting Standards Update 2016-13 | |||
Assets [Abstract] | |||
Total loans | $ 16,549 | 10,182 | |
Accounting Standards Update 2016-13 | Adjustment | |||
Assets [Abstract] | |||
Total loans | 6,367 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | |||
Assets [Abstract] | |||
Total loans | 2,292 | 956 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Adjustment | |||
Assets [Abstract] | |||
Total loans | 1,336 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | Commercial and business loans | |||
Assets [Abstract] | |||
Total loans | 2,290 | 954 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Commercial and business loans | Adjustment | |||
Assets [Abstract] | |||
Total loans | 1,336 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | Government program loans | |||
Assets [Abstract] | |||
Total loans | 2 | 2 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Government program loans | Adjustment | |||
Assets [Abstract] | |||
Total loans | 0 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | |||
Assets [Abstract] | |||
Total loans | 3,723 | 1,364 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Adjustment | |||
Assets [Abstract] | |||
Total loans | 2,359 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Commercial real estate | |||
Assets [Abstract] | |||
Total loans | 2,735 | 659 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Commercial real estate | Adjustment | |||
Assets [Abstract] | |||
Total loans | 2,076 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Residential mortgages | |||
Assets [Abstract] | |||
Total loans | 986 | 703 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Residential mortgages | Adjustment | |||
Assets [Abstract] | |||
Total loans | 283 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Home improvement and home equity loans | |||
Assets [Abstract] | |||
Total loans | 2 | 2 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Home improvement and home equity loans | Adjustment | |||
Assets [Abstract] | |||
Total loans | 0 | ||
Accounting Standards Update 2016-13 | Real estate construction and development | |||
Assets [Abstract] | |||
Total loans | 4,129 | 3,408 | |
Accounting Standards Update 2016-13 | Real estate construction and development | Adjustment | |||
Assets [Abstract] | |||
Total loans | 721 | ||
Accounting Standards Update 2016-13 | Agricultural loans | |||
Assets [Abstract] | |||
Total loans | 1,550 | 525 | |
Accounting Standards Update 2016-13 | Agricultural loans | Adjustment | |||
Assets [Abstract] | |||
Total loans | 1,025 | ||
Accounting Standards Update 2016-13 | Installment and student loans | |||
Assets [Abstract] | |||
Total loans | 4,855 | 2,898 | |
Liabilities [Abstract] | |||
Allowance for credit losses on off-balance sheet exposures | 805 | 532 | |
Accounting Standards Update 2016-13 | Installment and student loans | Adjustment | |||
Assets [Abstract] | |||
Total loans | 1,957 | ||
Liabilities [Abstract] | |||
Allowance for credit losses on off-balance sheet exposures | 273 | ||
Accounting Standards Update 2016-13 | Unallocated | |||
Assets [Abstract] | |||
Total loans | 0 | $ 1,031 | |
Accounting Standards Update 2016-13 | Unallocated | Adjustment | |||
Assets [Abstract] | |||
Total loans | $ (1,031) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 204,389 | $ 234,610 |
Gross Unrealized Gains | 32 | 17 |
Gross Unrealized Losses | (23,156) | (27,082) |
Fair Value (Carrying Amount) | 181,265 | 207,545 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,197 | 8,275 |
Gross Unrealized Gains | 4 | 7 |
Gross Unrealized Losses | (45) | (51) |
Fair Value (Carrying Amount) | 6,156 | 8,231 |
U.S. Government sponsored entities and agencies collateralized by mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 100,487 | 110,908 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | (12,307) | (13,695) |
Fair Value (Carrying Amount) | 88,184 | 97,218 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 47,838 | 46,625 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7,723) | (9,827) |
Fair Value (Carrying Amount) | 40,115 | 36,798 |
Tax-exempt municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,544 | 4,053 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (294) | (681) |
Fair Value (Carrying Amount) | 2,250 | 3,372 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,813 | 34,745 |
Gross Unrealized Gains | 24 | 5 |
Gross Unrealized Losses | (2,715) | (2,048) |
Fair Value (Carrying Amount) | 32,122 | 32,702 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,510 | 30,004 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (72) | (780) |
Fair Value (Carrying Amount) | $ 12,438 | $ 29,224 |
Investments Securities - Procee
Investments Securities - Proceeds and Gross Realized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of available-for-sale securities | $ 0 | $ 15,676 |
Gross realized gains from sales or calls | 0 | 78 |
Gross realized losses from sales or calls | $ 0 | $ (48) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities on Collateralized Mortgage Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 12,610 | |
Due after one year through five years | 28,770 | |
Due after five years through ten years | 60,018 | |
Due after ten years | 2,505 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 100,486 | |
Amortized Cost | 204,389 | $ 234,610 |
Fair Value (Carrying Amount) | ||
Due in one year or less | 12,534 | |
Due after one year through five years | 27,466 | |
Due after five years through ten years | 50,579 | |
Due after ten years | 2,501 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 88,185 | |
Fair Value (Carrying Amount) | $ 181,265 | $ 207,545 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized gain (loss) on fair value of marketable equity securities | $ 39,000 | $ (429,000) |
Held-to-maturity | 0 | 0 |
Carrying Amount | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 94,300,000 | 78,800,000 |
Estimated Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | $ 82,900,000 | $ 69,000,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Available for Sale Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value (Carrying Amount) | ||
Less than 12 Months | $ 0 | $ 87,106 |
12 Months or More | 174,058 | 114,717 |
Total | 174,058 | 201,823 |
Unrealized Losses | ||
Less than 12 Months | 0 | (5,630) |
12 Months or More | (23,155) | (21,452) |
Total | (23,155) | (27,082) |
U.S. Government agencies | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 4,064 | 5,831 |
Total | 4,064 | 5,831 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (45) | (51) |
Total | (45) | (51) |
U.S. Government sponsored entities and agencies collateralized by mortgage obligations | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 47,968 |
12 Months or More | 87,904 | 48,763 |
Total | 87,904 | 96,731 |
Unrealized Losses | ||
Less than 12 Months | 0 | (3,949) |
12 Months or More | (12,307) | (9,746) |
Total | (12,307) | (13,695) |
Municipal bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 42,366 | 40,170 |
Total | 42,366 | 40,170 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (8,016) | (10,508) |
Total | (8,016) | (10,508) |
Corporate bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 24,424 |
12 Months or More | 27,286 | 5,443 |
Total | 27,286 | 29,867 |
Unrealized Losses | ||
Less than 12 Months | 0 | (1,491) |
12 Months or More | (2,715) | (557) |
Total | (2,715) | (2,048) |
U.S. Treasury securities | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 14,714 |
12 Months or More | 12,438 | 14,510 |
Total | 12,438 | 29,224 |
Unrealized Losses | ||
Less than 12 Months | 0 | (190) |
12 Months or More | (72) | (590) |
Total | $ (72) | $ (780) |
Investment Securities - Number
Investment Securities - Number of Temporarily Impaired Investment Securities (Details) - security | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 105 | 114 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 4 | 4 |
U.S. Government sponsored entities and agencies collateralized by mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 46 | 51 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 8 | 9 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 45 | 46 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 2 | 4 |
Loans- Loans (Details)
Loans- Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 920,042 | $ 980,178 |
Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 53,347 | $ 57,902 |
Total commercial and industrial | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 5.80% | 5.90% |
Total commercial and industrial | Commercial and business loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 53,273 | $ 57,770 |
Total commercial and industrial | Commercial and business loans | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 5.80% | 5.90% |
Total commercial and industrial | Government program loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 74 | $ 132 |
