Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 05, 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 | 001-33003 | ||
Entity Registrant Name | CITIZENS COMMUNITY BANCORP, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-5120010 | ||
Entity Address, Address Line One | 2174 EastRidge Center | ||
Entity Address, City or Town | Eau Claire | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54701 | ||
City Area Code | 715 | ||
Local Phone Number | 836-9994 | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Trading Symbol | CZWI | ||
Security Exchange Name | NASDAQ | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 80.3 | ||
Entity Common Stock, Shares Outstanding | 10,456,880 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2024 Annual Meeting of the Stockholders of the Registrant are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001367859 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Eide Bailly LLP |
Auditor Location | Phoenix, Arizona |
Auditor Firm ID | 286 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 37,138 | $ 35,363 |
Other interest bearing deposits | 0 | 249 |
Available for sale ("AFS") securities, at amortized cost of $179,744, net of allowance for credit losses of $0 at December 31, 2023 | 155,743 | 165,991 |
Held to maturity ("HTM") securities, at amortized cost, net of allowance for credit losses of $0 at December 31, 2023 | 91,229 | 96,379 |
Equity investments | 3,284 | 1,794 |
Other investments | 15,725 | 15,834 |
Loans receivable | 1,460,792 | 1,411,784 |
Allowance for credit losses | (22,908) | (17,939) |
Loans receivable, net | 1,437,884 | 1,393,845 |
Loans held for sale | 5,773 | 0 |
Mortgage servicing rights, net | 3,865 | 4,262 |
Office properties and equipment, net | 18,373 | 20,493 |
Accrued interest receivable | 5,409 | 5,285 |
Intangible assets | 1,694 | 2,449 |
Goodwill | 31,498 | 31,498 |
Foreclosed and repossessed assets, net | 1,795 | 1,271 |
Bank owned life insurance ("BOLI") | 25,647 | 24,954 |
Other assets | 16,334 | 16,719 |
TOTAL ASSETS | 1,851,391 | 1,816,386 |
Liabilities: | ||
Deposits | 1,519,092 | 1,424,720 |
Federal Home Loan Bank ("FHLB") advances | 79,530 | 142,530 |
Other borrowings | 67,465 | 72,409 |
Other liabilities | 11,970 | 9,639 |
Total liabilities | 1,678,057 | 1,649,298 |
Stockholders’ Equity: | ||
Common stock— $0.01 par value, authorized 30,000,000; 10,440,591 and 10,425,119 shares issued and outstanding, respectively | 104 | 104 |
Additional paid-in capital | 119,441 | 119,240 |
Retained earnings | 71,117 | 65,400 |
Accumulated other comprehensive loss | (17,328) | (17,656) |
Total stockholders’ equity | 173,334 | 167,088 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,851,391 | $ 1,816,386 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Debt securities, available-for-sale, amortized cost, after allowance for credit loss | $ 179,744 | $ 190,344 |
Debt securities, available-for-sale, allowance for credit loss | 0 | |
Debt securities, held-to-maturity, allowance for credit loss | $ 0 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 30,000,000 | 30,000,000 |
Common stock issued (shares) | 10,440,591 | 10,425,119 |
Common stock outstanding (shares) | 10,440,591 | 10,425,119 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 73,577 | $ 61,639 |
Interest on investments | 10,671 | 7,758 |
Total interest and dividend income | 84,248 | 69,397 |
Interest expense: | ||
Interest on deposits | 25,749 | 6,429 |
Interest on FHLB borrowed funds | 5,966 | 2,303 |
Interest on other borrowed funds | 4,184 | 4,296 |
Total interest expense | 35,899 | 13,028 |
Net interest income before provision for credit losses | 48,349 | 56,369 |
Provision for credit losses | (475) | 1,475 |
Net interest income after provision for credit losses | 48,824 | 54,894 |
Non-interest income: | ||
Service charges on deposit accounts | 1,949 | 2,018 |
Interchange income | 2,324 | 2,343 |
Loan servicing income | 2,218 | 2,439 |
Gain on sale of loans | 1,692 | 1,474 |
Loan fees and service charges | 432 | 679 |
Net gains on investment securities | 459 | 541 |
Other | 1,176 | 936 |
Total non-interest income | 10,250 | 10,430 |
Non-interest expense: | ||
Compensation and related benefits | 21,106 | 22,128 |
Occupancy | 5,431 | 5,490 |
Data processing | 5,951 | 5,453 |
Amortization of intangible assets | 755 | 1,449 |
Mortgage servicing rights expense, net | 615 | 222 |
Advertising, marketing and public relations | 734 | 1,017 |
FDIC premium assessment | 812 | 470 |
Professional services | 1,524 | 1,707 |
Losses (gains) on repossessed assets, net | 62 | (395) |
New market tax credit depletion | 0 | 650 |
Other | 3,152 | 3,552 |
Total non-interest expense | 40,142 | 41,743 |
Income before provision for income taxes | 18,932 | 23,581 |
Provision for income taxes | 5,873 | 5,820 |
Net income attributable to common stockholders | $ 13,059 | $ 17,761 |
Per share information: | ||
Basic earnings (USD per share) | $ 1.25 | $ 1.69 |
Diluted earnings (USD per share) | 1.25 | 1.69 |
Cash dividends paid (USD per share) | $ 0.29 | $ 0.26 |
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 attributable to common stockholders | $ 13,059 | $ 17,761 |
Securities available for sale | ||
Net unrealized gains (losses) arising during period, net of tax | 337 | (17,817) |
Reclassification adjustment for net gains included in net income, net of tax | (9) | 0 |
Other comprehensive income (loss), net of tax | 328 | (17,817) |
Comprehensive income (loss) | $ 13,387 | $ (56) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Change in Accounting Principal for Adoption | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Cumulative Change in Accounting Principal for Adoption | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (shares) at Dec. 31, 2021 | 10,502,442 | ||||||
Balance at beginning of period at Dec. 31, 2021 | $ 170,866 | $ 105 | $ 119,925 | $ 50,675 | $ 161 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 17,761 | 17,761 | |||||
Other comprehensive income (loss), net of tax | (17,817) | (17,817) | |||||
Forfeiture of unvested shares (in shares) | (2,626) | ||||||
Forfeiture of unvested shares | 0 | ||||||
Surrender of restricted shares of common stock (shares) | (10,730) | ||||||
Surrender of restricted shares of common stock | $ (150) | (150) | |||||
Restricted common stock awarded under the equity incentive plan (shares) | 45,222 | ||||||
Restricted common stock issued upon achievement of the 2019 and 2020 performance criteria (shares) | 11,834 | ||||||
Common stock options exercised (shares) | 7,900 | 7,900 | |||||
Common stock options exercised | $ 71 | 71 | |||||
Common stock repurchased (shares) | (128,923) | ||||||
Common stock repurchased | (1,764) | $ (1) | (1,469) | (294) | |||
Stock option expense | 3 | 3 | |||||
Amortization of restricted stock | 860 | 860 | |||||
Cash dividends | (2,742) | (2,742) | |||||
Balance at end of period (shares) at Dec. 31, 2022 | 10,425,119 | ||||||
Balance at end of period at Dec. 31, 2022 | 167,088 | $ 104 | 119,240 | 65,400 | (17,656) | ||
Balance at end of period (Accounting Standards Update 2016-13) at Dec. 31, 2022 | $ (4,432) | $ (4,432) | |||||
Balance at end of period (Cumulative change in accounting principle for adoption of ASU2023-02) at Dec. 31, 2022 | 130 | $ 130 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 13,059 | 13,059 | |||||
Net income | Cumulative change in accounting principle for adoption of ASU2023-02 | $ 120 | ||||||
Other comprehensive income (loss), net of tax | 328 | 328 | |||||
Forfeiture of unvested shares (in shares) | (4,752) | ||||||
Forfeiture of unvested shares | 0 | ||||||
Surrender of restricted shares of common stock (shares) | (10,287) | ||||||
Surrender of restricted shares of common stock | (129) | (129) | |||||
Restricted common stock awarded under the equity incentive plan (shares) | 50,606 | ||||||
Restricted common stock awarded under the equity incentive plan | $ 1 | $ 1 | |||||
Restricted common stock issued upon achievement of the 2019 and 2020 performance criteria (shares) | 18,551 | ||||||
Common stock options exercised (shares) | 3,000 | 3,000 | |||||
Common stock options exercised | $ 28 | 28 | |||||
Common stock repurchased (shares) | (41,646) | ||||||
Common stock repurchased | (421) | $ (1) | (420) | ||||
Amortization of restricted stock | 722 | 722 | |||||
Cash dividends | (3,040) | (3,040) | |||||
Balance at end of period (shares) at Dec. 31, 2023 | 10,440,591 | ||||||
Balance at end of period at Dec. 31, 2023 | $ 173,334 | $ 104 | $ 119,441 | $ 71,117 | $ (17,328) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (USD per share) | $ 0.29 | $ 0.26 |
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 attributable to common stockholders | $ 13,059 | $ 17,761 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Investment securities net (discount accretion) premium amortization | (64) | 41 |
Depreciation expense | 2,371 | 2,357 |
Provision for credit losses | (475) | 1,475 |
Net realized gain on equity securities | (447) | (541) |
Net realized gain on debt securities | (12) | 0 |
Deferred tax asset valuation allowance, net of accretion | 1,792 | 0 |
Increase in mortgage servicing rights resulting from transfers of financial assets | (218) | (323) |
Mortgage servicing rights amortization and impairment reversal, net | 615 | 222 |
Amortization of intangible assets | 755 | 1,449 |
Amortization of restricted stock | 722 | 860 |
Net stock based compensation expense | 0 | 3 |
Loss on closure of branch facilities | 380 | 736 |
Decrease in deferred income taxes | 202 | 506 |
Increase in cash surrender value of life insurance | (693) | (642) |
Net gain (loss) from disposals of foreclosed and repossessed assets | 62 | (395) |
Gain on sale of loans held for sale, net | (1,692) | (1,474) |
Proceeds from sale of loans held for sale | 46,907 | 46,862 |
Origination of loans held for sale | (50,988) | (38,718) |
New market tax credit depletion expense | 0 | 650 |
Net change in: | ||
Accrued interest receivable and other assets | 54 | 79 |
Other liabilities | 794 | (1,620) |
Total adjustments | 65 | 11,527 |
Net cash provided by operating activities | 13,124 | 29,288 |
Cash flows from investing activities: | ||
Net decrease in other interest bearing deposits | 249 | 1,262 |
Purchase of available for sale securities | (11,007) | (13,315) |
Proceeds from principal payments of available for sale securities | 16,594 | 25,815 |
Proceeds from sales of available for sale securities | 5,105 | 0 |
Purchase of held to maturity securities | 0 | (35,342) |
Proceeds from principal payments and maturities of held to maturity securities | 5,134 | 10,065 |
Equity investment capital distribution | 132 | 136 |
Purchase of equity investments | (1,350) | (300) |
Net sales (purchases) of other investments | 284 | (290) |
Proceeds from sales of foreclosed and repossessed assets | 307 | 1,797 |
Net increase in loans | (48,298) | (101,371) |
Net capital expenditures | (1,367) | (3,602) |
Proceeds from disposal of office properties and equipment | 12 | 14 |
New market tax credit investment | 0 | (4,056) |
Net cash used in investing activities | (34,205) | (119,187) |
Cash flows from financing activities: | ||
Net change in Federal Home Loan Bank short-term advances | (68,000) | 112,000 |
Federal Home Loan Bank advances | 25,000 | 0 |
Amortization of fair value adjustments for acquired Federal Home Loan Bank advances | 0 | 3 |
Federal Home Loan Bank advance call payments | (15,000) | (55,000) |
Federal Home Loan Bank advance termination payments | 0 | (15,015) |
Federal Home Loan Bank maturities | (5,000) | (11,000) |
Amortization of debt issuance costs | 223 | 398 |
Proceeds from other borrowings, net of origination costs | 0 | 34,191 |
Other borrowings principal reductions | (5,167) | (5,606) |
Other borrowings called and repaid | 0 | (15,000) |
Net increase in deposits | 94,361 | 37,185 |
Restricted common stock awarded under the equity incentive plan | 1 | 0 |
Repurchase shares of common stock | (421) | (1,764) |
Surrender of restricted shares of common stock | (129) | (150) |
Common stock options exercised | 28 | 71 |
Cash dividends paid | (3,040) | (2,742) |
Net cash provided by financing activities | 22,856 | 77,571 |
Net decrease in cash and cash equivalents | 1,775 | (12,328) |
Cash and cash equivalents at beginning of period | 35,363 | 47,691 |
Cash and cash equivalents at end of period | 37,138 | 35,363 |
Cash paid during the period for: | ||
Interest on deposits | 23,353 | 6,435 |
Interest on borrowings | 10,180 | 6,210 |
Income taxes | 3,977 | 4,865 |
Supplemental noncash disclosure: | ||
Transfers from loans receivable to foreclosed and repossessed assets | 158 | 92 |
Transfers from office properties and equipment to foreclosed and repossessed assets | $ 724 | $ 1,171 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of Citizens Community Federal N.A. (the “Bank”) included herein have been included by its parent company, Citizens Community Bancorp, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As used in this annual report, the terms “we”, “us”, “our”, and “Citizens Community Bancorp, Inc.” mean the Company and its wholly owned subsidiary, the Bank, unless the context indicates other meaning. The Bank is a national banking association (a “National Bank”) and operates under the title of Citizens Community Federal National Association (“Citizens Community Federal N.A.” or “Bank”). The Company is a bank holding company, supervised by the Federal Reserve Bank of Minneapolis (the “FRB”), and operates under the title of Citizens Community Bancorp, Inc. The Office of the Comptroller of the Currency (the “OCC”), is the primary federal regulator for the Bank. The consolidated income of the Company is principally derived from the income of the Bank, the Company’s wholly owned subsidiary, serving customers primarily in Wisconsin and Minnesota through 23 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, Mankato and Twin Cities markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, agricultural operators and consumers, including one-to-four family residential mortgages. The Bank is subject to competition from other financial institutions and non-financial institutions providing financial products. Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. In preparing these consolidated financial statements, we evaluated the events and transactions occurring subsequent to the balance sheet date of December 31, 2023 through the date on which the consolidated financial statements were available to be issued on March 5, 2024, for items that should potentially be recognized or disclosed in these consolidated financial statements. Unless otherwise stated herein, and except for share and per share amounts, all amounts are in thousands. Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant inter-company accounts and transactions have been eliminated. Use of Estimates— Preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, fair value of financial instruments, the allowance for credit losses, mortgage servicing rights, foreclosed and repossessed assets, valuation of intangible assets arising from acquisitions, useful lives for depreciation and amortization, valuation of goodwill and long-lived assets, stock based compensation, deferred tax assets, uncertain income tax positions and contingencies. Management does not anticipate any material changes to estimates made herein in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: those items described under the caption “Risk Factors” in Item 1A of the accompanying annual report on Form 10-K for the year ended December 31, 2023 and external market factors such as market interest rates and unemployment rates, changes to operating policies and procedures, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period. Cash and Cash Equivalents— For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash, due from banks, and interest bearing deposits with original maturities of three months or less. Other Interest Bearing Deposits— Other interest bearing deposits are certificate of deposit investments made by the Bank with other financial institutions that are carried at cost. As of December 31, 2023, there were no other interest bearing deposit investments. As of December 31, 2022, the weighted average months to maturity of the interest bearing deposits was 3.00 months. Balances over $250 in other financial institutions are not insured by the FDIC and therefore pose a potential risk in the event the institution were to fail. As of December 31, 2023 and December 31, 2022, there were no certificate of deposit investment accounts with a balance greater than $250. Investment Securities; Held to Maturity and Available for Sale – Management determines the appropriate classification of investment securities at the time of purchase and reevaluates such designation as of the date of each balance sheet. Securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Held to maturity securities are stated at amortized cost. Investment securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value, with unrealized holding gains and losses being reported in other comprehensive income (loss), net of tax. Realized gains or losses on sales of available for sale securities are calculated with the specific identification method and are included in the consolidated statements of operations under net gains on investment securities. Interest income includes amortization of purchase premium or accretion of purchase discount. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the securities. Allowance for Credit Losses - Available for Sale Securities - The Company measures the allowance for credit losses on available for sale debt securities by evaluating securities in an unrealized loss position using a two-step process. First, the Company assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost. If it is determined that the Company intends or will be required to sell the security, it is written down to its fair value as net gains or losses on investment securities in our consolidated statement of operations. For agency mortgage-backed and asset-backed securities that do not meet the criteria in step one, there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other debt securities that do not meet the criteria in step one, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and the allowance for credit losses on available for sale investments is 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. Allowance for Credit Losses - Held to Maturity Securities - The Company measures expected credit losses on held to maturity debt securities on a collective basis by major security type. For agency mortgage-backed securities there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other securities, the estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has elected to not measure an ACL on accrued interest on available for sale and held to maturity securities, as it would write off accrued interest in a timely manner if the related security was determined to be impaired. The Company has no available for sale securities or held to maturity securities which it deems to be impaired at December 31, 2023. Equity investments - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities. Farmer Mac equity securities are carried at their fair market value, which is readily determinable. Changes in fair value are recognized as net gains (losses) on investment securities in the consolidated Statement of Operations. Also included in equity investments are the Company’s investments in a Volcker Rule-compliant Small Business Investment Company (SBIC) and an investment fund. The SBIC and investment fund meet the definition of investment companies, as defined in ASC 946, Financial Services - Investment Companies. These investments seek returns by investing in various small businesses and do not have redemption rights. Distributions from the investments will be received as the underlying investments, which generally have a life of 10 years, are liquidated or earlier distributions are made. We elected the practical expedient available in Topic 820, Fair Value Measurements, which permits the use of net asset value ("NAV") per share or equivalent to value investments in entities that are or are similar to investment companies. SBICs and investment funds report their investments at estimated fair value. We record the unrealized gains and losses resulting from changes in the fair value of these investments as gains or losses on equity securities in our consolidated statements of operations. The carrying value of these investments is equal to the capital account balance as provided by the investee and adjusted as necessary. Other investments - As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost and periodically evaluated for impairment based on the ultimate recovery of par value. Cash dividends are reported as interest on investments in the consolidated statement of operations. Also included in other investments is stock of our correspondent bank, Bankers’ Bank, without readily determinable fair value. This stock is carried at cost plus or minus changes resulting from observable price changes in orderly transactions for this stock, less other-than-temporary impairment charges, if any. Management’s evaluation for impairment of these other investments includes consideration of the financial condition and other available relevant information of the issuer. Based on management’s quarterly evaluation, no impairment has been recorded on these securities. Other investments totaling $15,725 at December 31, 2023 consisted of $7,302 of FHLB stock, $5,699 of Federal Reserve Bank stock and $2,724 of Bankers’ Bank stock. Other investments totaling $15,834 at December 31, 2022 consisted of $7,652 of FHLB stock, $5,674 of Federal Reserve Bank stock and $2,508 of Bankers’ Bank stock. Loans receivable – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, accretable yield on acquired loans, and non-accretable discount on purchased credit deteriorated (PCD) loans. Interest income is accrued on the unpaid principal balance of these loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method over the contractual life of the loan with no prepayments assumed. If the loan is prepaid, any amortized net fee is recognized at that time. Late charge fees are recognized into income when collected. Interest income on commercial, mortgage and consumer loans is discontinued according to the following schedules: • Commercial/agricultural real estate loans past due 90 days or more; • Commercial and industrial/agricultural operating loans past due 90 days or more; • Closed end consumer installment loans past due 120 days or more; and • Residential mortgage loans and open ended consumer installment loans past due 180 days or more. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual status. Loans are returned to accrual status when payments are made that bring the loan account current with the contractual term of the loan and a six month payment history has been established. Interest on accruing troubled debt restructured (“TDR”) loans, less than 90 days delinquent, is recognized as income as it accrues based on the revised terms of the loan over an established period of continued payment. Residential mortgage loans and open ended consumer installment loans are charged off to estimated net realizable value less estimated selling costs at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more. Closed ended consumer installment loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 120 days or more. Commercial/agricultural real estate, commercial and industrial and agricultural operating loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 90 days or more. Allowance for Credit Losses - Loans – The allowance for credit losses (“ACL”) on loans is a valuation allowance for current expected credit losses in the Company’s loan portfolio. Prior to January 1, 2023, the valuation allowance was established for probable and inherent credit losses. Loan losses are charged against the ACL when management believes that the collectability of a loan balance is unlikely. Subsequent recoveries, if any, are credited to the ACL. In determining the allowance, the company estimates credit losses over the loan’s entire contractual term, adjusted for expected prepayments when appropriate. The allowance estimate considers relevant available information from internal and external sources relating to historical loss experience; known and inherent risks in our portfolio; information about specific borrowers’ ability to repay; estimated collateral values; current economic conditions; reasonable and supportable forecasts for future conditions; and other relevant factors determined by management. To ensure that the ACL is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The entire ACL balance is available for any loan that, in management’s judgment, should be charged off. The determination of the ACL requires significant judgement to estimate credit losses. The ACL on loans is measured collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that the loan does not share similar risk characteristics with other loans. The ACL on loans collectively evaluated is measured using the loss rate model. The Company categorizes its loan portfolio into four segments based on similar risk characteristics. Loans within each segment are pooled based on individual loan characteristics. Aggregated risk drivers are then calculated at a pool level. Risk drivers are identified attributes that have proven to be predictive of loan loss rates and vary based on loan segment and type. A loss rate is calculated and applied to the pool utilizing a model that combines the pool’s risk drivers, historical loss experience, and reasonable and supportable future economic forecasts to project lifetime losses. The loss rate is then combined with the loans balance and contractual maturity, adjusted for expected prepayments, to determine expected future losses. Future and supportable economic forecasts are based on national economic conditions and their reversion to the mean is implicit in the model and generally occurs over a period of two years. Qualitative adjustments are made to the allowance calculated on collectively evaluated loans to incorporate factors not included in the model. Qualitative factors include but are not limited to: lending policies and procedures, the experience and ability of lending and other staff, the volume and severity of problem credits, quality of the loan review system, and other external factors. Loans that exhibit different risk characteristics from the pool are individually evaluated for impairment. Loans can be identified for individual evaluation for a variety of reasons including delinquency, nonaccrual status, risk rating and loan modification. Accruing loans that exhibit different risk characteristics from their pool may also be within scope. On these loans, an allowance may be established so that the loan is reported, net, at the lower of (a) its amortized cost; (b) the present value of the loan’s estimated future cash flows using the loan’s existing rate; or (c) at the fair value of any loan collateral, less estimated disposal costs, if the loan is collateral dependent. Collateral dependency is determined using the practical expedient when: 1) the borrower is experiencing financial difficulty; and 2) repayment is expected to be provided substantially through the sale or operation of the collateral. The Company has elected to not measure an ACL on accrued interest as it writes off accrued interest in a timely manner. Allowance for Credit Losses - Unfunded Commitments – The ACL on unfunded commitments is a liability for credit losses on commitments to originate or fund loans, and standby letters of credit. It is included in “Other liabilities” on the consolidated balance sheets. Expected credit losses are estimated over the contractual period in which the Company is exposed to credit risk via a commitment that cannot be unconditionally canceled, adjusted for projected prepayments when appropriate. In addition, the estimate of the liability considers the likelihood that funding will occur. The ACL on unfunded commitments is adjusted through provision for credit losses on consolidated statements of operations. Because the business processes and risks associated with unfunded commitments are essentially the same as loans, the Company uses the same process to estimate the liability. Loans Held for Sale — Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. They are carried at the lower of aggregate cost or fair value. Gains and losses on sales of loans are recognized at settlement dates, and are determined by the difference between the sales proceeds and the carrying value of the loans after allocating costs to servicing rights retained. Such gains and losses are included as non-interest income in the consolidated statement of operations. All sales are made without recourse. Interest rate lock commitments on mortgage loans to be funded and sold are valued at fair value, and are included in other assets or liabilities, if material. 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 entity, (2) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets, and (3) the entity does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. Mortgage Servicing Rights— Mortgage servicing rights (“MSR”) assets result as the Company sells loans to investors in the secondary market and retains the rights to service mortgage loans sold to others. MSR assets are initially measured at fair value; assessed for impairment at least annually; carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. MSR assets are amortized in proportion to and over the period of estimated net servicing income, with the amortization recorded in non-interest expense in the consolidated statement of operations. The valuation of MSRs and related amortization, included in mortgage servicing rights expense in the consolidated statements of operations, thereon are based on numerous factors, assumptions and judgments, such as those for: changes in the mix of loans, interest rates, prepayment speeds, and default rates. Changes in these factors, assumptions and judgments may have a material effect on the valuation and amortization of MSRs. Although management believes that the assumptions used to evaluate the MSRs for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of MSRs. Servicing fee income, which is reported on the consolidated statements of operations in non-interest income as loan servicing fee income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Office Properties and Equipment— Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of office properties and equipment are reflected in income. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 10 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 10 years. Leasehold improvements are depreciated using the straight-line (or accelerated) method with useful lives based on the lesser of (a) the estimated life of the lease, or (b) the estimated useful life of the leasehold improvement. Depreciation expense is included in non-interest expense on the consolidated statements of operations. Goodwill and other intangible assets— The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, “Intangibles - Goodwill and Other.” The Company records the excess of the cost of acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill. The Company amortizes acquired intangible assets, primarily Core Deposit Intangibles (CDI) with definite useful economic lives over their useful economic lives originally ranging from 72 to 111 months utilizing the straight-line method. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amounts of the intangible assets may be impaired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management. The Company has one reporting unit as of December 31, 2023 which is related to its banking activities. The impairment testing process is conducted by assigning net assets and goodwill to the Company’s reporting unit. An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of the Company’s reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the Company’s reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of the company’s reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the Company’s reporting unit’s goodwill to the implied fair value of goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. The Company has performed the required goodwill impairment test and has determined that goodwill was not impaired as of December 31, 2023. See Note 6 for additional information on goodwill and other intangible assets. Foreclosed and Repossessed Assets – Assets acquired through foreclosure or repossession are initially recorded at fair value, less estimated costs to sell, which establishes a new cost basis. If the fair value declines subsequent to foreclosure or repossession, a write-down is recorded through expense. Costs incurred after acquisition are expensed and are included in non-interest expense, other in the consolidated statements of operations. Bank Owned Life Insurance (BOLI)— The Bank invests in bank-owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the consolidated statements of operations. New Markets Tax Credits - As a part of its commitment to the communities it serves, in the first quarter of 2022, the Company made an investment in an LLC that is sponsoring a community development project that has been awarded a New Markets Tax Credit (“NMTC”) through the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. This investment is Community Reinvestment Act eligible and is designed to generate a return primarily through the realization of the tax credit. This LLC is considered a Variable Interest Entity (“VIE”), as the Company represents the holder of the equity investment at risk. However, the Company does not have the ability to direct the activities that most significantly affect the performance of the LLC. As such, the Company is not the primary beneficiary of the VIE and the LLC has not been consolidated. With the adoption of ASU 2023-02 on January 1, 2023, discussed in Recent Accounting Pronouncements – Adopted below, the investment is accounted for using the proportional amortization method, which requires amortizing the investment in the period of and in proportion to the recognition of the related tax credit. Amortization of the investment is included in provision for income taxes and the utilization of the tax credit is recorded as a reduction of the provision for income taxes. Prior to the adoption of ASU 2023-02, the investment was accounted for using the equity method of accounting and was amortized through non-interest expense. Amortization expense for the 12-month periods ended December 31, 2023 and December 31, 2022 was $452 and $650, respectively. As of December 31, 2023, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $2,898. Prior to the adoption of ASU 2023-02, the carrying amount of the investment, as of December 31, 2022 was $3,350. The risk of loss with this investment is limited to its carrying value and is tied to its ability to operate in compliance with the rules and regulations necessary for the qualification of the tax credit generated by the investment. As of December 31, 2023, there were no known instances of noncompliance associated with the investment. Leases - We determine if an arrangement is a lease at inception. All of our existing leases have been determined to be operating leases under ASC 842. Right-of-use (“ROU”) assets are included in other assets in our consolidated balance sheets. Operating lease liabilities are included in other liabilities in our consolidated balance sheets. Lease expense is included in non-interest expense, occupancy in the consolidated statements of operations. