Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001437479 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-53297 | ||
Entity Registrant Name | ENB Financial Corp | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 51-0661129 | ||
Entity Address, Address Line One | 31 E. Main St. | ||
Entity Address, City or Town | Ephrata | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 17522 | ||
City Area Code | 717 | ||
Local Phone Number | 733-4181 | ||
Title of 12(b) Security | None | ||
Trading Symbol | N/A | ||
Name of Exchange on which Security is Registered | NONE | ||
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 | ||
Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 74,223,402 | ||
Entity Common Stock, Shares Outstanding | 5,583,956 | ||
Documents Incorporated By Reference Text Block | The Registrant’s Definitive Proxy Statement for its 2022 Annual Meeting of Shareholders to be held on May 10, 2022, is incorporated into Parts III and IV hereof. | ||
Auditor Name | S.R. Snodgrass, P.C. | ||
Auditor Location | Cranberry Township, Pennsylvania | ||
Auditor Firm Id | 74 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 19,930 | $ 21,665 |
Interest-bearing deposits in other banks | 138,519 | 73,274 |
Total cash and cash equivalents | 158,449 | 94,939 |
Securities available for sale (at fair value) | 558,093 | 476,428 |
Equity securities (at fair value) | 8,982 | 7,105 |
Loans held for sale | 3,194 | 3,029 |
Loans (net of unearned income) | 920,904 | 823,370 |
Less: Allowance for credit losses | 12,931 | 12,327 |
Net loans | 907,973 | 811,043 |
Premises and equipment | 24,476 | 24,760 |
Regulatory stock | 5,380 | 6,107 |
Bank owned life insurance | 35,414 | 29,646 |
Other assets | 15,269 | 9,256 |
Total assets | 1,717,230 | 1,462,313 |
Deposits: | ||
Noninterest-bearing | 686,278 | 534,853 |
Interest-bearing | 825,935 | 717,958 |
Total deposits | 1,512,213 | 1,252,811 |
Long-term debt | 44,206 | 54,790 |
Subordinated debt | 19,680 | 19,601 |
Other liabilities | 3,843 | 4,895 |
Total liabilities | 1,579,942 | 1,332,097 |
Stockholders' equity: | ||
Common stock, par value $0.10 Shares: Authorized 24,000,000 Issued 5,739,114 and Outstanding 5,583,956 as of 12/31/21 and 5,566,230 as of 12/31/20 | 574 | 574 |
Capital surplus | 4,520 | 4,444 |
Retained earnings | 131,856 | 120,670 |
Accumulated other comprehensive income net of tax | 3,441 | 7,958 |
Less: Treasury stock cost on 155,158 shares as of 12/31/21 172,884 shares as of 12/31/20 | (3,103) | (3,430) |
Total stockholders' equity | 137,288 | 130,216 |
Total liabilities and stockholders' equity | $ 1,717,230 | $ 1,462,313 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 24,000,000 | 24,000,000 |
Common stock, issued | 5,739,114 | 5,739,114 |
Common stock, outstanding | 5,583,956 | 5,566,230 |
Treasury shares | 155,158 | 172,884 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 34,246 | $ 34,654 |
Interest on securities available for sale | ||
Taxable | 4,881 | 4,040 |
Tax-exempt | 3,975 | 2,719 |
Interest on deposits at other banks | 91 | 140 |
Dividend income | 398 | 541 |
Total interest and dividend income | 43,591 | 42,094 |
Interest expense: | ||
Interest on deposits | 1,143 | 2,139 |
Interest on borrowings | 1,877 | 1,707 |
Total interest expense | 3,020 | 3,846 |
Net interest income | 40,571 | 38,248 |
Provision for loan losses | 475 | 2,950 |
Net interest income after provision for loan losses | 40,096 | 35,298 |
Other income: | ||
Trust and investment services income | 2,362 | 1,974 |
Service fees | 2,512 | 2,662 |
Commissions | 3,702 | 2,963 |
Gains on sale of debt securities, net | 730 | 809 |
Gains (losses) on equity securities, net | 324 | (76) |
Gains on sale of mortgages | 5,526 | 5,850 |
Earnings on bank-owned life insurance | 880 | 829 |
Other income | 1,845 | 349 |
Total other income | 17,881 | 15,360 |
Operating expenses: | ||
Salaries and employee benefits | 24,465 | 22,062 |
Occupancy | 2,621 | 2,407 |
Equipment | 1,053 | 1,196 |
Advertising & marketing | 992 | 894 |
Computer software & data processing | 4,420 | 3,148 |
Shares tax | 1,282 | 1,060 |
Professional services | 2,099 | 2,317 |
Other expense | 3,509 | 2,990 |
Total operating expenses | 40,441 | 36,074 |
Income before income taxes | 17,536 | 14,584 |
Provision for federal income taxes | 2,620 | 2,285 |
Net income | $ 14,916 | $ 12,299 |
Earnings per share of common stock | $ 2.68 | $ 2.20 |
Cash dividends paid per share | $ 0.67 | $ 0.64 |
Weighted average shares outstanding | 5,567,950 | 5,583,118 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,916 | $ 12,299 |
Securities available for sale not other-than-temporarily impaired: | ||
Unrealized (losses) gains arising during the period | (4,986) | 8,854 |
Income tax effect | 1,046 | (1,857) |
Total | (3,940) | 6,997 |
Gains recognized in earnings | (730) | (809) |
Income tax effect | 153 | 170 |
Total | (577) | (639) |
Other comprehensive (loss) income, net of tax | (4,517) | 6,358 |
Comprehensive Income | $ 10,399 | $ 18,657 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance, beginning at Dec. 31, 2019 | $ 574 | $ 4,482 | $ 111,944 | $ 1,600 | $ (1,912) | $ 116,688 |
Net income | 12,299 | 12,299 | ||||
Other comprehensive income net of tax | 6,358 | 6,358 | ||||
Treasury stock purchased | (2,216) | (2,216) | ||||
Treasury stock issued | (38) | 698 | 660 | |||
Cash dividends paid | (3,573) | (3,573) | ||||
Balance, ending at Dec. 31, 2020 | 574 | 4,444 | 120,670 | 7,958 | (3,430) | 130,216 |
Net income | 14,916 | 14,916 | ||||
Other comprehensive income net of tax | (4,517) | (4,517) | ||||
Treasury stock purchased | (482) | (482) | ||||
Treasury stock issued | 76 | 809 | 885 | |||
Cash dividends paid | (3,730) | (3,730) | ||||
Balance, ending at Dec. 31, 2021 | $ 574 | $ 4,520 | $ 131,856 | $ 3,441 | $ (3,103) | $ 137,288 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Treasury stock purchased, shares | 22,900 | 109,403 |
Treasury stock issued, shares | 40,626 | 34,891 |
Cash dividends paid, per share | $ 0.67 | $ 0.64 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 14,916 | $ 12,299 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts and loan fees | 3,945 | 2,580 |
Amortization of operating leases right-of-use assets | 112 | 180 |
Increase in interest receivable | (608) | (778) |
Decrease in interest payable | (71) | (196) |
Provision for loan losses | 475 | 2,950 |
Gain on sale of debt securities, net | (730) | (809) |
(Gain) loss on equity securities, net | (324) | 76 |
Gains on sale of mortgages | (5,526) | (5,850) |
Loans originated for sale | (97,578) | (127,871) |
Proceeds from sales of loans | 102,939 | 133,034 |
Earnings on bank-owned life insurance | (880) | (829) |
Depreciation of premises and equipment and amortization of software | 1,560 | 1,509 |
Deferred income tax | (15) | (646) |
Amortization of deferred fees on subordinated debt | 79 | |
Other assets and other liabilities, net | (5,038) | 794 |
Net cash provided by operating activities | 13,256 | 16,443 |
Securities avaiable for sale: | ||
Proceeds from maturities, calls, and repayments | 74,972 | 65,702 |
Proceeds from sales | 79,019 | 54,291 |
Purchases | (245,788) | (283,041) |
Equity securities: | ||
Proceeds from sales | 460 | |
Purchases | (2,013) | (473) |
Purchase of regulatory bank stock | (556) | (1,248) |
Redemptions of regulatory bank stock | 1,283 | 2,432 |
Purchase of bank-owned life inurance | (4,888) | |
Net increase in loans | (96,204) | (68,829) |
Purchases of premises and equipment, net | (1,036) | (1,104) |