Total commercial and industrial | Government program loans | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 0.01% | 0.01% |
Total real estate mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 646,709 | $ 671,521 |
Total real estate mortgage | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 70.30% | 68.50% |
Total real estate mortgage | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 386,134 | $ 398,115 |
Total real estate mortgage | Commercial real estate | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 42% | 40.60% |
Total real estate mortgage | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 260,539 | $ 273,357 |
Total real estate mortgage | Residential mortgages | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 28.30% | 27.90% |
Total real estate mortgage | Home improvement and home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 36 | $ 49 |
Total real estate mortgage | Home improvement and home equity loans | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 0.01% | 0.01% |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 127,944 | $ 153,374 |
Real estate construction and development | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 13.90% | 15.60% |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 49,795 | $ 52,722 |
Agricultural loans | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 5.40% | 5.40% |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 42,247 | $ 44,659 |
Installment and student loans | Credit Concentration Risk | Financing Receivable Benchmark | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of total loans (in percent) | 4.60% | 4.60% |
Loans- Narrative (Details)
Loans- Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) rating | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Number of risk rating approaches | rating | 2 | |
Number of restructured loans | loan | 4 | |
Total restructured loans | $ 2,100,000 | |
Troubled debt restructuring, commitment to lend | 0 | |
Minimum | Grades 4 and 5 – pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Notes receivable, period of loss recognition | 3 years | |
Maximum | Grades 4 and 5 – pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Notes receivable, period of loss recognition | 4 years | |
Commitments to extend credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Contractual amount | $ 183,537,000 | 190,183,000 |
Standby letters of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Contractual amount | $ 2,940,000 | $ 1,570,000 |
Loans- Loans to Affiliates (Det
Loans- Loans to Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Due From Related Parties Roll Forward [Abstract] | ||
Aggregate amount outstanding, beginning of year | $ 3,610 | |
Aggregate amount outstanding, beginning of year | $ 3,610 | 13,100 |
Retirement of director during 2022 | (8,899) | |
New loans or advances during year | 825 | 980 |
Repayments during year | (1,396) | (1,571) |
Aggregate amount outstanding, end of year | 3,039 | 3,610 |
Undisbursed commitments, end of year | $ 1,525 | $ 1,050 |
Loans- Past Due (Details)
Loans- Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 920,042 | $ 980,178 |
Accruing Loans 90 or More Days Past Due | 426 | 252 |
Net loans | 904,384 | 969,996 |
Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 791 | 554 |
Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 328 | 642 |
Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 11,861 | 12,905 |
Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,980 | 14,101 |
Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 907,062 | 966,077 |
Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 53,347 | 57,902 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 57,906 | |
Total commercial and industrial | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 53,347 | 57,902 |
Total commercial and industrial | Commercial and business loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 53,273 | 57,770 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Total commercial and industrial | Commercial and business loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Commercial and business loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Commercial and business loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Commercial and business loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Commercial and business loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 53,273 | 57,770 |
Total commercial and industrial | Government program loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 74 | 132 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Total commercial and industrial | Government program loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Government program loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Government program loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Government program loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total commercial and industrial | Government program loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 74 | 132 |
Total real estate mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 646,709 | 671,521 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 398,115 | |
Total real estate mortgage | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 8 |
Total real estate mortgage | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 8 |
Total real estate mortgage | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 646,709 | 671,513 |
Total real estate mortgage | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 386,134 | 398,115 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Total real estate mortgage | Commercial real estate | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Commercial real estate | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Commercial real estate | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Commercial real estate | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Commercial real estate | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 386,134 | 398,115 |
Total real estate mortgage | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 260,539 | 273,357 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 273,357 | |
Total real estate mortgage | Residential mortgages | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Residential mortgages | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Residential mortgages | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Residential mortgages | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Residential mortgages | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 260,539 | 273,357 |
Total real estate mortgage | Home improvement and home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 36 | 49 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 49 | |
Total real estate mortgage | Home improvement and home equity loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 8 |
Total real estate mortgage | Home improvement and home equity loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Home improvement and home equity loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Total real estate mortgage | Home improvement and home equity loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 8 |
Total real estate mortgage | Home improvement and home equity loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 36 | 41 |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 127,944 | 153,374 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 153,375 | |
Real estate construction and development | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real estate construction and development | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real estate construction and development | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 11,390 | 12,545 |
Real estate construction and development | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 11,390 | 12,545 |
Real estate construction and development | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 116,554 | 140,829 |
Real estate construction and development | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 49,795 | 52,722 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Net loans | 52,722 | |
Agricultural loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Agricultural loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Agricultural loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45 | 108 |
Agricultural loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45 | 108 |
Agricultural loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 49,750 | 52,614 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 42,247 | 44,659 |
Accruing Loans 90 or More Days Past Due | 426 | 252 |
Net loans | 44,654 | |