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date, based on the present value of lease payments over the lease term. As none of our existing leases provide an implicit rate, we use our incremental borrowing rate, based on information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease, when it is reasonably certain that we will exercise that option. Lease expense is recognized based on the total contractually required lease payments, over the term of the lease, on a straight-line basis. Some of the Bank’s leases require it to make variable payments for the Bank’s share of property taxes, insurance, common area maintenance and other costs. These variable costs are recognized when incurred and are also included in lease expense. Debt and equity issuance costs— Debt issuance costs, which consist primarily of fees paid to note lenders, are deferred and included in other borrowings in the consolidated balance sheets. Debt issuance costs with a Company call option that originated prior to 2020 and senior note debt issuance costs, are amortized over the contractual term of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations. Debt issuance costs that originated in 2020 and thereafter, are amortized through the first Company call option date of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations. Specific costs associated with the issuance of shares of the Company’s common or preferred stock are netted against proceeds and recorded in stockholders’ equity, as additional paid in capital, on the consolidated balance sheets, in the period of the share issuance. Advertising, Marketing and Public Relations Expense— The Company expenses all advertising, marketing and public relations costs as they are incurred. Income Taxes – The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable t |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of December 31, 2023 and December 31, 2022, respectively, were as follows: Available for sale securities Amortized Gross Gross Estimated December 31, 2023 U.S. government agency obligations $ 16,655 $ 77 $ 156 $ 16,576 Mortgage-backed securities 91,091 — 17,611 73,480 Corporate debt securities 47,158 6 5,990 41,174 Asset-backed securities 24,840 12 339 24,513 Total available for sale securities $ 179,744 $ 95 $ 24,096 $ 155,743 December 31, 2022 U.S. government agency obligations $ 18,373 $ 173 $ 233 $ 18,313 Mortgage-backed securities 97,458 — 18,848 78,610 Corporate debt securities 44,636 — 4,385 40,251 Asset-backed securities 29,877 — 1,060 28,817 Total available for sale securities $ 190,344 $ 173 $ 24,526 $ 165,991 Held to maturity securities Amortized Gross Gross Estimated December 31, 2023 Obligations of states and political subdivisions $ 600 $ — $ 35 $ 565 Mortgage-backed securities 90,629 6 17,938 72,697 Total held to maturity securities $ 91,229 $ 6 $ 17,973 $ 73,262 December 31, 2022 Obligations of states and political subdivisions $ 600 $ — $ 54 $ 546 Mortgage-backed securities 95,779 7 19,553 76,233 Total held to maturity securities $ 96,379 $ 7 $ 19,607 $ 76,779 At December 31, 2023, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $29,191 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2023, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2023, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $516 and mortgage-backed securities with a carrying value of $1,928 as collateral against specific municipal deposits. As of December 31, 2023, the Bank also has mortgage-backed securities with a carrying value of $179 and U.S. Government Agencies with a carrying value of $415 pledged as collateral to the Federal Home Loan Bank of Des Moines. At December 31, 2022, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $5,421 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2022, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2022, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $2,602 and mortgage-backed securities with a carrying value of $2,219 as collateral against specific municipal deposits. As of December 31, 2022, the Bank also has mortgage-backed securities with a carrying value of $142 pledged as collateral to the Federal Home Loan Bank of Des Moines. For the twelve-month period ending December 31, 2023, and December 31, 2022, gross sales of available for sale securities were $5,105 and $0 respectively. Gross gains on sale of available for sale securities for the twelve-month period ending December 31, 2023 and December 31, 2022, were $12 and $0 respectively. Gross losses on sale of available for sale securities for the twelve-month period ended December 31, 2023 and December 31, 2022 were both $0. The estimated fair value of available for sale securities at December 31, 2023 and December 31, 2022, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and securities due to the call feature. December 31, 2023 December 31, 2022 Available for sale securities Amortized Estimated Amortized Estimated Due in one year or less $ — $ — $ — $ — Due after one year through five years 13,986 13,703 8,525 8,184 Due after five years through ten years 45,549 39,701 45,622 41,427 Due after ten years 29,118 28,859 38,739 37,770 Total securities with contractual maturities 88,653 82,263 92,886 87,381 Mortgage-backed securities 91,091 73,480 97,458 78,610 Total available for sale securities $ 179,744 $ 155,743 $ 190,344 $ 165,991 December 31, 2023 December 31, 2022 Held to maturity securities Amortized Estimated Amortized Estimated Due in one year or less $ 100 $ 100 $ — $ — Due after one year through five years 500 465 450 415 Due after five years through ten years — — 150 131 Total securities with contractual maturities 600 565 600 546 Mortgage-backed securities 90,629 72,697 95,779 76,233 Total held to maturity securities $ 91,229 $ 73,262 $ 96,379 $ 76,779 Securities with unrealized losses at December 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 Months 12 Months or More Total Available for sale securities Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 U.S. government agency obligations $ 3,776 $ 5 $ 3,627 $ 151 $ 7,403 $ 156 Mortgage-backed securities — — 73,476 17,611 73,476 17,611 Corporate debt securities 3,350 76 35,916 5,914 39,266 5,990 Asset-backed securities 3,348 22 20,008 317 23,356 339 Total $ 10,474 $ 103 $ 133,027 $ 23,993 $ 143,501 $ 24,096 December 31, 2022 U.S. government agency obligations $ 3,169 $ 138 $ 1,138 $ 95 $ 4,307 $ 233 Mortgage-backed securities 9,654 896 68,907 17,952 78,561 18,848 Corporate debt securities 21,547 1,688 18,704 2,697 40,251 4,385 Asset-backed securities 7,955 221 20,862 839 28,817 1,060 Total $ 42,325 $ 2,943 $ 109,611 $ 21,583 $ 151,936 $ 24,526 Less than 12 Months 12 Months or More Total Held to maturity securities Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 Obligations of states and political subdivisions $ — $ — $ 565 $ 35 $ 565 $ 35 Mortgage-backed securities — — 72,507 17,938 72,507 17,938 Total $ — $ — $ 73,072 $ 17,973 $ 73,072 $ 17,973 December 31, 2022 Obligations of states and political subdivisions $ — $ — $ 546 $ 54 $ 546 $ 54 Mortgage-backed securities 16,627 2,416 59,367 17,137 75,994 19,553 Total $ 16,627 $ 2,416 $ 59,913 $ 17,191 $ 76,540 $ 19,607 At December 31, 2023 no ACL was established for available for sale or held to maturity securities. Substantially all the held to maturity portfolio is made up of agency backed mortgage securities. These securities are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, the Company does not expect to incur credit losses on these securities. Unrealized losses on available-for-sale investment securities have not been recognized into income because the issuers’ bonds are agency backed securities or other securities that all principal and interest is expected to be received on a timely basis. Furthermore, the Company does not intend to sell, and it is likely that management will not be required to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The issuers continue to make timely principal and interest payments on their bonds. |
LOANS, ALLOWANCE FOR CREDIT LOS
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS | LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS Portfolio Segments: Commercial and agricultural real estate loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75%. Commercial and industrial (“C&I”) loans are primarily underwritten based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural operating loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets or other business assets, as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Residential mortgage loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower’s documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home’s appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential mortgage portfolio due to relatively small loan account balances spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis. Consumer installment loans are comprised of originated indirect paper loans secured primarily by boats and recreational vehicles and other consumer loans secured primarily by automobiles and other personal assets. Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score. In the event of a consumer installment loan default, collateral value alone may not provide an adequate source of repayment of the outstanding loan balance. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral. Loans are stated at the principal amount outstanding net of unearned net deferred fees and costs and loans in process, unearned discounts on acquired loans, and allowance for credit losses (“ACL”). Unearned net deferred fees and costs includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at December 31, 2023 follows: December 31, 2023 Amortized Cost % of Total Commercial/Agricultural real estate: Commercial real estate $ 748,447 51.2 % Agricultural real estate 83,157 5.7 % Multi-family real estate 228,004 15.6 % Construction and land development 110,218 7.5 % C&I/Agricultural operating: Commercial and industrial 121,190 8.3 % Agricultural operating 25,695 1.8 % Residential mortgage: Residential mortgage 128,479 8.8 % Purchased HELOC loans 2,880 0.2 % Consumer installment: Originated indirect paper 6,535 0.4 % Other consumer 6,187 0.4 % Total loans receivable $ 1,460,792 100 % Less Allowance for credit losses (22,908) Net loans receivable $ 1,437,884 Loans are stated at the unpaid principal balance outstanding at December 31, 2022. December 31, 2022 Loan Principal Balance % of Total Commercial/Agricultural real estate: Commercial real estate $ 725,971 51.5 % Agricultural real estate 87,908 6.2 % Multi-family real estate 208,908 14.8 % Construction and land development 102,492 7.3 % C&I/Agricultural operating: Commercial and industrial 136,013 9.6 % Agricultural operating 28,806 2.0 % Residential mortgage: Residential mortgage 105,389 7.5 % Purchased HELOC loans 3,262 0.2 % Consumer installment: Originated indirect paper 10,236 0.7 % Other consumer 7,150 0.5 % Gross Loans $ 1,416,135 100.3 % Less: Unearned net deferred fees and costs and loans in process (2,585) (0.2) % Unamortized discount on acquired loans (1,766) (0.1) % Total loans receivable $ 1,411,784 100.0 % Less Allowance for loan losses (17,939) Net loans $ 1,393,845 Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio ratings are presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A “Special Mention” loan has one or more potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. As of December 31, 2023 and December 31, 2022, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9. Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of December 31, 2023 and gross charge-offs for the twelve months ended December 31, 2023: Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term Total Commercial/Agricultural real estate: Commercial real estate Risk rating 1 to 5 $ 73,564 $ 133,583 $ 236,774 $ 90,881 $ 71,104 $ 107,999 $ 10,204 $ — $ 724,109 Risk rating 6 309 — 9,510 — — — — — 9,819 Risk rating 7 25 696 3,213 4,548 183 5,854 — — 14,519 Total $ 73,898 $ 134,279 $ 249,497 $ 95,429 $ 71,287 $ 113,853 $ 10,204 $ — $ 748,447 Current period gross charge-offs $ — $ — $ 10 $ — $ — $ 4 $ — $ — $ 14 Agricultural real estate Risk rating 1 to 5 $ 16,335 $ 19,026 $ 11,582 $ 7,719 $ 5,463 $ 15,418 $ 1,009 $ — $ 76,552 Risk rating 6 — 171 5,409 — 152 482 — — 6,214 Risk rating 7 — 360 — — 31 — — — 391 Total $ 16,335 $ 19,557 $ 16,991 $ 7,719 $ 5,646 $ 15,900 $ 1,009 $ — $ 83,157 Current period gross charge-offs $ — $ — $ — $ 32 $ — $ — $ — $ — $ 32 Multi-family real estate Risk rating 1 to 5 $ 5,016 $ 50,617 $ 95,686 $ 45,685 $ 8,591 $ 22,364 $ 45 $ — $ 228,004 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Total $ 5,016 $ 50,617 $ 95,686 $ 45,685 $ 8,591 $ 22,364 $ 45 $ — $ 228,004 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development Risk rating 1 to 5 $ 42,639 $ 37,783 $ 18,912 $ 8,014 $ 119 $ 1,124 $ 1,314 $ — $ 109,905 Risk rating 6 — — — — — 110 — — 110 Risk rating 7 — — — — — 54 149 — 203 Total $ 42,639 $ 37,783 $ 18,912 $ 8,014 $ 119 $ 1,288 $ 1,463 $ — $ 110,218 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial/Agricultural operating: Commercial and industrial Risk rating 1 to 5 $ 16,758 $ 31,915 $ 28,059 $ 11,406 $ 4,746 $ 2,023 $ 24,059 $ — $ 118,966 Risk rating 6 — — — — 5 — 2,200 — 2,205 Risk rating 7 — — — — — 2 — 17 19 Total $ 16,758 $ 31,915 $ 28,059 $ 11,406 $ 4,751 $ 2,025 $ 26,259 $ 17 $ 121,190 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural operating Risk rating 1 to 5 $ 4,734 $ 3,908 $ 856 $ 746 $ 295 $ 2,144 $ 11,831 $ — $ 24,514 Risk rating 6 — — — — — — — — — Risk rating 7 — 476 704 — — 1 — — 1,181 Total $ 4,734 $ 4,384 $ 1,560 $ 746 $ 295 $ 2,145 $ 11,831 $ — $ 25,695 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Continued Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term Total Residential mortgage: Residential mortgage Risk rating 1 to 5 $ 28,808 $ 33,660 $ 8,743 $ 2,610 $ 2,292 $ 33,744 $ 15,544 $ — $ 125,401 Risk rating 6 — — — — — — — — — Risk rating 7 — 141 — — 14 2,875 — 48 3,078 Total $ 28,808 $ 33,801 $ 8,743 $ 2,610 $ 2,306 $ 36,619 $ 15,544 $ 48 $ 128,479 Current period gross charge-offs $ — $ — $ 10 $ — $ — $ 68 $ — $ — $ 78 Purchased HELOC loans Risk rating 1 to 5 $ — $ — $ — $ — $ — $ — $ 2,880 $ — $ 2,880 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ 2,880 $ — $ 2,880 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Originated indirect paper Risk rating 1 to 5 $ — $ — $ — $ — $ — $ 6,491 $ — $ — $ 6,491 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — 44 — — 44 Total $ — $ — $ — $ — $ — $ 6,535 $ — $ — $ 6,535 Current period gross charge-offs $ — $ — $ — $ — $ — $ 13 $ — $ — $ 13 Other consumer Risk rating 1 to 5 $ 2,104 $ 1,525 $ 763 $ 559 $ 402 $ 274 $ 530 $ 1 $ 6,158 Risk rating 6 — — — — — — — — — Risk rating 7 9 2 — — 16 1 1 — 29 Total $ 2,113 $ 1,527 $ 763 $ 559 $ 418 $ 275 $ 531 $ 1 $ 6,187 Current period gross charge-offs $ — $ 2 $ 1 $ 11 $ 3 $ 6 $ — $ — $ 23 Total loans receivable $ 190,301 $ 313,863 $ 420,211 $ 172,168 $ 93,413 $ 201,004 $ 69,766 $ 66 $ 1,460,792 Total current period gross charge-offs $ — $ 2 $ 21 $ 43 $ 3 $ 91 $ — $ — $ 160 Below is a summary of the unpaid principal balance of loans summarized by class and credit quality risk rating as of December 31, 2022: 1 to 5 6 7 TOTAL Commercial/Agricultural real estate: Commercial real estate $ 712,658 $ 5,771 $ 7,542 $ 725,971 Agricultural real estate 84,215 549 3,144 87,908 Multi-family real estate 208,908 — — 208,908 Construction and land development 102,385 — 107 102,492 C&I/Agricultural operating: Commercial and industrial 129,748 5,526 739 136,013 Agricultural operating 26,418 324 2,064 28,806 Residential mortgage: Residential mortgage 101,730 — 3,659 105,389 Purchased HELOC loans 3,262 — — 3,262 Consumer installment: Originated indirect paper 10,190 — 46 10,236 Other Consumer 7,132 — 18 7,150 Gross loans $ 1,386,646 $ 12,170 $ 17,319 $ 1,416,135 Less: Unearned net deferred fees and costs and loans in process (2,585) Unamortized discount on acquired loans (1,766) Allowance for loan losses (17,939) Loans receivable, net $ 1,393,845 Certain directors and executive officers of the Company are defined as related parties. These related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during the twelve months ended December 31, 2023 and December 31, 2022. A summary of the changes in those loans is as follows: Twelve months ended Twelve months ended December 31, 2023 December 31, 2022 Balance—beginning of period $ 38,410 $ 32,423 New loan originations 624 7,994 Repayments (2,442) (2,007) Balance—end of period $ 36,592 $ 38,410 Available and unused lines of credit $ 603 $ — Allowance for Credit Losses - Loans- On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial instruments and transitioned to the Current Expected Credit Loss (“CECL”) model to estimate losses based on the lifetime of the loan. Under the new methodology, the ACL is comprised of collectively evaluated and individually evaluated components. The allowance for credit losses (“ACL”) represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, the borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and modifications, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating loans collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that a loan does not share similar risk characteristics with other loans. The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the twelve months ended December 31, 2023: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total Twelve months ended December 31, 2023 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 14,085 $ 2,318 $ 599 $ 129 $ 808 $ 17,939 Cumulative effect of ASU 2016-13 adoption 4,510 (331) 1,119 216 (808) 4,706 Charge-offs (46) — (78) (36) — (160) Recoveries 489 47 42 33 — 611 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations (254) (929) 1,062 (67) — (188) ACL - Loans, at end of period $ 18,784 $ 1,105 $ 2,744 $ 275 $ — $ 22,908 Allowance for Credit Losses - Unfunded Commitments - In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $1,250 at December 31, 2023 and $0 at December 31, 2022, classified in other liabilities on the consolidated balance sheets. The following table presents the balance and activity in the ACL - Unfunded Commitments for the twelve months ended December 31, 2023 and December 31, 2022. December 31, 2023 and Twelve Months Ended December 31, 2022 and Twelve Months Ended ACL - Unfunded Commitments - beginning of period $ — $ — Cumulative effect of ASU 2016-13 adoption 1,537 — Reversals to ACL - Unfunded Commitments via provision for credit losses charged to operations (287) — ACL - Unfunded Commitments - End of period $ 1,250 $ — Provision for credit losses - The provision for credit losses is determined by the Company as the amount to be added to the ACL loss accounts for various types of financial instruments (including loans and off-balance sheet credit exposures) after net charge-offs have been deducted to bring the ACL to a level that, in managements judgement, is necessary to absorb expected credit losses over the lives of the respective financial instruments. The following table presents the components of the provision for credit losses. December 31, 2023 and Twelve Months Ended Provision for credit losses on: Loans $ (188) Unfunded Commitments (287) Total provision for credit losses $ (475) Allowance for Loan Losses - Prior to the adoption of ASU 2016-13, the Allowance for Loan Losses (“ALL”) represented management’s estimate of probable and inherent credit losses in the Bank’s loan portfolio. Estimating the amount of the ALL required the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may have been susceptible to significant change. There were many factors affecting the ALL; some were quantitative, while others required qualitative judgment. The process for determining the ALL (which management believed adequately considered potential factors which resulted in probable credit losses), included subjective elements and, therefore, may have been susceptible to significant change. To the extent actual outcomes differed from management estimates, additional provision for loan losses could have been required that could have adversely affected the Company’s earnings or financial position in future periods. Allocations of the ALL may have been made for specific loans but the entire ALL was available for any loan that, in management’s judgment, should have been charged-off or for which an actual loss was realized. As an integral part of their examination process, various regulatory agencies also reviewed the Bank’s ALL. Such agencies may have required that changes in the ALL be recognized when such regulators’ credit evaluations differed from those of our management based on information available to the regulators at the time of their examinations. Changes in the ALL by loan type for the periods presented below were as follows: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total Twelve months ended December 31, 2022: Allowance for Loan Losses: Beginning balance, January 1, 2022 $ 12,354 $ 1,959 $ 518 $ 225 $ 774 $ 15,830 Charge-offs (157) (310) (35) (45) — (547) Recoveries 74 35 2 50 — 161 Provision 1,280 571 89 (109) 34 1,865 Total Allowance on originated loans 13,551 2,255 574 121 808 17,309 Other acquired loans: Beginning balance, January 1, 2022 856 69 130 28 — 1,083 Charge-offs (48) (36) (33) (3) — (120) Recoveries 28 1 27 1 — 57 Provision (302) 29 (99) (18) — (390) Total allowance on other acquired loans 534 63 25 8 — 630 Total allowance on acquired loans 534 63 25 8 — 630 Ending Balance, December 31, 2023 $ 14,085 $ 2,318 $ 599 $ 129 $ 808 $ 17,939 Allowance for Loan Losses at December 31, 2022: Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 519 $ 249 $ 48 $ 10 $ — $ 826 Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 13,566 $ 2,069 $ 551 $ 119 $ 808 $ 17,113 Loans Receivable as of December 31, 2022: Ending balance of originated loans $ 1,017,529 $ 150,239 $ 88,045 $ 17,130 $ — $ 1,272,943 Ending balance of purchased credit-impaired loans 5,748 362 890 — — 7,000 Ending balance of other acquired loans 102,002 14,218 19,716 256 — 136,192 Ending balance of loans $ 1,125,279 $ 164,819 $ 108,651 $ 17,386 $ — $ 1,416,135 Ending balance: individually evaluated for impairment $ 16,874 $ 3,292 $ 5,998 $ 755 $ — $ 26,919 Ending balance: collectively evaluated for impairment $ 1,108,405 $ 161,527 $ 102,653 $ 16,631 $ — $ 1,389,216 Loans receivable by loan type as of December 31, 2022, were as follows: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Performing loans Performing TDR loans $ 1,336 $ 960 $ 2,875 $ — $ 5,171 Performing loans other 1,115,465 162,417 104,287 17,345 1,399,514 Total performing loans 1,116,801 163,377 107,162 17,345 1,404,685 Nonperforming loans (1) — Nonperforming TDR loans 1,878 391 348 — 2,617 Nonperforming loans other 6,600 1,051 1,141 41 8,833 Total nonperforming loans 8,478 1,442 1,489 41 11,450 Total loans $ 1,125,279 $ 164,819 $ 108,651 $ 17,386 $ 1,416,135 (1) Nonperforming loans are either 90+ days past due or nonaccrual. An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of December 31, 2023 and December 31, 2022, respectively, was as follows: (Loan balances at amortized cost) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total December 31, 2023 Commercial/Agricultural real estate: Commercial real estate $ 50 $ 308 $ — $ 358 $ 10,359 $ 10,717 $ 737,730 $ 748,447 Agricultural real estate — — — — 391 391 82,766 83,157 Multi-family real estate — — — — — — 228,004 228,004 Construction and land development — — — — 54 54 110,164 110,218 C&I/Agricultural operating: Commercial and industrial 248 — — 248 — 248 120,942 121,190 Agricultural operating — — — — 1,180 1,180 24,515 25,695 Residential mortgage: Residential mortgage 826 350 387 1,563 1,167 2,730 125,749 128,479 Purchased HELOC loans 117 — — 117 — 117 2,763 2,880 Consumer installment: Originated indirect paper 66 — — 66 15 81 6,454 6,535 Other consumer 38 — 2 40 18 58 6,129 6,187 Total $ 1,345 $ 658 $ 389 $ 2,392 $ 13,184 $ 15,576 $ 1,445,216 $ 1,460,792 (Loan balances at unpaid principal balance) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total December 31, 2022 Commercial/Agricultural real estate: Commercial real estate $ 202 $ 88 $ — $ 290 $ 5,736 $ 6,026 $ 719,945 $ 725,971 Agricultural real estate 4,992 — — 4,992 2,742 7,734 80,174 87,908 Multi-family real estate — — — — — — 208,908 208,908 Construction and land development 3,975 — — 3,975 — 3,975 98,517 102,492 C&I/Agricultural operating: Commercial and industrial — 26 — 26 552 578 135,435 136,013 Agricultural operating 826 — — 826 890 1,716 27,090 28,806 Residential mortgage: Residential mortgage 767 479 236 1,482 1,253 2,735 102,654 105,389 Purchased HELOC loans — — — — — — 3,262 3,262 Consumer installment: Originated indirect paper 15 — — 15 27 42 10,194 10,236 Other consumer 39 2 10 51 4 55 7,095 7,150 Total $ 10,816 $ 595 $ 246 $ 11,657 $ 11,204 $ 22,861 $ 1,393,274 $ 1,416,135 Nonaccrual Loans - The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated at December 31, 2023 with no allowance for credit losses and interest income that would have been recorded under the original terms of such nonaccrual loans: December 31, 2023 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Interest Income Not Recorded for Nonaccrual loans Commercial/Agricultural real estate: Commercial real estate $ 10,359 $ 10,347 $ 497 Agricultural real estate 391 391 46 Multi-family real estate — — — Construction and land development 54 54 1 C&I/Agricultural operating: Commercial and industrial — — — Agricultural operating 1,180 1,180 120 Residential mortgage: Residential mortgage 1,167 934 68 Purchased HELOC loans — — — Consumer installment: Originated indirect paper 15 15 1 Other consumer 18 18 1 Total $ 13,184 $ 12,939 $ 734 The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is past due according to the following schedules: • Commercial/agricultural real estate loans, past due 90 days or more; • Commercial and industrial/agricultural operating loans past due 90 days or more; • Closed ended consumer installment loans past due 120 days or more; and • Residential mortgage and open ended consumer installment loans past due 180 days or more. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. The amount of interest income recognized by the Company for the twelve months ended December 31, 2023, due to nonaccrual loan payoffs was $505. Collateral Dependent Loans - A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following table presents the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of December 31, 2023. Collateral Type December 31, 2023 Real Estate Other Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial/Agricultural real estate: Commercial real estate $ 15,086 $ — $ 15,086 $ 11,350 $ 3,736 $ 703 Agricultural real estate 6,605 — 6,605 6,605 — — Multi-family real estate — — — — — — Construction and land development 313 — 313 313 — — C&I/Agricultural operating: Commercial and industrial — 2,219 2,219 2,219 — — Agricultural operating — 1,181 1,181 1,181 — — Residential mortgage: Residential mortgage 3,145 — 3,145 2,591 554 88 Purchased HELOC loans — — — — — — Consumer installment: Originated indirect paper — 44 44 44 — — Other consumer — 29 29 29 — — Total $ 25,149 $ 3,473 $ 28,622 $ 24,332 $ 4,290 $ 791 There were no outstanding commitments to borrowers experiencing financial difficulty as of December 31, 2023. There were unused lines of credit totaling $618 on loans with borrowers experiencing financial difficulties as of December 31, 2023. At December 31, 2022, the Company individually evaluated loans for impairment with a recorded investment of $26,823, consisting of (1) $7,000 PCI loans, with a carrying amount of $6,904; (2) $7,018 TDR loans, net of TDR PCI loans; and (3) $12,901 of substandard non-TDR, non-PCI loans. The $26,823 recorded investment of loans individually evaluated for impairment includes $5,171 of performing TDR loans. A loan is identified as impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Performing TDRs consist of loans that have been modified and are performing in accordance with the modified terms for a sufficient length of time, generally six months, or loans that were modified on a proactive basis. A summary of the Company’s loans individually evaluated for impairment as of December 31, 2022 was as follows: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2022 With No Related Allowance Recorded: Commercial/Agricultural real estate $ 9,741 $ 9,766 $ — $ 13,657 $ 549 C&I/Agricultural operating 2,744 2,754 — 4,467 200 Residential mortgage 5,846 5,907 — 6,304 276 Consumer installment 745 745 — 307 5 Total $ 19,076 $ 19,172 $ — $ 24,735 $ 1,030 With An Allowance Recorded: Commercial/Agricultural real estate $ 7,108 $ 7,108 $ 519 $ 6,028 $ 273 C&I/Agricultural operating 538 538 249 273 48 Residential mortgage 91 91 48 298 65 Consumer installment 10 10 10 2 2 Total $ 7,747 $ 7,747 $ 826 $ 6,601 $ 388 December 31, 2022 Totals Commercial/Agricultural real estate $ 16,849 $ 16,874 $ 519 $ 19,685 $ 822 C&I/Agricultural operating 3,282 3,292 249 4,741 248 Residential mortgage 5,937 5,998 48 6,603 341 Consumer installment 755 755 10 310 7 Total $ 26,823 $ 26,919 $ 826 $ 31,336 $ 1,418 The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended December 31, 2023: Term Extension Loan Class Amortized Cost Basis at % of Total Class of Financing Receivables Commercial real estate $ 4,694 0.63 % Commercial and industrial $ 2,200 1.82 % Residential mortgage $ 35 0.03 % Other consumer $ 1 0.02 % Other-Than-Insignificant Payment Delay Loan Class Amortized Cost Basis at % of Total Class of Financing Receivables Residential mortgage $ 69 0.05 % Other consumer $ 19 0.31 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023: Term Extension Loan Class Financial Effect Commercial real estate A weighted average of 20 months was added to the term of the loans Commercial and industrial A weighted average of 3 months was added to the term of the loans Residential mortgage A weighted average of 16 months was added to the term of the loans Other consumer A weighted average of 12 months was added to the term of the loans Other-Than-Insignificant Payment Delay Loan Class Financial Effect Residential mortgage Payments were deferred a weighted average of 6 months Other consumer Payments were deferred a weighted average of 3 months The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified during the twelve months ended December 31, 2023. Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Commercial real estate $ 4,694 $ — $ — $ — Commercial and industrial 2,200 — |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS Mortgage servicing rights-- Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of the one- to four-family residential mortgage loans as of December 31, 2023 and December 31, 2022 were $495,531 and $523,736, respectively. These residential mortgage loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and Federal National Mortgage Association. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $2,665 and $2,649, at December 31, 2023 and December 31, 2022, respectively. Mortgage servicing rights activity for the years ended December 31, 2023 and December 31, 2022 was as follows: As of and for the twelve months ended As of and for the twelve months ended December 31, 2023 December 31, 2022 Mortgage servicing rights: Mortgage servicing rights, beginning of period $ 4,262 $ 4,727 Increase in mortgage servicing rights resulting from transfers of financial assets 218 323 Amortization during the period (615) (788) Mortgage servicing rights, end of period 3,865 4,262 Valuation allowance, beginning of period — (566) Additions — — Recoveries — 566 Valuation allowance, end of period — — Mortgage servicing rights, net $ 3,865 $ 4,262 Fair value of mortgage servicing rights, end of period $ 5,589 $ 5,665 Residential mortgage loans serviced for others $ 495,531 $ 523,736 The current period change in valuation allowance is included in expense as mortgage servicing rights expense, net on the consolidated statement of operations. Servicing fees To estimate the fair value of the MSR asset, a valuation model is applied at the loan level to calculate the present value of the expected future cash flows. The valuation model incorporates various assumptions that would impact market participants’ estimations of future servicing income. Central to the valuation model is the discount rate. Fair value at December 31, 2023 was determined using discount rates ranging from 9.375% to 12.375%. Fair value at December 31, 2022 was determined using discount rates ranging from 9.5% to 12.5%. Other assumptions utilized in the valuation model include, but are not limited to, prepayment speed, servicing costs, delinquencies, costs of advances, foreclosure costs, ancillary income, and income earned on float and escrow. The estimated amortization expense is based on existing mortgage servicing asset balances. The timing of amortization expense actually recognized in future periods may differ significantly based on actual prepayment speeds, mortgage interest rates and other factors. At December 31, 2023, the estimated future aggregate amortization expense for the mortgage servicing rights is as follows: At December 31, 2023, the estimated future aggregate amortization expense for the mortgage servicing rights is as follows. Amortization Expense 2024 $ 565 2025 513 2026 462 2027 410 2028 358 After 2028 1,557 Total $ 3,865 |
OFFICE PROPERTIES AND EQUIPMENT
OFFICE PROPERTIES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
OFFICE PROPERTIES AND EQUIPMENT | OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment for each of the periods shown below consisted of the following: December 31, 2023 December 31, 2022 Land $ 3,783 $ 3,856 Buildings 16,093 16,856 Furniture, equipment and vehicles 11,096 10,255 Subtotals 30,972 30,967 Less--Accumulated depreciation (12,599) (10,474) Office properties and equipment, net $ 18,373 $ 20,493 Depreciation expense was $2,371 for the year ended December 31, 2023 and $2,357 for the year ended December 31, 2022. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill— The beginning and ending balance of goodwill was $31,498 during the periods ended December 31, 2023 and December 31, 2022. There were no changes to goodwill during either period. Intangible assets-- Intangible assets consist of core deposit intangibles arising from various bank acquisitions. A summary of intangible assets and related amortization for the periods shown below follows: Year ended Year Ended December 31, 2023 December 31, 2022 Gross carrying amount $ 12,180 $ 12,180 Accumulated amortization (10,486) (9,731) Net book value $ 1,694 $ 2,449 Amortization during the period $ 755 $ 1,449 At December 31, 2023, the estimated future aggregate amortization expense for the intangible assets are as follows: Intangible Assets 2024 $ 715 2025 584 2026 395 Total $ 1,694 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases for 1 corporate office, 4 bank branch offices,1 former bank branch office, and 1 ATM location. Our leases have remaining lease terms of 0.67 years to 4.50 years. Some of the leases include an option to extend, the longest of which is for two 5 year terms. As of December 31, 2023, we have no additional lease commitments that have not yet commenced. Lease costs are included in non-interest expense/occupancy in the consolidated statement of operations. Twelve Months Ended December 31, 2023 December 31, 2022 The components of total lease costs were as follows: Operating lease cost $ 508 $ 554 Variable lease cost 84 47 Total lease cost $ 592 $ 601 The components of total lease income were as follows: Operating lease income $ 41 $ 34 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 545 $ 556 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 225 $ 215 December 31, 2023 December 31, 2022 Supplemental balance sheet information related to leases was as follows: Operating lease right-of-use assets $ 1,477 $ 1,700 Operating lease liabilities $ 1,686 $ 1,945 Weighted average remaining lease term in years; operating leases 3.94 4.89 Weighted average discount rate; operating leases 3.20 % 2.98 % Cash obligations and receipts under lease contracts as of December 31, 2023 are as follows: Fiscal years ending December 31, Payments Receipts 2024 $ 549 $ 32 2025 534 15 2026 464 7 2027 401 — 2028 141 — Thereafter — — Total lease payments 2,089 $ 54 Less: effects of discounting (403) Lease liability recognized $ 1,686 In November of 2022 we closed our leased Red Wing, Minnesota branch. We considered the branch closure a triggering event that required us to test the right of use asset for impairment. The carrying amount of the right of use asset was compared |
LEASES | LEASES We have operating leases for 1 corporate office, 4 bank branch offices,1 former bank branch office, and 1 ATM location. Our leases have remaining lease terms of 0.67 years to 4.50 years. Some of the leases include an option to extend, the longest of which is for two 5 year terms. As of December 31, 2023, we have no additional lease commitments that have not yet commenced. Lease costs are included in non-interest expense/occupancy in the consolidated statement of operations. Twelve Months Ended December 31, 2023 December 31, 2022 The components of total lease costs were as follows: Operating lease cost $ 508 $ 554 Variable lease cost 84 47 Total lease cost $ 592 $ 601 The components of total lease income were as follows: Operating lease income $ 41 $ 34 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 545 $ 556 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 225 $ 215 December 31, 2023 December 31, 2022 Supplemental balance sheet information related to leases was as follows: Operating lease right-of-use assets $ 1,477 $ 1,700 Operating lease liabilities $ 1,686 $ 1,945 Weighted average remaining lease term in years; operating leases 3.94 4.89 Weighted average discount rate; operating leases 3.20 % 2.98 % Cash obligations and receipts under lease contracts as of December 31, 2023 are as follows: Fiscal years ending December 31, Payments Receipts 2024 $ 549 $ 32 2025 534 15 2026 464 7 2027 401 — 2028 141 — Thereafter — — Total lease payments 2,089 $ 54 Less: effects of discounting (403) Lease liability recognized $ 1,686 In November of 2022 we closed our leased Red Wing, Minnesota branch. We considered the branch closure a triggering event that required us to test the right of use asset for impairment. The carrying amount of the right of use asset was compared |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEPOSITS | DEPOSITS The following is a summary of deposits by type at December 31, 2023 and December 31, 2022, respectively: December 31, 2023 December 31, 2022 Non interest bearing demand deposits $ 265,704 $ 284,722 Interest bearing demand deposits 343,276 371,210 Savings accounts 176,548 220,019 Money market accounts 374,055 323,435 Certificate accounts 359,509 225,334 Total deposits $ 1,519,092 $ 1,424,720 At December 31, 2023, the scheduled maturities of time deposits were as follows: 2024 $ 329,862 2025 20,612 2026 2,693 2027 636 2028 5,706 Total $ 359,509 Time deposits of $250 or more were $103,802 and $66,827 at December 31, 2023 and December 31, 2022, respectively. Brokered deposits were $98,259 and $39,841 at December 31, 2023 and December 31, 2022, respectively. Deposits from the Company’s directors, executive officers, principal stockholders and their affiliates held by the Bank at December 31, 2023 and December 31, 2022 amounted to $33,929, and $33,673, respectively. |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS A summary of Federal Home Loan Bank (FHLB) advances and other borrowings at December 31, 2023 and December 31, 2022 is as follows: December 31, 2023 December 31, 2022 Stated Maturity Amount Range of Stated Rates Stated Maturity Amount Range of Stated Rates Federal Home Loan Bank advances (1), (2), (3), (4) 2023 $ — — % — % 2023 $ 117,000 1.43 % 4.31 % 2024 64,530 0.00 % 5.45 % 2024 20,530 0.00 % 1.45 % 2025 5,000 1.45 % 1.45 % 2025 5,000 1.45 % 1.45 % 2028 10,000 3.82 % 3.82 % 2028 — — % — % Federal Home Loan Bank advances $ 79,530 $ 142,530 Other borrowings: Senior notes (5) 2034 $ 18,083 6.75 % 7.75 % 2034 $ 23,250 3.00 % 6.75 % Subordinated notes (6) 2030 $ 15,000 6.00 % 6.00 % 2030 $ 15,000 6.00 % 6.00 % 2032 35,000 4.75 % 4.75 % 2032 35,000 4.75 % 4.75 % $ 50,000 $ 50,000 Unamortized debt issuance costs (618) (841) Total other borrowings $ 67,465 $ 72,409 Totals $ 146,995 $ 214,939 (1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had pledged balances of $1,106,267 and $984,878 at December 31, 2023 and 2022, respectively. At December 31, 2023, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $370,569 compared to $256,773 as of December 31, 2022. (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $217,530 and $157,530, during the twelve months ended December 31, 2023 and December 31, 2022, respectively. (3) The weighted-average interest rates on FHLB borrowings, with maturities less than twelve months, outstanding as of December 31, 2023 and December 31, 2022 were 4.16% and 4.09%, respectively. (4) At December 31, 2023, one FHLB term note totaling $10,000 could be called once by the FHLB on June 15, 2024, and if not called, would mature in 2028. At December 31, 2022, no FHLB term notes could be called by the FHLB. (5) Senior notes, entered into by the Company in June 2019 consist of the following: (a) A term note, which was subsequently refinanced in March 2022 and modified in February of 2023, requiring quarterly interest-only payments through March 2027, and quarterly principal and interest payments thereafter. Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00%. (b) A $5,000 line of credit, maturing in August 2024, that remains undrawn upon. (6) Subordinated notes resulted from the following: (a) The Company’s private sale in August 2017, which bore a fixed interest rate of 6.75% for five years. In August 2022, they would have converted to a three-month LIBOR plus 4.90% rate, and the interest rate would have reset quarterly thereafter if not called. The Company sent the required redemption notice to the note holders in June 2022, and this subordinated note was called and repaid in full on August 10, 2022. The note was callable by the Bank when, and anytime after, the floating rate was initially set. Interest-only payments were due quarterly. (b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bears a fixed interest rate of 6.00% for five years. In September 2025, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 591 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. (c) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75% for five years. In April 2027, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 329 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. Federal Home Loan Bank Letters of Credit The Bank has an irrevocable Standby Letter of Credit Master Reimbursement Agreement with the Federal Home Loan Bank. This irrevocable standby letter of credit (“LOC”) is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances. These balances were $452,280 and $191,650 at December 31, 2023 and 2022, respectively. Federal Funds Purchased Lines of Credit The Bank maintains two unsecured federal funds purchased lines of credit with its banking partners which total $70,000. These lines bear interest at the lender bank’s announced daily federal funds rate, mature daily and are revocable at the discretion of the lending institution. There were no borrowings outstanding on these lines of credit as of December 31, 2023 or December 31, 2022. Federal Reserve Borrowings |