Purchase of computer software | (486) | (200) |
Net cash used for investing activities | (195,237) | (232,470) |
Cash flows from financing activities: | ||
Net increase in demand, NOW, and savings accounts | 264,554 | 294,820 |
Net decrease in time deposits | (5,152) | (16,097) |
Net decrease in short-term borrowings | (200) | |
Proceeds from long-term debt | 23,996 | |
Repayments of long-term debt | (10,584) | (47,078) |
Proceeds from issuance of subordinated debt | 19,601 | |
Dividends paid | (3,730) | (3,573) |
Proceeds from sale of treasury stock | 885 | 660 |
Treasury stock purchased | (482) | (2,216) |
Net cash provided by financing activities | 245,491 | 269,913 |
Increase in cash and cash equivalents | 63,510 | 53,886 |
Cash and cash equivalents at beginning of period | 94,939 | 41,053 |
Cash and cash equivalents at end of period | 158,449 | 94,939 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 3,089 | 4,047 |
Income taxes paid | 2,875 | 2,940 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Fair value adjustments for securities available for sale | 5,716 | (8,045) |
Recognition of lease operating right-of-use assets | 80 | |
Recognition of operating lease liabilities | $ 80 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations ENB Financial Corp, through its wholly owned subsidiary, Ephrata National Bank, provides financial services to Northern Lancaster County and surrounding communities. ENB Financial Corp, a bank holding company, was formed on July 1, 2008, to become the parent company of Ephrata National Bank, which existed as a stand-alone national bank since its formation on April 11, 1881. The Corporation’s wholly owned subsidiary, Ephrata National Bank, offers a full array of banking services including loan and deposit products for both personal and commercial customers, as well as trust and investment services, through twelve full-service office locations. Basis of Presentation The consolidated financial statements of ENB Financial Corp and its subsidiary, Ephrata National Bank, (collectively “the Corporation”) conform to U.S. generally accepted accounting principles (GAAP). The preparation of these statements requires that management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates of the Corporation, including the allowance for credit losses, the fair market value of financial instruments, and deferred tax assets or liabilities, are evaluated regularly by management. Actual results could differ from the reported estimates given different conditions or assumptions. The accounting and reporting policies followed by the Corporation conform with U.S. GAAP and to general practices within the banking industry. All significant intercompany transactions have been eliminated in consolidation. The following is a summary of the more significant policies. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents are identified as cash and due from banks and include cash on hand, collection items, amounts due from banks, and interest bearing deposits in other banks with maturities of less than 90 days. Securities Available for Sale The Corporation classifies its entire portfolio of debt securities as available for sale securities, which the Corporation reports at fair value. Any unrealized valuation gains or losses on the debt portfolio are reported as a separate component of stockholders' equity, net of deferred income taxes. The constant yield method is used for the amortization of premiums and the accretion of discounts for all of the Corporation’s securities with the exception of collateralized mortgage obligations (CMOs), mortgage-backed securities (MBS) and asset-backed securities (ABS). The constant yield method maintains a stable yield on the instrument through its maturity. For CMOs and MBS, a two-step/proration method is used for amortization and accretion. The first step is a proration based on the current pay down. This component ensures that the book price stays level with par. The second step amortizes or accretes the remaining premium or discount to the calculated final amortization or accretion date based on the current three-month constant prepayment rates. Net gains or losses realized on sales or calls of securities are reported as gains or losses on security transactions during the year of sale, using the specific identification method. Equity Securities Equity securities includes common stocks of public companies that the Corporation has the positive intent and ability to hold for an indeterminate amount of time. Such securities are reported at fair value with changes in unrealized holding gains and losses recognized through earnings on a monthly basis. Other Than Temporary Impairment (“OTTI”) Management monitors all of the Corporation’s securities for OTTI on a monthly basis and determines whether any impairment should be recorded. A number of factors are considered in determining whether a security is impaired, including, but not limited to, the following: • Percentage of unrealized losses, • Period of time the security has had unrealized losses, • Type of security, • Maturity date of the instrument if a debt instrument, • The intent to sell the security or whether it is more likely than not that the Corporation would be required to sell the security before its anticipated recovery in market value, 63 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements • Amount of projected credit losses based on current cash flow analysis, default and severity rates, and • Market dynamics impacting the market for and liquidity of the security. Management will more closely evaluate those securities that have unrealized losses of 10% or more and have had unrealized losses for more than twelve months. If management determines that the declines in value of the security are not temporary, or if management does not have the ability to hold the security until maturity, which is the case with equity securities, then management will record impairment on the security. For debt securities evaluated for impairment, management will determine what portion of the unrealized valuation loss is attributed to projected or known loss of principal, and what portion is attributed to market pricing not reflective of the true value of the security, based on current cash flow analysis. Management will generally record impairment equivalent to the projected or known loss of principal, known as the credit loss. The other portion of the fair market value loss is attributed to market factors and it is management’s opinion that these fair value losses are temporary and not permanent. All impairment is recorded as a loss on securities and is included in the Corporation’s Consolidated Statements of Income. Loans Held for Investment Loans receivable, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, generally are reported at the outstanding principal balances, reduced by any charge-offs and net of any deferred loan origination fees or costs. Net loan origination fees and costs are deferred and recognized as an adjustment of yield over the contractual life of the loan. Interest accrues daily on outstanding loan balances. Generally, the accrual of interest discontinues when the ability to collect the loan becomes doubtful or when a loan becomes more than 90 days past due as to principal and interest. These loans are referred to as non-accrual loans. Management may elect to continue the accrual of interest based on the expectation of future payments and/or the