Installment and student loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 791 | 546 |
Installment and student loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 328 | 642 |
Installment and student loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 426 | 252 |
Installment and student loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,545 | 1,440 |
Installment and student loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 40,702 | $ 43,219 |
Loans- Non-Accrual Loan Status
Loans- Non-Accrual Loan Status and Loans Past Due Over 89 days Still Accruing (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | $ 11,403 | $ 14,436 |
Total Nonaccrual Loans | 11,448 | 14,544 |
Accruing Loans 90 or More Days Past Due | 426 | 252 |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate construction and development | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 11,403 | 14,436 |
Total Nonaccrual Loans | 11,403 | 14,436 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | 0 |
Total Nonaccrual Loans | 45 | 108 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | 0 |
Total Nonaccrual Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | $ 426 | $ 252 |
Loans - Loans By type, Risk Rat
Loans - Loans By type, Risk Rating, and Origination Year According to our Internal Risk Ratings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 83,025 | |
2022 | 129,738 | |
2021 | 265,722 | |
2020 | 87,985 | |
2019 | 66,201 | |
Prior | 180,849 | |
Revolving Loans Amortized Cost Basis | 106,522 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 920,042 | $ 980,178 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,588 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,588 | 1,363 |
Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 708 | |
2022 | 25,085 | |
2021 | 206,399 | |
2020 | 2,334 | |
2019 | 483 | |
Prior | 47,520 | |
Revolving Loans Amortized Cost Basis | 472 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 283,001 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 82,317 | |
2022 | 102,548 | |
2021 | 59,323 | |
2020 | 75,818 | |
2019 | 65,718 | |
Prior | 124,624 | |
Revolving Loans Amortized Cost Basis | 105,660 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 616,008 | |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 2,105 | |
2021 | 0 | |
2020 | 6,309 | |
2019 | 0 | |
Prior | 356 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 8,770 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 3,524 | |
2019 | 0 | |
Prior | 8,349 | |
Revolving Loans Amortized Cost Basis | 390 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 12,263 | |
Total commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 53,347 | 57,902 |
Total | 0 | (1) |
Total commercial and industrial | Commercial and business loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,989 | |
2022 | 5,066 | |
2021 | 1,594 | |
2020 | 810 | |
2019 | 6 | |
Prior | 939 | |
Revolving Loans Amortized Cost Basis | 38,869 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 53,273 | 57,770 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Total commercial and industrial | Commercial and business loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,989 | |
2022 | 5,066 | |
2021 | 1,594 | |
2020 | 810 | |
2019 | 6 | |
Prior | 939 | |
Revolving Loans Amortized Cost Basis | 38,869 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 53,273 | |
Total commercial and industrial | Commercial and business loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total commercial and industrial | Commercial and business loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total commercial and industrial | Government program loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 8 | |
2019 | 0 | |
Prior | 66 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 74 | 132 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Total commercial and industrial | Government program loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 8 | |
2019 | 0 | |
Prior | 66 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 74 | |
Total commercial and industrial | Government program loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total commercial and industrial | Government program loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total real estate mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 646,709 | 671,521 |
Total | 0 | 0 |
Total real estate mortgage | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 40,929 | |
2022 | 81,823 | |
2021 | 52,019 | |
2020 | 44,951 | |
2019 | 60,626 | |
Prior | 105,285 | |
Revolving Loans Amortized Cost Basis | 501 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 386,134 | 398,115 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Total real estate mortgage | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 40,929 | |
2022 | 81,823 | |
2021 | 52,019 | |
2020 | 39,155 | |
2019 | 60,626 | |
Prior | 105,285 | |
Revolving Loans Amortized Cost Basis | 501 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 380,338 | |
Total real estate mortgage | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 5,796 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 5,796 | |
Total real estate mortgage | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total real estate mortgage | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,189 | |
2022 | 26,760 | |
2021 | 211,510 | |
2020 | 3,839 | |
2019 | 3,494 | |
Prior | 10,747 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 260,539 | 273,357 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Total real estate mortgage | Residential mortgages | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 24,835 | |
2021 | 206,257 | |
2020 | 2,260 | |
2019 | 0 | |
Prior | 8,969 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 242,321 | |
Total real estate mortgage | Residential mortgages | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,189 | |
2022 | 1,925 | |
2021 | 5,253 | |
2020 | 1,579 | |
2019 | 3,494 | |
Prior | 1,778 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 18,218 | |
Total real estate mortgage | Residential mortgages | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total real estate mortgage | Residential mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total real estate mortgage | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 36 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 36 | 49 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Total real estate mortgage | Home improvement and home equity loans | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 32 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 32 | |
Total real estate mortgage | Home improvement and home equity loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 4 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 4 | |
Total real estate mortgage | Home improvement and home equity loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Total real estate mortgage | Home improvement and home equity loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Real estate construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 27,951 | |
2022 | 9,571 | |
2021 | 0 | |
2020 | 34,832 | |
2019 | 0 | |
Prior | 11,856 | |
Revolving Loans Amortized Cost Basis | 43,734 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 127,944 | 153,374 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Real estate construction and development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 27,951 | |
2022 | 9,571 | |
2021 | 0 | |
2020 | 31,308 | |
2019 | 0 | |
Prior | 3,978 | |
Revolving Loans Amortized Cost Basis | 43,734 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 116,542 | |
Real estate construction and development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Real estate construction and development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 3,524 | |
2019 | 0 | |
Prior | 7,878 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 11,402 | |
Agricultural loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 2,086 | |
2022 | 6,268 | |
2021 | 457 | |
2020 | 3,471 | |
2019 | 1,592 | |
Prior | 12,975 | |
Revolving Loans Amortized Cost Basis | 22,946 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 49,795 | 52,722 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Agricultural loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 2,086 | |
2022 | 4,163 | |
2021 | 457 | |
2020 | 2,958 | |
2019 | 1,592 | |
Prior | 12,574 | |
Revolving Loans Amortized Cost Basis | 22,556 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 46,386 | |
Agricultural loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 2,105 | |
2021 | 0 | |
2020 | 513 | |
2019 | 0 | |
Prior | 356 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 2,974 | |
Agricultural loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 45 | |