CAPITAL MATTERS
CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
CAPITAL MATTERS | CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Although these terms are not used to represent overall financial condition, if adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2023 and 2022, the most recent notifications from our regulatory agency categorized the Bank as “Well Capitalized” under the regulatory framework for Prompt Corrective Action. There are no conditions or events since these notifications that management believes have changed the Bank’s category. The Bank’s Tier 1 (leverage) and risk-based capital ratios at December 31, 2023 and 2022, respectively, are presented below: Actual For Capital Adequacy To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) $ 228,092 14.6 % $ 124,883 > = 8.0 % $ 156,104 > = 10.0 % Tier 1 capital (to risk weighted assets) 208,726 13.4 % 93,662 > = 6.0 % 124,883 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 208,726 13.4 % 70,247 > = 4.5 % 101,468 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 208,726 11.5 % 72,479 > = 4.0 % 90,599 > = 5.0 % As of December 31, 2022 Total capital (to risk weighted assets) $ 221,361 14.2 % $ 124,971 > = 8.0 % $ 156,213 > = 10.0 % Tier 1 capital (to risk weighted assets) 203,422 13.0 % 93,728 > = 6.0 % 124,971 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 203,422 13.0 % 70,296 > = 4.5 % 101,539 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 203,422 11.5 % 70,610 > = 4.0 % 88,262 > = 5.0 % The Company’s Tier 1 (leverage) and risk-based capital ratios at December 31, 2023 and 2022, respectively, are presented below: Actual For Capital Adequacy Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) $ 230,160 14.7 % $ 124,883 > = 8.0 % Tier 1 capital (to risk weighted assets) 160,794 10.3 % 93,662 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 160,794 10.3 % 70,247 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 160,794 8.9 % 72,479 > = 4.0 % As of December 31, 2022 Total capital (to risk weighted assets) $ 218,737 14.0 % $ 124,971 > = 8.0 % Tier 1 capital (to risk weighted assets) 150,798 9.7 % 93,728 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 150,798 9.7 % 70,296 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 150,798 8.5 % 70,610 > = 4.0 % The Company is a legal entity separate and distinct from its banking subsidiary. As a bank holding company, the Company is subject to certain restrictions on its ability to pay dividends under applicable banking laws and regulations. Federal bank regulators are authorized to determine, under certain circumstances relating to the financial condition of a bank holding company or a bank, that the payment of dividends would be an unsafe or unsound practice, and to prohibit payment thereof. In particular, federal bank regulators have stated that paying dividends that deplete a banking organization’s capital base to an inadequate level would be an unsafe and unsound banking practice and that banking organizations should generally pay dividends only out of current operating earnings. In addition, in the current financial and economic environment, the Federal Reserve has indicated that bank holding companies should carefully review their dividend policy and has discouraged payment ratios that are at maximum allowable levels unless both asset quality and capital are very strong. The Company’s ability to pay dividends is also subject to the terms of its Subordinated Note Purchase Agreements dated August 27, 2020 and March 11, 2022, and Business Note Agreement dated June 26, 2019, which prohibits the Company from making dividend payments while an event of default has occurred and is continuing under the loan agreement or from allowing payment of a dividend which would create an event of default. The following table reflects the annual cash dividend paid in the years ended December 31, 2023 and 2022, respectively. December 31, 2023 December 31, 2022 Cash dividends per share $ 0.29 $ 0.26 Stockholder record date 02/03/2023 02/14/2022 Dividend payment date 02/17/2023 02/28/2022 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance-Sheet Risk— The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include off-balance-sheet credit instruments consisting of commitments to make loans. The face amounts for these items represent the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table presents a summary of commitments described below as of December 31, 2023 and 2022, respectively: Contract or Notional Amount at December 31, Contract or Notional Amount at December 31, 2023 2022 Commitments to extend credit $ 210,423 $ 243,045 Commercial standby letter of credit $ 2,116 $ 4,252 Commitment to contribute capital to SBIC $ 1,800 $ 2,400 Commitment to contribute capital to investment company $ 1,590 $ 2,340 Commitments to extend credit— Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit— Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The credit and collateral policy for commitments and letters of credit is comparable to that for granting loans. The Company has recorded no liability associated with standby letters of credit as of December 31, 2023 and 2022. Capital Contributions— The Company has commitments to invest in a SBIC and investment company that call for capital contributions up to an amount specified in the partnership agreements. Loss Contingencies— Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | RETIREMENT PLAN 401(k) Plan— The Company sponsors a 401(k) profit sharing plan that covers all employees who qualify based on minimum age and length of service requirements. Employees may make pretax voluntary contributions to the plan, which are matched, in part, by the Company. Employer matching contributions to the plan were $651 and $621 for the year ended December 31, 2023 and 2022, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On March 27, 2018, the stockholders of Citizens Community Bancorp, Inc. approved the 2018 Equity Incentive Plan. The aggregate number of shares of common stock initially reserved and available for issuance under the 2018 Equity Incentive Plan was 350,000 shares. As of December 31, 2023, 290,187 restricted shares had been granted under this plan. This amount includes 11,834 shares of performance based restricted stock granted in 2019 and issued in January 2022 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2019 and ending December 31, 2021. This amount also includes 18,551 shares of performance based restricted stock granted in 2020 and issued in January 2023 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2020 and ending December 31, 2022. In addition, it includes 1,119 shares of performance based restricted stock granted in 2020 and 638 shares of performance based restricted stock granted in 2021 issued in August of 2022. Both of these issuances were approved by the Compensation Committee in accordance with plan documents and were to a former employee. As of December 31, 2023, no stock options had been granted under this plan. In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan for a term of 10 years. Due to the plan’s expiration, no new awards can be granted under this plan. As of December 31, 2023, there are no awarded unvested restricted shares and 54,000 awarded unexercised options remaining from the plan. Options granted to date under this plan vest pro rata over a five-year period from the grant date. Unexercised incentive stock options expire within 10 years of the grant date. Net compensation expense related to restricted stock awards from these plans was $722 and $860 for the years ended December 31, 2023 and 2022, respectively. Restricted Common Stock Awards Year ended Year ended December 31, 2023 December 31, 2022 Number of Shares Weighted Number of Shares Weighted Restricted Shares Unvested and outstanding at beginning of year 75,626 $ 12.30 75,630 $ 11.20 Granted 50,606 12.36 43,465 13.99 Vested (45,879) 12.24 (40,843) 12.12 Forfeited (4,752) 11.78 (2,626) 11.04 Unvested and outstanding at end of period 75,601 $ 12.41 75,626 $ 12.30 The Company accounts for stock-based employee compensation related to the Company’s 2008 Equity Incentive Plan using the fair-value-based method. Accordingly, management records compensation expense based on the value of the award as measured on the grant date and then the Company recognizes that cost over the vesting period for the award. The compensation cost recognized for stock option-based employee compensation related to the 2008 plan for the year ended December 31, 2023 was $0 as all options have vested. The compensation cost recognized for stock option-based employee compensation related to the 2008 plan for the year ended December 31, 2022 was $3. Common Stock Option Awards Option Shares Weighted Weighted Aggregate Year ended December 31, 2023 Outstanding at beginning of year 58,000 $ 11.51 Exercised (3,000) 9.21 Forfeited or expired (1,000) 13.76 Outstanding at end of period 54,000 $ 11.59 2.84 $ 46 Exercisable at end of period 54,000 $ 11.59 2.84 $ 46 Year ended December 31, 2022 Outstanding at beginning of year 65,900 $ 11.20 Exercised (7,900) 8.95 Forfeited or expired — — Outstanding at end of year 58,000 $ 11.51 3.73 $ 65 Exercisable at end of year 58,000 $ 11.51 3.73 $ 65 Information related to the 2008 Equity Incentive Plan during each period follows: Year ended December 31, Year ended December 31, 2023 2022 Intrinsic value of options exercised $ 2 $ 38 Cash received from options exercised $ 28 $ 71 Tax benefit realized from options exercised $ — $ — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) for each of the periods shown below consisted of the following: Year ended December 31, Year ended December 31, 2023 2022 Current tax provision Federal $ 5,081 $ 3,565 State 448 1,749 5,529 5,314 Deferred tax provision (benefit) Federal (1,373) 355 State (105) 151 (1,478) 506 Valuation allowance 1,822 — Total $ 5,873 $ 5,820 The provision for income taxes differs from the amount of income tax determined by applying statutory federal income tax rates to pretax income as result of the following differences: Year ended December 31, Year ended December 31, 2023 2022 Amount Rate Amount Rate Tax expense at statutory rate $ 3,976 21.0 % $ 4,952 21.0 % State income taxes, net of federal 271 1.4 % 1,501 6.4 % Tax credits — — % (514) (2.2) % Bank owned life insurance (146) (0.8) % (135) (0.6) % Tax exempt interest (52) (0.3) % (59) (0.3) % Valuation allowance 1,822 9.6 % — — % Other 2 0.1 % 75 0.4 % Total $ 5,873 31.0 % $ 5,820 24.7 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following is a summary of the significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023 and December 31, 2022, respectively: Year ended December 31, Year ended December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 6,104 $ 4,934 Deferred loan costs/fees 632 591 Restricted stock 184 243 Economic performance accruals 769 871 Other real estate owned 230 188 Loan discounts 304 375 Lease liability 426 535 Net unrealized losses on securities available for sale 6,702 6,697 Other 22 44 Deferred tax assets $ 15,373 $ 14,478 Deferred tax liabilities: Office properties and equipment (2,132) (2,286) Federal Home Loan Bank stock (119) (129) Core deposit intangible (852) (1,019) Net gain on equity securities (762) (710) Prepaid expenses (230) (250) Mortgage servicing rights (977) (1,172) Leases; right of use asset (373) (467) Deferred tax liabilities $ (5,445) $ (6,033) Valuation allowance (1,822) — Net deferred tax assets $ 8,106 $ 8,445 The Company regularly reviews the carrying amount of its deferred tax assets to determine if the establishment of a valuation allowance is necessary, as further discussed in Note 1 “Nature of Business and Summary of Significant Accounting Policies”, above. As of December 31, 2023, management determined a valuation allowance of $1,822 was necessary due to changes in the realization of deferred tax assets due to a Wisconsin change in the non-taxation of loans under $5 million reducing the effective tax rate. At December 31, 2022, management determined that no valuation allowance was necessary. The Company’s income tax returns are subject to review and examination by federal, state and local government authorities. As of December 31, 2023, years open to examination by the U.S. Internal Revenue Service include taxable years ended December 31, 2020 to present. The years open to examination by state and local government authorities varies by jurisdiction. The tax effects from uncertain tax positions can be recognized in the consolidated financial statements, provided the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized, upon ultimate settlement with the relevant tax authority. The Company applied the foregoing accounting standard to all of its tax positions for which the statute of limitations remained open as of the date of the accompanying consolidated financial statements. The Company’s policy is to recognize interest and penalties related to income tax issues as components of other non-interest expense. The Company recognized no material expense on income tax related interest or penalties during any of the periods presented. |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE ACCOUNTING | FAIR VALUE ACCOUNTING ASC Topic 820-10, “ Fair Value Measurements and Disclosures ” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value: Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. The fair value of securities available for sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Where such quotes are not available, we utilize independent third party valuation analysis to support our own estimates and judgments in determining fair value (Level 3 inputs). Assets Measured on a Recurring Basis The following tables present the financial instruments measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022. Fair Quoted Prices in Significant Significant December 31, 2023 Investment securities: U.S. government agency obligations $ 16,576 $ — $ 16,576 $ — Mortgage-backed securities 73,480 — 73,480 — Corporate debt securities 41,174 — 41,174 — Asset-backed securities 24,513 — 24,513 — Total investment securities 155,743 — 155,743 — Equity investments: Equity investments 557 557 — — Equity investments measured at NAV(1) 2,727 — — — Total equity investments 3,284 557 — — Total $ 159,027 $ 557 $ 155,743 $ — December 31, 2022 Investment securities: U.S. government agency obligations $ 18,313 $ — $ 18,313 $ — Mortgage-backed securities 78,610 — 78,610 — Corporate debt securities 40,251 — 40,251 — Asset-backed securities 28,817 — 28,817 — Total Investment Securities 165,991 — 165,991 — Equity investments: Equity investments 338 338 — — Equity investments measured at NAV(1) 1,456 — — — Total equity investments 1,794 338 — — Total $ 167,785 $ 338 $ 165,991 $ — (1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B. For the years ended December 31, 2023 and December 31, 2022, the Company did not own any securities for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value. There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements during the years ended December 31, 2023 or December 31, 2022. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the years ended December 31, 2023 or December 31, 2022, respectively. Assets Measured on a Nonrecurring Basis The following tables present the financial instruments measured at fair value on a nonrecurring basis as of December 31, 2023 and December 31, 2022: Carrying Quoted Prices in Significant Significant December 31, 2023 Foreclosed and repossessed assets, net $ 1,795 $ — $ — $ 1,795 Collateral dependent loans with allocated allowances 3,499 — — 3,499 Mortgage servicing rights 3,865 — — 5,589 Total $ 9,159 $ — $ — $ 10,883 December 31, 2022 Foreclosed and repossessed assets, net $ 1,271 $ — $ — $ 1,271 Impaired loans with allocated allowances 6,920 — — 6,920 Mortgage servicing rights 4,262 — — 5,665 Total $ 12,453 $ — $ — $ 13,856 The fair value of collateral dependent loans and impaired loans referenced above was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting collateral dependent loans and impaired loans. The fair value of foreclosed and repossessed assets referenced above was determined by obtaining market price valuations from independent third parties wherever such quotes were available for other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned. The fair value of mortgage servicing rights referenced above was determined based on a third party discounted cash flow analysis utilizing both observable and unobservable inputs. The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at December 31, 2023 and December 31, 2022. Fair Valuation Techniques (1) Significant Unobservable Inputs (2) Range December 31, 2023 Foreclosed and repossessed assets, net $ 1,795 Appraisal value Estimated costs to sell 10% - 15% Collateral dependent loans with allocated allowances $ 3,499 Appraisal value / Internal collateral valuations Estimated costs to sell 10% - 15% Mortgage servicing rights $ 5,589 Discounted cash flows Discounted rates 9.375% - 12.375% December 31, 2022 Foreclosed and repossessed assets, net $ 1,271 Appraisal value Estimated costs to sell 10% - 15% Impaired loans with allocated allowances $ 6,920 Appraisal value Estimated costs to sell 10% - 15% Mortgage servicing rights $ 5,665 Discounted cash flows Discounted rates 9.5% - 12.5% (1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of impaired loans and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows: December 31, 2023 December 31, 2022 Valuation Method Used Carrying Amount Estimated Carrying Estimated Financial assets: Cash and cash equivalents (Level I) $ 37,138 $ 37,138 $ 35,363 $ 35,363 Other interest bearing deposits (Level II) — — 249 250 Securities available for sale "AFS" (Level II) 155,743 155,743 165,991 165,991 Securities held to maturity "HTM" (Level II) 91,229 73,262 96,379 76,779 Equity investments (Level I) 557 557 338 338 Equity investments valued at NAV (1) N/A 2,727 2,727 1,456 1,456 Other investments (Level II) 15,725 15,725 15,834 15,834 Loans receivable, net (Level III) 1,437,884 1,374,387 1,393,845 1,342,838 Loans held for sale - Residential mortgage (Level I) 1,134 1,134 — — Loans held for sale - SBA (Level II) 4,639 4,639 — — Mortgage servicing rights (Level III) 3,865 5,589 4,262 5,665 Accrued interest receivable (Level I) 5,409 5,409 5,285 5,285 Financial liabilities: Deposits (Level III) $ 1,519,092 $ 1,517,361 $ 1,424,720 $ 1,420,871 FHLB advances (Level II) 79,530 79,087 142,530 141,060 Other borrowings (Level II) 67,465 59,743 72,409 72,409 Accrued interest payable (Level I) 3,175 3,175 968 968 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share is based on the weighted average number of shares outstanding for the year. A reconciliation of the basic and diluted earnings per share is as follows: Year ended Year ended (Share count in thousands) December 31, 2023 December 31, 2022 Basic Net income attributable to common shareholders $ 13,059 $ 17,761 Weighted average common shares outstanding 10,469 10,505 Basic earnings per share $ 1.25 $ 1.69 Diluted Net income attributable to common shareholders $ 13,059 $ 17,761 Weighted average common shares outstanding 10,469 10,505 Add: Dilutive stock options outstanding 1 9 Average shares and dilutive potential common shares 10,470 10,514 Diluted earnings per share $ 1.25 $ 1.69 Additional common stock option shares that have not been included due to their antidilutive effect 40 21 |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the tax effects allocated to each component of other comprehensive income (loss): For the year ended, December 31, For the year ended, December 31, 2023 2022 Before-Tax Tax Benefit Net-of-Tax Before-Tax Tax Benefit Net-of-Tax Unrealized losses on securities: Net unrealized gains (losses) arising during the period $ 364 $ (27) $ 337 $ (24,575) $ 6,758 $ (17,817) Reclassification adjustment for gains included in net income (12) 3 (9) — — — Other comprehensive income (loss) $ 352 $ (24) $ 328 $ (24,575) $ 6,758 $ (17,817) The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the years ended December 31, 2023 and December 31, 2022 were as follows: Unrealized Gains (Losses) on AFS Securities Other Accumulated Beginning Balance, January 1, 2022 $ 222 $ 161 Current year-to-date other comprehensive loss (24,575) (17,817) Ending balance, December 31, 2022 $ (24,353) $ (17,656) Current year-to-date other comprehensive income 352 328 Ending balance, December 31, 2023 $ (24,001) $ (17,328) Reclassifications out of accumulated other comprehensive income (loss) for the twelve months ended December 31, 2023 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item on the Statement of Operations Unrealized gains and losses Sale of securities $ 12 Net gains (losses) on investment securities Tax effect (3) Provision for income taxes Total reclassifications for the period $ 9 Net income attributable to common shareholders (1) Amounts in parentheses indicate decreases to profit/loss. Reclassifications out of accumulated other comprehensive income (loss) for the twelve months ended December 31, 2022 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item on the Statement of Operations Unrealized gains and losses Sale of securities $ — Net gains (losses) on investment securities Tax effect — Provision for income taxes Total reclassifications for the period $ — Net income attributable to common shareholders (1) Amounts in parentheses indicate decreases to profit/loss. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | CONDENSED FINANCIAL INFORMATION – PARENT COMPANY ONLY The following condensed balance sheets as of December 31, 2023 and 2022, and condensed statements of operations and cash flows for the years ended December 31, 2023 and 2022, for Citizens Community Bancorp, Inc. should be read in conjunction with the accompanying consolidated financial statements and the notes thereto. Condensed Balance Sheets December 31, December 31, 2023 2022 Assets Cash and cash equivalents $ 18,175 $ 19,221 Equity investments 1,691 946 Other assets 402 386 Investment in subsidiary 221,267 219,714 Total assets $ 241,535 $ 240,267 Liabilities and Stockholders' Equity Other borrowings $ 67,465 $ 72,409 Other liabilities 736 770 Total liabilities 68,201 73,179 Total stockholders’ equity 173,334 167,088 Total liabilities and stockholders’ equity $ 241,535 $ 240,267 Statements of Operations Year ended December 31, Year ended December 31, 2023 2022 Interest income $ — $ — Interest expense 4,184 4,296 Net interest expense (4,184) (4,296) Dividend income from bank subsidiary 12,000 6,000 Non-interest income 127 422 Non-interest expense (762) (918) Net income before benefit for income taxes and equity in undistributed income of subsidiaries 7,181 1,208 Benefit for income taxes 1,073 1,310 Net earnings before equity in undistributed income of subsidiaries 8,254 2,518 Equity in undistributed income of subsidiaries 4,805 15,243 Net income $ 13,059 $ 17,761 Statements of Cash Flows Year ended December 31, Year ended December 31, 2023 2022 Change in cash and cash equivalents: Cash flows from operating activities: Net income $ 13,059 $ 17,761 Depreciation expense 12 13 Net valuation gain on equity securities (127) (422) Stock based compensation expense — 3 Adjustments to reconcile net income to net cash provided by operating activities - Equity in undistributed income of subsidiary (16,805) (21,243) Net change in: Other assets (28) (14) Other liabilities (34) 424 Net cash used in operating activities (3,923) (3,478) Cash flows from investing activities: Purchase of equity investments (750) (300) Equity investment capital distribution 132 136 Dividend from bank subsidiary 12,000 6,000 Capital contribution to bank subsidiary — (15,000) Net cash provided by (used in) investing activities 11,382 (9,164) Cash flows from financing activities: Proceeds from other borrowings, net of origination costs — 34,191 Amortization of debt issuance costs 223 398 Other borrowings principal reductions (5,167) (5,606) Other borrowings called and repaid — (15,000) Repurchase shares of common stock (420) (1,764) Surrender of restricted shares of common stock (129) (150) Common stock options exercised 28 71 Cash dividends paid (3,040) (2,742) Net cash (used in) provided by financing activities (8,505) 9,398 Net decrease in cash and cash equivalents (1,046) (3,244) Cash and cash equivalents at beginning of year 19,221 22,465 Cash and cash equivalents at end of year $ 18,175 $ 19,221 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 13,059 | $ 17,761 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant inter-company accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates— Preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, fair value of financial instruments, the allowance for credit losses, mortgage servicing rights, foreclosed and repossessed assets, valuation of intangible assets arising from acquisitions, useful lives for depreciation and amortization, valuation of goodwill and long-lived assets, stock based compensation, deferred tax assets, uncertain income tax positions and contingencies. Management does not anticipate any material changes to estimates made herein in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: those items described under the caption “Risk Factors” in Item 1A of the accompanying annual report on Form 10-K for the year ended December 31, 2023 and external market factors such as market interest rates and unemployment rates, changes to operating policies and procedures, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period. |
Cash and Cash Equivalents | Cash and Cash Equivalents— For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash, due from banks, and interest bearing deposits with original maturities of three months or less. |
Other Interest Bearing Deposits | Other Interest Bearing Deposits— Other interest bearing deposits are certificate of deposit investments made by the Bank with other financial institutions that are carried at cost. As of December 31, 2023, there were no other interest bearing deposit investments. As of December 31, 2022, the weighted average months to maturity of the interest bearing deposits was 3.00 months. Balances over $250 in other financial institutions are not insured by the FDIC and therefore pose a potential risk in the event the institution were to fail. As of December 31, 2023 and December 31, 2022, there were no certificate of deposit investment accounts with a balance greater than $250. |
Investment Securities; Held to Maturity and Available for Sale | Investment Securities; Held to Maturity and Available for Sale – Management determines the appropriate classification of investment securities at the time of purchase and reevaluates such designation as of the date of each balance sheet. Securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Held to maturity securities are stated at amortized cost. Investment securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value, with unrealized holding gains and losses being reported in other comprehensive income (loss), net of tax. Realized gains or losses on sales of available for sale securities are calculated with the specific identification method and are included in the consolidated statements of operations under net gains on investment securities. Interest income includes amortization of purchase premium or accretion of purchase discount. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the securities. |
Allowance for Credit Losses - Available for Sale Securities and Held to Maturity Securities | Allowance for Credit Losses - Available for Sale Securities - The Company measures the allowance for credit losses on available for sale debt securities by evaluating securities in an unrealized loss position using a two-step process. First, the Company assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost. If it is determined that the Company intends or will be required to sell the security, it is written down to its fair value as net gains or losses on investment securities in our consolidated statement of operations. For agency mortgage-backed and asset-backed securities that do not meet the criteria in step one, there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other debt securities that do not meet the criteria in step one, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and the allowance for credit losses on available for sale investments is 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. Allowance for Credit Losses - Held to Maturity Securities - The Company measures expected credit losses on held to maturity debt securities on a collective basis by major security type. For agency mortgage-backed securities there are no expected credit losses as they are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. For other securities, the estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has elected to not measure an ACL on accrued interest on available for sale and held to maturity securities, as it would write off accrued interest in a timely manner if the related security was determined to be impaired. The Company has no available for sale securities or held to maturity securities which it deems to be impaired at December 31, 2023. |
Equity investments | Equity investments - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities. Farmer Mac equity securities are carried at their fair market value, which is readily determinable. Changes in fair value are recognized as net gains (losses) on investment securities in the consolidated Statement of Operations. Also included in equity investments are the Company’s investments in a Volcker Rule-compliant Small Business Investment Company (SBIC) and an investment fund. The SBIC and investment fund meet the definition of investment companies, as defined in ASC 946, Financial Services - Investment Companies. These investments seek returns by investing in various small businesses and do not have redemption rights. Distributions from the investments will be received as the underlying investments, which generally have a life of 10 years, are liquidated or earlier distributions are made. We elected the practical expedient available in Topic 820, Fair Value Measurements, which permits the use of net asset value ("NAV") per share or equivalent to value investments in entities that are or are similar to investment companies. SBICs and investment funds report their investments at estimated fair value. We record the unrealized gains and losses resulting from changes in the fair value of these investments as gains or losses on equity securities in our consolidated statements of operations. The carrying value of these investments is equal to the capital account balance as provided by the investee and adjusted as necessary. |
Other investments | Other investments - As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost and periodically evaluated for impairment based on the ultimate recovery of par value. Cash dividends are reported as interest on investments in the consolidated statement of operations. Also included in other investments is stock of our correspondent bank, Bankers’ Bank, without readily determinable fair value. This stock is carried at cost plus or minus changes resulting from observable price changes in orderly transactions for this stock, less other-than-temporary impairment charges, if any. |
Loans receivable | Loans receivable – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, accretable yield on acquired loans, and non-accretable discount on purchased credit deteriorated (PCD) loans. Interest income is accrued on the unpaid principal balance of these loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method over the contractual life of the loan with no prepayments assumed. If the loan is prepaid, any amortized net fee is recognized at that time. Late charge fees are recognized into income when collected. Interest income on commercial, mortgage and consumer loans is discontinued according to the following schedules: • Commercial/agricultural real estate loans past due 90 days or more; • Commercial and industrial/agricultural operating loans past due 90 days or more; • Closed end consumer installment loans past due 120 days or more; and • Residential mortgage loans and open ended consumer installment loans past due 180 days or more. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual status. Loans are returned to accrual status when payments are made that bring the loan account current with the contractual term of the loan and a six month payment history has been established. Interest on accruing troubled debt restructured (“TDR”) loans, less than 90 days delinquent, is recognized as income as it accrues based on the revised terms of the loan over an established period of continued payment. Residential mortgage loans and open ended consumer installment loans are charged off to estimated net realizable value less estimated selling costs at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more. Closed ended consumer installment loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 120 days or more. Commercial/agricultural real estate, commercial and industrial and agricultural operating loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 90 days or more. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans – The allowance for credit losses (“ACL”) on loans is a valuation allowance for current expected credit losses in the Company’s loan portfolio. Prior to January 1, 2023, the valuation allowance was established for probable and inherent credit losses. Loan losses are charged against the ACL when management believes that the collectability of a loan balance is unlikely. Subsequent recoveries, if any, are credited to the ACL. In determining the allowance, the company estimates credit losses over the loan’s entire contractual term, adjusted for expected prepayments when appropriate. The allowance estimate considers relevant available information from internal and external sources relating to historical loss experience; known and inherent risks in our portfolio; information about specific borrowers’ ability to repay; estimated collateral values; current economic conditions; reasonable and supportable forecasts for future conditions; and other relevant factors determined by management. To ensure that the ACL is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The entire ACL balance is available for any loan that, in management’s judgment, should be charged off. The determination of the ACL requires significant judgement to estimate credit losses. The ACL on loans is measured collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that the loan does not share similar risk characteristics with other loans. The ACL on loans collectively evaluated is measured using the loss rate model. The Company categorizes its loan portfolio into four segments based on similar risk characteristics. Loans within each segment are pooled based on individual loan characteristics. Aggregated risk drivers are then calculated at a pool level. Risk drivers are identified attributes that have proven to be predictive of loan loss rates and vary based on loan segment and type. A loss rate is calculated and applied to the pool utilizing a model that combines the pool’s risk drivers, historical loss experience, and reasonable and supportable future economic forecasts to project lifetime losses. The loss rate is then combined with the loans balance and contractual maturity, adjusted for expected prepayments, to determine expected future losses. Future and supportable economic forecasts are based on national economic conditions and their reversion to the mean is implicit in the model and generally occurs over a period of two years. Qualitative adjustments are made to the allowance calculated on collectively evaluated loans to incorporate factors not included in the model. Qualitative factors include but are not limited to: lending policies and procedures, the experience and ability of lending and other staff, the volume and severity of problem credits, quality of the loan review system, and other external factors. Loans that exhibit different risk characteristics from the pool are individually evaluated for impairment. Loans can be identified for individual evaluation for a variety of reasons including delinquency, nonaccrual status, risk rating and loan modification. Accruing loans that exhibit different risk characteristics from their pool may also be within scope. On these loans, an allowance may be established so that the loan is reported, net, at the lower of (a) its amortized cost; (b) the present value of the loan’s estimated future cash flows using the loan’s existing rate; or (c) at the fair value of any loan collateral, less estimated disposal costs, if the loan is collateral dependent. Collateral dependency is determined using the practical expedient when: 1) the borrower is experiencing financial difficulty; and 2) repayment is expected to be provided substantially through the sale or operation of the collateral. The Company has elected to not measure an ACL on accrued interest as it writes off accrued interest in a timely manner. Allowance for Credit Losses - Unfunded Commitments – |