sufficiency of the underlying collateral. Loans Held for Sale Loans originated and intended for sale on the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. In general, fixed-rate residential mortgage loans originated by the Corporation and held for sale are carried in the aggregate at the lower of cost or market. The Corporation originates loans for immediate sale with servicing retained and servicing released to several investors. However, the vast majority of the sold mortgages are sold to the Federal Home Loan Bank of Pittsburgh (FHLB) and Fannie Mae, with servicing retained. As a result, the Corporation has a growing portfolio of mortgages that are serviced on behalf of FHLB and Fannie Mae. In addition, the Corporation originates FHA, VA, and USDA mortgages which are originated for immediate sale to various investors on a service-released basis. Allowance for Credit Losses The allowance for credit losses is maintained at a level considered by management to be adequate to provide for known and inherent risks in the loan portfolio at the Consolidated Balance Sheets dates. The monthly provision or credit for loan losses is an expense or a reduction of expense which increases or decreases the allowance, and charge-offs, net of recoveries, decrease the allowance. The Corporation performs ongoing credit reviews of the loan portfolio and considers current economic conditions, historical loan loss experience, and other factors in determining the adequacy of the reserve balance. Loans determined to be uncollectible are charged to the allowance during the period in which such determination is made. In calculating the allowance, management will begin by compiling the balance of loans by credit quality for each loan segment in order that allocations can be made in aggregate based on historic losses and qualitative factors. Prior to calculating these aggregate allocations, management will individually evaluate commercial and commercial real estate loans for impairment. A loan is impaired when it is probable that a creditor will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. All other loan types such as residential mortgages, home equity loans and lines of credit, and all other consumer loans, are not individually evaluated for impairment and are therefore allocated for in aggregate. These loans are considered to be large groups of smaller-balance homogenous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all circumstances concerning the loan, the creditworthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed. 64 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements For loans deemed to be impaired, management will provide a specific allocation. This loan balance is then subtracted from the total loan balances being allocated for in the aggregate. The remaining balances, along with the full loan balances for the other loan types are then multiplied by an adjusted loss ratio, which is the sum of both the historical loss ratio and a qualitative factor adjustment. Generally both the historical loss ratio and the qualitative factor adjustment will increase as the credit rating of the loan deteriorates. The credit ratings begin with unclassified loans, which represent the best internal credit rating, also referred to as a “pass” credit and then continue with declining grades of special mention, substandard, doubtful, and loss. Special mention loans are no longer deemed to be a “pass” credit and require additional management attention. They are essentially placed on “watched” status and attempts are made to improve the credit to an unclassified status. If the credit would deteriorate further it would then be a substandard credit, which for regulatory purposes, is deemed to be a classified loan. Doubtful and loss credit grades represent further credit deterioration and are also considered classified loans. For each loan type, all of these credit rating categories are broken out with adjusted loss ratios. The loan balance is then multiplied by the adjusted loss ratio to produce the required allowance. The allowances are totaled and added to any specific allocations on impaired loans to arrive at the total allowance for credit losses for the Corporation. Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio, calculated on a quarterly basis, with a 60%, 30%, and 10% weighting for the past three years is used. In this manner the historical loss percentage is heavily weighted to the current loss environment, but has sufficient weighting assigned to prior periods to avoid unnecessary volatile fluctuations based on just one period’s data. Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: • levels of and trends in delinquencies, non-accruals, and charge-offs, • trends in the nature and volume of the loan portfolio, • changes in lending policies and procedures, • experience, ability, and depth of lending personnel and management oversight, • national and local economic trends, • concentrations of credit, • external factors such as competition, legal, and regulatory requirements, • changes in the quality of loan review and Board oversight, • changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for any segment of the loan portfolio it is likely that factor would be reduced. In terms of the Corporation’s loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on their financial condition and therefore are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. Commercial real estate lending is highly impacted by the value of collateral so these commercial loans carry a higher qualitative factor for changes in collateral value. While the Corporation’s CRE loans have performed well historically, other commercial loans and commercial mortgage loans have historically been responsible for the majority of the Corporation’s delinquencies, non-accrual loans, and charge-offs, so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Corporation has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans. 65 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Impaired and Non-Accrual Loans The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. Generally, a non-accrual loan will always be considered impaired due to payment delinquency or uncertain collection, but there are cases where an impaired loan is not considered non-accrual. The primary factors considered by management in determining impairment include payment status and collateral value, but could also include debt service coverage, financial health of the business, and other external factors that could impact the ability of the borrower to fully repay the loan. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan using the original interest rate and its recorded value or, as a practical expedient in the case of collateral-dependent loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral on a discounted basis, relative to the loan amount. Management will place a business or commercial loan on non-accrual status when it is determined that the loan is impaired, or when the loan is 90 days past due. These customers will generally be placed on non-accrual status at the end of each quarter. Consumer loans over 90 days delinquent are generally charged off, or in the case of residential real estate loans the Corporation will seek to bring the customer current or pursue foreclosure options. When the borrower is on non-accrual, the Corporation will reverse any accrued interest on the books and will discontinue recognizing any interest income until the borrower is placed back on accrual status or fully pays off the loan balance plus any accrued interest. Payments received by the customer while the loan is on non-accrual are fully applied against principal. The Corporation maintains records of the full amount of interest that is owed by the borrower. A non-accrual loan will generally only be placed back on accrual status after the borrower has become current and has demonstrated six consecutive months of non-delinquency. Allowance for Off-Balance Sheet Extensions of Credit The Corporation maintains an allowance for off-balance sheet extensions of credit, which would include any unadvanced amount on lines of credit and any letters of credit provided to borrowers. The allowance is carried as a liability and is included in other liabilities on the Corporation’s Consolidated Balance Sheets. The liability was $910,000 as of December 31, 2021, and $798,000 as of December 31, 2020. As the unadvanced portion of lines of credit increases, this provision will increase. Management follows the same methodology as the allowance for credit losses when calculating the allowance for off-balance sheet extensions of credit, with the exception of multiplying the unadvanced total by a high/low balance variance to arrive at the expected unadvanced portion that could be drawn upon at any time, or the amount at risk. The unadvanced amounts for each loan segment are broken down by credit classification. A historical loss ratio and qualitative factor are calculated for each credit classification by loan type. The historical loss ratio and qualitative factor are combined to produce an adjusted loss ratio, which is multiplied by the amount at risk for each credit classification within each loan segment to arrive at an allocation. The allocations are summed to arrive at the total allowance for off-balance sheet extensions of credit. Other Real Estate Owned (OREO) OREO represents properties acquired through customer loan defaults. These properties are recorded at the lower of cost or fair value less projected disposal costs at acquisition date. Fair value is determined by current appraisals. Costs associated with holding OREO are charged to operational expense. OREO is a component of other assets on the Corporation’s Consolidated Balance Sheets. The Corporation had no OREO as of December 31, 2021, or December 31, 2020. Mortgage Servicing Rights (MSRs) The Corporation has agreements for the express purpose of selling residential mortgage loans on the secondary market, referred to as mortgage servicing rights. The Corporation maintains all servicing rights for loans currently sold through FHLB and Fannie Mae. The Corporation had $1,768,000 of MSRs as of December 31, 2021, compared to $1,076,000 as of December 31, 2020. The value of MSRs increased during 2021 as valuation of new assets outpaced amortization on existing assets. The year ended December 31, 2021, was the second year of elevated mortgage volume resulting in this increase in MSRs. The value of newly originated MSRs is determined by estimating the life of the mortgage and how long the Corporation will have access to the servicing income stream to determine the relative fair value. The Corporation utilizes a third party that calculates the MSR valuation on a quarterly basis. A longer estimated life would increase the MSR valuation, while a shorter estimated life would decrease the value of the MSR. Management records the MSR value based on the third-party reporting. Ultimately the value of the MSRs would be at what level a willing buyer and seller would exchange the MSRs. MSRs are 66 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio. Impairment is evaluated based on the fair value of the rights, portfolio interest rates, and prepayment characteristics. MSRs are a component of other assets on the Consolidated Balance Sheets. The following chart provides the activity of the Corporation’s mortgage servicing rights for the years ended December 31, 2021 and 2020. MORTGAGE SERVICING RIGHTS (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Beginning Balance 1,076 892 Additions 877 753 Amortization ( 48 ) (420 ) Disposals ( 137 ) (149 ) Ending Balance 1,768 1,076 Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. Book depreciation is computed using straight-line methods over the estimated useful lives of generally fifteen thirty-nine four ten years Transfer of Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank-Owned Life Insurance (BOLI) BOLI is carried by the Corporation at the cash surrender value of the underlying policies. Income earned on the policies is based on any increase in cash surrender value less the cost of the insurance, which varies according to age and health of the insured. The life insurance policies owned by the Corporation had a cash surrender value of $35,414,000 and $29,646,000 as of December 31, 2021, and 2020, respectively. The increase in BOLI cash surrender value was primarily due to an additional BOLI investment of $5 million in 2021 and normal appreciation of existing policies as a result of returns exceeding expenses. Leases The Company has operating leases for several branch locations and office space. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company may also lease certain office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components (e.g., common-area or other maintenance costs). The Company accounts for each component separately based on the standalone price of each component. In addition, there are several operating leases with lease terms of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right of use assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at the sole discretion of management and is based on whether the extension options are reasonably certain to be exercised after giving proper consideration to all facts and circumstances of the lease. If management determines that the Company 67 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements is reasonably certain to exercise the extension option(s), the additional term is included in the calculation of the lease liability. As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments. Advertising Costs The Corporation expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2021 and 2020 were $992,000 and $894,000, respectively. Income Taxes An asset and liability approach is followed for financial accounting and reporting for income taxes. Accordingly, a net deferred tax asset or liability is recorded in the consolidated financial statements for the tax effects of temporary differences, which are items of income and expense reported in different periods for income tax and financial reporting purposes. Deferred tax expense is determined by the change in the assets or liabilities related to deferred income taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Earnings per Share The Corporation currently maintains a simple capital structure with no stock option plans that would have a dilutive effect on earnings per share. Earnings per share are calculated by dividing net income by the weighted-average number of shares outstanding for the periods. Comprehensive Income The Corporation is required to present comprehensive income in a full set of general-purpose consolidated financial statements for all periods presented. Other comprehensive income consists of unrealized holding gains and losses on the available for sale securities portfolio. Segment Disclosure U.S. generally accepted accounting