Revolving Loans Amortized Cost Basis | 390 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 435 | |
Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,881 | |
2022 | 250 | |
2021 | 142 | |
2020 | 74 | |
2019 | 483 | |
Prior | 38,945 | |
Revolving Loans Amortized Cost Basis | 472 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 42,247 | 44,659 |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,588 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,588 | $ 1,364 |
Installment and student loans | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 708 | |
2022 | 250 | |
2021 | 142 | |
2020 | 74 | |
2019 | 483 | |
Prior | 38,519 | |
Revolving Loans Amortized Cost Basis | 472 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 40,648 | |
Installment and student loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,173 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 1,173 | |
Installment and student loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | |
Installment and student loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 426 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | $ 426 |
Loans - Credit Risk Rating (Det
Loans - Credit Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 904,384 | $ 969,996 |
Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 662,118 | |
Total | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 216 | |
Total | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 619,222 | |
Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 27,213 | |
Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 15,467 | |
Total | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 57,906 | |
Total commercial and industrial | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 216 | |
Total commercial and industrial | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 57,493 | |
Total commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 197 | |
Total commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 398,115 | |
Total real estate mortgage | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 273,357 | |
Total real estate mortgage | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 49 | |
Total real estate mortgage | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Not graded | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 257,207 | |
Total real estate mortgage | Not graded | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 41 | |
Total real estate mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 372,120 | |
Total real estate mortgage | Pass | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 16,150 | |
Total real estate mortgage | Pass | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 8 | |
Total real estate mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 25,995 | |
Total real estate mortgage | Special Mention | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Special Mention | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Substandard | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Substandard | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Doubtful | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total real estate mortgage | Doubtful | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Real estate construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 153,375 | |
Real estate construction and development | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Real estate construction and development | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Real estate construction and development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 138,951 | |
Real estate construction and development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Real estate construction and development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 14,424 | |
Real estate construction and development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Agricultural loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 52,722 | |
Agricultural loans | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Agricultural loans | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Agricultural loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 50,658 | |
Agricultural loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 1,021 | |
Agricultural loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 1,043 | |
Agricultural loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 318,060 | |
Total | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 301,650 | |
Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 16,158 | |
Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 252 | |
Total | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 44,654 | |
Installment and student loans | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 44,402 | |
Installment and student loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Installment and student loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | |
Installment and student loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 252 | |
Installment and student loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 0 |
Loans- Allowance for Credit Los
Loans- Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | $ 10,182 | $ 9,333 |
Provision for (reversal of) credit losses | (1,430) | 1,802 |
Charge-offs | (2,588) | (1,363) |
Recoveries | 267 | 410 |
Ending balance | 15,658 | 10,182 |
Unfunded loan commitment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 532 | 669 |
Ending balance | 835 | 532 |
Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 6,367 | |
Ending balance | 6,367 | |
Adjustment | Unfunded loan commitment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 273 | 0 |
Ending balance | 273 | |
Total commercial and industrial | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 955 | 597 |
Provision for (reversal of) credit losses | 390 | 87 |
Charge-offs | 0 | 1 |
Recoveries | 2 | 270 |
Ending balance | 1,903 | 955 |
Total commercial and industrial | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 1,336 | |
Ending balance | 1,336 | |
Total real estate mortgage | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 1,363 | 1,174 |
Provision for (reversal of) credit losses | 1,253 | 147 |
Charge-offs | 0 | 0 |
Recoveries | 55 | 42 |
Ending balance | 2,524 | 1,363 |
Total real estate mortgage | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 2,359 | |
Ending balance | 2,359 | |
Real estate construction and development | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 3,409 | 2,840 |
Provision for (reversal of) credit losses | 515 | 569 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 3,614 | 3,409 |
Real estate construction and development | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 720 | |
Ending balance | 720 | |
Agricultural loans | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 525 | 1,233 |
Provision for (reversal of) credit losses | 300 | (744) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 36 |
Ending balance | 1,250 | 525 |
Agricultural loans | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 1,025 | |
Ending balance | 1,025 | |
Installment and student loans | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 2,898 | 2,720 |
Provision for (reversal of) credit losses | (3,888) | 1,480 |
Charge-offs | (2,588) | (1,364) |
Recoveries | 210 | 62 |
Ending balance | 6,367 | 2,898 |
Installment and student loans | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 1,959 | |
Ending balance | 1,959 | |
Unallocated | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 1,032 | 769 |
Provision for (reversal of) credit losses | 0 | 263 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 0 | 1,032 |
Unallocated | Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | $ (1,032) | |
Ending balance | $ (1,032) |
Loans - Investment in Collatera
Loans - Investment in Collateral-Dependent Loans By Type of Loan (Details) - Asset Pledged as Collateral loan in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amount | $ | $ 11,780 | $ 14,544 |
Number of Collateral-Dependent Loans | loan | 4 | 6 |
Real estate construction and development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amount | $ | $ 11,390 | $ 14,436 |
Number of Collateral-Dependent Loans | loan | 3 | 4 |
Agricultural loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amount | $ | $ 390 | $ 108 |
Number of Collateral-Dependent Loans | loan | 1 | 2 |
Loans - Reserve for Unfunded Co
Loans - Reserve for Unfunded Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | $ 10,182 | $ 9,333 |
Provision for credit losses | 1,460 | 1,802 |
Ending balance | 15,658 | 10,182 |
Unfunded loan commitment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 532 | 669 |
Provision for credit losses | 30 | (137) |
Ending balance | 835 | 532 |
Adjustment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 6,367 | |