Loans Held for Sale | Loans Held for Sale — Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. They are carried at the lower of aggregate cost or fair value. Gains and losses on sales of loans are recognized at settlement dates, and are determined by the difference between the sales proceeds and the carrying value of the loans after allocating costs to servicing rights retained. Such gains and losses are included as non-interest income in the consolidated statement of operations. All sales are made without recourse. Interest rate lock commitments on mortgage loans to be funded and sold are valued at fair value, and are included in other assets or liabilities, if material. |
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 entity, (2) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets, and (3) the entity does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. |
Mortgage Servicing Rights | Mortgage Servicing Rights— Mortgage servicing rights (“MSR”) assets result as the Company sells loans to investors in the secondary market and retains the rights to service mortgage loans sold to others. MSR assets are initially measured at fair value; assessed for impairment at least annually; carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. MSR assets are amortized in proportion to and over the period of estimated net servicing income, with the amortization recorded in non-interest expense in the consolidated statement of operations. The valuation of MSRs and related amortization, included in mortgage servicing rights expense in the consolidated statements of operations, thereon are based on numerous factors, assumptions and judgments, such as those for: changes in the mix of loans, interest rates, prepayment speeds, and default rates. Changes in these factors, assumptions and judgments may have a material effect on the valuation and amortization of MSRs. Although management believes that the assumptions used to evaluate the MSRs for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of MSRs. |
Office Properties and Equipment | Office Properties and Equipment— Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of office properties and equipment are reflected in income. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 10 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 10 years. Leasehold improvements are depreciated using the straight-line (or accelerated) method with useful lives based on the lesser of (a) the estimated life of the lease, or (b) the estimated useful life of the leasehold improvement. Depreciation expense is included in non-interest expense on the consolidated statements of operations. |
Goodwill and other intangible assets | Goodwill and other intangible assets— |
Foreclosed and Repossessed Assets | Foreclosed and Repossessed Assets – |
Bank Owned Life Insurance (BOLI) | Bank Owned Life Insurance (BOLI)— |
New Markets Tax Credits | New Markets Tax Credits - As a part of its commitment to the communities it serves, in the first quarter of 2022, the Company made an investment in an LLC that is sponsoring a community development project that has been awarded a New Markets Tax Credit (“NMTC”) through the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. This investment is Community Reinvestment Act eligible and is designed to generate a return primarily through the realization of the tax credit. This LLC is considered a Variable Interest Entity (“VIE”), as the Company represents the holder of the equity investment at risk. However, the Company does not have the ability to direct the activities that most significantly affect the performance of the LLC. As such, the Company is not the primary beneficiary of the VIE and the LLC has not been consolidated. With the adoption of ASU 2023-02 on January 1, 2023, discussed in Recent Accounting Pronouncements – Adopted below, the investment is accounted for using the proportional amortization method, which requires amortizing the investment in the period of and in proportion to the recognition of the related tax credit. Amortization of the investment is included in provision for income taxes and the utilization of the tax credit is recorded as a reduction of the provision for income taxes. Prior to the adoption of ASU 2023-02, the investment was accounted for using the equity method of accounting and was amortized through non-interest expense. Amortization expense for the 12-month periods ended December 31, 2023 and December 31, 2022 was $452 and $650, respectively. |
Leases | Leases - We determine if an arrangement is a lease at inception. All of our existing leases have been determined to be operating leases under ASC 842. Right-of-use (“ROU”) assets are included in other assets in our consolidated balance sheets. Operating lease liabilities are included in other liabilities in our consolidated balance sheets. Lease expense is included in non-interest expense, occupancy in the consolidated statements of operations. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date, based on the present value of lease payments over the lease term. As none of our existing leases provide an implicit rate, we use our incremental borrowing rate, based on information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease, when it is reasonably certain that we will exercise that option. Lease expense is recognized based on the total contractually required lease payments, over the term of the lease, on a straight-line basis. Some of the Bank’s leases require it to make variable payments for the Bank’s share of property taxes, insurance, common area maintenance and other costs. These variable costs are recognized when incurred and are also included in lease expense. |
Debt and equity issuance costs | Debt and equity issuance costs— |
Advertising, Marketing and Public Relations Expense | Advertising, Marketing and Public Relations Expense— |
Income Taxes | Income Taxes – The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carry forward periods, any experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. |
Revenue Recognition | Revenue Recognition - The Company’s primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. The Company accounts for revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Topic 606 provides that revenue from contracts with customers be recognized when performance obligations under the terms of a contract are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing service. The Company does not have any materially significant payment terms as payment is received shortly after the satisfaction of the performance obligation. The statement of operations line items recognized under the scope of Topic 606 are as follows: Service charges on deposit accounts - Service charges on accounts consist of monthly service fees, transaction-based fees, overdraft fees and other deposit account related fees. The Company’s performance obligation for monthly services fees is generally satisfied over the period in which the service is provided. Revenue for these monthly fees is recognized during the service period. Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at the time the service is provided. Payment for service charges on deposit accounts are primarily received immediately or in the following month through a direct charge to a customer’s account. Interchange income - The Company earns interchange fees when cardholder debit card transaction are processed through card association networks. The interchange rates are generally set by the card association based upon purchase volumes and other factors. Interchange fees represent a percentage of the underlying transaction value. The Company has a continuous contract, based on customary business practices, with the card association networks to make funds available for settlement of card transactions. The Company’s performance obligation is satisfied over time as it makes funds available, and the related income is recognized when received. Gain (loss) on repossessed assets - |
Earnings Per Share | Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company’s stock price on the reporting date. |
Loss Contingencies | Loss Contingencies— Loss contingencies, including claims and legal actions arising in the normal course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of loss can be reasonably estimated. |
Off-Balance-Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments— In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and commitments under lines of credit arrangements, issued to meet customer financial needs. Such financial instruments are recorded in the financial statements when they become payable. See Note 11, “Commitments and Contingencies” in Notes to Consolidated Financial Statements. |
Derivatives--Rate-lock Commitments and Forward Sale Agreements | Derivatives--Rate-lock Commitments and Forward Sale Agreements — The Company enters into commitments to originate loans, whereby the interest rate on the loan is determined prior to funding (rate-lock commitment). Rate-lock commitments on mortgage loans held for sale are derivative instruments. If material, derivative instruments are carried on the consolidated balance sheets at fair value, and changes in the fair value thereof are recognized in the consolidated statements of operations. The Company originates single-family residential loans for sale, pursuant to programs primarily with the Federal Home Loan Mortgage Corporation (FHLMC) and other similar third parties. In connection with these programs, at the time the Company initially issues a loan commitment, it does not lock in a specific interest rate. At the time the interest rate is locked in by the borrower, the Company concurrently enters into a forward loan sale agreement with the prospective loan purchaser, at a specific price, in order to manage the interest rate risk inherent to the rate-lock commitment. The forward sale agreement also meets the definition of a derivative instrument. Any change in the fair value of the loan commitment after the borrower locks in the interest rate is substantially offset by the corresponding change in the fair value of the forward loan sale agreement related to such loan. The period from the time the borrower locks in the interest rate, to the time the Company funds the loan and sells the loan to a third party varies, and could be up to 90 days. The fair value of each instrument will rise and fall in response to changes in market interest rates, subsequent to the dates the interest rate locks and forward sale agreements are entered into. In the event that interest rates rise after the Company enters into an interest rate lock, the fair value of the loan commitment will decline. However, the fair value of the forward loan sale agreement related to such loan commitment should increase by substantially the same amount, effectively eliminating the Company’s interest rate and price risks. |
Other Comprehensive Income | Other Comprehensive Income — Accumulated and other comprehensive income or loss is comprised of the unrealized and realized gains and losses on securities available for sale, net of tax, and is shown on the accompanying consolidated statements of comprehensive (loss) income. |
Operating Segments | Operating Segments— While our executive officers monitor the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications— Certain items previously reported were reclassified for consistency with the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements— The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recent Accounting Pronouncements—Adopted ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting-- These ASUs provide optional and temporary relief, in the form of optional expedients and exceptions, for applying GAAP to modifications of contacts, hedging relationships and other transactions affected by reference rate (e.g. LIBOR) reforms. ASU 2020-04 and ASU 2021-01 was effective immediately upon issuance and will remain in effect through December 31, 2024. The Company utilizes LIBOR, among other indexes, as a reference rate for underwriting variable rate loans. Reference rate reform has not had, nor does the Company expect it to have, a material effect on the Company’s consolidated balance sheet, operations or cash flows. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments-- The ASU changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. Earlier adoption was permitted; however, the Company elected not to adopt the ASU early. The Company formed a cross-functional team to implement ASU 2016-13. Key objectives of the team included selecting a loss estimation methodology, establishing processes and controls, data validation, creation of supporting analytics, documentation of policies and procedures, and developing disclosures. As previously disclosed, the Company is utilizing a third-party model to assist in loss estimation including pooling loans with similar risk characteristics and modeling methodologies. The Company adopted ASU 2016-13 portfolio consists almost entirely of agency-backed securities that inherently have minimal nonpayment risk. The transition adjustment included corresponding increases in deferred tax assets. The Company adopted ASU 2016-13 using the prospective transition approach for financial assets considered PCD. These assets were previously classified as purchase credit impaired ("PCI") and accounted for under ASC 310-30 prior to January 1, 2023. In accordance with the standard, the Company did not reassess whether the PCI assets met the criteria of PCD assets as of the adoption date. The amortized cost of the PCD assets were adjusted to reflect the addition of $130 to the allowance for credit losses. This adjustment is included in the discussion of the transition adjustment above. The remaining noncredit discount, based on the adjusted amortized cost, will be accreted into interest income at the effective interest rate over the remaining life of the assets. The following table illustrates the impact of ASU 2016-13 adoption in thousands. Pre-ASU 2016-13 Adoption Impact of As Reported under ASU 2016-13 Allowance for credit losses: Commercial/Agricultural Real Estate $ 14,085 $ 4,510 $ 18,595 C&I/Agricultural operating 2,318 (331) 1,987 Residential Mortgage 599 1,119 1,718 Consumer Installment 129 216 345 Unallocated 808 (808) — Total allowance for credit losses on loans 17,939 4,706 22,645 Allowance for credit losses on unfunded commitments — 1,537 1,537 Total allowance for credit losses $ 17,939 $ 6,243 $ 24,182 ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures - The ASU addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The company adopted ASU 2022-02 in conjunction with ASU 2016-13 on January 1, 2023 using the prospective approach. ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method - This ASU expands the use of the proportional amortization method in accounting for tax credit investments to all tax credit investments that meet certain criteria. The Company has determined that its New Markets Tax Credit investment qualifies for use of the proportional amortization method under this ASU and has elected to early adopt the update as of January 1, 2023 using the modified retrospective approach. The transition adjustment resulted in an increase to retained earnings of $130. Amortization of the investment will now be recognized in the period of and proportional to recognition of the related tax credit and included in provision for income taxes in the consolidated statements of operations. Prior to adoption of this amendment, the amortization was included in other non-interest expense as a separate line item. The Company chose to adopt ASU 2023-02 because it felt that the proportional amortization method more accurately reflects the economic substance of its tax credit investment. Proportional amortization better matches the cost of the investment with the benefits received, and including the amortization of the investment in provision for income taxes better reflects the benefit the Company receives from the transaction. For the twelve months ended December 31, 2023, adopting ASU 2023-02 increased net income $120. Recently Issued, But Not Yet Effective Accounting Pronouncements ASU 2023-06, Disclosure Improvements – Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative – This ASU, issued in October 2023, provides for changes to clarify or improve consistency of disclosure and presentation requirements on a variety of topics. This ASU has various effective dates, coinciding with the SEC’s removal of each specific change from Regs X-S and S-K, with early adoption permitted. The Company is currently evaluating the applicability of these new disclosure requirements. As all requirements are disclosure-related only, adoption will have no material impact on the Company’s financial condition or results of operations. ASU 2023-09, Income Taxes – Improvements to Income Tax Disclosures – This ASU, issued in December 2023, is effective for fiscal years beginning after December 15, 2024 and interim periods therein, with early adoption permitted. This ASU requires expanded income tax-related note disclosures. The Company is currently evaluating the impact of these new disclosure requirements. As all requirements are disclosure-related only, adoption will have no material impact on the Company’s financial condition or results of operations. |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Impact of ASU 2016-13 Adoption | The following table illustrates the impact of ASU 2016-13 adoption in thousands. Pre-ASU 2016-13 Adoption Impact of As Reported under ASU 2016-13 Allowance for credit losses: Commercial/Agricultural Real Estate $ 14,085 $ 4,510 $ 18,595 C&I/Agricultural operating 2,318 (331) 1,987 Residential Mortgage 599 1,119 1,718 Consumer Installment 129 216 345 Unallocated 808 (808) — Total allowance for credit losses on loans 17,939 4,706 22,645 Allowance for credit losses on unfunded commitments — 1,537 1,537 Total allowance for credit losses $ 17,939 $ 6,243 $ 24,182 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Estimated Fair Value and Related Unrealized Gains and Losses on Available-for-Sale Securities | The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of December 31, 2023 and December 31, 2022, respectively, were as follows: Available for sale securities Amortized Gross Gross Estimated December 31, 2023 U.S. government agency obligations $ 16,655 $ 77 $ 156 $ 16,576 Mortgage-backed securities 91,091 — 17,611 73,480 Corporate debt securities 47,158 6 5,990 41,174 Asset-backed securities 24,840 12 339 24,513 Total available for sale securities $ 179,744 $ 95 $ 24,096 $ 155,743 December 31, 2022 U.S. government agency obligations $ 18,373 $ 173 $ 233 $ 18,313 Mortgage-backed securities 97,458 — 18,848 78,610 Corporate debt securities 44,636 — 4,385 40,251 Asset-backed securities 29,877 — 1,060 28,817 Total available for sale securities $ 190,344 $ 173 $ 24,526 $ 165,991 |
Schedule of Amortized Cost, Estimated Fair Value and Related Unrealized Gains and Losses on Held-to-Maturity Securities | Held to maturity securities Amortized Gross Gross Estimated December 31, 2023 Obligations of states and political subdivisions $ 600 $ — $ 35 $ 565 Mortgage-backed securities 90,629 6 17,938 72,697 Total held to maturity securities $ 91,229 $ 6 $ 17,973 $ 73,262 December 31, 2022 Obligations of states and political subdivisions $ 600 $ — $ 54 $ 546 Mortgage-backed securities 95,779 7 19,553 76,233 Total held to maturity securities $ 96,379 $ 7 $ 19,607 $ 76,779 |
Schedule of Estimated Fair Value of Securities by Contractual Maturity | The estimated fair value of available for sale securities at December 31, 2023 and December 31, 2022, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and securities due to the call feature. December 31, 2023 December 31, 2022 Available for sale securities Amortized Estimated Amortized Estimated Due in one year or less $ — $ — $ — $ — Due after one year through five years 13,986 13,703 8,525 8,184 Due after five years through ten years 45,549 39,701 45,622 41,427 Due after ten years 29,118 28,859 38,739 37,770 Total securities with contractual maturities 88,653 82,263 92,886 87,381 Mortgage-backed securities 91,091 73,480 97,458 78,610 Total available for sale securities $ 179,744 $ 155,743 $ 190,344 $ 165,991 December 31, 2023 December 31, 2022 Held to maturity securities Amortized Estimated Amortized Estimated Due in one year or less $ 100 $ 100 $ — $ — Due after one year through five years 500 465 450 415 Due after five years through ten years — — 150 131 Total securities with contractual maturities 600 565 600 546 Mortgage-backed securities 90,629 72,697 95,779 76,233 Total held to maturity securities $ 91,229 $ 73,262 $ 96,379 $ 76,779 |
Schedule of Available-for-Sale Securities with Unrealized Losses | Securities with unrealized losses at December 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 Months 12 Months or More Total Available for sale securities Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 U.S. government agency obligations $ 3,776 $ 5 $ 3,627 $ 151 $ 7,403 $ 156 Mortgage-backed securities — — 73,476 17,611 73,476 17,611 Corporate debt securities 3,350 76 35,916 5,914 39,266 5,990 Asset-backed securities 3,348 22 20,008 317 23,356 339 Total $ 10,474 $ 103 $ 133,027 $ 23,993 $ 143,501 $ 24,096 December 31, 2022 U.S. government agency obligations $ 3,169 $ 138 $ 1,138 $ 95 $ 4,307 $ 233 Mortgage-backed securities 9,654 896 68,907 17,952 78,561 18,848 Corporate debt securities 21,547 1,688 18,704 2,697 40,251 4,385 Asset-backed securities 7,955 221 20,862 839 28,817 1,060 Total $ 42,325 $ 2,943 $ 109,611 $ 21,583 $ 151,936 $ 24,526 |
Schedule of Held-to-Maturity Securities with Unrealized Losses | Less than 12 Months 12 Months or More Total Held to maturity securities Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 Obligations of states and political subdivisions $ — $ — $ 565 $ 35 $ 565 $ 35 Mortgage-backed securities — — 72,507 17,938 72,507 17,938 Total $ — $ — $ 73,072 $ 17,973 $ 73,072 $ 17,973 December 31, 2022 Obligations of states and political subdivisions $ — $ — $ 546 $ 54 $ 546 $ 54 Mortgage-backed securities 16,627 2,416 59,367 17,137 75,994 19,553 Total $ 16,627 $ 2,416 $ 59,913 $ 17,191 $ 76,540 $ 19,607 |
LOANS, ALLOWANCE FOR CREDIT L_2
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans | A summary of loans at December 31, 2023 follows: December 31, 2023 Amortized Cost % of Total Commercial/Agricultural real estate: Commercial real estate $ 748,447 51.2 % Agricultural real estate 83,157 5.7 % Multi-family real estate 228,004 15.6 % Construction and land development 110,218 7.5 % C&I/Agricultural operating: Commercial and industrial 121,190 8.3 % Agricultural operating 25,695 1.8 % Residential mortgage: Residential mortgage 128,479 8.8 % Purchased HELOC loans 2,880 0.2 % Consumer installment: Originated indirect paper 6,535 0.4 % Other consumer 6,187 0.4 % Total loans receivable $ 1,460,792 100 % Less Allowance for credit losses (22,908) Net loans receivable $ 1,437,884 Loans are stated at the unpaid principal balance outstanding at December 31, 2022. December 31, 2022 Loan Principal Balance % of Total Commercial/Agricultural real estate: Commercial real estate $ 725,971 51.5 % Agricultural real estate 87,908 6.2 % Multi-family real estate 208,908 14.8 % Construction and land development 102,492 7.3 % C&I/Agricultural operating: Commercial and industrial 136,013 9.6 % Agricultural operating 28,806 2.0 % Residential mortgage: Residential mortgage 105,389 7.5 % Purchased HELOC loans 3,262 0.2 % Consumer installment: Originated indirect paper 10,236 0.7 % Other consumer 7,150 0.5 % Gross Loans $ 1,416,135 100.3 % Less: Unearned net deferred fees and costs and loans in process (2,585) (0.2) % Unamortized discount on acquired loans (1,766) (0.1) % Total loans receivable $ 1,411,784 100.0 % Less Allowance for loan losses (17,939) Net loans $ 1,393,845 |
Schedule of Financing Receivable Credit Quality Indicators | As of December 31, 2023 and December 31, 2022, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9. Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of December 31, 2023 and gross charge-offs for the twelve months ended December 31, 2023: Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term Total Commercial/Agricultural real estate: Commercial real estate Risk rating 1 to 5 $ 73,564 $ 133,583 $ 236,774 $ 90,881 $ 71,104 $ 107,999 $ 10,204 $ — $ 724,109 Risk rating 6 309 — 9,510 — — — — — 9,819 Risk rating 7 25 696 3,213 4,548 183 5,854 — — 14,519 Total $ 73,898 $ 134,279 $ 249,497 $ 95,429 $ 71,287 $ 113,853 $ 10,204 $ — $ 748,447 Current period gross charge-offs $ — $ — $ 10 $ — $ — $ 4 $ — $ — $ 14 Agricultural real estate Risk rating 1 to 5 $ 16,335 $ 19,026 $ 11,582 $ 7,719 $ 5,463 $ 15,418 $ 1,009 $ — $ 76,552 Risk rating 6 — 171 5,409 — 152 482 — — 6,214 Risk rating 7 — 360 — — 31 — — — 391 Total $ 16,335 $ 19,557 $ 16,991 $ 7,719 $ 5,646 $ 15,900 $ 1,009 $ — $ 83,157 Current period gross charge-offs $ — $ — $ — $ 32 $ — $ — $ — $ — $ 32 Multi-family real estate Risk rating 1 to 5 $ 5,016 $ 50,617 $ 95,686 $ 45,685 $ 8,591 $ 22,364 $ 45 $ — $ 228,004 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Total $ 5,016 $ 50,617 $ 95,686 $ 45,685 $ 8,591 $ 22,364 $ 45 $ — $ 228,004 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development Risk rating 1 to 5 $ 42,639 $ 37,783 $ 18,912 $ 8,014 $ 119 $ 1,124 $ 1,314 $ — $ 109,905 Risk rating 6 — — — — — 110 — — 110 Risk rating 7 — — — — — 54 149 — 203 Total $ 42,639 $ 37,783 $ 18,912 $ 8,014 $ 119 $ 1,288 $ 1,463 $ — $ 110,218 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial/Agricultural operating: Commercial and industrial Risk rating 1 to 5 $ 16,758 $ 31,915 $ 28,059 $ 11,406 $ 4,746 $ 2,023 $ 24,059 $ — $ 118,966 Risk rating 6 — — — — 5 — 2,200 — 2,205 Risk rating 7 — — — — — 2 — 17 19 Total $ 16,758 $ 31,915 $ 28,059 $ 11,406 $ 4,751 $ 2,025 $ 26,259 $ 17 $ 121,190 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural operating Risk rating 1 to 5 $ 4,734 $ 3,908 $ 856 $ 746 $ 295 $ 2,144 $ 11,831 $ — $ 24,514 Risk rating 6 — — — — — — — — — Risk rating 7 — 476 704 — — 1 — — 1,181 Total $ 4,734 $ 4,384 $ 1,560 $ 746 $ 295 $ 2,145 $ 11,831 $ — $ 25,695 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Continued Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term Total Residential mortgage: Residential mortgage Risk rating 1 to 5 $ 28,808 $ 33,660 $ 8,743 $ 2,610 $ 2,292 $ 33,744 $ 15,544 $ — $ 125,401 Risk rating 6 — — — — — — — — — Risk rating 7 — 141 — — 14 2,875 — 48 3,078 Total $ 28,808 $ 33,801 $ 8,743 $ 2,610 $ 2,306 $ 36,619 $ 15,544 $ 48 $ 128,479 Current period gross charge-offs $ — $ — $ 10 $ — $ — $ 68 $ — $ — $ 78 Purchased HELOC loans Risk rating 1 to 5 $ — $ — $ — $ — $ — $ — $ 2,880 $ — $ 2,880 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ 2,880 $ — $ 2,880 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Originated indirect paper Risk rating 1 to 5 $ — $ — $ — $ — $ — $ 6,491 $ — $ — $ 6,491 Risk rating 6 — — — — — — — — — Risk rating 7 — — — — — 44 — — 44 Total $ — $ — $ — $ — $ — $ 6,535 $ — $ — $ 6,535 Current period gross charge-offs $ — $ — $ — $ — $ — $ 13 $ — $ — $ 13 Other consumer Risk rating 1 to 5 $ 2,104 $ 1,525 $ 763 $ 559 $ 402 $ 274 $ 530 $ 1 $ 6,158 Risk rating 6 — — — — — — — — — Risk rating 7 9 2 — — 16 1 1 — 29 Total $ 2,113 $ 1,527 $ 763 $ 559 $ 418 $ 275 $ 531 $ 1 $ 6,187 Current period gross charge-offs $ — $ 2 $ 1 $ 11 $ 3 $ 6 $ — $ — $ 23 Total loans receivable $ 190,301 $ 313,863 $ 420,211 $ 172,168 $ 93,413 $ 201,004 $ 69,766 $ 66 $ 1,460,792 Total current period gross charge-offs $ — $ 2 $ 21 $ 43 $ 3 $ 91 $ — $ — $ 160 |
Schedule of Loans by Risk Rating | Below is a summary of the unpaid principal balance of loans summarized by class and credit quality risk rating as of December 31, 2022: 1 to 5 6 7 TOTAL Commercial/Agricultural real estate: Commercial real estate $ 712,658 $ 5,771 $ 7,542 $ 725,971 Agricultural real estate 84,215 549 3,144 87,908 Multi-family real estate 208,908 — — 208,908 Construction and land development 102,385 — 107 102,492 C&I/Agricultural operating: Commercial and industrial 129,748 5,526 739 136,013 Agricultural operating 26,418 324 2,064 28,806 Residential mortgage: Residential mortgage 101,730 — 3,659 105,389 Purchased HELOC loans 3,262 — — 3,262 Consumer installment: Originated indirect paper 10,190 — 46 10,236 Other Consumer 7,132 — 18 7,150 Gross loans $ 1,386,646 $ 12,170 $ 17,319 $ 1,416,135 Less: Unearned net deferred fees and costs and loans in process (2,585) Unamortized discount on acquired loans (1,766) Allowance for loan losses (17,939) Loans receivable, net $ 1,393,845 |
Schedule of Changes in Loans | A summary of the changes in those loans is as follows: Twelve months ended Twelve months ended December 31, 2023 December 31, 2022 Balance—beginning of period $ 38,410 $ 32,423 New loan originations 624 7,994 Repayments (2,442) (2,007) Balance—end of period $ 36,592 $ 38,410 Available and unused lines of credit $ 603 $ — |
Schedule of Allowance for Credit Losses | The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the twelve months ended December 31, 2023: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total Twelve months ended December 31, 2023 Allowance for Credit Losses - Loans: ACL - Loans, at beginning of period $ 14,085 $ 2,318 $ 599 $ 129 $ 808 $ 17,939 Cumulative effect of ASU 2016-13 adoption 4,510 (331) 1,119 216 (808) 4,706 Charge-offs (46) — (78) (36) — (160) Recoveries 489 47 42 33 — 611 Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations (254) (929) 1,062 (67) — (188) ACL - Loans, at end of period $ 18,784 $ 1,105 $ 2,744 $ 275 $ — $ 22,908 December 31, 2023 and Twelve Months Ended December 31, 2022 and Twelve Months Ended ACL - Unfunded Commitments - beginning of period $ — $ — Cumulative effect of ASU 2016-13 adoption 1,537 — Reversals to ACL - Unfunded Commitments via provision for credit losses charged to operations (287) — ACL - Unfunded Commitments - End of period $ 1,250 $ — |
Schedule of Provision for Credit Losses | The following table presents the components of the provision for credit losses. December 31, 2023 and Twelve Months Ended Provision for credit losses on: Loans $ (188) Unfunded Commitments (287) Total provision for credit losses $ (475) |
Schedule of Changes of Impaired Loans and Non-impaired Loans | Changes in the ALL by loan type for the periods presented below were as follows: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total Twelve months ended December 31, 2022: Allowance for Loan Losses: Beginning balance, January 1, 2022 $ 12,354 $ 1,959 $ 518 $ 225 $ 774 $ 15,830 Charge-offs (157) (310) (35) (45) — (547) Recoveries 74 35 2 50 — 161 Provision 1,280 571 89 (109) 34 1,865 Total Allowance on originated loans 13,551 2,255 574 121 808 17,309 Other acquired loans: Beginning balance, January 1, 2022 856 69 130 28 — 1,083 Charge-offs (48) (36) (33) (3) — (120) Recoveries 28 1 27 1 — 57 Provision (302) 29 (99) (18) — (390) Total allowance on other acquired loans 534 63 25 8 — 630 Total allowance on acquired loans 534 63 25 8 — 630 Ending Balance, December 31, 2023 $ 14,085 $ 2,318 $ 599 $ 129 $ 808 $ 17,939 Allowance for Loan Losses at December 31, 2022: Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 519 $ 249 $ 48 $ 10 $ — $ 826 Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 13,566 $ 2,069 $ 551 $ 119 $ 808 $ 17,113 Loans Receivable as of December 31, 2022: Ending balance of originated loans $ 1,017,529 $ 150,239 $ 88,045 $ 17,130 $ — $ 1,272,943 Ending balance of purchased credit-impaired loans 5,748 362 890 — — 7,000 Ending balance of other acquired loans 102,002 14,218 19,716 256 — 136,192 Ending balance of loans $ 1,125,279 $ 164,819 $ 108,651 $ 17,386 $ — $ 1,416,135 Ending balance: individually evaluated for impairment $ 16,874 $ 3,292 $ 5,998 $ 755 $ — $ 26,919 Ending balance: collectively evaluated for impairment $ 1,108,405 $ 161,527 $ 102,653 $ 16,631 $ — $ 1,389,216 |
Schedule of Loans Receivable | Loans receivable by loan type as of December 31, 2022, were as follows: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Total Performing loans Performing TDR loans $ 1,336 $ 960 $ 2,875 $ — $ 5,171 Performing loans other 1,115,465 162,417 104,287 17,345 1,399,514 Total performing loans 1,116,801 163,377 107,162 17,345 1,404,685 Nonperforming loans (1) — Nonperforming TDR loans 1,878 391 348 — 2,617 Nonperforming loans other 6,600 1,051 1,141 41 8,833 Total nonperforming loans 8,478 1,442 1,489 41 11,450 Total loans $ 1,125,279 $ 164,819 $ 108,651 $ 17,386 $ 1,416,135 (1) Nonperforming loans are either 90+ days past due or nonaccrual. |
Schedule of Aging Analysis of Bank Real Estate and Consumer Loans | An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of December 31, 2023 and December 31, 2022, respectively, was as follows: (Loan balances at amortized cost) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total December 31, 2023 Commercial/Agricultural real estate: Commercial real estate $ 50 $ 308 $ — $ 358 $ 10,359 $ 10,717 $ 737,730 $ 748,447 Agricultural real estate — — — — 391 391 82,766 83,157 Multi-family real estate — — — — — — 228,004 228,004 Construction and land development — — — — 54 54 110,164 110,218 C&I/Agricultural operating: Commercial and industrial 248 — — 248 — 248 120,942 121,190 Agricultural operating — — — — 1,180 1,180 24,515 25,695 Residential mortgage: Residential mortgage 826 350 387 1,563 1,167 2,730 125,749 128,479 Purchased HELOC loans 117 — — 117 — 117 2,763 2,880 Consumer installment: Originated indirect paper 66 — — 66 15 81 6,454 6,535 Other consumer 38 — 2 40 18 58 6,129 6,187 Total $ 1,345 $ 658 $ 389 $ 2,392 $ 13,184 $ 15,576 $ 1,445,216 $ 1,460,792 (Loan balances at unpaid principal balance) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total December 31, 2022 Commercial/Agricultural real estate: Commercial real estate $ 202 $ 88 $ — $ 290 $ 5,736 $ 6,026 $ 719,945 $ 725,971 Agricultural real estate 4,992 — — 4,992 2,742 7,734 80,174 87,908 Multi-family real estate — — — — — — 208,908 208,908 Construction and land development 3,975 — — 3,975 — 3,975 98,517 102,492 C&I/Agricultural operating: Commercial and industrial — 26 — 26 552 578 135,435 136,013 Agricultural operating 826 — — 826 890 1,716 27,090 28,806 Residential mortgage: Residential mortgage 767 479 236 1,482 1,253 2,735 102,654 105,389 Purchased HELOC loans — — — — — — 3,262 3,262 Consumer installment: Originated indirect paper 15 — — 15 27 42 10,194 10,236 Other consumer 39 2 10 51 4 55 7,095 7,150 Total $ 10,816 $ 595 $ 246 $ 11,657 $ 11,204 $ 22,861 $ 1,393,274 $ 1,416,135 Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Commercial real estate $ 4,694 $ — $ — $ — Commercial and industrial 2,200 — — — Residential mortgage 35 — 69 — Other consumer 20 — — — Total $ 6,949 $ — $ 69 $ — |
Schedule of Nonaccrual Loans | The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated at December 31, 2023 with no allowance for credit losses and interest income that would have been recorded under the original terms of such nonaccrual loans: December 31, 2023 Total Nonaccrual Loans Nonaccrual with no Allowance for Credit Losses Interest Income Not Recorded for Nonaccrual loans Commercial/Agricultural real estate: Commercial real estate $ 10,359 $ 10,347 $ 497 Agricultural real estate 391 391 46 Multi-family real estate — — — Construction and land development 54 54 1 C&I/Agricultural operating: Commercial and industrial — — — Agricultural operating 1,180 1,180 120 Residential mortgage: Residential mortgage 1,167 934 68 Purchased HELOC loans — — — Consumer installment: Originated indirect paper 15 15 1 Other consumer 18 18 1 Total $ 13,184 $ 12,939 $ 734 |