principles establish standards for the manner in which public business enterprises report information about segments in the annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures regarding financial products and services, geographic areas, and major customers. The Corporation has only one operating segment consisting of its banking and fiduciary operations. Retirement Plans The Corporation provides an optional 401(k) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The Corporation will match 50% of employee contributions up to 5%, limiting the match to 2.5%. As part of the 401(k) Plan, the Corporation also has a noncontributory Profit Sharing Plan which covers substantially all employees. The Corporation provides a 3% non-elective contribution to all employees and contributes a 2% elective contribution to all employees aged 21 or older who work 1,000 or greater hours in a calendar year and have completed at least one full year of employment. Trust Assets and Income Assets held by ENB’s Money Management Group in a fiduciary or agency capacity for customers are not included in the Corporation’s Consolidated Balance Sheets since these items are not assets of the Corporation. In accordance with banking industry practice, trust income is recognized on a cash basis; as such income does not differ significantly from amounts that would be recognized on an accrual basis. Trust income is reported in the Corporation’s Consolidated Statements of Income under other income. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). 68 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no material effect on net income or stockholders’ equity. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments ‒ Credit Losses In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses 69 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. For entities that have not yet adopted ASU 2016-13 as of November 26, 2019, the effective dates for ASU 2019-11 are the same as the effective dates and transition requirements in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-11 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Corporation' qualifies as a smaller reporting company and does not expect to early adopt these ASUs. In March 2020, the FASB issued ASU 2020-03 , Codification Improvements to Financial Instruments. Financial Instruments In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE B - SECURITIES (DOLLARS IN THOUSANDS) DEBT SECURITIES The amortized cost and fair value of debt securities held at December 31, 2021, and 2020, are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2021 U. S. Treasuries 14,821 14 ( 22 ) 14,813 U.S. government agencies 29,613 50 ( 642 ) 29,021 U.S. agency mortgage-backed securities 51,964 502 ( 478 ) 51,988 U.S. agency collateralized mortgage obligations 30,917 241 ( 81 ) 31,077 Asset-backed securities 100,998 605 ( 384 ) 101,219 Corporate bonds 82,617 420 ( 528 ) 82,509 Obligations of states and political subdivisions 242,807 5,848 ( 1,189 ) 247,466 Total securities available for sale 553,737 7,680 ( 3,324 ) 558,093 December 31, 2020 U.S. government agencies 54,224 144 (7 ) 54,361 U.S. agency mortgage-backed securities 69,777 1,441 (166 ) 71,052 U.S. agency collateralized mortgage obligations 34,449 640 (54 ) 35,035 Asset-backed securities 60,387 433 (345 ) 60,475 Corporate bonds 60,387 1,348 (12 ) 61,723 Obligations of states and political subdivisions 187,132 6,727 (77 ) 193,782 Total securities available for sale 466,356 10,733 (661 ) 476,428 The amortized cost and fair value of debt securities available for sale at December 31, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 28,348 28,490 Due after one year through five years 109,795 110,615 Due after five years through ten years 148,147 147,710 Due after ten years 267,447 271,278 Total debt securities 553,737 558,093 Securities available for sale with a par value of $94,283,000 and $86,849,000 at December 31, 2021 and 2020, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair market value of these pledged securities was $96,521,000 at December 31, 2021, and $91,666,000 at December 31, 2020. 71 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Proceeds from active sales of debt securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Securities Available for Sale 2021 2020 $ $ Proceeds from sales 79,019 54,291 Gross realized gains 809 836 Gross realized losses 79 27 Information pertaining to securities with gross unrealized losses at December 31, 2021, and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of December 31, 2021 U.S. Treasuries 4,959 ( 22 ) — — 4,959 ( 22 ) U.S. government agencies 16,386 ( 519 ) 7,375 ( 123 ) 23,761 ( 642 ) U.S. agency mortgage-backed securities 24,090 ( 468 ) 2,458 ( 10 ) 26,548 ( 478 ) U.S. agency collateralized mortgage obligations 14,206 ( 66 ) 2,965 ( 15 ) 17,171 ( 81 ) Asset-backed securities 50,466 ( 338 ) 2,826 ( 46 ) 53,292 ( 384 ) Corporate bonds 44,907 ( 528 ) — — 44,907 ( 528 ) Obligations of states & political subdivisions 70,021 ( 1,043 ) 6,023 ( 146 ) 76,044 ( 1,189 ) Total temporarily impaired securities 225,035 ( 2,984 ) 21,647 ( 340 ) 246,682 ( 3,324 ) As of December 31, 2020 U.S. government agencies 42,988 (7 ) — — 42,988 (7 ) U.S. agency mortgage-backed securities 15,995 (157 ) 2,221 (9 ) 18,216 (166 ) U.S. agency collateralized mortgage obligations 12,933 (54 ) — — 12,933 (54 ) Asset-backed securities 8,465 (20 ) 18,080 (325 ) 26,545 (345 ) Corporate bonds — — 3,016 (12 ) 3,016 (12 ) Obligations of states & political subdivisions 15,666 (77 ) — — 15,666 (77 ) Total temporarily impaired securities 96,047 (315 ) 23,317 (346 ) 119,364 (661 ) In the debt security portfolio, there are 115 positions carrying unrealized losses as of December 31, 2021. There were no instruments considered to be other-than-temporarily impaired at December 31, 2021. The Corporation evaluates fixed income positions for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. U.S. generally accepted accounting principles provide for the bifurcation of OTTI into two categories: (a) the amount of the total OTTI related to a decrease in cash flows expected to be collected from the debt security (the credit loss), which is 72 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements recognized in earnings, and (b) the amount of total OTTI related to all other factors, which is recognized, net of taxes, as a component of accumulated other comprehensive income (loss). EQUITY SECURITIES The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at December 31, 2021 and December 31, 2020. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2021 CRA-qualified mutual funds 7,240 — — 7,240 Bank stocks 1,570 184 ( 12 ) 1,742 Total equity securities 8,810 184 ( 12 ) 8,982 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2020 CRA-qualified mutual funds 6,176 — — 6,176 Bank stocks 982 53 (106 ) 929 Total equity securities 7,158 53 (106 ) 7,105 The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the year ended December 31, 2021 and 2020, and the portion of unrealized gains and losses for the periods that relates to equity investments held as of December 31, 2021 and 2020. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Year Ended Year Ended December 31, 2021 December 31, 2020 $ $ Net gains (losses) recognized in equity securities during the period 324 (76 ) Less: Net gains realized on the sale of equity securities during the period ( 99 ) — Unrealized gains (losses) recognized in equity securities held at reporting date 225 (76 ) Proceeds from the sale of equity securities during 2021 totaled $460,000. No equity securities were sold during 2020. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE C - LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table presents the Corporation’s loan portfolio by category of loans for 2021 and 2020. LOAN PORTFOLIO (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Commercial real estate Commercial mortgages 177,396 142,698 Agriculture mortgages 203,725 176,005 Construction 19,639 23,441 Total commercial real estate 400,760 342,144 Consumer real estate (a) 1-4 family residential mortgages 317,037 263,569 Home equity loans 11,181 10,708 Home equity lines of credit 75,698 71,290 Total consumer real estate 403,916 345,567 Commercial and industrial Commercial and industrial 65,615 97,896 Tax-free loans 23,009 10,949 Agriculture loans 20,717 20,365 Total commercial and industrial 109,341 129,210 Consumer 5,132 5,155 Gross loans prior to deferred costs and allowance for loan losses 919,149 822,076 Deferred loan costs, net 1,755 1,294 Allowance for credit losses ( 12,931 ) (12,327 ) Total net loans 907,973 811,043 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $289,263,000 and $235,437,000 as of December 31, 2021, and 2020, respectively. The Corporation grades commercial credits differently than consumer credits. The following tables represent all of the Corporation’s commercial credit exposures by internally assigned grades as of December 31, 2021 and 2020. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled or at all. The Corporation's internal commercial credit risk grading system is based on experiences with similarly graded loans. The Corporation's internally assigned grades for commercial credits are as follows: • Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. • Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. • Substandard – loans that have a well-defined weakness based on objective evidence and characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. • Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. • Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. 74 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) Commercial Commercial Agriculture and Tax-free Agriculture December 31, 2021 Mortgages Mortgages Construction Industrial Loans Loans Total $ $ $ $ $ $ $ Grade: Pass 172,540 192,943 13,544 57,214 23,009 19,980 479,230 Special Mention 2,443 2,542 6,095 4,657 — 90 15,827 Substandard 2,413 8,240 — 3,744 — 647 15,044 Doubtful — — — — — — — Loss — — — — — — — Total 177,396 203,725 19,639 65,615 23,009 20,717 510,101 COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) Commercial Commercial Agriculture and Tax-free Agriculture December 31, 2020 Mortgages Mortgages Construction Industrial Loans Loans Total $ $ $ $ $ $ $ Grade: Pass 133,853 166,102 21,142 87,767 10,949 18,586 438,399 Special Mention 3,683 1,651 2,299 5,592 — 774 13,999 Substandard 5,162 8,252 — 4,537 — 1,005 18,956 Doubtful — — — — — — — Loss — — — — — — — Total 142,698 176,005 23,441 97,896 10,949 20,365 471,354 For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. A consumer loan is considered non-performing when it is over 90 days past due. Management will generally charge off consumer loans more than 120 days past due for closed end loans and over 180 days for open-end consumer loans. The following table presents the balances of consumer loans by classes of the loan portfolio based on payment performance as of December 31, 2021 and 2020: 75 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2021 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 316,722 11,181 75,659 5,132 408,694 Non-performing 315 — 39 — 354 Total 317,037 11,181 75,698 5,132 409,048 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2020 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 262,185 10,708 71,267 5,141 349,301 Non-performing 1,384 — 23 14 1,421 Total 263,569 10,708 71,290 5,155 350,722 The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of December 31, 2021 and 2020: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Receivable December 31, 2021 Greater >90 Days 30-59 Days 60-89 Days than 90 Total Past Total Loans and Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages 22 — 184 206 177,190 177,396 — Agriculture mortgages 232 — 1,838 2,070 201,655 203,725 — Construction — — — — 19,639 19,639 — Consumer real estate 1-4 family residential mortgages 1,464 68 315 1,847 315,190 317,037 276 Home equity loans 19 — — 19 11,162 11,181 — Home equity lines of credit — — 39 39 75,659 75,698 39 Commercial and industrial Commercial and industrial 43 — 395 438 65,177 65,615 10 Tax-free loans — — — — 23,009 23,009 — Agriculture loans — 9 110 119 20,598 20,717 — Consumer 22 — — 22 5,110 5,132 — Total 1,802 77 2,881 4,760 914,389 919,149 325 76 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Receivable December 31, 2020 Greater >90 Days 30-59 Days 60-89 Days than 90 Total Past Total Loans and Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 208 208 142,490 142,698 — Agriculture mortgages — — — — 176,005 176,005 — Construction — — — — 23,441 23,441 — Consumer real estate 1-4 family residential mortgages 618 — 1,384 2,002 261,567 263,569 1,336 Home equity loans 1 — — 1 10,707 10,708 — Home equity lines of credit — — 23 23 71,267 71,290 23 Commercial and industrial Commercial and industrial — — 469 469 97,427 97,896 — Tax-free loans — — — — 10,949 10,949 — Agriculture loans 42 — — 42 20,323 20,365 — Consumer 23 3 14 40 5,115 5,155 14 Total 684 3 2,098 2,785 819,291 822,076 1,373 As of December 31, 2021, and 2020, all of the Corporation’s non-homogeneous loans on non-accrual status were also considered impaired. The following table presents non-accrual loans by classes of the loan portfolio as of December 31: NON-ACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) 2021 2020 $ $ Commercial real estate Commercial mortgages 184 208 Agriculture mortgages 1,838 — Construction — — Consumer real estate 1-4 family residential mortgages 39 48 Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial 385 469 Tax-free loans — — Agriculture loans 110 — Consumer — — Total 2,556 725 77 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements No loan modifications were made during 2021 that would be considered a troubled debt restructuring (TDR). There was one loan modification made during 2020 that was considered a TDR. One $3.6 million loan was restructured to provide relief to the commercial borrower by reducing the interest rate, providing a six-month interest only period, and extending the amortization period by an additional nine years. This loan paid off in the third quarter of 2021. In addition to this TDR, deferments of principal related to the impact of COVID-19 did occur beginning in late March 2020, however these modifications are not considered a TDR under the revised COVID-19 regulatory guidance. A modification of the payment terms to a loan customer are considered a TDR if a concession was made to a borrower that is experiencing financial difficulty. A concession is generally defined as more favorable payment or credit terms granted to a borrower in an effort to improve the likelihood of the lender collecting principal in its entirety. Concessions usually are in the form of interest only for a period of time, or a lower interest rate offered in an effort to enable the borrower to continue to make normally scheduled payments. Included in the impaired loan portfolio is one loan to a commercial borrower that is being reported as a TDR. The balance of this TDR loans was $768,000 as of December 31, 2021. This TDR is not non-accrual. 