Ending balance | 6,367 | |
Adjustment | Unfunded loan commitment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | $ 273 | 0 |
Ending balance | $ 273 |
Loans - TDR Modification (Detai
Loans - TDR Modification (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | $ 2,594 |
Defaults | 0 |
Additions | 0 |
Principal reductions | (470) |
Charge-offs | 0 |
Ending balance | 2,124 |
Allowance for loan loss | 52 |
Total commercial and industrial | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 0 |
Defaults | 0 |
Additions | 0 |
Principal reductions | 0 |
Charge-offs | 0 |
Ending balance | 0 |
Allowance for loan loss | 0 |
Total real estate mortgage | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Charge-offs | 0 |
Total real estate mortgage | Commercial real estate | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 0 |
Defaults | 0 |
Additions | 0 |
Principal reductions | 0 |
Ending balance | 0 |
Allowance for loan loss | 0 |
Total real estate mortgage | Residential mortgages | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 146 |
Defaults | 0 |
Additions | 0 |
Principal reductions | (6) |
Ending balance | 140 |
Allowance for loan loss | 4 |
Total real estate mortgage | Home improvement and home equity loans | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 0 |
Defaults | 0 |
Additions | 0 |
Principal reductions | 0 |
Ending balance | 0 |
Allowance for loan loss | 0 |
Real estate construction and development | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 2,206 |
Defaults | 0 |
Additions | 0 |
Principal reductions | (330) |
Charge-offs | 0 |
Ending balance | 1,876 |
Allowance for loan loss | 0 |
Agricultural loans | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 242 |
Defaults | 0 |
Additions | 0 |
Principal reductions | (134) |
Charge-offs | 0 |
Ending balance | 108 |
Allowance for loan loss | 48 |
Installment and student loans | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |
Beginning balance | 0 |
Defaults | 0 |
Additions | 0 |
Principal reductions | 0 |
Charge-offs | 0 |
Ending balance | 0 |
Allowance for loan loss | $ 0 |
Student Loans - Narrative (Deta
Student Loans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 920,042 | $ 980,178 | |
Allowance for losses | 15,658 | 10,182 | $ 9,333 |
Student loan | 904,384 | 969,996 | |
Accrued interest receivable, charged against interest income | (49,321) | (46,062) | |
Total | 2,588 | 1,363 | |
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 38,493 | 42,130 | |
Allowance for losses | 6,300 | 2,600 | |
Student loan | 426 | 252 | |
Accrued interest receivable, charged against interest income | 252 | 141 | |
Total | $ 2,600 | $ 1,300 |
Student Loans - Credit Quality
Student Loans - Credit Quality Indicators (Details) $ in Thousands | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal Amount | $ 920,042 | $ 980,178 |
Accrued Interest | $ 7,928 | $ 8,489 |
Student loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 841 | 972 |
Principal Amount | $ 38,493 | $ 42,130 |
Accrued Interest | $ 3,474 | $ 4,082 |
Student loan | School | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 44 | 70 |
Principal Amount | $ 1,242 | $ 2,056 |
Accrued Interest | $ 734 | $ 908 |
Student loan | Grace | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 18 | 27 |
Principal Amount | $ 473 | $ 667 |
Accrued Interest | $ 296 | $ 348 |
Student loan | Repayment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 444 | 516 |
Principal Amount | $ 20,833 | $ 23,414 |
Accrued Interest | $ 289 | $ 857 |
Student loan | Deferment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 237 | 268 |
Principal Amount | $ 10,163 | $ 10,974 |
Accrued Interest | $ 2,022 | $ 1,732 |
Student loan | Forbearance | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 98 | 91 |
Principal Amount | $ 5,782 | $ 5,019 |
Accrued Interest | $ 133 | $ 237 |
Student Loans - Aging for Loans
Student Loans - Aging for Loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) borrower | Dec. 31, 2022 USD ($) borrower |
Total Past Due Loans | ||
Total loans | $ 920,042 | $ 980,178 |
Loans 30-60 Days Past Due | ||
Total Past Due Loans | ||
Total loans | 791 | 554 |
Loans 61-89 Days Past Due | ||
Total Past Due Loans | ||
Total loans | 328 | 642 |
Greater than 90 days | ||
Total Past Due Loans | ||
Total loans | 11,861 | 12,905 |
Student loan | ||
Total Past Due Loans | ||
Total loans | $ 38,493 | $ 42,130 |
Student loan | Repayment and Forbearance | ||
Number of Borrowers | ||
Number of borrowers | borrower | 232,000 | 268,000 |
Total Past Due Loans | ||
Total loans | $ 26,615 | $ 28,433 |
Student loan | Repayment and Forbearance | Current or less than 31 days | ||
Number of Borrowers | ||
Number of borrowers, current | borrower | 221,000 | 251,000 |
Total Past Due Loans | ||
Total loans | $ 25,070 | $ 26,993 |
Student loan | Repayment and Forbearance | Loans 30-60 Days Past Due | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 6,000 | 8,000 |
Total Past Due Loans | ||
Total loans | $ 791 | $ 546 |
Student loan | Repayment and Forbearance | Loans 61-89 Days Past Due | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 2,000 | 5,000 |
Total Past Due Loans | ||
Total loans | $ 328 | $ 642 |
Student loan | Repayment and Forbearance | Greater than 90 days | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 3,000 | 4,000 |
Total Past Due Loans | ||
Total loans | $ 426 | $ 252 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 28,575 | $ 28,280 |
Less accumulated depreciation and amortization | (19,477) | (18,510) |
Total | 9,098 | 9,770 |
Depreciation expenses on premises equipment | 1,500 | 1,300 |
Land | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 968 | 968 |
Buildings and improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 16,502 | 16,288 |
Furniture and equipment | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 11,105 | $ 11,024 |
Investment in Limited Partner_2
Investment in Limited Partnership (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Noninterest Income | $ 5,569 | $ 1,838 |
Investment in limited partnership | $ 3,200 | 2,800 |
Limited Partnership | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 2.22% | |
Noninterest Income | 566 | |
Investment in limited partnership | $ 3,200 | 2,800 |
Unfunded loan commitment | Limited Partnership | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnership | $ 800 | $ 1,200 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 403,225 | $ 481,629 |
Interest-bearing deposits: | ||
NOW and money market accounts | 406,857 | 499,861 |
Savings accounts | 122,547 | 125,946 |
Time deposits: | ||
Under $250,000 | 48,098 | 42,933 |
$250,000 and over | 23,750 | 15,115 |
Total interest-bearing deposits | 601,252 | 683,855 |
Total deposits | 1,004,477 | 1,165,484 |
Maturities of Deposits [Abstract] | ||
One year or less | 44,887 | 46,224 |
More than one year, but less than or equal to two years | 26,046 | 10,352 |
More than two years, but less than or equal to three years | 611 | 723 |
More than three years, but less than or equal to four years | 86 | 610 |
More than four years, but less than or equal to five years | 218 | 139 |
Greater than five years | 0 | 0 |
Time Deposits | 71,848 | 58,048 |
Deposit overdrafts | 387,000 | 487 |
Deposits of related parties | $ 10,300 | $ 13,800 |
Short-term Borrowings_Other B_3
Short-term Borrowings/Other Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Balance outstanding | $ 2,000 | $ 0 |
Unsecured credit lines: | ||
Short-term Debt [Line Items] | ||
Credit limit | 80,000 | 120,000 |
Federal Home Loan Bank: | ||
Short-term Debt [Line Items] | ||
Credit limit | 128,935 | 2,151 |
Balance outstanding | 60,000 | 0 |
Collateral pledged | 232,144 | 2,307 |
Federal Reserve Bank: | ||
Short-term Debt [Line Items] | ||
Credit limit | 463,501 | 435,599 |
Balance outstanding | 0 | 0 |
Collateral pledged | $ 608,045 | $ 590,427 |
Short-term Borrowings_Other B_4
Short-term Borrowings/Other Borrowings - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Unused borrowing lines | $ 672,400,000 | $ 557,800,000 |
Balance outstanding | 2,000,000 | 0 |
Short-term debt outstanding | 0 | |
Federal Home Loan Bank: | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 230,100,000 | |
Collateral pledged | 2,100,000 | 2,300,000 |
Collateral pledged | 232,144,000 | 2,307,000 |
Balance outstanding | 60,000,000 | 0 |
Federal Reserve Bank: | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 604,000,000 | |
Collateral pledged | 4,100,000 | |
Collateral pledged | 608,045,000 | 590,427,000 |
Balance outstanding | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 contract | |
Leases [Abstract] | |
Operating lease, number of contracts | 13 |
Financing lease, number of contracts | 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 711 | $ 728 |
Short-term lease expense | 0 | 0 |