Schedule of Collateral Dependent Loans by Portfolio Segment | The following table presents the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of December 31, 2023. Collateral Type December 31, 2023 Real Estate Other Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial/Agricultural real estate: Commercial real estate $ 15,086 $ — $ 15,086 $ 11,350 $ 3,736 $ 703 Agricultural real estate 6,605 — 6,605 6,605 — — Multi-family real estate — — — — — — Construction and land development 313 — 313 313 — — C&I/Agricultural operating: Commercial and industrial — 2,219 2,219 2,219 — — Agricultural operating — 1,181 1,181 1,181 — — Residential mortgage: Residential mortgage 3,145 — 3,145 2,591 554 88 Purchased HELOC loans — — — — — — Consumer installment: Originated indirect paper — 44 44 44 — — Other consumer — 29 29 29 — — Total $ 25,149 $ 3,473 $ 28,622 $ 24,332 $ 4,290 $ 791 |
Schedule of Bank Impaired Loans | A summary of the Company’s loans individually evaluated for impairment as of December 31, 2022 was as follows: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2022 With No Related Allowance Recorded: Commercial/Agricultural real estate $ 9,741 $ 9,766 $ — $ 13,657 $ 549 C&I/Agricultural operating 2,744 2,754 — 4,467 200 Residential mortgage 5,846 5,907 — 6,304 276 Consumer installment 745 745 — 307 5 Total $ 19,076 $ 19,172 $ — $ 24,735 $ 1,030 With An Allowance Recorded: Commercial/Agricultural real estate $ 7,108 $ 7,108 $ 519 $ 6,028 $ 273 C&I/Agricultural operating 538 538 249 273 48 Residential mortgage 91 91 48 298 65 Consumer installment 10 10 10 2 2 Total $ 7,747 $ 7,747 $ 826 $ 6,601 $ 388 December 31, 2022 Totals Commercial/Agricultural real estate $ 16,849 $ 16,874 $ 519 $ 19,685 $ 822 C&I/Agricultural operating 3,282 3,292 249 4,741 248 Residential mortgage 5,937 5,998 48 6,603 341 Consumer installment 755 755 10 310 7 Total $ 26,823 $ 26,919 $ 826 $ 31,336 $ 1,418 |
Schedule of Loan Modifications | The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended December 31, 2023: Term Extension Loan Class Amortized Cost Basis at % of Total Class of Financing Receivables Commercial real estate $ 4,694 0.63 % Commercial and industrial $ 2,200 1.82 % Residential mortgage $ 35 0.03 % Other consumer $ 1 0.02 % Other-Than-Insignificant Payment Delay Loan Class Amortized Cost Basis at % of Total Class of Financing Receivables Residential mortgage $ 69 0.05 % Other consumer $ 19 0.31 % Following is a summary of TDR loans by accrual status as of December 31, 2022. December 31 2022 Troubled debt restructure loans: Accrual status $ 5,171 Non-accrual status 2,617 Total $ 7,788 The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the year ended December 31, 2022: Number of Contracts Modified Rate Modified Payment Modified Under- writing Other Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Twelve months ended December 31, 2022 TDRs: Commercial/Agricultural real estate 7 $ 1,241 $ — $ 1,964 $ — $ 3,205 $ 3,205 $ — C&I/Agricultural operating 5 1,424 — 736 — 2,160 2,160 — Residential mortgage 11 116 147 507 — 770 770 — Consumer installment — — — — — — — — Totals 23 $ 2,781 $ 147 $ 3,207 $ — $ 6,135 $ 6,135 $ — |
Schedule of Financial Effect of the Modified Made to Borrowers Experiencing | The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023: Term Extension Loan Class Financial Effect Commercial real estate A weighted average of 20 months was added to the term of the loans Commercial and industrial A weighted average of 3 months was added to the term of the loans Residential mortgage A weighted average of 16 months was added to the term of the loans Other consumer A weighted average of 12 months was added to the term of the loans Other-Than-Insignificant Payment Delay Loan Class Financial Effect Residential mortgage Payments were deferred a weighted average of 6 months Other consumer Payments were deferred a weighted average of 3 months |
Schedule of Loans by Loan Class Modified in Troubled Debt Restructuring | A summary of loans by loan class modified in a troubled debt restructuring as of December 31, 2022 are below: December 31, 2022 Number of Modifications Recorded Investment Troubled debt restructurings: Commercial/ Agricultural real estate 14 $ 3,214 C&I/ Agricultural operating 8 1,351 Residential mortgage 45 3,223 Consumer installment — — Total loans 67 $ 7,788 |
Schedule of Restructured Loans in Default | The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the year ended December 31, 2022, as well as the recorded investment in these restructured loans as of December 31, 2022: December 31, 2022 Number of Modifications Recorded Investment Troubled debt restructurings: Commercial/ Agricultural real estate — $ — C&I/ Agricultural operating 1 231 Residential mortgage 2 40 Consumer installment — — Total troubled debt restructurings 3 $ 271 |
Schedule of Acquired Loans | All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows: December 31, 2022 Accountable for under ASC 310-30 (PCI loans) Outstanding balance $ 7,000 Carrying amount $ 6,904 Accountable for under ASC 310-20 (non-PCI loans) Outstanding balance $ 136,192 Carrying amount $ 134,522 Total acquired loans Outstanding balance $ 143,192 Carrying amount $ 141,426 |
Schedule of Accelerate Accretion and Lower Future Years Accretion | The following table below shows scheduled accretion by year for the accretable differences recognized due to fair value purchase accounting on recent whole bank acquisitions. In addition, the table below includes $1,165 of accretable discount from purchased impaired loans with the original non-accretable discount transferred to accretable discount. The accretion on this balance is scheduled to be approximately $80 in 2023; however large balance payoffs, as seen in 2022, 2021 and 2020, would accelerate this accretion and lower future years accretion. Fiscal years ending December 31, Purchase Accounting Accretable Discount 2023 $ 363 2024 215 2025 180 2026 84 2027 77 Thereafter 751 Total $ 1,670 |
Schedule of Non-Accretable Yield | The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality: December 31, 2022 Balance at beginning of period $ 653 Additions to non-accretable difference for acquired purchased credit impaired loans — Non-accretable difference realized as interest from payoffs of purchased credit impaired loans (239) Transfers from non-accretable difference to accretable discount (126) Non-accretable difference transferred to OREO due to loan foreclosure (192) Balance at end of period $ 96 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Mortgage Servicing Rights Activity | Mortgage servicing rights activity for the years ended December 31, 2023 and December 31, 2022 was as follows: As of and for the twelve months ended As of and for the twelve months ended December 31, 2023 December 31, 2022 Mortgage servicing rights: Mortgage servicing rights, beginning of period $ 4,262 $ 4,727 Increase in mortgage servicing rights resulting from transfers of financial assets 218 323 Amortization during the period (615) (788) Mortgage servicing rights, end of period 3,865 4,262 Valuation allowance, beginning of period — (566) Additions — — Recoveries — 566 Valuation allowance, end of period — — Mortgage servicing rights, net $ 3,865 $ 4,262 Fair value of mortgage servicing rights, end of period $ 5,589 $ 5,665 Residential mortgage loans serviced for others $ 495,531 $ 523,736 |
Schedule of Estimated Future Aggregate Amortization Expense | At December 31, 2023, the estimated future aggregate amortization expense for the mortgage servicing rights is as follows. Amortization Expense 2024 $ 565 2025 513 2026 462 2027 410 2028 358 After 2028 1,557 Total $ 3,865 At December 31, 2023, the estimated future aggregate amortization expense for the intangible assets are as follows: Intangible Assets 2024 $ 715 2025 584 2026 395 Total $ 1,694 |
OFFICE PROPERTIES AND EQUIPME_2
OFFICE PROPERTIES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Office Properties and Equipment | Office properties and equipment for each of the periods shown below consisted of the following: December 31, 2023 December 31, 2022 Land $ 3,783 $ 3,856 Buildings 16,093 16,856 Furniture, equipment and vehicles 11,096 10,255 Subtotals 30,972 30,967 Less--Accumulated depreciation (12,599) (10,474) Office properties and equipment, net $ 18,373 $ 20,493 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Related Amortization | A summary of intangible assets and related amortization for the periods shown below follows: Year ended Year Ended December 31, 2023 December 31, 2022 Gross carrying amount $ 12,180 $ 12,180 Accumulated amortization (10,486) (9,731) Net book value $ 1,694 $ 2,449 Amortization during the period $ 755 $ 1,449 |
Schedule of Estimated Future Aggregate Amortization Expense | At December 31, 2023, the estimated future aggregate amortization expense for the mortgage servicing rights is as follows. Amortization Expense 2024 $ 565 2025 513 2026 462 2027 410 2028 358 After 2028 1,557 Total $ 3,865 At December 31, 2023, the estimated future aggregate amortization expense for the intangible assets are as follows: Intangible Assets 2024 $ 715 2025 584 2026 395 Total $ 1,694 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Twelve Months Ended December 31, 2023 December 31, 2022 The components of total lease costs were as follows: Operating lease cost $ 508 $ 554 Variable lease cost 84 47 Total lease cost $ 592 $ 601 The components of total lease income were as follows: Operating lease income $ 41 $ 34 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 545 $ 556 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 225 $ 215 December 31, 2023 December 31, 2022 Supplemental balance sheet information related to leases was as follows: Operating lease right-of-use assets $ 1,477 $ 1,700 Operating lease liabilities $ 1,686 $ 1,945 Weighted average remaining lease term in years; operating leases 3.94 4.89 Weighted average discount rate; operating leases 3.20 % 2.98 % |
Schedule of Maturities of Operating Lease Liabilities | Cash obligations and receipts under lease contracts as of December 31, 2023 are as follows: Fiscal years ending December 31, Payments Receipts 2024 $ 549 $ 32 2025 534 15 2026 464 7 2027 401 — 2028 141 — Thereafter — — Total lease payments 2,089 $ 54 Less: effects of discounting (403) Lease liability recognized $ 1,686 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deposits by Type | The following is a summary of deposits by type at December 31, 2023 and December 31, 2022, respectively: December 31, 2023 December 31, 2022 Non interest bearing demand deposits $ 265,704 $ 284,722 Interest bearing demand deposits 343,276 371,210 Savings accounts 176,548 220,019 Money market accounts 374,055 323,435 Certificate accounts 359,509 225,334 Total deposits $ 1,519,092 $ 1,424,720 |
Schedule of Maturities of Time Deposits | At December 31, 2023, the scheduled maturities of time deposits were as follows: 2024 $ 329,862 2025 20,612 2026 2,693 2027 636 2028 5,706 Total $ 359,509 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Federal Home Loan Bank Advances | A summary of Federal Home Loan Bank (FHLB) advances and other borrowings at December 31, 2023 and December 31, 2022 is as follows: December 31, 2023 December 31, 2022 Stated Maturity Amount Range of Stated Rates Stated Maturity Amount Range of Stated Rates Federal Home Loan Bank advances (1), (2), (3), (4) 2023 $ — — % — % 2023 $ 117,000 1.43 % 4.31 % 2024 64,530 0.00 % 5.45 % 2024 20,530 0.00 % 1.45 % 2025 5,000 1.45 % 1.45 % 2025 5,000 1.45 % 1.45 % 2028 10,000 3.82 % 3.82 % 2028 — — % — % Federal Home Loan Bank advances $ 79,530 $ 142,530 Other borrowings: Senior notes (5) 2034 $ 18,083 6.75 % 7.75 % 2034 $ 23,250 3.00 % 6.75 % Subordinated notes (6) 2030 $ 15,000 6.00 % 6.00 % 2030 $ 15,000 6.00 % 6.00 % 2032 35,000 4.75 % 4.75 % 2032 35,000 4.75 % 4.75 % $ 50,000 $ 50,000 Unamortized debt issuance costs (618) (841) Total other borrowings $ 67,465 $ 72,409 Totals $ 146,995 $ 214,939 (1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had pledged balances of $1,106,267 and $984,878 at December 31, 2023 and 2022, respectively. At December 31, 2023, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $370,569 compared to $256,773 as of December 31, 2022. (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $217,530 and $157,530, during the twelve months ended December 31, 2023 and December 31, 2022, respectively. (3) The weighted-average interest rates on FHLB borrowings, with maturities less than twelve months, outstanding as of December 31, 2023 and December 31, 2022 were 4.16% and 4.09%, respectively. (4) At December 31, 2023, one FHLB term note totaling $10,000 could be called once by the FHLB on June 15, 2024, and if not called, would mature in 2028. At December 31, 2022, no FHLB term notes could be called by the FHLB. (5) Senior notes, entered into by the Company in June 2019 consist of the following: (a) A term note, which was subsequently refinanced in March 2022 and modified in February of 2023, requiring quarterly interest-only payments through March 2027, and quarterly principal and interest payments thereafter. Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00%. (b) A $5,000 line of credit, maturing in August 2024, that remains undrawn upon. (6) Subordinated notes resulted from the following: (a) The Company’s private sale in August 2017, which bore a fixed interest rate of 6.75% for five years. In August 2022, they would have converted to a three-month LIBOR plus 4.90% rate, and the interest rate would have reset quarterly thereafter if not called. The Company sent the required redemption notice to the note holders in June 2022, and this subordinated note was called and repaid in full on August 10, 2022. The note was callable by the Bank when, and anytime after, the floating rate was initially set. Interest-only payments were due quarterly. (b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bears a fixed interest rate of 6.00% for five years. In September 2025, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 591 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. (c) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75% for five years. In April 2027, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 329 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. |
CAPITAL MATTERS (Tables)
CAPITAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Bank's Tier 1 (Leverage) and Risk-Based Capital Ratios | The Bank’s Tier 1 (leverage) and risk-based capital ratios at December 31, 2023 and 2022, respectively, are presented below: Actual For Capital Adequacy To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) $ 228,092 14.6 % $ 124,883 > = 8.0 % $ 156,104 > = 10.0 % Tier 1 capital (to risk weighted assets) 208,726 13.4 % 93,662 > = 6.0 % 124,883 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 208,726 13.4 % 70,247 > = 4.5 % 101,468 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 208,726 11.5 % 72,479 > = 4.0 % 90,599 > = 5.0 % As of December 31, 2022 Total capital (to risk weighted assets) $ 221,361 14.2 % $ 124,971 > = 8.0 % $ 156,213 > = 10.0 % Tier 1 capital (to risk weighted assets) 203,422 13.0 % 93,728 > = 6.0 % 124,971 > = 8.0 % Common equity tier 1 capital (to risk weighted assets) 203,422 13.0 % 70,296 > = 4.5 % 101,539 > = 6.5 % Tier 1 leverage ratio (to adjusted total assets) 203,422 11.5 % 70,610 > = 4.0 % 88,262 > = 5.0 % The Company’s Tier 1 (leverage) and risk-based capital ratios at December 31, 2023 and 2022, respectively, are presented below: Actual For Capital Adequacy Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) $ 230,160 14.7 % $ 124,883 > = 8.0 % Tier 1 capital (to risk weighted assets) 160,794 10.3 % 93,662 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 160,794 10.3 % 70,247 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 160,794 8.9 % 72,479 > = 4.0 % As of December 31, 2022 Total capital (to risk weighted assets) $ 218,737 14.0 % $ 124,971 > = 8.0 % Tier 1 capital (to risk weighted assets) 150,798 9.7 % 93,728 > = 6.0 % Common equity tier 1 capital (to risk weighted assets) 150,798 9.7 % 70,296 > = 4.5 % Tier 1 leverage ratio (to adjusted total assets) 150,798 8.5 % 70,610 > = 4.0 % |
Schedule of Dividends | The following table reflects the annual cash dividend paid in the years ended December 31, 2023 and 2022, respectively. December 31, 2023 December 31, 2022 Cash dividends per share $ 0.29 $ 0.26 Stockholder record date 02/03/2023 02/14/2022 Dividend payment date 02/17/2023 02/28/2022 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The following table presents a summary of commitments described below as of December 31, 2023 and 2022, respectively: Contract or Notional Amount at December 31, Contract or Notional Amount at December 31, 2023 2022 Commitments to extend credit $ 210,423 $ 243,045 Commercial standby letter of credit $ 2,116 $ 4,252 Commitment to contribute capital to SBIC $ 1,800 $ 2,400 Commitment to contribute capital to investment company $ 1,590 $ 2,340 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards | Year ended Year ended December 31, 2023 December 31, 2022 Number of Shares Weighted Number of Shares Weighted Restricted Shares Unvested and outstanding at beginning of year 75,626 $ 12.30 75,630 $ 11.20 Granted 50,606 12.36 43,465 13.99 Vested (45,879) 12.24 (40,843) 12.12 Forfeited (4,752) 11.78 (2,626) 11.04 Unvested and outstanding at end of period 75,601 $ 12.41 75,626 $ 12.30 |
Schedule of Stock Option Activity | Option Shares Weighted Weighted Aggregate Year ended December 31, 2023 Outstanding at beginning of year 58,000 $ 11.51 Exercised (3,000) 9.21 Forfeited or expired (1,000) 13.76 Outstanding at end of period 54,000 $ 11.59 2.84 $ 46 Exercisable at end of period 54,000 $ 11.59 2.84 $ 46 Year ended December 31, 2022 Outstanding at beginning of year 65,900 $ 11.20 Exercised (7,900) 8.95 Forfeited or expired — — Outstanding at end of year 58,000 $ 11.51 3.73 $ 65 Exercisable at end of year 58,000 $ 11.51 3.73 $ 65 |
Schedule of Information Related to Stock Option Plan | Information related to the 2008 Equity Incentive Plan during each period follows: Year ended December 31, Year ended December 31, 2023 2022 Intrinsic value of options exercised $ 2 $ 38 Cash received from options exercised $ 28 $ 71 Tax benefit realized from options exercised $ — $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) for each of the periods shown below consisted of the following: Year ended December 31, Year ended December 31, 2023 2022 Current tax provision Federal $ 5,081 $ 3,565 State 448 1,749 5,529 5,314 Deferred tax provision (benefit) Federal (1,373) 355 State (105) 151 (1,478) 506 Valuation allowance 1,822 — Total $ 5,873 $ 5,820 |
Schedule of Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying statutory federal income tax rates to pretax income as result of the following differences: Year ended December 31, Year ended December 31, 2023 2022 Amount Rate Amount Rate Tax expense at statutory rate $ 3,976 21.0 % $ 4,952 21.0 % State income taxes, net of federal 271 1.4 % 1,501 6.4 % Tax credits — — % (514) (2.2) % Bank owned life insurance (146) (0.8) % (135) (0.6) % Tax exempt interest (52) (0.3) % (59) (0.3) % Valuation allowance 1,822 9.6 % — — % Other 2 0.1 % 75 0.4 % Total $ 5,873 31.0 % $ 5,820 24.7 % |
Schedule of Deferred Tax Assets and Liabilities | The following is a summary of the significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023 and December 31, 2022, respectively: Year ended December 31, Year ended December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 6,104 $ 4,934 Deferred loan costs/fees 632 591 Restricted stock 184 243 Economic performance accruals 769 871 Other real estate owned 230 188 Loan discounts 304 375 Lease liability 426 535 Net unrealized losses on securities available for sale 6,702 6,697 Other 22 44 Deferred tax assets $ 15,373 $ 14,478 Deferred tax liabilities: Office properties and equipment (2,132) (2,286) Federal Home Loan Bank stock (119) (129) Core deposit intangible (852) (1,019) Net gain on equity securities (762) (710) Prepaid expenses (230) (250) Mortgage servicing rights (977) (1,172) Leases; right of use asset (373) (467) Deferred tax liabilities $ (5,445) $ (6,033) Valuation allowance (1,822) — Net deferred tax assets $ 8,106 $ 8,445 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following tables present the financial instruments measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022. Fair Quoted Prices in Significant Significant December 31, 2023 Investment securities: U.S. government agency obligations $ 16,576 $ — $ 16,576 $ — Mortgage-backed securities 73,480 — 73,480 — Corporate debt securities 41,174 — 41,174 — Asset-backed securities 24,513 — 24,513 — Total investment securities 155,743 — 155,743 — Equity investments: Equity investments 557 557 — — Equity investments measured at NAV(1) 2,727 — — — Total equity investments 3,284 557 — — Total $ 159,027 $ 557 $ 155,743 $ — December 31, 2022 Investment securities: U.S. government agency obligations $ 18,313 $ — $ 18,313 $ — Mortgage-backed securities 78,610 — 78,610 — Corporate debt securities 40,251 — 40,251 — Asset-backed securities 28,817 — 28,817 — Total Investment Securities 165,991 — 165,991 — Equity investments: Equity investments 338 338 — — Equity investments measured at NAV(1) 1,456 — — — Total equity investments 1,794 338 — — Total $ 167,785 $ 338 $ 165,991 $ — |
Schedule of Assets Measured on Nonrecurring Basis | The following tables present the financial instruments measured at fair value on a nonrecurring basis as of December 31, 2023 and December 31, 2022: Carrying Quoted Prices in Significant Significant December 31, 2023 Foreclosed and repossessed assets, net $ 1,795 $ — $ — $ 1,795 Collateral dependent loans with allocated allowances 3,499 — — 3,499 Mortgage servicing rights 3,865 — — 5,589 Total $ 9,159 $ — $ — $ 10,883 December 31, 2022 Foreclosed and repossessed assets, net $ 1,271 $ — $ — $ 1,271 Impaired loans with allocated allowances 6,920 — — 6,920 Mortgage servicing rights 4,262 — — 5,665 Total $ 12,453 $ — $ — $ 13,856 |
Schedule of Assets Measured on Recurring and Nonrecurring Basis | The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at December 31, 2023 and December 31, 2022. Fair Valuation Techniques (1) Significant Unobservable Inputs (2) Range December 31, 2023 Foreclosed and repossessed assets, net $ 1,795 Appraisal value Estimated costs to sell 10% - 15% Collateral dependent loans with allocated allowances $ 3,499 Appraisal value / Internal collateral valuations Estimated costs to sell 10% - 15% Mortgage servicing rights $ 5,589 Discounted cash flows Discounted rates 9.375% - 12.375% December 31, 2022 Foreclosed and repossessed assets, net $ 1,271 Appraisal value Estimated costs to sell 10% - 15% Impaired loans with allocated allowances $ 6,920 Appraisal value Estimated costs to sell 10% - 15% Mortgage servicing rights $ 5,665 Discounted cash flows Discounted rates 9.5% - 12.5% (1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of impaired loans and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows: December 31, 2023 December 31, 2022 Valuation Method Used Carrying Amount Estimated Carrying Estimated Financial assets: Cash and cash equivalents (Level I) $ 37,138 $ 37,138 $ 35,363 $ 35,363 Other interest bearing deposits (Level II) — — 249 250 Securities available for sale "AFS" (Level II) 155,743 155,743 165,991 165,991 Securities held to maturity "HTM" (Level II) 91,229 73,262 96,379 76,779 Equity investments (Level I) 557 557 338 338 Equity investments valued at NAV (1) N/A 2,727 2,727 1,456 1,456 Other investments (Level II) 15,725 15,725 15,834 15,834 Loans receivable, net (Level III) 1,437,884 1,374,387 1,393,845 1,342,838 Loans held for sale - Residential mortgage (Level I) 1,134 1,134 — — Loans held for sale - SBA (Level II) 4,639 4,639 — — Mortgage servicing rights (Level III) 3,865 5,589 4,262 5,665 Accrued interest receivable (Level I) 5,409 5,409 5,285 5,285 Financial liabilities: Deposits (Level III) $ 1,519,092 $ 1,517,361 $ 1,424,720 $ 1,420,871 FHLB advances (Level II) 79,530 79,087 142,530 141,060 Other borrowings (Level II) 67,465 59,743 72,409 72,409 Accrued interest payable (Level I) 3,175 3,175 968 968 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Earnings per Share | Earnings per share is based on the weighted average number of shares outstanding for the year. A reconciliation of the basic and diluted earnings per share is as follows: Year ended Year ended (Share count in thousands) December 31, 2023 December 31, 2022 Basic Net income attributable to common shareholders $ 13,059 $ 17,761 Weighted average common shares outstanding 10,469 10,505 Basic earnings per share $ 1.25 $ 1.69 Diluted Net income attributable to common shareholders $ 13,059 $ 17,761 Weighted average common shares outstanding 10,469 10,505 Add: Dilutive stock options outstanding 1 9 Average shares and dilutive potential common shares 10,470 10,514 Diluted earnings per share $ 1.25 $ 1.69 Additional common stock option shares that have not been included due to their antidilutive effect 40 21 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | The following table shows the tax effects allocated to each component of other comprehensive income (loss): For the year ended, December 31, For the year ended, December 31, 2023 2022 Before-Tax Tax Benefit Net-of-Tax Before-Tax Tax Benefit Net-of-Tax Unrealized losses on securities: Net unrealized gains (losses) arising during the period $ 364 $ (27) $ 337 $ (24,575) $ 6,758 $ (17,817) Reclassification adjustment for gains included in net income (12) 3 (9) — — — Other comprehensive income (loss) $ 352 $ (24) $ 328 $ (24,575) $ 6,758 $ (17,817) |
Schedule of Changes in Accumulated Balances for Each Component of Other Comprehensive Income (Loss) | The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the years ended December 31, 2023 and December 31, 2022 were as follows: Unrealized Gains (Losses) on AFS Securities Other Accumulated Beginning Balance, January 1, 2022 $ 222 $ 161 Current year-to-date other comprehensive loss (24,575) (17,817) Ending balance, December 31, 2022 $ (24,353) $ (17,656) Current year-to-date other comprehensive income 352 328 Ending balance, December 31, 2023 $ (24,001) $ (17,328) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the twelve months ended December 31, 2023 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item on the Statement of Operations Unrealized gains and losses Sale of securities $ 12 Net gains (losses) on investment securities Tax effect (3) Provision for income taxes Total reclassifications for the period $ 9 Net income attributable to common shareholders (1) Amounts in parentheses indicate decreases to profit/loss. Reclassifications out of accumulated other comprehensive income (loss) for the twelve months ended December 31, 2022 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item on the Statement of Operations Unrealized gains and losses Sale of securities $ — Net gains (losses) on investment securities Tax effect — Provision for income taxes Total reclassifications for the period $ — Net income attributable to common shareholders (1) Amounts in parentheses indicate decreases to profit/loss. |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets December 31, December 31, 2023 2022 Assets Cash and cash equivalents $ 18,175 $ 19,221 Equity investments 1,691 946 Other assets 402 386 Investment in subsidiary 221,267 219,714 Total assets $ 241,535 $ 240,267 Liabilities and Stockholders' Equity Other borrowings $ 67,465 $ 72,409 Other liabilities 736 770 Total liabilities 68,201 73,179 Total stockholders’ equity 173,334 167,088 Total liabilities and stockholders’ equity $ 241,535 $ 240,267 |
Schedule of Statements of Operations | Statements of Operations Year ended December 31, Year ended December 31, 2023 2022 Interest income $ — $ — Interest expense 4,184 4,296 Net interest expense (4,184) (4,296) Dividend income from bank subsidiary 12,000 6,000 Non-interest income 127 422 Non-interest expense (762) (918) Net income before benefit for income taxes and equity in undistributed income of subsidiaries 7,181 1,208 Benefit for income taxes 1,073 1,310 Net earnings before equity in undistributed income of subsidiaries 8,254 2,518 Equity in undistributed income of subsidiaries 4,805 15,243 Net income $ 13,059 $ 17,761 |
Schedule of Statements of Cash flows | Statements of Cash Flows Year ended December 31, Year ended December 31, 2023 2022 Change in cash and cash equivalents: Cash flows from operating activities: Net income $ 13,059 $ 17,761 Depreciation expense 12 13 Net valuation gain on equity securities (127) (422) Stock based compensation expense — 3 Adjustments to reconcile net income to net cash provided by operating activities - Equity in undistributed income of subsidiary (16,805) (21,243) Net change in: Other assets (28) (14) Other liabilities (34) 424 Net cash used in operating activities (3,923) (3,478) Cash flows from investing activities: Purchase of equity investments (750) (300) Equity investment capital distribution 132 136 Dividend from bank subsidiary 12,000 6,000 Capital contribution to bank subsidiary — (15,000) Net cash provided by (used in) investing activities 11,382 (9,164) Cash flows from financing activities: Proceeds from other borrowings, net of origination costs — 34,191 Amortization of debt issuance costs 223 398 Other borrowings principal reductions (5,167) (5,606) Other borrowings called and repaid — (15,000) Repurchase shares of common stock (420) (1,764) Surrender of restricted shares of common stock (129) (150) Common stock options exercised 28 71 Cash dividends paid (3,040) (2,742) Net cash (used in) provided by financing activities (8,505) 9,398 Net decrease in cash and cash equivalents (1,046) (3,244) Cash and cash equivalents at beginning of year 19,221 22,465 Cash and cash equivalents at end of year $ 18,175 $ 19,221 |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) operating_segment branch_location reporting_unit segment account | Dec. 31, 2022 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2021 USD ($) account | |
Property, Plant and Equipment [Line Items] | |||||
Total number of service offices | branch_location | 23 | ||||
Maturity of certificate of deposit investments | 9 months | ||||
Cash, FDIC insured amount, balance in excess | $ 250 | ||||
Number of accounts, FDIC insured amount, balance in excess | account | 0 | 0 | |||
Liquidating investment period (in years) | 10 years | ||||
Other investments | $ 15,725 | $ 15,834 | |||
Interest income recognized debt past due not more than days | 90 days | ||||
Loans charged off past due more than days | 180 days | ||||
Closed end loan charged off past due more than days | 120 days | ||||
Number of portfolio segments | segment | 4 | ||||
Number of operating segments | operating_segment | 1 | ||||
Number of reporting units | reporting_unit | 1 | ||||
Amortization expense | $ 452 | 650 | |||
New market tax credit depletion | $ 0 | $ 650 | |||
Effective income tax rate | 31% | 24.70% | |||
Deferred tax asset valuation allowance, net of accretion | $ 1,828 | $ (1,822) | |||
Loan commitments outstanding | 1,672 | ||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | ||||
Retained earnings | 71,117 | $ 65,400 | |||
Unfunded commitments | 22,908 | 17,939 | |||
Net income | 13,059 | 17,761 | |||
Unfunded Commitment | |||||
Property, Plant and Equipment [Line Items] | |||||
Unfunded commitments | 1,250 | 0 | $ 0 | ||
Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Net income | 13,059 | 17,761 | |||
Accounting Standards Update 2016-13 | |||||
Property, Plant and Equipment [Line Items] | |||||
Unfunded commitments | 0 | ||||
Accounting Standards Update 2016-13 | Cumulative Change in Accounting Principal for Adoption | |||||
Property, Plant and Equipment [Line Items] | |||||
Unfunded commitments | 4,706 | $ (1,537) | |||
Accounting Standards Update 2016-13 | Cumulative Change in Accounting Principal for Adoption | Unfunded Commitment | |||||
Property, Plant and Equipment [Line Items] | |||||
Unfunded commitments | 1,537 | $ 0 | |||
Accounting Standards Update 2016-13 | Cumulative Change in Accounting Principal for Adoption | Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Retained earnings | (4,432) | ||||
Unfunded commitments | 4,706 | ||||
Increase of non-purchased credit deteriorated loans | 4,576 | ||||
Increase of purchased credit deteriorated loans | 130 | ||||
Adjusted to addition of allowance for credit losses | $ 130 | ||||
Accounting Standards Update 2016-13 | Cumulative Change in Accounting Principal for Adoption | Retained Earnings | Unfunded Commitment | |||||
Property, Plant and Equipment [Line Items] | |||||
Unfunded commitments | 1,537 | ||||
Cumulative change in accounting principle for adoption of ASU2023-02 | Cumulative Change in Accounting Principal for Adoption | |||||
Property, Plant and Equipment [Line Items] | |||||
Net income | 120 | ||||
Cumulative change in accounting principle for adoption of ASU2023-02 | Cumulative Change in Accounting Principal for Adoption | Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Retained earnings | 130 | ||||
Other Assets | |||||
Property, Plant and Equipment [Line Items] | |||||
New market tax credit depletion | $ 2,898 | 3,350 | |||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Intangible asset, useful life | 72 months | ||||
Minimum | Buildings and Components | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives assets | 10 years | ||||
Minimum | Furniture Fixtures and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives assets | 3 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Intangible asset, useful life | 111 months | ||||
Maximum | Buildings and Components | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives assets | 40 years | ||||
Maximum | Furniture Fixtures and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives assets | 10 years | ||||
Investment in Federal Home Loan Bank Stock | |||||
Property, Plant and Equipment [Line Items] | |||||
Other investments | $ 7,302 | 7,652 | |||
Federal Reserve Bank | |||||
Property, Plant and Equipment [Line Items] | |||||
Other investments | 5,699 | 5,674 | |||
Bankers Bank Stock | |||||
Property, Plant and Equipment [Line Items] | |||||
Other investments | $ 2,724 | $ 2,508 | |||
Commercial Loan | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest income discontinued over delinquent days | 90 days | ||||
Closed End Consumer Loan | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest income discontinued over delinquent days | 120 days | ||||
Real Estate and Open Ended Consumer Loans | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest income discontinued over delinquent days | 180 days |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact of ASU 2016-13 Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | $ 1,460,792 | $ 1,411,784 | |
Allowance for credit losses on unfunded commitments | (22,908) | (17,939) | |
Loans receivable, net | 1,437,884 | 1,393,845 | |
Commercial/Agricultural Real Estate | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on unfunded commitments | (18,784) | (14,085) | |
C&I/Agricultural operating | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on unfunded commitments | (1,105) | (2,318) | |
Residential mortgage | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on unfunded commitments | (2,744) | (599) | |
Consumer installment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on unfunded commitments | (275) | (129) | |
Unallocated | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on unfunded commitments | $ 0 | (808) | |
Cumulative change in accounting principle for adoption of ASU2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 17,939 | ||
Allowance for credit losses on unfunded commitments | 0 | ||
Loans receivable, net | 17,939 | ||
Cumulative change in accounting principle for adoption of ASU2016-13 | Commercial/Agricultural Real Estate | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 14,085 | ||
Cumulative change in accounting principle for adoption of ASU2016-13 | C&I/Agricultural operating | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 2,318 | ||
Cumulative change in accounting principle for adoption of ASU2016-13 | Residential mortgage | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 599 | ||
Cumulative change in accounting principle for adoption of ASU2016-13 | Consumer installment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 129 | ||
Cumulative change in accounting principle for adoption of ASU2016-13 | Unallocated | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 808 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | $ 4,706 | ||
Allowance for credit losses on unfunded commitments | 1,537 | ||
Loans receivable, net | 6,243 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | Commercial/Agricultural Real Estate | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 4,510 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | C&I/Agricultural operating | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | (331) | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | Residential mortgage | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 1,119 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | Consumer installment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 216 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative change in accounting principle for adoption of ASU2016-13 | Unallocated | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | (808) | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 22,645 | ||
Allowance for credit losses on unfunded commitments | 1,537 | (4,706) | |
Loans receivable, net | 24,182 | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | Commercial/Agricultural Real Estate | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 18,595 | ||
Allowance for credit losses on unfunded commitments | (4,510) | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | C&I/Agricultural operating | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 1,987 | ||