78 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2021: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 223 263 — 2,153 106 Agriculture mortgages 2,055 2,066 — 1,313 54 Construction — — — — — Total commercial real estate 2,278 2,329 — 3,466 160 Commercial and industrial Commercial and industrial 385 438 — 419 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 385 438 — 419 — Total with no related allowance 2,663 2,767 — 3,885 160 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages 551 559 37 144 — Construction — — — — — Total commercial real estate 551 559 37 144 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 110 111 110 26 — Total commercial and industrial 110 111 110 26 — Total with a related allowance 661 670 147 170 — Total by loan class: Commercial real estate Commercial mortgages 223 263 — 2,153 106 Agriculture mortgages 2,606 2,625 37 1,457 54 Construction — — — — — Total commercial real estate 2,829 2,888 37 3,610 160 Commercial and industrial Commercial and industrial 385 438 — 419 — Tax-free loans — — — — — Agriculture loans 110 111 110 26 — Total commercial and industrial 495 549 110 445 — Total 3,324 3,437 147 4,055 160 79 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2020: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 256 318 — 798 — Agriculture mortgages 806 835 — 1,170 46 Construction — — — — — Total commercial real estate 1,062 1,153 — 1,968 46 Commercial and industrial Commercial and industrial 469 504 — 513 23 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 469 504 — 513 23 Total with no related allowance 1,531 1,657 — 2,481 69 With an allowance recorded: Commercial real estate Commercial mortgages 3,581 3,581 1,110 1,468 57 Agriculture mortgages 651 651 21 679 34 Construction — — — — — Total commercial real estate 4,232 4,232 1,131 2,147 91 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 4,232 4,232 1,131 2,147 91 Total by loan class: Commercial real estate Commercial mortgages 3,837 3,899 1,110 2,266 57 Agriculture mortgages 1,457 1,486 21 1,849 80 Construction — — — — — Total commercial real estate 5,294 5,385 1,131 4,115 137 Commercial and industrial Commercial and industrial 469 504 — 513 23 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 469 504 — 513 23 Total 5,763 5,889 1,131 4,628 160 80 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table details activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2021: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 6,329 3,449 1,972 52 525 12,327 Charge-offs — ( 20 ) — ( 35 ) — ( 55 ) Recoveries 109 2 56 17 — 184 Provision ( 175 ) 403 84 53 110 475 Ending balance 6,263 3,834 2,112 87 635 12,931 Ending balance: individually evaluated for impairment 37 — 110 — — 147 Ending balance: collectively evaluated for impairment 6,226 3,834 2,002 87 635 12,784 Loans receivable: Ending balance 400,760 403,916 109,341 5,132 919,149 Ending balance: individually evaluated for impairment 2,829 — 495 — 3,324 Ending balance: collectively evaluated for impairment 397,931 403,916 108,846 5,132 915,825 The dollar amount of the allowance increased for all loan segments except commercial real estate since December 31, 2020. The lower provision in the commercial real estate sector was due to a specific allocation of $1.1 million made during 2020 for a customer with ongoing business concerns. This loan paid off in 2021 resulting in a reversal of this specific allocation. The higher provisions across the other categories were primarily caused by growth within these segments of the loan portfolio. Recoveries exceeded charge-offs during the year ended December 31, 2021, so the provision expense was primarily related to loan portfolio growth and minor increases in qualitative factors. The Corporation’s allowance allocation is still overweighted toward commercial real estate loans due to the higher historical losses experienced. Approximately 48% of the allowance is dedicated to this sector that comprises 44% of total loan balances. This compares to 30% of the allowance being allocated to the consumer real estate sector which comprises 44% of all loan balances. Losses on consumer real estate have traditionally been lower than commercial loans. The commercial and industrial sector has 16% of the allowance allocated and comprises 16% of loan balances. Commercial and industrial historical losses have generally been lower than commercial real estate but higher than consumer real estate, based on loan balances outstanding. The December 31, 2021 ending balance of the allowance was up $604,000, or 4.9%, from December 31, 2020, and the allowance as a percentage of total loans was 1.40% as of December 31, 2021, and 1.50% as of December 31, 2020. 81 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table details activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2020: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 4,319 2,855 1,784 41 448 9,447 Charge-offs (45 ) — (23 ) (20 ) — (88 ) Recoveries 11 — 4 3 — 18 Provision (credit) 2,044 594 207 28 77 2,950 Ending balance 6,329 3,449 1,972 52 525 12,327 Ending balance: individually evaluated for impairment 1,131 — — — — 1,131 Ending balance: collectively evaluated for impairment 5,198 3,449 1,972 52 525 11,196 Loans receivable: Ending balance 342,144 345,567 129,210 5,155 822,076 Ending balance: individually evaluated for impairment 5,294 — 469 — 5,763 Ending balance: collectively evaluated for impairment 336,850 345,567 128,741 5,155 816,313 The dollar amount of the allowance increased for all loan segments since December 31, 2019. The higher provision in the commercial real estate sector was due to a specific allocation of $1.1 million for a customer with ongoing business concerns. The higher provisions across the other categories were primarily caused by increasing the qualitative factors across all industry lines to various degrees as a result of the impact and effect from COVID-19 and the declining economic conditions. There were minimal charge-offs and recoveries recorded during the year ended December 31, 2020, so the provision expense was primarily related to the specific allocation as well as the change in economic conditions and potential for credit declines moving forward. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE D - PREMISES AND EQUIPMENT (DOLLARS IN THOUSANDS) The major classes of the Corporation’s premises and equipment and accumulated depreciation are as follows: December 31, 2021 2020 $ $ Land 5,043 5,043 Buildings and improvements 30,265 29,742 Furniture and equipment 10,864 15,890 Construction in process 369 385 Total 46,541 51,060 Less accumulated depreciation ( 22,065 ) (26,300 ) Premises and equipment 24,476 24,760 Depreciation expense, which is included in operating expenses, amounted to $1,320,000 for 2021, and $1,377,000 for 2020. The construction in process category represents expenditures for ongoing projects. When construction is completed, these amounts will be reclassified into buildings and improvements, and/or furniture and equipment. Depreciation only begins when the project or asset is placed into service. As of December 31, 2021 and 2020, the construction in process consists primarily of costs associated with various small projects. |
REGULATORY STOCK
REGULATORY STOCK | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract] | |