Variable lease expense | 0 | 0 |
Sublease income | 0 | 0 |
Total lease cost | $ 711 | $ 728 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows used in operating leases | $ 720 | $ 729 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 0 |
Weighted-average remaining lease terms in years for operating leases | 4 years 2 months 23 days | 4 years 5 months 26 days |
Weighted-average discount rate for operating leases | 5.09% | 5.12% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 580 | |
2025 | 402 | |
2026 | 183 | |
2027 | 112 | |
2028 | 108 | |
Thereafter | 211 | |
Total undiscounted cash flows | 1,596 | |
Less: present value discount | (159) | |
Present value of net future minimum lease payments | $ 1,437 | $ 2,093 |
Junior Subordinated Debt_Trus_3
Junior Subordinated Debt/Trust Preferred Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Net fair value calculation (loss) gain | $ (270) | $ 413 |
Unrealized (loss) gain on junior subordinated debentures | (544) | 2,947 |
Recognized gain (loss) on fair value | 274 | (2,533) |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Cumulative gain recorded on debt | $ 1,461 | $ 1,732 |
Junior Subordinated Debt | Weighted average | Measurement Input, Entity Credit Risk | Valuation Technique, Discounted Cash Flow | ||
Debt Instrument [Line Items] | ||
Weighted average inputs (in percent) | 0.0614 | 0.0663 |
Junior Subordinated Debt_Trus_4
Junior Subordinated Debt/Trust Preferred Securities - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Net fair value calculation (loss) gain | $ (270) | $ 413 |
Unrealized (loss) gain on junior subordinated debentures | (544) | 2,947 |
Recognized gain (loss) on fair value | 274 | (2,533) |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Amount issued in trust preferred securities | 12,000 | 12,000 |
Cumulative gain recorded on debt | $ 1,461 | $ 1,732 |
Junior Subordinated Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument variable interest rate | 1.29% | |
Junior Subordinated Debt | Measurement Input, Discount Rate | ||
Debt Instrument [Line Items] | ||
Weighted average inputs (in percent) | 0.0614 |
Deferred Taxes - Deferred Tax A
Deferred Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Credit losses not currently deductible | $ 4,985 | $ 3,411 |
Deferred compensation | 1,757 | 1,352 |
Depreciation | 92 | 167 |
Accrued reserves | 0 | 75 |
Write-down on other real estate owned | 291 | 291 |
Unrealized gain on retirement obligation | 56 | 83 |
Deferred loss ASC 825 – fair value option | 159 | 245 |
Unrealized loss on available for sale securities | 6,835 | 8,000 |
Interest on nonaccrual loans | 1,513 | 833 |
Lease liability | 458 | 667 |
Other | 848 | 815 |
Total deferred tax assets | 16,994 | 15,939 |
Deferred tax liabilities: | ||
State tax | (596) | (433) |
FHLB dividend | (46) | (46) |
Loss on limited partnership investment | (650) | (507) |
Fair value adjustments for purchase accounting | (93) | (98) |
Unrealized loss on TRUPs | (579) | (740) |
Deferred loan costs | (414) | (508) |
Prepaid expenses | (135) | (150) |
Right-of-use asset | (426) | (632) |
Total deferred tax liabilities | (2,939) | (3,114) |
Net deferred tax assets | $ 14,055 | $ 12,825 |
Deferred Taxes - Income Tax Exp
Deferred Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal | ||
Current | $ 5,103 | $ 5,489 |
Deferred | (238) | (1,457) |
Total Federal Income Taxes | 4,865 | 4,032 |
State | ||
Current | 2,874 | 3,246 |
Deferred | (59) | (905) |
Total State Income Taxes | 2,815 | 2,341 |
Total | ||
Current | 7,977 | 8,735 |
Deferred | (297) | (2,362) |
Total Income Taxes | $ 7,680 | $ 6,373 |
Deferred Taxes - Income Tax Rat
Deferred Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory federal income tax rate | 21% | 21% |
State franchise tax, net of federal income tax benefit | 8.10% | 8.10% |
Other | (1.10%) | (0.20%) |
Effective income tax rate | 28% | 28.90% |
Deferred Taxes - Narrative (Det
Deferred Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Uncertain tax positions | $ 0 | $ 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 0 | 0 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 0 | $ 0 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2005 | Dec. 31, 2023 USD ($) numberOfAgreement $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 shares | May 31, 2015 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation plans | numberOfAgreement | 1 | ||||
Number of shares granted outstanding (in shares) | 75,000 | 119,022 | 94,601 | ||
Non-vested awards (in shares) | 21,435 | 13,974 | 27,949 | ||
Shares available for future issuance | 411,590 | ||||
Unrecognized compensation cost, options | $ | $ 78,000 | $ 104,000 | |||
Options exercisable (in shares) | 51,000 | ||||
Options exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 7.01 | ||||
Options exercisable weighted average remaining contract term (in year) | 4 years 3 months 10 days | ||||
Options exercisable intrinsic value | $ | $ 1,440 | ||||
Share based compensation expense | $ | $ 141,000 | $ 185,000 | |||
Non-vested stock options, (in shares) | 24,000 | 30,000 | |||
Nonvested intrinsic value | $ | $ 5,760 | ||||
Director fees | $ | 438,000 | $ 452,000 | |||
Share-Based Payment Arrangement, Expense, Directors Fees | $ | $ 337,000 | $ 181,000 | |||
Incentive and Nonqualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option exercisable (in percent) | 20% | ||||
Option commencing period | 1 year | ||||
Options expiration period | 10 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested awards (in shares) | 14,435 | 0 | |||
Restricted stock units released (in shares) | 0 | ||||
Unrecognized compensation expense | $ | $ 113,000 | ||||
Period of recognition | 4 years 11 months 4 days | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested awards (in shares) | 7,000 | 13,974 | 27,949 | ||
Restricted stock units released (in shares) | 59,451 | 35,967 | |||
Unrecognized compensation expense | $ | $ 40,000 | $ 90,000 | |||
Period of recognition | 3 years 6 months 25 days | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average vesting period for nonvested options | 3 years 25 days | 4 years 25 days | |||
2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 758,000 | ||||
Non-vested awards (in shares) | 96,435 | ||||
Restricted stock units released (in shares) | 51,000 | ||||
2015 Plan | Nonqualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted outstanding (in shares) | 75,000 | ||||
2015 Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested awards (in shares) | 14,435 | ||||
2015 Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested awards (in shares) | 7,000 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ||
Options outstanding (in shares) | 119,022 | 94,601 |
Granted (in shares) | 0 | 30,000 |
Exercised (in shares) | 29,022 | 5,579 |
Forfeited (in shares) | 15,000 | 0 |
Options outstanding (in shares) | 75,000 | 119,022 |
Weighted Average Exercise Price | ||
Options outstanding (in dollars per share) | $ 8.07 | $ 7.87 |
Granted (in dollars per share) | 0 | 8.17 |
Exercised (in dollars per share) | 3.68 | 5.22 |
Forfeited (in dollars per share) | 9.25 | 0 |
Options outstanding (in dollars per share) | $ 9.54 | $ 8.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options exercisable weighted average remaining contract term (in year) | 5 years 6 months | 4 years 9 months 10 days |
Options exercisable intrinsic value | $ 7,200 | $ 105,334 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested awards, beginning balance (in shares) | 13,974 | 27,949 |
Non-vested awards, ending balance (in shares) | 21,435 | 13,974 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested awards, beginning balance (in shares) | 13,974 | 27,949 |
Granted during the year (in shares) | 52,477 | 26,492 |
Vested during the year (in shares) | (59,451) | (35,967) |
Forfeited during the year (in shares) | (4,500) | |
Non-vested awards, ending balance (in shares) | 7,000 | 13,974 |
Weighted Average Grant-Date Fair Value | ||
Non-vested awards, beginning balance (in dollars per share) | $ 8.29 | $ 8.45 |
Granted during the year (in dollars per share) | 7.53 | 7.52 |
Vested during the year (in dollars per share) | 7.68 | 7.90 |
Forfeited during the year (in dollars per share) | 7.85 | |
Non-vested awards, ending balance (in dollars per share) | $ 7.79 | $ 8.29 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested awards, beginning balance (in shares) | 0 | |
Granted during the year (in shares) | 14,435 | |
Vested during the year (in shares) | 0 | |
Forfeited during the year (in shares) | 0 | |
Non-vested awards, ending balance (in shares) | 14,435 | 0 |
Weighted Average Grant-Date Fair Value | ||
Non-vested awards, beginning balance (in dollars per share) | $ 0 | |
Granted during the year (in dollars per share) | 7.99 | |
Vested during the year (in dollars per share) | 0 | |