Allowance for credit losses on unfunded commitments | 331 | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | Residential mortgage | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 1,718 | ||
Allowance for credit losses on unfunded commitments | (1,119) | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | Consumer installment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | 345 | ||
Allowance for credit losses on unfunded commitments | (216) | ||
Cumulative Change in Accounting Principal for Adoption | Cumulative change in accounting principle for adoption of ASU2016-13 | Unallocated | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total allowance for credit losses on loans | $ 0 | ||
Allowance for credit losses on unfunded commitments | $ 808 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | $ 179,744 | $ 190,344 |
Gross Unrealized Gains | 95 | 173 |
Gross Unrealized Losses | 24,096 | 24,526 |
Estimated Fair Value | 155,743 | 165,991 |
U.S. government agency obligations | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 16,655 | 18,373 |
Gross Unrealized Gains | 77 | 173 |
Gross Unrealized Losses | 156 | 233 |
Estimated Fair Value | 16,576 | 18,313 |
Mortgage-backed securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 91,091 | 97,458 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 17,611 | 18,848 |
Estimated Fair Value | 73,480 | 78,610 |
Corporate debt securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 47,158 | 44,636 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses | 5,990 | 4,385 |
Estimated Fair Value | 41,174 | 40,251 |
Asset-backed securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 24,840 | 29,877 |
Gross Unrealized Gains | 12 | 0 |
Gross Unrealized Losses | 339 | 1,060 |
Estimated Fair Value | $ 24,513 | $ 28,817 |
INVESTMENT SECURITIES - Held-to
INVESTMENT SECURITIES - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 91,229 | $ 96,379 |
Gross Unrealized Gains | 6 | 7 |
Gross Unrealized Losses | 17,973 | 19,607 |
Estimated Fair Value | 73,262 | 76,779 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 600 | 600 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 35 | 54 |
Estimated Fair Value | 565 | 546 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 90,629 | 95,779 |
Gross Unrealized Gains | 6 | 7 |
Gross Unrealized Losses | 17,938 | 19,553 |
Estimated Fair Value | $ 72,697 | $ 76,233 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Proceeds from sales of available for sale securities | $ 5,105 | $ 0 |
Gross gains on sale of available-for-sale securities | 12 | 0 |
Gross losses on sale of available-for-sale securities | 0 | 0 |
Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Mortgage-backed securities | MPF Credit Enhancement Fee | ||
Debt Instrument [Line Items] | ||
Available-for-sale security, restricted | 179 | 142 |
Mortgage-backed securities | MPF Credit Enhancement Fee | Federal Home Loan Bank of Des Moines | ||
Debt Instrument [Line Items] | ||
Available-for-sale security, restricted | 415 | |
Mortgage-backed securities | Collateral Pledged | Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Available-for-sale security, restricted | 29,191 | 5,421 |
Mortgage-backed securities | Collateral Pledged | Specific Municipal Deposits | ||
Debt Instrument [Line Items] | ||
Available-for-sale security, restricted | 1,928 | 2,219 |
U.S. government agency obligations | Collateral Pledged | Specific Municipal Deposits | ||
Debt Instrument [Line Items] | ||
Available-for-sale security, restricted | $ 516 | $ 2,602 |
INVESTMENT SECURITIES - Maturit
INVESTMENT SECURITIES - Maturity of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due after one year through five years | 13,986 | 8,525 |
Due after five years through ten years | 45,549 | 45,622 |
Due after ten years | 29,118 | 38,739 |
Total securities with contractual maturities | 88,653 | 92,886 |
Total available for sale securities | 179,744 | 190,344 |
Estimated Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 13,703 | 8,184 |
Due after five years through ten years | 39,701 | 41,427 |
Due after ten years | 28,859 | 37,770 |
Total securities with contractual maturities | 82,263 | 87,381 |
Total available for sale securities | 155,743 | 165,991 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 91,091 | 97,458 |
Estimated Fair Value | ||
Mortgage-backed securities | $ 73,480 | $ 78,610 |
INVESTMENT SECURITIES - Matur_2
INVESTMENT SECURITIES - Maturity of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 100 | $ 0 |
Due after one year through five years | 500 | 450 |
Due after five years through ten years | 0 | 150 |
Total securities with contractual maturities | 600 | 600 |
Mortgage-backed securities | 90,629 | 95,779 |
Amortized Cost | 91,229 | 96,379 |
Estimated Fair Value | ||
Due in one year or less | 100 | 0 |
Due after one year through five years | 465 | 415 |
Due after five years through ten years | 0 | 131 |
Total securities with contractual maturities | 565 | 546 |
Mortgage-backed securities | 72,697 | 76,233 |
Total held to maturity securities | $ 73,262 | $ 76,779 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Category of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 Months | $ 10,474 | $ 42,325 |
12 Months or More | 133,027 | 109,611 |
Total | 143,501 | 151,936 |
Unrealized Loss | ||
Less than 12 Months | 103 | 2,943 |
12 Months or More | 23,993 | 21,583 |
Total | 24,096 | 24,526 |
U.S. government agency obligations | ||
Fair Value | ||
Less than 12 Months | 3,776 | 3,169 |
12 Months or More | 3,627 | 1,138 |
Total | 7,403 | 4,307 |
Unrealized Loss | ||
Less than 12 Months | 5 | 138 |
12 Months or More | 151 | 95 |
Total | 156 | 233 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 0 | 9,654 |
12 Months or More | 73,476 | 68,907 |
Total | 73,476 | 78,561 |
Unrealized Loss | ||
Less than 12 Months | 0 | 896 |
12 Months or More | 17,611 | 17,952 |
Total | 17,611 | 18,848 |
Corporate debt securities | ||
Fair Value | ||
Less than 12 Months | 3,350 | 21,547 |
12 Months or More | 35,916 | 18,704 |
Total | 39,266 | 40,251 |
Unrealized Loss | ||
Less than 12 Months | 76 | 1,688 |
12 Months or More | 5,914 | 2,697 |
Total | 5,990 | 4,385 |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 3,348 | 7,955 |
12 Months or More | 20,008 | 20,862 |
Total | 23,356 | 28,817 |
Unrealized Loss | ||
Less than 12 Months | 22 | 221 |
12 Months or More | 317 | 839 |
Total | $ 339 | $ 1,060 |
INVESTMENT SECURITIES - Inves_2
INVESTMENT SECURITIES - Investment Category of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Fair Value, Less than 12 months | $ 0 | $ 16,627 |
Fair Value, 12 Months or More | 73,072 | 59,913 |
Fair Value, Total | 73,072 | 76,540 |
Unrealized Loss | ||
Unrealized Loss, Less than 12 Months | 0 | 2,416 |
Unrealized Loss, 12 Months or More | 17,973 | 17,191 |
Unrealized Loss, Total | 17,973 | 19,607 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Fair Value, Less than 12 months | 0 | 0 |
Fair Value, 12 Months or More | 565 | 546 |
Fair Value, Total | 565 | 546 |
Unrealized Loss | ||
Unrealized Loss, Less than 12 Months | 0 | 0 |
Unrealized Loss, 12 Months or More | 35 | 54 |
Unrealized Loss, Total | 35 | 54 |
Mortgage-backed securities | ||
Fair Value | ||
Fair Value, Less than 12 months | 0 | 16,627 |
Fair Value, 12 Months or More | 72,507 | 59,367 |
Fair Value, Total | 72,507 | 75,994 |
Unrealized Loss | ||
Unrealized Loss, Less than 12 Months | 0 | 2,416 |
Unrealized Loss, 12 Months or More | 17,938 | 17,137 |
Unrealized Loss, Total | $ 17,938 | $ 19,553 |
LOANS, ALLOWANCE FOR CREDIT L_3
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) troubled_debt_restructuring | Dec. 31, 2022 USD ($) troubled_debt_restructuring | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments | $ 22,908 | $ 17,939 | |
Interest income, nonaccrual loans, payoffs | 505 | ||
Outstanding commitments | 0 | ||
Debtors experiencing financial difficulties | $ 618 | ||
Impaired financing receivable, recorded investment | 26,823 | ||
Financing receivable, troubled debt restructuring | $ 7,788 | ||
Number of troubled debt restructuring | troubled_debt_restructuring | 1 | ||
Investment in troubled debt restructuring | $ 15 | ||
Number of TDR commitments meeting our TDR criteria | troubled_debt_restructuring | 1 | ||
Total amount of TDR commitments meeting TDR criteria | $ 26 | ||
Financing receivable, modifications, available line of credit loan, amount | 484 | ||
Accretable expense from purchased impaired loans | 1,165 | ||
Expected balance | $ 80 | ||
Purchased Credit Impaired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, troubled debt restructuring | 6,904 | ||
TDR Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, troubled debt restructuring | 7,018 | ||
Substandard non-TDR | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, troubled debt restructuring | 12,901 | ||
Performing Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, troubled debt restructuring | 5,171 | ||
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments | 630 | ||
Acquired Loans | Purchased Credit Impaired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, troubled debt restructuring | 7,000 | ||
Commercial Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 90 days | ||
Closed End Consumer Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 120 days | ||
Real Estate and Open Ended Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 180 days | ||
Unfunded Commitment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments | $ 1,250 | 0 | $ 0 |
Commercial/Agricultural real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments | $ 18,784 | 14,085 | |
Impaired financing receivable, recorded investment | 16,849 | ||
Commercial/Agricultural real estate | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments | $ 534 | ||
Commercial/Agricultural real estate | Agricultural real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan-to-value ratio (as a percent) | 75% |
LOANS, ALLOWANCE FOR CREDIT L_4
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 1,460,792 | $ 1,416,135 |
Unearned net deferred fees and costs and loans in process | (2,585) | |
Unamortized discount on acquired loans | (1,766) | |
Total loans receivable | 1,460,792 | 1,411,784 |
Less Allowance for loan losses | (22,908) | (17,939) |
Loans receivable, net | $ 1,437,884 | $ 1,393,845 |
Total, percent | 100% | 100.30% |
Unearned net deferred fees and costs and loans in process, (in percent) | (0.20%) | |
Unamortized discount on acquired loans (in percent) | (0.10%) | |
Total loans receivable (in percent) | 100% | |
Commercial/Agricultural real estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 1,125,279 | |
Less Allowance for loan losses | $ (18,784) | (14,085) |
Commercial/Agricultural real estate | Commercial real estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | 748,447 | $ 725,971 |
Total loans receivable | $ 748,447 | |
Total, percent | 51.20% | 51.50% |
Commercial/Agricultural real estate | Agricultural real estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 83,157 | $ 87,908 |
Total loans receivable | $ 83,157 | |
Total, percent | 5.70% | 6.20% |
Commercial/Agricultural real estate | Multi-family real estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 228,004 | $ 208,908 |
Total loans receivable | $ 228,004 | |
Total, percent | 15.60% | 14.80% |
Commercial/Agricultural real estate | Construction and land development | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 110,218 | $ 102,492 |
Total loans receivable | $ 110,218 | |
Total, percent | 7.50% | 7.30% |
C&I/Agricultural operating | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 164,819 | |
Less Allowance for loan losses | $ (1,105) | (2,318) |
C&I/Agricultural operating | Commercial and industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 121,190 | $ 136,013 |
Total, percent | 8.30% | 9.60% |
C&I/Agricultural operating | Agricultural operating | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 25,695 | $ 28,806 |
Total, percent | 1.80% | 2% |
Residential mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 108,651 | |
Less Allowance for loan losses | $ (2,744) | (599) |
Residential mortgage | Residential mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 128,479 | $ 105,389 |
Total, percent | 8.80% | 7.50% |
Residential mortgage | Purchased HELOC loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 2,880 | $ 3,262 |
Total loans receivable | $ 2,880 | |
Total, percent | 0.20% | 0.20% |
Consumer installment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 17,386 | |
Less Allowance for loan losses | $ (275) | (129) |
Consumer installment | Originated indirect paper | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | 6,535 | $ 10,236 |
Total loans receivable | $ 6,535 | |
Total, percent | 0.40% | 0.70% |
Consumer installment | Other consumer | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Loans | $ 6,187 | $ 7,150 |
Total loans receivable | $ 6,187 | |
Total, percent | 0.40% | 0.50% |
LOANS, ALLOWANCE FOR CREDIT L_5
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Credit Quality Risk Rating (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | $ 190,301 | |
2022 | 313,863 | |
2021 | 420,211 | |
2020 | 172,168 | |
2019 | 93,413 | |
Prior | 201,004 | |
Revolving | 69,766 | |
Revolving to Term | 66 | |
Total loans receivable | 1,460,792 | $ 1,411,784 |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 2 | |
Current period gross charge-offs, 2021 | 21 | |
Current period gross charge-offs, 2020 | 43 | |
Current period gross charge-offs, 2019 | 3 | |
Current period gross charge-offs, Prior | 91 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 160 | |
Commercial/Agricultural real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 73,898 | |
2022 | 134,279 | |
2021 | 249,497 | |
2020 | 95,429 | |
2019 | 71,287 | |
Prior | 113,853 | |
Revolving | 10,204 | |
Revolving to Term | 0 | |
Total loans receivable | 748,447 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 10 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 4 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 14 | |
Commercial/Agricultural real estate | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 16,335 | |
2022 | 19,557 | |
2021 | 16,991 | |
2020 | 7,719 | |
2019 | 5,646 | |
Prior | 15,900 | |
Revolving | 1,009 | |
Revolving to Term | 0 | |
Total loans receivable | 83,157 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 32 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 32 | |
Commercial/Agricultural real estate | Multi-family real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 5,016 | |
2022 | 50,617 | |
2021 | 95,686 | |
2020 | 45,685 | |
2019 | 8,591 | |
Prior | 22,364 | |
Revolving | 45 | |
Revolving to Term | 0 | |
Total loans receivable | 228,004 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 0 | |
Commercial/Agricultural real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 42,639 | |
2022 | 37,783 | |
2021 | 18,912 | |
2020 | 8,014 | |
2019 | 119 | |
Prior | 1,288 | |
Revolving | 1,463 | |
Revolving to Term | 0 | |
Total loans receivable | 110,218 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 0 | |
C&I/Agricultural operating | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 16,758 | |
2022 | 31,915 | |
2021 | 28,059 | |
2020 | 11,406 | |
2019 | 4,751 | |
Prior | 2,025 | |
Revolving | 26,259 | |
Revolving to Term | 17 | |
Total loans receivable | 121,190 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 0 | |
C&I/Agricultural operating | Agricultural operating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 4,734 | |
2022 | 4,384 | |
2021 | 1,560 | |
2020 | 746 | |
2019 | 295 | |
Prior | 2,145 | |
Revolving | 11,831 | |
Revolving to Term | 0 | |
Total loans receivable | 25,695 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 0 | |
Residential mortgage | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 28,808 | |
2022 | 33,801 | |
2021 | 8,743 | |
2020 | 2,610 | |
2019 | 2,306 | |
Prior | 36,619 | |
Revolving | 15,544 | |
Revolving to Term | 48 | |
Total loans receivable | 128,479 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 10 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 68 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 78 | |
Residential mortgage | Purchased HELOC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 2,880 | |
Revolving to Term | 0 | |
Total loans receivable | 2,880 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 0 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 0 | |
Consumer installment | Originated indirect paper | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 6,535 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 6,535 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 0 | |
Current period gross charge-offs, 2021 | 0 | |
Current period gross charge-offs, 2020 | 0 | |
Current period gross charge-offs, 2019 | 0 | |
Current period gross charge-offs, Prior | 13 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 13 | |
Consumer installment | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 2,113 | |
2022 | 1,527 | |
2021 | 763 | |
2020 | 559 | |
2019 | 418 | |
Prior | 275 | |
Revolving | 531 | |
Revolving to Term | 1 | |
Total loans receivable | 6,187 | |
Current period gross charge-offs, 2023 | 0 | |
Current period gross charge-offs, 2022 | 2 | |
Current period gross charge-offs, 2021 | 1 | |
Current period gross charge-offs, 2020 | 11 | |
Current period gross charge-offs, 2019 | 3 | |
Current period gross charge-offs, Prior | 6 | |
Current period gross charge-offs, Revolving | 0 | |
Current period gross charge-offs, Revolving to Term | 0 | |
Current period gross charge-offs, Total | 23 | |
Risk rating 1 to 5 | Commercial/Agricultural real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 73,564 | |
2022 | 133,583 | |
2021 | 236,774 | |
2020 | 90,881 | |
2019 | 71,104 | |
Prior | 107,999 | |
Revolving | 10,204 | |
Revolving to Term | 0 | |
Total loans receivable | 724,109 | |
Risk rating 1 to 5 | Commercial/Agricultural real estate | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 16,335 | |
2022 | 19,026 | |
2021 | 11,582 | |
2020 | 7,719 | |
2019 | 5,463 | |
Prior | 15,418 | |
Revolving | 1,009 | |
Revolving to Term | 0 | |
Total loans receivable | 76,552 | |
Risk rating 1 to 5 | Commercial/Agricultural real estate | Multi-family real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 5,016 | |
2022 | 50,617 | |
2021 | 95,686 | |
2020 | 45,685 | |
2019 | 8,591 | |
Prior | 22,364 | |
Revolving | 45 | |
Revolving to Term | 0 | |
Total loans receivable | 228,004 | |
Risk rating 1 to 5 | Commercial/Agricultural real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 42,639 | |
2022 | 37,783 | |
2021 | 18,912 | |
2020 | 8,014 | |
2019 | 119 | |
Prior | 1,124 | |
Revolving | 1,314 | |
Revolving to Term | 0 | |
Total loans receivable | 109,905 | |
Risk rating 1 to 5 | C&I/Agricultural operating | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 16,758 | |
2022 | 31,915 | |
2021 | 28,059 | |
2020 | 11,406 | |
2019 | 4,746 | |
Prior | 2,023 | |
Revolving | 24,059 | |
Revolving to Term | 0 | |
Total loans receivable | 118,966 | |
Risk rating 1 to 5 | C&I/Agricultural operating | Agricultural operating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 4,734 | |
2022 | 3,908 | |
2021 | 856 | |
2020 | 746 | |
2019 | 295 | |
Prior | 2,144 | |
Revolving | 11,831 | |
Revolving to Term | 0 | |
Total loans receivable | 24,514 | |
Risk rating 1 to 5 | Residential mortgage | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 28,808 | |
2022 | 33,660 | |
2021 | 8,743 | |
2020 | 2,610 | |
2019 | 2,292 | |
Prior | 33,744 | |
Revolving | 15,544 | |
Revolving to Term | 0 | |
Total loans receivable | 125,401 | |
Risk rating 1 to 5 | Residential mortgage | Purchased HELOC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 2,880 | |
Revolving to Term | 0 | |
Total loans receivable | 2,880 | |
Risk rating 1 to 5 | Consumer installment | Originated indirect paper | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 6,491 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 6,491 | |
Risk rating 1 to 5 | Consumer installment | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 2,104 | |
2022 | 1,525 | |
2021 | 763 | |
2020 | 559 | |
2019 | 402 | |
Prior | 274 | |
Revolving | 530 | |
Revolving to Term | 1 | |
Total loans receivable | 6,158 | |
Risk rating 6 | Commercial/Agricultural real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 309 | |
2022 | 0 | |
2021 | 9,510 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 9,819 | |
Risk rating 6 | Commercial/Agricultural real estate | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 171 | |
2021 | 5,409 | |
2020 | 0 | |
2019 | 152 | |
Prior | 482 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 6,214 | |
Risk rating 6 | Commercial/Agricultural real estate | Multi-family real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 6 | Commercial/Agricultural real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 110 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 110 | |
Risk rating 6 | C&I/Agricultural operating | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 5 | |
Prior | 0 | |
Revolving | 2,200 | |
Revolving to Term | 0 | |
Total loans receivable | 2,205 | |
Risk rating 6 | C&I/Agricultural operating | Agricultural operating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 6 | Residential mortgage | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 6 | Residential mortgage | Purchased HELOC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 6 | Consumer installment | Originated indirect paper | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 6 | Consumer installment | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 7 | Commercial/Agricultural real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 25 | |
2022 | 696 | |
2021 | 3,213 | |
2020 | 4,548 | |
2019 | 183 | |
Prior | 5,854 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 14,519 | |
Risk rating 7 | Commercial/Agricultural real estate | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 360 | |
2021 | 0 | |
2020 | 0 | |
2019 | 31 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 391 | |
Risk rating 7 | Commercial/Agricultural real estate | Multi-family real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 7 | Commercial/Agricultural real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 54 | |
Revolving | 149 | |
Revolving to Term | 0 | |
Total loans receivable | 203 | |
Risk rating 7 | C&I/Agricultural operating | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2 | |
Revolving | 0 | |
Revolving to Term | 17 | |
Total loans receivable | 19 | |
Risk rating 7 | C&I/Agricultural operating | Agricultural operating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 476 | |
2021 | 704 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 1,181 | |
Risk rating 7 | Residential mortgage | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 141 | |
2021 | 0 | |
2020 | 0 | |
2019 | 14 | |
Prior | 2,875 | |
Revolving | 0 | |
Revolving to Term | 48 | |
Total loans receivable | 3,078 | |
Risk rating 7 | Residential mortgage | Purchased HELOC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 0 | |
Risk rating 7 | Consumer installment | Originated indirect paper | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 44 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total loans receivable | 44 | |
Risk rating 7 | Consumer installment | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2023 | 9 | |
2022 | 2 | |
2021 | 0 | |
2020 | 0 | |
2019 | 16 | |
Prior | 1 | |
Revolving | 1 | |
Revolving to Term | 0 | |
Total loans receivable | $ 29 |
LOANS, ALLOWANCE FOR CREDIT L_6
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Loans By Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ 1,460,792 | $ 1,416,135 |
Unearned net deferred fees and costs and loans in process | (2,585) | |
Unamortized discount on acquired loans | (1,766) | |
Allowance for loan losses | (22,908) | (17,939) |
Loans receivable, net | 1,437,884 | 1,393,845 |
1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 1,386,646 | |
6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 12,170 | |
Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 17,319 | |
Commercial/Agricultural real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 1,125,279 | |
Allowance for loan losses | (18,784) | (14,085) |
Commercial/Agricultural real estate | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 748,447 | 725,971 |
Commercial/Agricultural real estate | Commercial real estate | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 712,658 | |
Commercial/Agricultural real estate | Commercial real estate | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 5,771 | |
Commercial/Agricultural real estate | Commercial real estate | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 7,542 | |
Commercial/Agricultural real estate | Agricultural real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 83,157 | 87,908 |
Commercial/Agricultural real estate | Agricultural real estate | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 84,215 | |
Commercial/Agricultural real estate | Agricultural real estate | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 549 | |
Commercial/Agricultural real estate | Agricultural real estate | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 3,144 | |
Commercial/Agricultural real estate | Multi-family real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 228,004 | 208,908 |
Commercial/Agricultural real estate | Multi-family real estate | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 208,908 | |
Commercial/Agricultural real estate | Multi-family real estate | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Commercial/Agricultural real estate | Multi-family real estate | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Commercial/Agricultural real estate | Construction and land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 110,218 | 102,492 |
Commercial/Agricultural real estate | Construction and land development | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 102,385 | |
Commercial/Agricultural real estate | Construction and land development | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Commercial/Agricultural real estate | Construction and land development | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 107 | |
C&I/Agricultural operating | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 164,819 | |
Allowance for loan losses | (1,105) | (2,318) |
C&I/Agricultural operating | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 121,190 | 136,013 |
C&I/Agricultural operating | Commercial and industrial | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 129,748 | |
C&I/Agricultural operating | Commercial and industrial | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 5,526 | |
C&I/Agricultural operating | Commercial and industrial | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 739 | |
C&I/Agricultural operating | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 25,695 | 28,806 |
C&I/Agricultural operating | Commercial and industrial | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 26,418 | |
C&I/Agricultural operating | Commercial and industrial | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 324 | |
C&I/Agricultural operating | Commercial and industrial | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 2,064 | |
Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 108,651 | |
Allowance for loan losses | (2,744) | (599) |
Residential mortgage | Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 128,479 | 105,389 |
Residential mortgage | Residential mortgage | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 101,730 | |
Residential mortgage | Residential mortgage | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Residential mortgage | Residential mortgage | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 3,659 | |
Residential mortgage | Purchased HELOC loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 2,880 | 3,262 |
Residential mortgage | Purchased HELOC loans | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 3,262 | |
Residential mortgage | Purchased HELOC loans | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Residential mortgage | Purchased HELOC loans | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Consumer installment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 17,386 | |
Allowance for loan losses | (275) | (129) |
Consumer installment | Originated indirect paper | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 6,535 | 10,236 |
Consumer installment | Originated indirect paper | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 10,190 | |
Consumer installment | Originated indirect paper | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Consumer installment | Originated indirect paper | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 46 | |
Consumer installment | Other consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ 6,187 | 7,150 |
Consumer installment | Other consumer | 1 to 5 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 7,132 | |
Consumer installment | Other consumer | 6 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | 0 | |
Consumer installment | Other consumer | Risk rating 7 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ 18 |
LOANS, ALLOWANCE FOR CREDIT L_7
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Financing Receivables to Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance—beginning of period | $ 38,410 | $ 32,423 |
New loan originations | 624 | 7,994 |
Repayments | (2,442) | (2,007) |
Balance—end of period | 36,592 | 38,410 |
Unused lines of Credit | ||
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance—beginning of period | 0 | |
Balance—end of period | $ 603 | $ 0 |
LOANS, ALLOWANCE FOR CREDIT L_8
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Allowance for Credit Losses Loans by Portfolio Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Allowance for Credit Losses - Loans: | |
Beginning balance | $ 17,939 |
Charge-offs | (160) |
Recoveries | 611 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | (188) |
Ending balance | 22,908 |
Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 0 |
Ending balance | |
Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 4,706 |
Ending balance | |
Commercial/Agricultural real estate | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 14,085 |
Charge-offs | (46) |
Recoveries | 489 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | (254) |
Ending balance | 18,784 |
Commercial/Agricultural real estate | Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 4,510 |
Ending balance | |
C&I/Agricultural operating | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 2,318 |
Charge-offs | 0 |
Recoveries | 47 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | (929) |
Ending balance | 1,105 |
C&I/Agricultural operating | Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | (331) |
Ending balance | |
Residential mortgage | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 599 |
Charge-offs | (78) |
Recoveries | 42 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | 1,062 |
Ending balance | 2,744 |
Residential mortgage | Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 1,119 |
Ending balance | |
Consumer installment | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 129 |
Charge-offs | (36) |
Recoveries | 33 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | (67) |
Ending balance | 275 |
Consumer installment | Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 216 |
Ending balance | |
Unallocated | |
Allowance for Credit Losses - Loans: | |
Beginning balance | 808 |
Charge-offs | 0 |
Recoveries | 0 |
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations | 0 |
Ending balance | 0 |
Unallocated | Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | |
Allowance for Credit Losses - Loans: | |
Beginning balance | $ (808) |
Ending balance |
LOANS, ALLOWANCE FOR CREDIT L_9
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Unfunded Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 17,939 | |
Reversals to ACL - Unfunded Commitments via provision for credit losses charged to operations | (188) | |
Ending balance | 22,908 | $ 17,939 |
Unfunded Commitment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | 0 |
Reversals to ACL - Unfunded Commitments via provision for credit losses charged to operations | (287) | 0 |
Ending balance | 1,250 | 0 |
Accounting Standards Update 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | |
Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 4,706 | |
Ending balance | 4,706 | |
Cumulative Change in Accounting Principal for Adoption | Accounting Standards Update 2016-13 | Unfunded Commitment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 1,537 | 0 |
Ending balance | $ 1,537 |
LOANS, ALLOWANCE FOR CREDIT _10
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Provision for Credit Losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Provision for credit losses on: | |
Loans | $ (188) |
Unfunded Commitments | (287) |
Total provision for credit losses | $ (475) |
LOANS, ALLOWANCE FOR CREDIT _11
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Change in the ALL by Loan Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for Loan Losses: | ||
Beginning balance | $ 17,939 | |
Charge-offs | (160) | |
Recoveries | 611 | |
Provision | (188) | |
Ending balance | 22,908 | $ 17,939 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 826 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 17,113 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 1,460,792 | 1,416,135 |
Ending balance: individually evaluated for impairment | 26,919 | |
Ending balance: collectively evaluated for impairment | 1,389,216 | |
Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 17,309 | 15,830 |
Charge-offs | (547) | |
Recoveries | 161 | |
Provision | 1,865 | |
Ending balance | 17,309 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 1,272,943 | |
Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 630 | 1,083 |
Charge-offs | (120) | |
Recoveries | 57 | |
Provision | (390) | |
Ending balance | 630 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 136,192 | |
Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 630 | |
Ending balance | 630 | |
Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 7,000 | |
Commercial/Agricultural real estate | ||
Allowance for Loan Losses: | ||
Beginning balance | 14,085 | |
Charge-offs | (46) | |
Recoveries | 489 | |
Ending balance | 18,784 | 14,085 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 519 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 13,566 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 1,125,279 | |
Ending balance: individually evaluated for impairment | 16,874 | |
Ending balance: collectively evaluated for impairment | 1,108,405 | |
Commercial/Agricultural real estate | Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 13,551 | 12,354 |
Charge-offs | (157) | |
Recoveries | 74 | |
Provision | 1,280 | |
Ending balance | 13,551 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 1,017,529 | |
Commercial/Agricultural real estate | Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 534 | 856 |
Charge-offs | (48) | |
Recoveries | 28 | |
Provision | (302) | |
Ending balance | 534 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 102,002 | |
Commercial/Agricultural real estate | Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 534 | |
Ending balance | 534 | |
Commercial/Agricultural real estate | Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 5,748 | |
C&I/Agricultural operating | ||
Allowance for Loan Losses: | ||
Beginning balance | 2,318 | |
Charge-offs | 0 | |
Recoveries | 47 | |
Ending balance | 1,105 | 2,318 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 249 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 2,069 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 164,819 | |
Ending balance: individually evaluated for impairment | 3,292 | |
Ending balance: collectively evaluated for impairment | 161,527 | |
C&I/Agricultural operating | Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 2,255 | 1,959 |
Charge-offs | (310) | |
Recoveries | 35 | |
Provision | 571 | |
Ending balance | 2,255 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 150,239 | |
C&I/Agricultural operating | Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 63 | 69 |
Charge-offs | (36) | |
Recoveries | 1 | |
Provision | 29 | |
Ending balance | 63 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 14,218 | |
C&I/Agricultural operating | Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 63 | |
Ending balance | 63 | |
C&I/Agricultural operating | Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 362 | |
Residential mortgage | ||
Allowance for Loan Losses: | ||
Beginning balance | 599 | |
Charge-offs | (78) | |
Recoveries | 42 | |
Ending balance | 2,744 | 599 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 48 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 551 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 108,651 | |
Ending balance: individually evaluated for impairment | 5,998 | |
Ending balance: collectively evaluated for impairment | 102,653 | |
Residential mortgage | Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 574 | 518 |
Charge-offs | (35) | |
Recoveries | 2 | |
Provision | 89 | |
Ending balance | 574 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 88,045 | |
Residential mortgage | Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 25 | 130 |
Charge-offs | (33) | |
Recoveries | 27 | |
Provision | (99) | |
Ending balance | 25 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 19,716 | |
Residential mortgage | Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 25 | |
Ending balance | 25 | |
Residential mortgage | Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 890 | |
Consumer installment | ||
Allowance for Loan Losses: | ||
Beginning balance | 129 | |
Charge-offs | (36) | |
Recoveries | 33 | |