Forfeited during the year (in dollars per share) | 0 | |
Non-vested awards, ending balance (in dollars per share) | $ 7.99 | $ 0 |
Stock Based Compensation - Intr
Stock Based Compensation - Intrinsic Value of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average grant-date fair value per share of stock options granted (in dollars per share) | $ 0 | $ 127,644 |
Weighted average fair value of stock options vested | $ 26 | $ 86 |
Total intrinsic value of stock options exercised | $ 85,000 | $ 10,555 |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 0% | 1.23% |
Expected term in years | 0 years | 10 years |
Expected stock price volatility | 0% | 41.63% |
Dividend yield | 0% | 0% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) numberOfAgreement policy | Dec. 31, 2022 USD ($) | Dec. 31, 2017 numberOfAgreement | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employers matching contribution vesting percentage (in percent) | 100% | ||
Matching contribution (in percent) | 4% | ||
Matching contributions | $ 282,000,000 | $ 263,000,000 | |
Salary continuation contracts, service period | 20 years | ||
Salary continuation plan accrued liability | $ 4,255,000,000 | $ 4,245,000,000 | |
Discounted cash flow rate (in percent) | 5.30% | 4.83% | |
Salaries and benefits expense | $ 314,000,000 | $ 310,000,000 | |
Number of officers | numberOfAgreement | 4 | ||
Number of policies | policy | 4 | ||
COLI policy premium payment term | 7 years | ||
Life insurance premium expense | $ 0 | 0 | |
Unrecognized net periodic benefit costs | 130,000,000 | 195,000,000 | |
Cash surrender value of life insurance - net | 21,954,000 | 22,893,000 | |
Income (loss) on bank owned life insurance policies | $ 557,000,000 | $ 555,000,000 | |
Salary Continuation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional compensation benefits term | 15 years | ||
Number of salary continuation agreements | numberOfAgreement | 12 | 8 | |
Salary Continuation Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan vesting period | 12 years | ||
Salary Continuation Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan vesting period | 32 years |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Financial Instruments Off-balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Minimum term of guarantees (less than one month) | 1 month | |
Maximum term of guarantees | 3 years | |
Investment in limited partnership | $ 3,200 | $ 2,800 |
Limited Partnership | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment in limited partnership | 3,200 | 2,800 |
Unfunded loan commitment | Limited Partnership | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment in limited partnership | 800 | 1,200 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amount | 183,537 | 190,183 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amount | $ 2,940 | $ 1,570 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosure - Fair Value Estimates (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Marketable equity securities | $ 3,354 | $ 3,315 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial Assets: | ||
Investment securities | 12,438 | 29,224 |
Marketable equity securities | 3,354 | 3,315 |
Loans, net | 0 | 0 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
Short-term borrowings | 62,000 | |
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Financial Assets: | ||
Investment securities | 166,578 | 178,321 |
Marketable equity securities | 0 | 0 |
Loans, net | 0 | 0 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
Short-term borrowings | 0 | |
Junior subordinated debt | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Financial Assets: | ||
Investment securities | 0 | 0 |
Marketable equity securities | 0 | 0 |
Loans, net | 871,681 | 906,050 |
Financial Liabilities: | ||
Time deposits | 71,414 | 57,056 |
Short-term borrowings | 0 | |
Junior subordinated debt | 11,213 | 10,883 |
Carrying Amount | ||
Financial Assets: | ||
Investment securities | 181,266 | 207,545 |
Marketable equity securities | 3,354 | 3,315 |
Loans, net | 904,384 | 969,996 |
Financial Liabilities: | ||
Time deposits | 71,848 | 58,048 |
Short-term borrowings | 62,000 | |
Junior subordinated debt | 11,213 | 10,883 |
Estimated Fair Value | ||
Financial Assets: | ||
Investment securities | 179,016 | 207,545 |
Marketable equity securities | 3,354 | 3,315 |
Loans, net | 871,681 | 906,050 |
Financial Liabilities: | ||
Time deposits | 71,414 | 57,056 |
Short-term borrowings | 62,000 | |
Junior subordinated debt | $ 11,213 | $ 10,883 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosure - Company's Assets Measured at Fair Value On a Non-Recurring Basis (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Measurement Input, Entity Credit Risk | Valuation Technique, Discounted Cash Flow | Junior Subordinated Debt | Weighted average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted average inputs (in percent) | 0.0614 | 0.0663 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosure - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
AFS Securities: | ||
Debt securities, available-for-sale | $ 181,265 | $ 207,545 |
Marketable equity securities | 3,354 | 3,315 |
Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 179,016 | 207,545 |
Marketable equity securities | 3,354 | 3,315 |
Total assets | 182,370 | 210,860 |
Liabilities: | ||
Junior subordinated debt | 11,213 | 10,883 |
Total liabilities | 11,213 | 10,883 |
U.S. Government agencies | ||
AFS Securities: | ||
Debt securities, available-for-sale | 6,156 | 8,231 |
U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 6,156 | 8,231 |
U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Debt securities, available-for-sale | 88,184 | 97,218 |
U.S. Government collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 88,184 | 97,218 |
Municipal bonds | ||
AFS Securities: | ||
Debt securities, available-for-sale | 40,115 | 36,798 |
Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 40,116 | 40,170 |
U.S. Treasury securities | ||
AFS Securities: | ||
Debt securities, available-for-sale | 12,438 | 29,224 |
U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 12,438 | 29,224 |
Corporate bonds | ||
AFS Securities: | ||
Debt securities, available-for-sale | 32,122 | 32,702 |
Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 32,122 | 32,702 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
AFS Securities: | ||
Marketable equity securities | 3,354 | 3,315 |
Liabilities: | ||
Junior subordinated debt | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Marketable equity securities | 3,354 | 3,315 |
Total assets | 3,354 | 3,315 |
Liabilities: | ||
Junior subordinated debt | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S. Government collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
AFS Securities: | ||
Marketable equity securities | 0 | 0 |
Liabilities: | ||
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs Level 2 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 179,016 | 207,545 |
Marketable equity securities | 0 | 0 |
Total assets | 179,016 | 207,545 |
Liabilities: | ||
Junior subordinated debt | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs Level 2 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 6,156 | 8,231 |
Significant Other Observable Inputs Level 2 | U.S. Government collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 88,184 | 97,218 |
Significant Other Observable Inputs Level 2 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 40,116 | 40,170 |
Significant Other Observable Inputs Level 2 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 12,438 | 29,224 |
Significant Other Observable Inputs Level 2 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 32,122 | 32,702 |
Significant Unobservable Inputs Level 3 | ||
AFS Securities: | ||
Marketable equity securities | 0 | 0 |
Liabilities: | ||
Junior subordinated debt | 11,213 | 10,883 |
Significant Unobservable Inputs Level 3 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Marketable equity securities | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Junior subordinated debt | 11,213 | 10,883 |
Total liabilities | 11,213 | 10,883 |
Significant Unobservable Inputs Level 3 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | U.S. Government collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Debt securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosure - Reconciliation of Liabilities at Fair Value (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Junior Subordinated Debt (in thousands) | ||
Beginning balance | $ 10,883 | $ 11,189 |
Total (gains) losses included in earnings | (274) | 2,533 |
Total gains (losses) included in other comprehensive income | 544 | (2,947) |
Capitalized interest | 60 | 108 |
Ending balance | 11,213 | 10,883 |
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ (274) | $ 2,533 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid during the period for: | ||