Ending balance | 275 | 129 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 10 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 119 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 17,386 | |
Ending balance: individually evaluated for impairment | 755 | |
Ending balance: collectively evaluated for impairment | 16,631 | |
Consumer installment | Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 121 | 225 |
Charge-offs | (45) | |
Recoveries | 50 | |
Provision | (109) | |
Ending balance | 121 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 17,130 | |
Consumer installment | Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 8 | 28 |
Charge-offs | (3) | |
Recoveries | 1 | |
Provision | (18) | |
Ending balance | 8 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 256 | |
Consumer installment | Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 8 | |
Ending balance | 8 | |
Consumer installment | Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 0 | |
Unallocated | ||
Allowance for Loan Losses: | ||
Beginning balance | 808 | |
Charge-offs | 0 | |
Recoveries | 0 | |
Ending balance | 0 | 808 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 0 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 808 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 0 | |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 0 | |
Unallocated | Originated loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 808 | 774 |
Charge-offs | 0 | |
Recoveries | 0 | |
Provision | 34 | |
Ending balance | 808 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 0 | |
Unallocated | Other acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | 0 | 0 |
Charge-offs | 0 | |
Recoveries | 0 | |
Provision | 0 | |
Ending balance | 0 | |
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | 0 | |
Unallocated | Acquired loans | ||
Allowance for Loan Losses: | ||
Beginning balance | $ 0 | |
Ending balance | 0 | |
Unallocated | Purchased credit-impaired loans | ||
Loans Receivable: | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _12
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Loans Receivable by Loan Type (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | $ 1,416,135 |
Performing Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 5,171 |
Other loans | 1,399,514 |
Total loans | 1,404,685 |
Nonperforming loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 2,617 |
Other loans | 8,833 |
Total loans | 11,450 |
Commercial/Agricultural real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 1,125,279 |
Commercial/Agricultural real estate | Performing Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 1,336 |
Other loans | 1,115,465 |
Total loans | 1,116,801 |
Commercial/Agricultural real estate | Nonperforming loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 1,878 |
Other loans | 6,600 |
Total loans | 8,478 |
C&I/Agricultural operating | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 164,819 |
C&I/Agricultural operating | Performing Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 960 |
Other loans | 162,417 |
Total loans | 163,377 |
C&I/Agricultural operating | Nonperforming loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 391 |
Other loans | 1,051 |
Total loans | 1,442 |
Residential mortgage | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 108,651 |
Residential mortgage | Performing Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 2,875 |
Other loans | 104,287 |
Total loans | 107,162 |
Residential mortgage | Nonperforming loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 348 |
Other loans | 1,141 |
Total loans | 1,489 |
Consumer installment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 17,386 |
Consumer installment | Performing Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 0 |
Other loans | 17,345 |
Total loans | 17,345 |
Consumer installment | Nonperforming loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
TDR loans | 0 |
Other loans | 41 |
Total loans | $ 41 |
LOANS, ALLOWANCE FOR CREDIT _13
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | $ 1,460,792 | $ 1,411,784 |
Nonaccrual Loans | 13,184 | 11,204 |
Total Past Due Accruing and Nonaccrual Loans | 15,576 | 22,861 |
Total Loans | 1,460,792 | 1,416,135 |
Financial Asset, Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 2,392 | 11,657 |
30-59 Days Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 1,345 | 10,816 |
60-89 Days Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 658 | 595 |
Greater Than 89 Days Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 389 | 246 |
Current | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 1,445,216 | 1,393,274 |
Commercial/Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Loans | 1,125,279 | |
Commercial/Agricultural real estate | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 748,447 | |
Nonaccrual Loans | 10,359 | 5,736 |
Total Past Due Accruing and Nonaccrual Loans | 10,717 | 6,026 |
Total Loans | 748,447 | 725,971 |
Commercial/Agricultural real estate | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 83,157 | |
Nonaccrual Loans | 391 | 2,742 |
Total Past Due Accruing and Nonaccrual Loans | 391 | 7,734 |
Total Loans | 83,157 | 87,908 |
Commercial/Agricultural real estate | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 228,004 | |
Nonaccrual Loans | 0 | 0 |
Total Past Due Accruing and Nonaccrual Loans | 0 | 0 |
Total Loans | 228,004 | 208,908 |
Commercial/Agricultural real estate | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 110,218 | |
Nonaccrual Loans | 54 | 0 |
Total Past Due Accruing and Nonaccrual Loans | 54 | 3,975 |
Total Loans | 110,218 | 102,492 |
Commercial/Agricultural real estate | Financial Asset, Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 358 | 290 |
Commercial/Agricultural real estate | Financial Asset, Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 4,992 |
Commercial/Agricultural real estate | Financial Asset, Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Financial Asset, Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 3,975 |
Commercial/Agricultural real estate | 30-59 Days Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 50 | 202 |
Commercial/Agricultural real estate | 30-59 Days Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 4,992 |
Commercial/Agricultural real estate | 30-59 Days Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | 30-59 Days Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 3,975 |
Commercial/Agricultural real estate | 60-89 Days Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 308 | 88 |
Commercial/Agricultural real estate | 60-89 Days Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | 60-89 Days Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | 60-89 Days Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Greater Than 89 Days Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Greater Than 89 Days Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Greater Than 89 Days Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Greater Than 89 Days Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Commercial/Agricultural real estate | Current | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 737,730 | 719,945 |
Commercial/Agricultural real estate | Current | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 82,766 | 80,174 |
Commercial/Agricultural real estate | Current | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 228,004 | 208,908 |
Commercial/Agricultural real estate | Current | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 110,164 | 98,517 |
C&I/Agricultural operating | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Loans | 164,819 | |
C&I/Agricultural operating | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 121,190 | |
Nonaccrual Loans | 0 | 552 |
Total Past Due Accruing and Nonaccrual Loans | 248 | 578 |
Total Loans | 121,190 | 136,013 |
C&I/Agricultural operating | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 25,695 | |
Nonaccrual Loans | 1,180 | 890 |
Total Past Due Accruing and Nonaccrual Loans | 1,180 | 1,716 |
Total Loans | 25,695 | 28,806 |
C&I/Agricultural operating | Financial Asset, Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 248 | 26 |
C&I/Agricultural operating | Financial Asset, Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 826 |
C&I/Agricultural operating | 30-59 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 248 | 0 |
C&I/Agricultural operating | 30-59 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 826 |
C&I/Agricultural operating | 60-89 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 26 |
C&I/Agricultural operating | 60-89 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
C&I/Agricultural operating | Greater Than 89 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
C&I/Agricultural operating | Greater Than 89 Days Past Due | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
C&I/Agricultural operating | Current | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 120,942 | 135,435 |
C&I/Agricultural operating | Current | Commercial and industrial | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 24,515 | 27,090 |
Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Loans | 108,651 | |
Residential mortgage | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 128,479 | |
Nonaccrual Loans | 1,167 | 1,253 |
Total Past Due Accruing and Nonaccrual Loans | 2,730 | 2,735 |
Total Loans | 128,479 | 105,389 |
Residential mortgage | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 2,880 | |
Nonaccrual Loans | 0 | 0 |
Total Past Due Accruing and Nonaccrual Loans | 117 | 0 |
Total Loans | 2,880 | 3,262 |
Residential mortgage | Financial Asset, Past Due | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 1,563 | 1,482 |
Residential mortgage | Financial Asset, Past Due | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 117 | 0 |
Residential mortgage | 30-59 Days Past Due | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 826 | 767 |
Residential mortgage | 30-59 Days Past Due | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 117 | 0 |
Residential mortgage | 60-89 Days Past Due | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 350 | 479 |
Residential mortgage | 60-89 Days Past Due | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Residential mortgage | Greater Than 89 Days Past Due | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 387 | 236 |
Residential mortgage | Greater Than 89 Days Past Due | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Residential mortgage | Current | Residential mortgage | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 125,749 | 102,654 |
Residential mortgage | Current | Purchased HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 2,763 | 3,262 |
Consumer installment | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Loans | 17,386 | |
Consumer installment | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 6,535 | |
Nonaccrual Loans | 15 | 27 |
Total Past Due Accruing and Nonaccrual Loans | 81 | 42 |
Total Loans | 6,535 | 10,236 |
Consumer installment | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 6,187 | |
Nonaccrual Loans | 18 | 4 |
Total Past Due Accruing and Nonaccrual Loans | 58 | 55 |
Total Loans | 6,187 | 7,150 |
Consumer installment | Financial Asset, Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 66 | 15 |
Consumer installment | Financial Asset, Past Due | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 40 | 51 |
Consumer installment | 30-59 Days Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 66 | 15 |
Consumer installment | 30-59 Days Past Due | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 38 | 39 |
Consumer installment | 60-89 Days Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Consumer installment | 60-89 Days Past Due | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 2 |
Consumer installment | Greater Than 89 Days Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 0 | 0 |
Consumer installment | Greater Than 89 Days Past Due | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 2 | 10 |
Consumer installment | Current | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | 6,454 | 10,194 |
Consumer installment | Current | Other consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total allowance for credit losses on loans | $ 6,129 | $ 7,095 |
LOANS, ALLOWANCE FOR CREDIT _14
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Nonaccrual loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | $ 13,184 | $ 11,204 |
Nonaccrual with no Allowance for Credit Losses | 12,939 | |
Interest Income Not Recorded for Nonaccrual loans | 734 | |
Commercial/Agricultural real estate | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 10,359 | 5,736 |
Nonaccrual with no Allowance for Credit Losses | 10,347 | |
Interest Income Not Recorded for Nonaccrual loans | 497 | |
Commercial/Agricultural real estate | Agricultural real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 391 | 2,742 |
Nonaccrual with no Allowance for Credit Losses | 391 | |
Interest Income Not Recorded for Nonaccrual loans | 46 | |
Commercial/Agricultural real estate | Multi-family real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 0 | 0 |
Nonaccrual with no Allowance for Credit Losses | 0 | |
Interest Income Not Recorded for Nonaccrual loans | 0 | |
Commercial/Agricultural real estate | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 54 | 0 |
Nonaccrual with no Allowance for Credit Losses | 54 | |
Interest Income Not Recorded for Nonaccrual loans | 1 | |
C&I/Agricultural operating | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 0 | 552 |
Nonaccrual with no Allowance for Credit Losses | 0 | |
Interest Income Not Recorded for Nonaccrual loans | 0 | |
C&I/Agricultural operating | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 1,180 | 890 |
Nonaccrual with no Allowance for Credit Losses | 1,180 | |
Interest Income Not Recorded for Nonaccrual loans | 120 | |
Residential mortgage | Residential mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 1,167 | 1,253 |
Nonaccrual with no Allowance for Credit Losses | 934 | |
Interest Income Not Recorded for Nonaccrual loans | 68 | |
Residential mortgage | Purchased HELOC loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 0 | 0 |
Nonaccrual with no Allowance for Credit Losses | 0 | |
Interest Income Not Recorded for Nonaccrual loans | 0 | |
Consumer installment | Originated indirect paper | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 15 | 27 |
Nonaccrual with no Allowance for Credit Losses | 15 | |
Interest Income Not Recorded for Nonaccrual loans | 1 | |
Consumer installment | Other consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 18 | $ 4 |
Nonaccrual with no Allowance for Credit Losses | 18 | |
Interest Income Not Recorded for Nonaccrual loans | $ 1 |
LOANS, ALLOWANCE FOR CREDIT _15
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | $ 12,939 | |
Allowance Allocation | 13,184 | $ 11,204 |
Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 28,622 | |
Without an Allowance | 24,332 | |
With an Allowance | 4,290 | |
Allowance Allocation | 791 | |
Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 25,149 | |
Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 3,473 | |
Commercial/Agricultural real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 10,347 | |
Allowance Allocation | 10,359 | 5,736 |
Commercial/Agricultural real estate | Commercial real estate | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 15,086 | |
Without an Allowance | 11,350 | |
With an Allowance | 3,736 | |
Allowance Allocation | 703 | |
Commercial/Agricultural real estate | Commercial real estate | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 15,086 | |
Commercial/Agricultural real estate | Commercial real estate | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Commercial/Agricultural real estate | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 391 | |
Allowance Allocation | 391 | 2,742 |
Commercial/Agricultural real estate | Agricultural real estate | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 6,605 | |
Without an Allowance | 6,605 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Commercial/Agricultural real estate | Agricultural real estate | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 6,605 | |
Commercial/Agricultural real estate | Agricultural real estate | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Commercial/Agricultural real estate | Multi-family real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 0 | |
Allowance Allocation | 0 | 0 |
Commercial/Agricultural real estate | Multi-family real estate | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Without an Allowance | 0 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Commercial/Agricultural real estate | Multi-family real estate | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Commercial/Agricultural real estate | Multi-family real estate | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Commercial/Agricultural real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 54 | |
Allowance Allocation | 54 | 0 |
Commercial/Agricultural real estate | Construction and land development | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 313 | |
Without an Allowance | 313 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Commercial/Agricultural real estate | Construction and land development | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 313 | |
Commercial/Agricultural real estate | Construction and land development | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
C&I/Agricultural operating | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 0 | |
Allowance Allocation | 0 | 552 |
C&I/Agricultural operating | Commercial and industrial | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 2,219 | |
Without an Allowance | 2,219 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
C&I/Agricultural operating | Commercial and industrial | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
C&I/Agricultural operating | Commercial and industrial | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 2,219 | |
C&I/Agricultural operating | Agricultural operating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 1,180 | |
Allowance Allocation | 1,180 | 890 |
C&I/Agricultural operating | Agricultural operating | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 1,181 | |
Without an Allowance | 1,181 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
C&I/Agricultural operating | Agricultural operating | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
C&I/Agricultural operating | Agricultural operating | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 1,181 | |
Residential mortgage | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 934 | |
Allowance Allocation | 1,167 | 1,253 |
Residential mortgage | Residential mortgage | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 3,145 | |
Without an Allowance | 2,591 | |
With an Allowance | 554 | |
Allowance Allocation | 88 | |
Residential mortgage | Residential mortgage | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 3,145 | |
Residential mortgage | Residential mortgage | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Residential mortgage | Purchased HELOC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 0 | |
Allowance Allocation | 0 | 0 |
Residential mortgage | Purchased HELOC loans | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Without an Allowance | 0 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Residential mortgage | Purchased HELOC loans | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Residential mortgage | Purchased HELOC loans | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Consumer installment | Originated indirect paper | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 15 | |
Allowance Allocation | 15 | 27 |
Consumer installment | Originated indirect paper | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 44 | |
Without an Allowance | 44 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Consumer installment | Originated indirect paper | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Consumer installment | Originated indirect paper | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 44 | |
Consumer installment | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Without an Allowance | 18 | |
Allowance Allocation | 18 | $ 4 |
Consumer installment | Other consumer | Collateralized Loan Obligations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 29 | |
Without an Allowance | 29 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Consumer installment | Other consumer | Collateralized Loan Obligations | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | 0 | |
Consumer installment | Other consumer | Collateralized Loan Obligations | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collateral Type | $ 29 |
LOANS, ALLOWANCE FOR CREDIT _16
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Bank impaired loans | |
With no related allowance recorded, Recorded investment | $ 19,076 |
With an allowance recorded, Recorded investment | 7,747 |
Recorded investment, Total | 26,823 |
With no related allowance recorded, unpaid principal balance | 19,172 |
With an allowance recorded, unpaid principal balance | 7,747 |
Unpaid principal balance, Total | 26,919 |
Impaired Financing Receivable, Related Allowance | 826 |
With no related allowance recorded, Average recorded investment | 24,735 |
With an allowance recorded, Average recorded investment | 6,601 |
Average recorded investment, Total | 31,336 |
With no related allowance recorded, Interest income recognized | 1,030 |
With an allowance recorded, Interest income recognized | 388 |
Interest income recognized, Total | 1,418 |
Commercial/Agricultural real estate | |
Bank impaired loans | |
With no related allowance recorded, Recorded investment | 9,741 |
With an allowance recorded, Recorded investment | 7,108 |
Recorded investment, Total | 16,849 |
With no related allowance recorded, unpaid principal balance | 9,766 |
With an allowance recorded, unpaid principal balance | 7,108 |
Unpaid principal balance, Total | 16,874 |
Impaired Financing Receivable, Related Allowance | 519 |
With no related allowance recorded, Average recorded investment | 13,657 |
With an allowance recorded, Average recorded investment | 6,028 |
Average recorded investment, Total | 19,685 |
With no related allowance recorded, Interest income recognized | 549 |
With an allowance recorded, Interest income recognized | 273 |
Interest income recognized, Total | 822 |
C&I/Agricultural operating | |
Bank impaired loans | |
With no related allowance recorded, Recorded investment | 2,744 |
With an allowance recorded, Recorded investment | 538 |
Recorded investment, Total | 3,282 |
With no related allowance recorded, unpaid principal balance | 2,754 |
With an allowance recorded, unpaid principal balance | 538 |
Unpaid principal balance, Total | 3,292 |
Impaired Financing Receivable, Related Allowance | 249 |
With no related allowance recorded, Average recorded investment | 4,467 |
With an allowance recorded, Average recorded investment | 273 |
Average recorded investment, Total | 4,741 |
With no related allowance recorded, Interest income recognized | 200 |
With an allowance recorded, Interest income recognized | 48 |
Interest income recognized, Total | 248 |
Residential mortgage | |
Bank impaired loans | |
With no related allowance recorded, Recorded investment | 5,846 |
With an allowance recorded, Recorded investment | 91 |
Recorded investment, Total | 5,937 |
With no related allowance recorded, unpaid principal balance | 5,907 |
With an allowance recorded, unpaid principal balance | 91 |
Unpaid principal balance, Total | 5,998 |
Impaired Financing Receivable, Related Allowance | 48 |
With no related allowance recorded, Average recorded investment | 6,304 |
With an allowance recorded, Average recorded investment | 298 |
Average recorded investment, Total | 6,603 |
With no related allowance recorded, Interest income recognized | 276 |
With an allowance recorded, Interest income recognized | 65 |
Interest income recognized, Total | 341 |
Consumer installment | |
Bank impaired loans | |
With no related allowance recorded, Recorded investment | 745 |
With an allowance recorded, Recorded investment | 10 |
Recorded investment, Total | 755 |
With no related allowance recorded, unpaid principal balance | 745 |
With an allowance recorded, unpaid principal balance | 10 |
Unpaid principal balance, Total | 755 |
Impaired Financing Receivable, Related Allowance | 10 |
With no related allowance recorded, Average recorded investment | 307 |
With an allowance recorded, Average recorded investment | 2 |
Average recorded investment, Total | 310 |
With no related allowance recorded, Interest income recognized | 5 |
With an allowance recorded, Interest income recognized | 2 |
Interest income recognized, Total | $ 7 |
LOANS, ALLOWANCE FOR CREDIT _17
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Loan Modifications (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commercial real estate | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 4,694 |
% of Total Class of Financing Receivables | 0.63% |
Commercial and industrial | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 2,200 |
% of Total Class of Financing Receivables | 1.82% |
Residential mortgage | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 35 |
% of Total Class of Financing Receivables | 0.03% |
Residential mortgage | Other-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 69 |
% of Total Class of Financing Receivables | 0.05% |
Other consumer | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 1 |
% of Total Class of Financing Receivables | 0.02% |
Other consumer | Other-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 19 |
% of Total Class of Financing Receivables | 0.31% |
LOANS, ALLOWANCE FOR CREDIT _18
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Term Extensions (Details) - Extended Maturity | 12 Months Ended |
Dec. 31, 2023 | |
Commercial real estate | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 20 months |
Commercial and industrial | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 3 months |
Residential mortgage | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 16 months |
Residential mortgage | Other-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 6 months |
Other consumer | Financial Effect | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 12 months |
Other consumer | Other-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average term increase from modification | 3 months |
LOANS, ALLOWANCE FOR CREDIT _19
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Schedule of Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | $ 1,460,792 | $ 1,411,784 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 1,445,216 | 1,393,274 |
Current | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 6,949 | |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 1,345 | 10,816 |
30-59 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 658 | 595 |
60-89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 69 | |
Greater Than 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 389 | $ 246 |
Greater Than 89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial real estate | Current | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 4,694 | |
Commercial real estate | 30-59 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial real estate | 60-89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial real estate | Greater Than 89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial and industrial | Current | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 2,200 | |
Commercial and industrial | 30-59 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial and industrial | 60-89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Commercial and industrial | Greater Than 89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Residential mortgage | Current | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 35 | |
Residential mortgage | 30-59 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Residential mortgage | 60-89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 69 | |
Residential mortgage | Greater Than 89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Other consumer | Current | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 20 | |
Other consumer | 30-59 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Other consumer | 60-89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | 0 | |
Other consumer | Greater Than 89 Days Past Due | Entity Loan Modification Program | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total allowance for credit losses on loans | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _20
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - TDR Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Receivables [Abstract] | |
Accrual status | $ 5,171 |
Non-accrual status | 2,617 |
Total | $ 7,788 |
LOANS, ALLOWANCE FOR CREDIT _21
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - TDR Loan Modifications (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) contract | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Contracts | contract | 23 |
Pre-Modification Outstanding Recorded Investment | $ 6,135 |
Post-Modification Outstanding Recorded Investment | 6,135 |
Specific Reserve | $ 0 |
Commercial/Agricultural real estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Contracts | contract | 7 |
Pre-Modification Outstanding Recorded Investment | $ 3,205 |
Post-Modification Outstanding Recorded Investment | 3,205 |
Specific Reserve | $ 0 |
C&I/Agricultural operating | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Contracts | contract | 5 |
Pre-Modification Outstanding Recorded Investment | $ 2,160 |
Post-Modification Outstanding Recorded Investment | 2,160 |
Specific Reserve | $ 0 |
Residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Contracts | contract | 11 |
Pre-Modification Outstanding Recorded Investment | $ 770 |
Post-Modification Outstanding Recorded Investment | 770 |
Specific Reserve | $ 0 |
Consumer installment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Contracts | contract | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 |
Specific Reserve | 0 |
Modified Rate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 2,781 |
Modified Rate | Commercial/Agricultural real estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 1,241 |
Modified Rate | C&I/Agricultural operating | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 1,424 |
Modified Rate | Residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 116 |
Modified Rate | Consumer installment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Modified Payment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 147 |
Modified Payment | Commercial/Agricultural real estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Modified Payment | C&I/Agricultural operating | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Modified Payment | Residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 147 |
Modified Payment | Consumer installment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Modified Under- writing | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 3,207 |
Modified Under- writing | Commercial/Agricultural real estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 1,964 |
Modified Under- writing | C&I/Agricultural operating | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 736 |
Modified Under- writing | Residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 507 |
Modified Under- writing | Consumer installment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Other | Commercial/Agricultural real estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Other | C&I/Agricultural operating | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Other | Residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | 0 |
Other | Consumer installment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan restructuring | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _22
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Loans by Loan Class Modified in Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) loan contract | |
Troubled Debt Restructuring | |
Number of Modifications | contract | 23 |
Commercial/Agricultural real estate | |
Troubled Debt Restructuring | |
Number of Modifications | contract | 7 |
C&I/Agricultural operating | |
Troubled Debt Restructuring | |
Number of Modifications | contract | 5 |
Residential mortgage | |
Troubled Debt Restructuring | |
Number of Modifications | contract | 11 |
Consumer installment | |
Troubled Debt Restructuring | |
Number of Modifications | contract | 0 |
Originated Loans | |
Troubled Debt Restructuring | |
Number of Modifications | loan | 67 |
Recorded Investment | $ | $ 7,788 |
Originated Loans | Commercial/Agricultural real estate | |
Troubled Debt Restructuring | |
Number of Modifications | loan | 14 |
Recorded Investment | $ | $ 3,214 |
Originated Loans | C&I/Agricultural operating | |
Troubled Debt Restructuring | |
Number of Modifications | loan | 8 |
Recorded Investment | $ | $ 1,351 |
Originated Loans | Residential mortgage | |
Troubled Debt Restructuring | |
Number of Modifications | loan | 45 |
Recorded Investment | $ | $ 3,223 |
Originated Loans | Consumer installment | |
Troubled Debt Restructuring | |
Number of Modifications | loan | 0 |
Recorded Investment | $ | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _23
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Restructured Loans in Default (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default [Abstract] | |
Number of Modifications | loan | 3 |
Recorded Investment | $ | $ 271 |
Commercial/Agricultural real estate | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default [Abstract] | |
Number of Modifications | loan | 0 |
Recorded Investment | $ | $ 0 |
C&I/Agricultural operating | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default [Abstract] | |
Number of Modifications | loan | 1 |
Recorded Investment | $ | $ 231 |
Residential mortgage | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default [Abstract] | |
Number of Modifications | loan | 2 |
Recorded Investment | $ | $ 40 |
Consumer installment | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default [Abstract] | |
Number of Modifications | loan | 0 |
Recorded Investment | $ | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _24
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Acquired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | $ 1,460,792 | $ 1,411,784 |
Carrying amount | $ 1,437,884 | 1,393,845 |
Receivables Acquired with Deteriorated Credit Quality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 7,000 | |
Carrying amount | 6,904 | |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 136,192 | |
Carrying amount | 134,522 | |
Non-PCI Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 143,192 | |
Carrying amount | $ 141,426 |
LOANS, ALLOWANCE FOR CREDIT _25
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Accelerate Accretion and Lower Future Years Accretion (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Receivables [Abstract] | |
2023 | $ 363 |
2024 | 215 |
2025 | 180 |
2026 | 84 |
2027 | 77 |
Thereafter | 751 |
Total | $ 1,670 |
LOANS, ALLOWANCE FOR CREDIT _26
LOANS, ALLOWANCE FOR CREDIT LOSSES AND IMPAIRED LOANS - Non-Accretable Yield (Details) - Acquired Loans $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non-Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 653 |
Additions to non-accretable difference for acquired purchased credit impaired loans | 0 |
Non-accretable difference realized as interest from payoffs of purchased credit impaired loans | (239) |
Transfers from non-accretable difference to accretable discount | (126) |
Non-accretable difference transferred to OREO due to loan foreclosure | (192) |
Balance at end of period | $ 96 |
MORTGAGE SERVICING RIGHTS - Nar
MORTGAGE SERVICING RIGHTS - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Deposits | $ 1,519,092 | $ 1,424,720 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage servicing rights expense, net | Mortgage servicing rights expense, net |
Servicing fees | $ 1,292 | $ 1,385 |
Measurement Input, Discount Rate | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Servicing asset, measurement input | 0.09375 | 0.095 |
Measurement Input, Discount Rate | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Servicing asset, measurement input | 0.12375 | 0.125 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deposits | $ 2,665 | $ 2,649 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Residential mortgage loans serviced for others | $ 495,531 | $ 523,736 |
MORTGAGE SERVICING RIGHTS - Mor
MORTGAGE SERVICING RIGHTS - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Increase in mortgage servicing rights resulting from transfers of financial assets | $ (218) | $ (323) |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||
Mortgage servicing rights, net | 3,865 | 4,262 |
Mortgage servicing rights | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Mortgage servicing rights, beginning of period | 4,262 | 4,727 |
Increase in mortgage servicing rights resulting from transfers of financial assets | 218 | 323 |
Amortization during the period | (615) | (788) |
Mortgage servicing rights, end of period | 3,865 | 4,262 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||
Valuation allowance, beginning of period | 0 | (566) |
Additions | 0 | 0 |
Recoveries | 0 | 566 |
Valuation allowance, end of period | 0 | 0 |
Mortgage servicing rights, net | 3,865 | 4,262 |
Fair value of mortgage servicing rights, end of period | 5,589 | 5,665 |
Residential mortgage loans serviced for others | $ 495,531 | $ 523,736 |
MORTGAGE SERVICING RIGHTS - Amo
MORTGAGE SERVICING RIGHTS - Amortization Expense (Details) - Mortgage servicing rights $ in Thousands | Dec. 31, 2023 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2024 | $ 565 |
2025 | 513 |