Interest | $ 11,010 | $ 3,148 |
Income Taxes | 9,732 | 6,765 |
Noncash activities: | ||
Unrealized (losses) gains on junior subordinated debentures, net of tax | (544) | 2,947 |
Unrealized gains (losses) on available for sale securities, net of tax | 3,941 | (26,730) |
Unrealized losses on unrecognized post-retirement costs, net of tax | (88) | (615) |
Cash dividend declared | $ 2,059 | $ 1,878 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 19,796 | $ 15,686 |
Weighted average shares outstanding (in shares) | 17,114,214 | 17,040,241 |
Add: dilutive effect of stock options (in shares) | 10,972 | 21,592 |
Weighted average shares outstanding adjusted for potential dilution (in shares) | 17,125,186 | 17,061,833 |
Basic earnings per share (in dollars per share) | $ 1.16 | $ 0.92 |
Diluted earnings per share (in dollars per share) | $ 1.16 | $ 0.92 |
Weighted average anti-dilutive shares excluded from earnings per share calculation (in shares) | 91,000 | 96,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 112,463 | [1] | $ 120,207 | [2] |
Current period comprehensive (loss) income, net of tax | 2,457 | (16,321) | ||
Ending balance | 122,542 | [3] | 112,463 | [1] |
Accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (17,495) | [1] | (1,174) | [2] |
Current period comprehensive (loss) income, net of tax | 2,457 | (16,321) | ||
Ending balance | (15,038) | [3] | (17,495) | [1] |
Net unrealized loss on available for sale securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (19,066) | (236) | ||
Current period comprehensive (loss) income, net of tax | 2,776 | (18,830) | ||
Ending balance | (16,290) | (19,066) | ||
Unfunded status of the supplemental retirement plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (194) | (627) | ||
Current period comprehensive (loss) income, net of tax | 64 | 433 | ||
Ending balance | (130) | (194) | ||
Net unrealized gain on junior subordinated debentures | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,765 | (311) | ||
Current period comprehensive (loss) income, net of tax | (383) | 2,076 | ||
Ending balance | $ 1,382 | $ 1,765 | ||
[1] (2) Excludes 13,974 unvested restricted shares (1) Excludes 27,949 unvested restricted shares (3) Excludes 21,435 unvested restricted shares |
Investment in York Monterey P_2
Investment in York Monterey Properties (Details) - York Monterey Properties Inc $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) a numberOfAgreement | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in bank subsidiary | $ | $ 5 | $ 5 |
Other Real Estate Owned | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in bank subsidiary | $ | $ 4.6 | $ 4.6 |
Wholly Owned Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 8 | |
Contribution of property | $ | $ 5.3 | |
Area of real estate property | a | 186.97 | |
Wholly Owned Properties | Real Estate Acquired in Satisfaction of Debt | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 5 | |
Wholly Owned Properties | Real Estate Acquired From Bank | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 3 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [3] | ||
Assets | ||||||
Other assets | $ 14,614 | $ 11,911 | ||||
Total assets | 1,211,045 | 1,299,193 | ||||
Liabilities | ||||||
Junior subordinated debt securities (at fair value) | 11,213 | 10,883 | ||||
Total liabilities | 1,088,503 | 1,186,730 | ||||
Shareholders’ Equity | ||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,167,895 at December 31, 2023 and 17,067,253 at December 31, 2022 | 60,585 | 60,030 | ||||
Retained earnings | 76,995 | 69,928 | ||||
Accumulated other comprehensive loss, net of tax | (15,038) | (17,495) | ||||
Total shareholders’ equity | 122,542 | [1] | 112,463 | [2] | $ 120,207 | |
Total liabilities and shareholders’ equity | $ 1,211,045 | $ 1,299,193 | ||||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | ||||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||||
Common stock, shares, issued (in shares) | 17,167,895 | 17,067,253 | ||||
Common stock, shares, outstanding (in shares) | 17,167,895 | 17,067,253 | ||||
Parent Company | ||||||
Assets | ||||||
Cash and equivalents | $ 2,902 | $ 2,940 | ||||
Investment in bank subsidiary | 131,810 | 121,159 | ||||
Other assets | 1,102 | 1,154 | ||||
Total assets | 135,814 | 125,253 | ||||
Liabilities | ||||||
Junior subordinated debt securities (at fair value) | 11,213 | 10,883 | ||||
Dividends declared | 2,059 | 1,878 | ||||
Other liabilities | 0 | 29 | ||||
Total liabilities | 13,272 | 12,790 | ||||
Shareholders’ Equity | ||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,167,895 at December 31, 2023 and 17,067,253 at December 31, 2022 | 60,585 | 60,030 | ||||
Retained earnings | 76,995 | 69,928 | ||||
Accumulated other comprehensive loss, net of tax | (15,038) | (17,495) | ||||
Total shareholders’ equity | 122,542 | 112,463 | ||||
Total liabilities and shareholders’ equity | $ 135,814 | $ 125,253 | ||||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | ||||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||||
Common stock, shares, issued (in shares) | 17,167,895 | 17,067,253 | ||||
Common stock, shares, outstanding (in shares) | 17,167,895 | 17,067,253 | ||||
[1] (3) Excludes 21,435 unvested restricted shares (2) Excludes 13,974 unvested restricted shares (1) Excludes 27,949 unvested restricted shares |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income | ||
Gain (loss) on fair value of junior subordinated debentures | $ 274 | $ (2,533) |
Expense | ||
Interest expense | 11,056 | 3,195 |
Other expense | 2,462 | 2,554 |
Benefit for income taxes | 7,680 | 6,373 |
Net income | 19,796 | 15,686 |
Parent Company | ||
Income | ||
Gain (loss) on fair value of junior subordinated debentures | 274 | (2,533) |
Dividends from subsidiary | 8,451 | 7,902 |
Total income | 8,725 | 5,369 |
Expense | ||
Interest expense | 799 | 376 |
Other expense | 460 | 450 |
Total expense | 1,259 | 826 |
Income before taxes and equity in undistributed income of subsidiary | 7,466 | 4,543 |
Benefit for income taxes | (291) | (993) |
Equity in undistributed income of subsidiary | 12,039 | 10,150 |
Net income | $ 19,796 | $ 15,686 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 19,796 | $ 15,686 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
(Benefit) provision for deferred income taxes | (297) | (2,362) |
(Gain) loss on fair value of junior subordinated debentures | (274) | 2,533 |
(Increase) decrease in income taxes receivable | (1,755) | 1,970 |
Net cash provided by operating activities | 21,376 | 23,700 |
Cash Flows From Financing Activities: | ||
Dividends on common stock | (7,870) | (7,496) |
Net cash used in financing activities | (106,770) | (30,091) |
Net increase (decrease) in cash and cash equivalents | 2,189 | (180,624) |
Cash and cash equivalents at beginning of year | 38,595 | 219,219 |
Cash and cash equivalents at end of year | 40,784 | 38,595 |
Parent Company | ||
Cash Flows From Operating Activities: | ||
Net Income | 19,796 | 15,686 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Equity in undistributed income of subsidiary | (12,039) | (10,150) |
(Benefit) provision for deferred income taxes | (70) | 128 |
(Gain) loss on fair value of junior subordinated debentures | (274) | 2,533 |
(Increase) decrease in income taxes receivable | 200 | 213 |
Net increase (decrease) in other assets | 800 | (797) |
Net cash provided by operating activities | 8,413 | 7,613 |
Cash Flows From Financing Activities: | ||
Dividends on common stock | 8,451 | 7,486 |
Net cash used in financing activities | (8,451) | (7,486) |
Net increase (decrease) in cash and cash equivalents | (38) | 127 |
Cash and cash equivalents at beginning of year | 2,940 | 2,813 |
Cash and cash equivalents at end of year | $ 2,902 | $ 2,940 |
Regulatory Matters - Company's
Regulatory Matters - Company's and the Bank's Regulatory Capital and Regulatory Capital Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital (to average assets) actual | $ 147,350 | $ 135,889 |
Tier 1 capital (to average assets) actual (in percent) | 0.1182 | 0.1010 |
Banking regulation, tier one leverage capital, community bank, actual | $ 112,035 | $ 121,064 |
Banking regulation, tier one leverage capital, community bank leverage ratio (in percent) | 0.0900 | 0.0900 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital (to average assets) actual | $ 147,249 | $ 135,930 |
Tier 1 capital (to average assets) actual (in percent) | 0.1183 | 0.1011 |
Banking regulation, tier one leverage capital, community bank, actual | $ 112,152 | $ 120,968 |
Banking regulation, tier one leverage capital, community bank leverage ratio (in percent) | 0.0900 | 0.0900 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Officer | Consulting Fee | |
Related Party Transaction [Line Items] | |
Consulting fees | $ 200 |