2026 | 462 |
2027 | 410 |
2028 | 358 |
After 2027 | 1,557 |
Total | $ 3,865 |
OFFICE PROPERTIES AND EQUIPME_3
OFFICE PROPERTIES AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Office Properties and Equipment | ||
Office properties and equipment, gross | $ 30,972 | $ 30,967 |
Less--Accumulated depreciation | (12,599) | (10,474) |
Office properties and equipment, net | 18,373 | 20,493 |
Land | ||
Office Properties and Equipment | ||
Office properties and equipment, gross | 3,783 | 3,856 |
Buildings | ||
Office Properties and Equipment | ||
Office properties and equipment, gross | 16,093 | 16,856 |
Furniture, equipment and vehicles | ||
Office Properties and Equipment | ||
Office properties and equipment, gross | $ 11,096 | $ 10,255 |
OFFICE PROPERTIES AND EQUIPME_4
OFFICE PROPERTIES AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,371 | $ 2,357 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 31,498 | $ 31,498 |
Changes in goodwill | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization during the period | $ 755 | $ 1,449 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 12,180 | 12,180 |
Accumulated amortization | (10,486) | (9,731) |
Total | 1,694 | 2,449 |
Amortization during the period | $ 755 | $ 1,449 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - Core deposit intangible - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
2024 | $ 715 | |
2025 | 584 | |
2026 | 395 | |
Total | $ 1,694 | $ 2,449 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 1 Months Ended | |
Nov. 30, 2022 USD ($) | Dec. 31, 2023 lease | |
Lessee, Lease, Description [Line Items] | ||
Operating lease renewal term | 5 years | |
Impairment loss | $ | $ 180 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 8 months 1 day | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 4 years 6 months | |
Corporate Offices | ||
Lessee, Lease, Description [Line Items] | ||
Number of properties subject to operating leases | 1 | |
Bank Branch | ||
Lessee, Lease, Description [Line Items] | ||
Number of properties subject to operating leases | 4 | |
Former Bank Branch | ||
Lessee, Lease, Description [Line Items] | ||
Number of properties subject to operating leases | 1 | |
ATM Location | ||
Lessee, Lease, Description [Line Items] | ||
Number of properties subject to operating leases | 1 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
The components of total lease costs were as follows: | ||
Operating lease cost | $ 508 | $ 554 |
Variable lease cost | 84 | 47 |
Total lease cost | 592 | 601 |
The components of total lease income were as follows: | ||
Operating lease income | $ 41 | $ 34 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Occupancy, Net | Occupancy, Net |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 545 | $ 556 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 225 | 215 |
Supplemental balance sheet information related to leases was as follows: | ||
Operating lease right-of-use assets | 1,477 | 1,700 |
Operating lease liabilities | $ 1,686 | $ 1,945 |
Weighted average remaining lease term in years; operating leases | 3 years 11 months 8 days | 4 years 10 months 20 days |
Weighted average discount rate; operating leases (as a percent) | 3.20% | 2.98% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payments | ||
2024 | $ 549 | |
2025 | 534 | |
2026 | 464 | |
2027 | 401 | |
2028 | 141 | |
Thereafter | 0 | |
Total lease payments | 2,089 | |
Less: effects of discounting | (403) | |
Operating lease liabilities | 1,686 | $ 1,945 |
Receipts | ||
2024 | 32 | |
2025 | 15 | |
2026 | 7 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total lease payments | $ 54 |
DEPOSITS - Deposits by Type (De
DEPOSITS - Deposits by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Non interest bearing demand deposits | $ 265,704 | $ 284,722 |
Interest bearing demand deposits | 343,276 | 371,210 |
Savings accounts | 176,548 | 220,019 |
Money market accounts | 374,055 | 323,435 |
Certificate accounts | 359,509 | 225,334 |
Total deposits | $ 1,519,092 | $ 1,424,720 |
DEPOSITS - Maturities (Details)
DEPOSITS - Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2024 | $ 329,862 |
2025 | 20,612 |
2026 | 2,693 |
2027 | 636 |
2028 | 5,706 |
Total | $ 359,509 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Time deposits at or above FDIC insurance limit | $ 103,802 | $ 66,827 |
Brokered deposits | 98,259 | 39,841 |
Deposits held from various parties | $ 33,929 | $ 33,673 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS - Federal Home Loan Bank Advances (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2027 | Sep. 30, 2025 | Aug. 31, 2022 | Jun. 30, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Federal Home Loan Bank advances | ||||||
Federal Home Loan Bank advances | $ 79,530,000 | $ 142,530,000 | ||||
Long-term debt, gross | 146,995,000 | 214,939,000 | ||||
Banks available and unused portion of borrowing agreement | 370,569,000 | 256,773,000 | ||||
Maximum month-end amounts outstanding | 217,530,000 | 157,530,000 | ||||
Senior Notes - Variable Rate due June 2031 | Revolving Credit Facility | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Maximum borrowing capacity | 5,000,000 | |||||
Advances from FHLB | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Federal Home Loan Bank advances, Maturity 2023 | 0 | 117,000,000 | ||||
Federal Home Loan Bank advances, Maturity 202 | 64,530,000 | 20,530,000 | ||||
Federal Home Loan Bank advances, Maturity 2025 | 5,000,000 | 5,000,000 | ||||
Federal Home Loan Bank advances, Maturity 2028 | 10,000,000 | 0 | ||||
Federal Home Loan Bank advances | 79,530,000 | 142,530,000 | ||||
FHLB advances | $ 1,106,267,000 | $ 984,878,000 | ||||
Weighted average interest rate (as a percent) | 4.16% | 4.09% | ||||
Advances from FHLB | Minimum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Range of Stated Rates, 2023 (as a percent) | 0% | 1.43% | ||||
Range of Stated Rates, 2024 (as a percent) | 0% | 0% | ||||
Range of Stated Rates, 2025 (as a percent) | 1.45% | 1.45% | ||||
Range of Stated Rates, 2028 (as a percent) | 3.82% | 0% | ||||
Advances from FHLB | Maximum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Range of Stated Rates, 2023 (as a percent) | 0% | 4.31% | ||||
Range of Stated Rates, 2024 (as a percent) | 5.45% | 1.45% | ||||
Range of Stated Rates, 2025 (as a percent) | 1.45% | 1.45% | ||||
Range of Stated Rates, 2028 (as a percent) | 3.82% | 0% | ||||
Senior notes | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Long-term debt, gross | $ 67,465,000 | $ 72,409,000 | ||||
Unamortized discount (premium) and debt issuance costs | (618,000) | (841,000) | ||||
Senior notes | Senior Notes, due 2034 | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Long-term debt, gross | $ 18,083,000 | $ 23,250,000 | ||||
Senior notes | Senior Notes, due 2034 | Minimum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 6.75% | 3% | ||||
Senior notes | Senior Notes, due 2034 | Maximum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 7.75% | 6.75% | ||||
Senior notes | Senior Notes due 2031 | Prime Rate | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Debt instrument, basis spread on variable rate (as a percent) | 0.75% | |||||
Senior notes | Senior Notes due 2031 | Minimum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 3% | |||||
Subordinated notes | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Long-term debt, gross | $ 50,000,000 | $ 50,000,000 | ||||
Subordinated notes | Subordinated Notes due 2030 | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Long-term debt, gross | $ 15,000,000 | $ 15,000,000 | ||||
Stated interest rate (as a percent) | 6.75% | |||||
Debt instrument, term | 5 years | |||||
Subordinated notes | Subordinated Notes due 2030 | LIBOR | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Debt instrument, basis spread on variable rate (as a percent) | 4.90% | |||||
Subordinated notes | Subordinated Notes due 2030 | Minimum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 6% | 6% | ||||
Subordinated notes | Subordinated Notes due 2030 | Maximum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 6% | 6% | ||||
Subordinated notes | Subordinated Notes due 2032 | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Long-term debt, gross | $ 35,000,000 | $ 35,000,000 | ||||
Stated interest rate (as a percent) | 6% | |||||
Debt instrument, term | 5 years | |||||
Subordinated notes | Subordinated Notes due 2032 | Secured Overnight Financing Rate (SOFR) | Forecast | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Debt instrument, basis spread on variable rate (as a percent) | 5.91% | |||||
Subordinated notes | Subordinated Notes due 2032 | Minimum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | ||||
Subordinated notes | Subordinated Notes due 2032 | Maximum | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | ||||
Subordinated notes | Subordinated Notes due March 2032 | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Stated interest rate (as a percent) | 4.75% | |||||
Debt instrument, term | 5 years | |||||
Subordinated notes | Subordinated Notes due March 2032 | Secured Overnight Financing Rate (SOFR) | Forecast | ||||||
Summary of Federal Home Loan Bank advances | ||||||
Debt instrument, basis spread on variable rate (as a percent) | 3.29% | |||||
Federal Home Loan Bank Advances | ||||||
Summary of Federal Home Loan Bank advances | ||||||
FHLB, advances, maturity 2029 and 2030 | $ 10,000 | $ 0 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) fund | Dec. 31, 2022 USD ($) | |
Advances from FHLB | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 29,191 | $ 5,421 |
Maximum borrowing capacity | 22,417 | 4,118 |
Federal Reserve borrowings outstanding | $ 0 | 0 |
Unsecured Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Number of unsecured federal funds | fund | 2 | |
Long-term line of credit | $ 70 | |
Unsecured Federal Funds Purchased | Line of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding balances of debt instrument | 0 | 0 |
Advances from FHLB | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 452,280 | $ 191,650 |
CAPITAL MATTERS - Summary (Deta
CAPITAL MATTERS - Summary (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), Actual, Amount | $ 228,092 | $ 221,361 |
Total capital (to risk weighted assets), Actual, Ratio | 0.146 | 0.142 |
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 124,883 | $ 124,971 |
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Total capital (to risk weighted assets), To Be Well Capitalized, Amount | $ 156,104 | $ 156,213 |
Total capital (to risk weighted assets), To Be Well Capitalized, Ratio | 0.100 | 0.100 |
Tier 1 capital (to risk weighted assets), Actual, Amount | $ 208,726 | $ 203,422 |
Tier 1 capital (to risk weighted assets), Actual, Ratio | 0.134 | 0.130 |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 93,662 | $ 93,728 |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk weighted assets), To Be Well Capitalized, Amount | $ 124,883 | $ 124,971 |
Tier 1 capital (to risk weighted assets), To Be Well Capitalized, Ratio | 0.080 | 0.080 |
Common equity tier 1 (to risk weighted assets), Actual, Amount | $ 208,726 | $ 203,422 |
Common equity tier 1 (to risk weighted assets), Actual, Ratio | 13.40% | 13% |
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 70,247 | $ 70,296 |
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common equity tier 1 (to risk weighted assets), To Be Well Capitalized, Amount | $ 101,468 | $ 101,539 |
Common equity tier 1 (to risk weighted assets), To Be Well Capitalized, Ratio | 6.50% | 6.50% |
Tier 1 leverage ratio (to adjusted total assets), Actual, Amount | $ 208,726 | $ 203,422 |
Tier 1 leverage ratio (to adjusted total assets), Actual, Ratio | 0.115 | 0.115 |
Tier 1 leverage ratio (to adjusted total assets), For Capital Adequacy Purposes, Amount | $ 72,479 | $ 70,610 |
Tier 1 leverage ratio (to adjusted total assets), For Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
Tier 1 leverage ratio (to adjusted total assets), To Be Well Capitalized, Amount | $ 90,599 | $ 88,262 |
Tier 1 leverage ratio (to adjusted total assets), To Be Well Capitalized, Ratio | 0.050 | 0.050 |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), Actual, Amount | $ 230,160 | $ 218,737 |
Total capital (to risk weighted assets), Actual, Ratio | 0.147 | 0.140 |
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 124,883 | $ 124,971 |
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Tier 1 capital (to risk weighted assets), Actual, Amount | $ 160,794 | $ 150,798 |
Tier 1 capital (to risk weighted assets), Actual, Ratio | 0.103 | 0.097 |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 93,662 | $ 93,728 |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Common equity tier 1 (to risk weighted assets), Actual, Amount | $ 160,794 | $ 150,798 |
Common equity tier 1 (to risk weighted assets), Actual, Ratio | 10.30% | 9.70% |
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Amount | $ 70,247 | $ 70,296 |
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier 1 leverage ratio (to adjusted total assets), Actual, Amount | $ 160,794 | $ 150,798 |
Tier 1 leverage ratio (to adjusted total assets), Actual, Ratio | 0.089 | 0.085 |
Tier 1 leverage ratio (to adjusted total assets), For Capital Adequacy Purposes, Amount | $ 72,479 | $ 70,610 |
Tier 1 leverage ratio (to adjusted total assets), For Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
CAPITAL MATTERS - Dividends (De
CAPITAL MATTERS - Dividends (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cash dividends paid (USD per share) | $ 0.29 | $ 0.26 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Off-Balance-Sheet Credit Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 210,423 | $ 243,045 |
Commercial standby letter of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 2,116 | 4,252 |
Commitment to contribute capital to SBIC | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 1,800 | 2,400 |
Commitment to contribute capital to investment company | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 1,590 | $ 2,340 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Standby letters of credit, liability | $ 0 | $ 0 |
RETIREMENT PLAN - Narrative (De
RETIREMENT PLAN - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Employer matching contributions | $ 651 | $ 621 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (shares) | 54,000 | 58,000 | 65,900 | |
Expiry period of unexercised incentive stock options | 10 years | |||
2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock reserved and available for issuance under the 2008 Equity Incentive Plan (shares) | 350,000 | |||
2018 Equity Incentive Plan | Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (shares) | 290,187 | |||
2018 Equity Incentive Plan | Performance-Based Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award | 11,834 | |||
Vesting period of shares, in years | 3 years | 3 years | ||
Issued in period (in shares) | 18,551 | |||
2018 Equity Incentive Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (shares) | 0 | |||
Two Thousand and Twenty Equity Incentive Plan | Performance-Based Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award | 1,119 | |||
Two Thousand and Twenty One Equity Incentive Plan | Performance-Based Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award | 638 | |||
2008 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of Equity Incentive Plan | 10 years | |||
Options granted (shares) | 54,000 | |||
2008 Equity Incentive Plan | Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option instruments granted (shares) | 0 | |||
2008 Equity Incentive Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares, in years | 5 years | |||
2004 Recognition and Retention Plan and 2008 Equity Incentive Plan | Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to awards | $ 722 | $ 860 | ||
2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to awards | $ 0 | $ 3 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Common Stock Award (Details) - Restricted stock awards - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Unvested and outstanding at beginning of year (shares) | 75,626 | 75,630 |
Granted (shares) | 50,606 | 43,465 |
Vested (shares) | (45,879) | (40,843) |
Forfeited (shares) | (4,752) | (2,626) |
Unvested and outstanding at end of year (shares) | 75,601 | 75,626 |
Weighted Average Grant Price | ||
Unvested and outstanding at beginning of year (USD per share) | $ 12.30 | $ 11.20 |
Granted (USD per share) | 12.36 | 13.99 |
Vested (USD per share) | 12.24 | 12.12 |
Forfeited (USD per share) | 11.78 | 11.04 |
Unvested and outstanding at end of year (USD per share) | $ 12.41 | $ 12.30 |
STOCK-BASED COMPENSATION - Comm
STOCK-BASED COMPENSATION - Common Stock Options Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Option Shares | ||
Outstanding at beginning of period (shares) | 58,000 | 65,900 |
Exercised (shares) | (3,000) | (7,900) |
Forfeited or expired (shares) | (1,000) | 0 |
Outstanding at end of period (shares) | 54,000 | 58,000 |
Exercisable at end of period (shares) | 54,000 | 58,000 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 11.51 | $ 11.20 |
Exercised (USD per share) | 9.21 | 8.95 |
Forfeited or expired (USD per share) | 13.76 | 0 |
Outstanding at end of period (USD per share) | 11.59 | 11.51 |
Weighted Average Exercise Price, Exercisable at end of year (USD per share) | $ 11.59 | $ 11.51 |
Weighted Average Remaining Contractual Term in Years, Outstanding at end of period | 2 years 10 months 2 days | 3 years 8 months 23 days |
Weighted Average Remaining Contractual Term in Years, Exercisable at end of period | 2 years 10 months 2 days | 3 years 8 months 23 days |
Aggregate intrinsic value, outstanding at end of period | $ 46 | $ 65 |
Aggregate intrinsic value, exercisable at end of period | $ 46 | $ 65 |
STOCK-BASED COMPENSATION - Info
STOCK-BASED COMPENSATION - Information on 2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Intrinsic value of options exercised | $ 2 | $ 38 |
Cash received from options exercised | 28 | 71 |
Tax benefit realized from options exercised | $ 0 | $ 0 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current tax provision | ||
Federal | $ 5,081 | $ 3,565 |
State | 448 | 1,749 |
Total current tax provision | 5,529 | 5,314 |
Deferred tax provision (benefit) | ||
Federal | (1,373) | 355 |
State | (105) | 151 |
Total deferred tax provision | (1,478) | 506 |
Valuation allowance | 1,822 | 0 |
Total | $ 5,873 | $ 5,820 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
The provision for income taxes differs from the amount of income tax determined by applying statutory federal income tax rates to pretax income | ||
Tax expense at statutory rate | $ 3,976 | $ 4,952 |
State income taxes, net of federal | 271 | 1,501 |
Tax credits | 0 | (514) |
Bank owned life insurance | (146) | (135) |
Tax exempt interest | (52) | (59) |
Valuation allowance | 1,822 | 0 |
Other | 2 | 75 |
Total | $ 5,873 | $ 5,820 |
Tax expense at statutory rate (as a percent) | 21% | 21% |
State income taxes, net of federal (as a percent) | 1.40% | 6.40% |
Tax credits (as a percent) | 0% | (2.20%) |
Bank owned life insurance (as a percent) | (0.80%) | (0.60%) |
Tax exempt interest (as a percent) | (0.30%) | (0.30%) |
Valuation allowance (as a percent) | 9.60% | 0% |
Other (as a percent) | 0.10% | 0.40% |
Total (as a percent) | 31% | 24.70% |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 6,104,000 | $ 4,934,000 |
Deferred loan costs/fees | 632,000 | 591,000 |
Restricted stock | 184,000 | 243,000 |
Economic performance accruals | 769,000 | 871,000 |
Other real estate owned | 230,000 | 188,000 |
Loan discounts | 304,000 | 375,000 |
Lease liability | 426,000 | 535,000 |
Net unrealized losses on securities available for sale | 6,702,000 | 6,697,000 |
Other | 22,000 | 44,000 |
Deferred tax assets | 15,373,000 | 14,478,000 |
Deferred tax liabilities: | ||
Office properties and equipment | (2,132,000) | (2,286,000) |
Federal Home Loan Bank stock | (119,000) | (129,000) |
Core deposit intangible | (852,000) | (1,019,000) |
Net gain on equity securities | (762,000) | (710,000) |
Prepaid expenses | (230,000) | (250,000) |
Mortgage servicing rights | (977,000) | (1,172,000) |
Leases; right of use asset | (373,000) | (467,000) |
Deferred tax liabilities | (5,445,000) | (6,033,000) |
Valuation allowance | (1,822,000) | 0 |
Net deferred tax assets | $ 8,106,000 | $ 8,445,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax asset valuation allowance | $ (1,828,000) | $ 1,822,000 | |
Valuation allowance | $ 1,822,000 | $ 0 |
FAIR VALUE ACCOUNTING - Assets
FAIR VALUE ACCOUNTING - Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Measured on a Recurring Basis | ||
Total available for sale securities | $ 155,743 | $ 165,991 |
U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 16,576 | 18,313 |
Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 73,480 | 78,610 |
Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 41,174 | 40,251 |
Asset-backed securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 24,513 | 28,817 |
Recurring | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 155,743 | 165,991 |
Total equity investments | 3,284 | 1,794 |
Total | 159,027 | 167,785 |
Recurring | Equity investments | ||
Assets Measured on a Recurring Basis | ||
Total equity investments | 557 | 338 |
Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Total equity investments | 557 | 338 |
Total | 557 | 338 |
Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Equity investments | ||
Assets Measured on a Recurring Basis | ||
Total equity investments | 557 | 338 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 155,743 | 165,991 |
Total equity investments | 0 | 0 |
Total | 155,743 | 165,991 |
Recurring | Significant Other Observable Inputs (Level 2) | Equity investments | ||
Assets Measured on a Recurring Basis | ||
Total equity investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Total equity investments | 0 | 0 |
Total | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity investments | ||
Assets Measured on a Recurring Basis | ||
Total equity investments | 0 | 0 |
Recurring | NAV | Equity investments | ||
Assets Measured on a Recurring Basis | ||
Total equity investments | 2,727 | 1,456 |
Recurring | U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 16,576 | 18,313 |
Recurring | U.S. government agency obligations | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | U.S. government agency obligations | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 16,576 | 18,313 |
Recurring | U.S. government agency obligations | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 73,480 | 78,610 |
Recurring | Mortgage-backed securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 73,480 | 78,610 |
Recurring | Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 41,174 | 40,251 |
Recurring | Corporate debt securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 41,174 | 40,251 |
Recurring | Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 24,513 | 28,817 |
Recurring | Asset-backed securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 0 | 0 |
Recurring | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | 24,513 | 28,817 |
Recurring | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Total available for sale securities | $ 0 | $ 0 |
FAIR VALUE ACCOUNTING - Asset_2
FAIR VALUE ACCOUNTING - Assets Measured on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 9,159 | $ 12,453 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 10,883 | 13,856 |
Foreclosed and repossessed assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 1,795 | 1,271 |
Foreclosed and repossessed assets, net | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Foreclosed and repossessed assets, net | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Foreclosed and repossessed assets, net | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 1,795 | 1,271 |
Collateral dependent loans with allocated allowances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 3,499 | |
Collateral dependent loans with allocated allowances | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Collateral dependent loans with allocated allowances | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Collateral dependent loans with allocated allowances | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 3,499 | |
Impaired loans with allocated allowances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 6,920 | |
Impaired loans with allocated allowances | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Impaired loans with allocated allowances | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Impaired loans with allocated allowances | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 6,920 | |
Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 3,865 | 4,262 |
Mortgage servicing rights | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Mortgage servicing rights | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 5,589 | $ 5,665 |
FAIR VALUE ACCOUNTING - Level 3
FAIR VALUE ACCOUNTING - Level 3 Fair Value Inputs (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Measurement Input, Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.09375 | 0.095 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.12375 | 0.125 |
Significant Unobservable Inputs (Level 3) | Foreclosed and repossessed assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loans receivable | $ 1,795 | $ 1,271 |
Significant Unobservable Inputs (Level 3) | Foreclosed and repossessed assets, net | Measurement Input, Cost to Sell | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.10 | 0.10 |
Significant Unobservable Inputs (Level 3) | Foreclosed and repossessed assets, net | Measurement Input, Cost to Sell | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.15 | 0.15 |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans with allocated allowances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loans receivable | $ 3,499 | |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans with allocated allowances | Measurement Input, Cost to Sell | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.10 | |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans with allocated allowances | Measurement Input, Cost to Sell | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.15 | |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of mortgage servicing rights, end of period | $ 5,589 | $ 5,665 |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Measurement Input, Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.09375 | 0.095 |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Measurement Input, Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.12375 | 0.125 |
Significant Unobservable Inputs (Level 3) | Impaired loans with allocated allowances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loans receivable | $ 6,920 | |
Significant Unobservable Inputs (Level 3) | Impaired loans with allocated allowances | Measurement Input, Cost to Sell | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.10 | |
Significant Unobservable Inputs (Level 3) | Impaired loans with allocated allowances | Measurement Input, Cost to Sell | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets, impaired loans, measurement input | 0.15 |
FAIR VALUE ACCOUNTING - Fair Va
FAIR VALUE ACCOUNTING - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Available for sale ("AFS") securities, at amortized cost of $179,744, net of allowance for credit losses of $0 at December 31, 2023 | $ 155,743 | $ 165,991 |
Securities held to maturity "HTM" | 73,262 | 76,779 |
Equity investments | 3,284 | 1,794 |
Carrying Amount | (Level I) | ||
Financial assets: | ||
Cash and cash equivalents | 37,138 | 35,363 |
Equity investments | 557 | 338 |
Accrued interest receivable | 5,409 | 5,285 |
Financial liabilities: | ||
Other borrowings | 67,465 | 72,409 |
Accrued interest payable | 3,175 | 968 |
Carrying Amount | (Level I) | Residential mortgage | ||
Financial assets: | ||
Loans held for sale - Residential mortgage | 1,134 | 0 |
Carrying Amount | (Level II) | ||
Financial assets: | ||
Other interest bearing deposits | 0 | 249 |
Available for sale ("AFS") securities, at amortized cost of $179,744, net of allowance for credit losses of $0 at December 31, 2023 | 155,743 | 165,991 |
Securities held to maturity "HTM" | 91,229 | 96,379 |
Other investments | 15,725 | 15,834 |
Financial liabilities: | ||
FHLB advances | 79,530 | 142,530 |
Carrying Amount | (Level II) | Small Business Association Paycheck Protection Program Loans [Member] | ||
Financial assets: | ||
Loans held for sale - Residential mortgage | 4,639 | 0 |
Carrying Amount | NAV | ||
Financial assets: | ||
Equity investments | 2,727 | 1,456 |
Carrying Amount | (Level III) | ||
Financial assets: | ||
Loans receivable, net | 1,437,884 | 1,393,845 |
Mortgage servicing rights | 3,865 | 4,262 |
Financial liabilities: | ||
Deposits | 1,519,092 | 1,424,720 |
Estimated Fair Value | (Level I) | ||
Financial assets: | ||
Cash and cash equivalents | 37,138 | 35,363 |
Equity investments | 557 | 338 |
Accrued interest receivable | 5,409 | 5,285 |
Financial liabilities: | ||
Other borrowings | 59,743 | 72,409 |
Accrued interest payable | 3,175 | 968 |
Estimated Fair Value | (Level I) | Residential mortgage | ||
Financial assets: | ||
Loans held for sale - Residential mortgage | 1,134 | 0 |
Estimated Fair Value | (Level II) | ||
Financial assets: | ||
Other interest bearing deposits | 0 | 250 |
Available for sale ("AFS") securities, at amortized cost of $179,744, net of allowance for credit losses of $0 at December 31, 2023 | 155,743 | 165,991 |
Securities held to maturity "HTM" | 73,262 | 76,779 |
Other investments | 15,725 | 15,834 |
Financial liabilities: | ||
FHLB advances | 79,087 | 141,060 |
Estimated Fair Value | (Level II) | Small Business Association Paycheck Protection Program Loans [Member] | ||
Financial assets: | ||
Loans held for sale - Residential mortgage | 4,639 | 0 |
Estimated Fair Value | NAV | ||
Financial assets: | ||
Equity investments | 2,727 | 1,456 |
Estimated Fair Value | (Level III) | ||
Financial assets: | ||
Loans receivable, net | 1,374,387 | 1,342,838 |
Mortgage servicing rights | 5,589 | 5,665 |
Financial liabilities: | ||
Deposits | $ 1,517,361 | $ 1,420,871 |
EARNINGS PER SHARE - Summary (D
EARNINGS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic | ||
Net income attributable to common shareholders | $ 13,059 | $ 17,761 |
Weighted average common shares outstanding (shares) | 10,469,000 | 10,505,000 |
Basic earnings per share (USD per share) | $ 1.25 | $ 1.69 |
Diluted | ||
Net income attributable to common shareholders | $ 13,059 | $ 17,761 |
Weighted average common shares outstanding (shares) | 10,469,000 | 10,505,000 |
Add: Dilutive stock options outstanding (shares) | 1,000 | 9,000 |
Average shares and dilutive potential common shares (shares) | 10,470,000 | 10,514,000 |
Diluted earnings per share (USD per share) | $ 1.25 | $ 1.69 |
Additional common stock option shares that have not been included due to their antidilutive effect (shares) | 40 | 21 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Before-Tax Amount | ||
Other comprehensive income (loss) | $ 352 | $ (24,575) |
Tax Benefit (Expense) | ||
Other comprehensive income (loss) | (24) | 6,758 |
Net-of-Tax Amount | ||
Other comprehensive income (loss) | 328 | (17,817) |
Unrealized Gains (Losses) on Securities | ||
Before-Tax Amount | ||
Net unrealized gains (losses) arising during the period | 364 | (24,575) |
Reclassification adjustment for gains included in net income | (12) | 0 |
Tax Benefit (Expense) | ||
Net unrealized gains (losses) arising during the period | (27) | 6,758 |
Reclassification adjustment for gains included in net income | 3 | 0 |
Net-of-Tax Amount | ||
Net unrealized gains (losses) arising during the period | 337 | (17,817) |
Reclassification adjustment for gains included in net income | $ (9) | $ 0 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Changes in the Accumulated Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the accumulated balances for each component of other comprehensive income | ||
Balance at beginning of period | $ 167,088 | $ 170,866 |
Current year-to-date other comprehensive income | 328 | (17,817) |
Balance at end of period | 173,334 | 167,088 |
Unrealized Gains (Losses) on Securities | ||
Changes in the accumulated balances for each component of other comprehensive income | ||
Balance at beginning of period | (24,353) | 222 |
Current year-to-date other comprehensive income | 352 | (24,575) |
Balance at end of period | (24,001) | (24,353) |
Other Accumulated Comprehensive Income (Loss), net of tax | ||
Changes in the accumulated balances for each component of other comprehensive income | ||
Balance at beginning of period | (17,656) | 161 |
Balance at end of period | $ (17,328) | $ (17,656) |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net gains on investment securities | $ 459 | $ 541 |
Tax effect | (5,873) | (5,820) |
Net income attributable to common stockholders | 13,059 | 17,761 |
Unrealized Gains (Losses) on Securities | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net gains on investment securities | 12 | 0 |
Tax effect | (3) | 0 |
Net income attributable to common stockholders | $ 9 | $ 0 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Cash and cash equivalents | $ 37,138 | $ 35,363 | |
TOTAL ASSETS | 1,851,391 | 1,816,386 | |
Liabilities and Stockholders’ Equity | |||
Other borrowings | 67,465 | 72,409 | |
Other liabilities | 11,970 | 9,639 | |
Liabilities | 1,678,057 | 1,649,298 | |
Stockholders' equity attributable to parent | 173,334 | 167,088 | $ 170,866 |
Liabilities and Equity | 1,851,391 | 1,816,386 | |
Parent Company | |||
Assets | |||
Cash and cash equivalents | 18,175 | 19,221 | |
Equity investments | 1,691 | 946 | |
Other assets | 402 | 386 | |
Investment in subsidiary | 221,267 | 219,714 | |
TOTAL ASSETS | 241,535 | 240,267 | |
Liabilities and Stockholders’ Equity | |||
Other borrowings | 67,465 | 72,409 | |
Other liabilities | 736 | 770 | |
Liabilities | 68,201 | 73,179 | |
Stockholders' equity attributable to parent | 173,334 | 167,088 | |
Liabilities and Equity | $ 241,535 | $ 240,267 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY - Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest income | $ 84,248 | $ 69,397 |
Interest expense | 35,899 | 13,028 |
Net interest income before provision for credit losses | 48,349 | 56,369 |
Non-interest income | 10,250 | 10,430 |
Non-interest expense | (40,142) | (41,743) |
Benefit for income taxes | (5,873) | (5,820) |
Net income attributable to common stockholders | 13,059 | 17,761 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest income | 0 | 0 |
Interest expense | 4,184 | 4,296 |
Net interest income before provision for credit losses | (4,184) | (4,296) |
Dividend income from bank subsidiary | 12,000 | 6,000 |
Non-interest income | 127 | 422 |
Non-interest expense | (762) | (918) |
Net income before benefit for income taxes and equity in undistributed income of subsidiaries | 7,181 | 1,208 |
Benefit for income taxes | 1,073 | 1,310 |
Net earnings before equity in undistributed income of subsidiaries | 8,254 | 2,518 |
Equity in undistributed income of subsidiaries | 4,805 | 15,243 |
Net income attributable to common stockholders | $ 13,059 | $ 17,761 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 13,059 | $ 17,761 |
Depreciation expense | 2,371 | 2,357 |
Net valuation gain on equity securities | (447) | (541) |
Net change in: | ||
Other assets | 54 | 79 |
Other liabilities | 794 | (1,620) |
Net cash provided by operating activities | 13,124 | 29,288 |
Cash flows from investing activities: | ||
Equity investment capital distribution | 132 | 136 |
Net cash used in investing activities | (34,205) | (119,187) |
Cash flows from financing activities: | ||
Proceeds from other borrowings, net of origination costs | 0 | 34,191 |
Amortization of debt issuance costs | 223 | 398 |
Other borrowings principal reductions | (5,167) | (5,606) |
Other borrowings called and repaid | 0 | (15,000) |
Repurchase shares of common stock | (421) | (1,764) |
Surrender of restricted shares of common stock | (129) | (150) |
Common stock options exercised | 28 | 71 |
Cash dividends paid | (3,040) | (2,742) |
Net cash provided by financing activities | 22,856 | 77,571 |
Net decrease in cash and cash equivalents | 1,775 | (12,328) |
Cash and cash equivalents at beginning of period | 35,363 | 47,691 |
Cash and cash equivalents at end of period | 37,138 | 35,363 |
Parent Company | ||
Cash flows from operating activities: | ||
Net income | 13,059 | 17,761 |
Depreciation expense | 12 | 13 |
Net valuation gain on equity securities | (127) | (422) |
Stock based compensation expense | 0 | 3 |
Adjustments to reconcile net income to net cash provided by operating activities - Equity in undistributed income of subsidiary | (16,805) | (21,243) |
Net change in: | ||
Other assets | (28) | (14) |
Other liabilities | (34) | 424 |
Net cash provided by operating activities | (3,923) | (3,478) |
Cash flows from investing activities: | ||
Purchase of equity investments | (750) | (300) |
Equity investment capital distribution | 132 | 136 |
Dividend from bank subsidiary | 12,000 | 6,000 |
Capital contribution to bank subsidiary | 0 | (15,000) |
Net cash used in investing activities | 11,382 | (9,164) |
Cash flows from financing activities: | ||
Proceeds from other borrowings, net of origination costs | 0 | 34,191 |
Amortization of debt issuance costs | 223 | 398 |
Other borrowings principal reductions | (5,167) | (5,606) |
Other borrowings called and repaid | 0 | (15,000) |
Repurchase shares of common stock | (420) | (1,764) |
Surrender of restricted shares of common stock | (129) | (150) |
Common stock options exercised | 28 | 71 |
Cash dividends paid | (3,040) | (2,742) |
Net cash provided by financing activities | (8,505) | 9,398 |
Net decrease in cash and cash equivalents | (1,046) | (3,244) |
Cash and cash equivalents at beginning of period | 19,221 | 22,465 |
Cash and cash equivalents at end of period | $ 18,175 | $ 19,221 |