REGULATORY STOCK | NOTE E - REGULATORY STOCK The Bank is a member of the Federal Home Loan Bank (FHLB) of Pittsburgh, which is one of 12 regional Federal Home Loan Banks. Each FHLB serves as a reserve or central bank for its members within its assigned region. As a member, the Bank is required to purchase and maintain stock in the FHLB in an amount equal to 0.10% of its asset value plus an additional 4% of its outstanding advances from the FHLB and mortgage partnership finance loans sold to the FHLB. At December 31, 2021, the Bank held $4,742,000 in stock of the FHLB compared to $5,919,000 as of December 31, 2020. The FHLB repurchases excess capital stock on a quarterly basis and pays a quarterly dividend on stock held by the Corporation. The FHLB’s quarterly dividend yield was 5.25% annualized on activity stock and 1.25% annualized on membership stock as of December 31, 2021. Most of the Corporation’s dividend is based on the activity stock, which is based on the amount of borrowings and mortgage activity with FHLB. The Corporation will continue to monitor the financial condition of the FHLB quarterly to assess its ability to continue to regularly repurchase excess capital stock and pay a quarterly dividend. The Corporation also owned $601,000 of Federal Reserve Bank stock and $37,000 of Atlantic Community Bancshares, Inc. stock, the Bank Holding Company of ACBB, as of December 31, 2021, compared to $151,000 and $37,000, respectively, as of December 31, 2020. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Deposits: | |
DEPOSITS | NOTE F - DEPOSITS (DOLLARS IN THOUSANDS) Deposits by major classifications are summarized as follows: December 31, 2021 2020 $ $ Non-interest bearing demand 686,278 534,853 Interest-bearing demand 63,015 47,092 NOW accounts 139,366 137,279 Money market deposit accounts 168,327 140,113 Savings accounts 341,291 274,386 Time deposits under $250,000 105,615 111,001 Time deposits of $250,000 or more 8,321 8,087 Total deposits 1,512,213 1,252,811 At December 31, 2021, the scheduled maturities of time deposits are as follows: 2022 63,603 2023 18,057 2024 17,121 2025 6,863 2026 8,292 Total 113,936 |
SHORT TERM BORROWINGS
SHORT TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
SHORT TERM BORROWINGS | NOTE G – SHORT TERM BORROWINGS (DOLLARS IN THOUSANDS) Short-term borrowings consist of Federal funds purchased that mature one business day from the transaction date, overnight borrowings from the Federal Reserve Discount Window, and FHLB advances with a term of less than one year. A summary of short-term borrowings is as follows for the years ended December 31, 2021 and 2020: 2021 2020 $ $ Total short-term borrowings outstanding at year end — — Average interest rate at year end — — Maximum outstanding at any month end — 11,012 Average amount outstanding for the year 22 2,342 Weighted-average interest rate for the year 0.25 % 0.33% As of December 31, 2021, the Corporation had approved unsecured Federal funds lines of $32 million. The Corporation also has the ability to borrow through the FRB Discount Window. The amount of borrowing available through the Discount Window was $28.3 million as of December 31, 2021. For further information on borrowings from the FHLB see Note H. |
OTHER BORROWED FUNDS
OTHER BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
OTHER BORROWED FUNDS | NOTE H – OTHER BORROWED FUNDS (DOLLARS IN THOUSANDS) Federal Home Loan Bank (FHLB) Borrowings Maturities of FHLB borrowings at December 31, 2021, and 2020, are summarized as follows: December 31, 2021 2020 Weighted- Weighted- Average Average Amount Rate Amount Rate $ % $ % FHLB fixed rate loans 2022 — — 10,584 2.13 2023 13,816 2.77 13,816 2.77 2024 17,407 2.02 17,407 2.02 2025 12,983 1.47 12,983 1.47 2026 Total other borrowings 44,206 2.09 54,790 2.10 As a member of the FHLB of Pittsburgh, the Corporation has access to significant credit facilities. Borrowings from FHLB are secured with a blanket security agreement and the required investment in FHLB member bank stock. As part of the security agreement, the Corporation maintains unencumbered qualifying assets (principally 1-4 family residential mortgage loans) in an amount at least as much as the advances from the FHLB. Additionally, all of the Corporation’s FHLB stock is pledged to secure these advances. The Corporation had an FHLB maximum borrowing capacity of $505.1 million as of December 31, 2021 with remaining borrowing capacity of $457.6 million. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated quarterly. Subordinated Debt Subordinated debt at December 31, 2021 and 2020 was as follows: (Dollars in thousands) December 31, 2021 2020 Carrying Carrying Issued Amount Amount Rate Amount Issued by Ranking $ $ % $ Date Issued Maturity ENB Financial Corp Subordinated (1)(2) 19,680 19,601 4.00 % 20,000 12/30/20 12/30/30 (1) The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (2) ENB Financial Corp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2025. |
CAPITAL TRANSACTIONS
CAPITAL TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Class of Stock Disclosures [Abstract] | |
CAPITAL TRANSACTIONS | NOTE I – CAPITAL TRANSACTIONS On October 21, 2020, the Board of Directors of the Corporation approved a plan to repurchase, in open market and privately negotiated transactions, up to 200,000 shares of its outstanding common stock. This current plan replaces the 2019 plan. The first purchase of common stock under this plan occurred on October 23, 2020. By December 31, 2021, a total of 32,900 shares were repurchased at a total cost of $669,000, for an average cost per share of $20.33. 85 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Shares repurchased under these plans were held as treasury shares to be utilized in connection with the Corporation’s three stock purchase plans. Currently, the following three stock purchase plans are in place: • a nondiscriminatory employee stock purchase plan (ESPP), which allows employees to purchase shares at a 15% discount from the stock’s fair market value at the end of each quarter, • a dividend reinvestment plan (DRP), and; • a directors’ stock purchase plan (DSPP). The ESPP was started in 2001 and is the largest of the three plans. There were 25,982 shares issued through the ESPP in 2021 with 281,870 shares issued since existence. The DRP was started in 2005 with 12,227 shares issued in 2021 and 229,453 total shares issued since existence. Lastly, the DSPP was started in 2010 as an additional option for board compensation. This plan is limited to outside directors. Only 2,417 shares were issued in connection with this plan in 2021 and 39,949 since existence. In 2020, there were 20,624 shares issued through the ESPP, 12,773 shares issued through the DRP, and 1,494 shares issued through the DSPP. The plans are beneficial to the Corporation as all reissued shares increase capital and since dividends are paid out in the form of additional shares, the plans act as a source of funds. The total amount of shares issued from Treasury for these plans collectively in 2021 and 2020 was 40,626 and 34,891, respectively. As of December 31, 2021, the Corporation held 155,158 treasury shares, at a weighted-average cost of $20.00 per share, with a cost basis of $3,103,000. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | NOTE J – RETIREMENT PLANS The Corporation has a 401(k) Savings Plan under which the Corporation makes an employer matching contribution, a non-elective safe harbor contribution and a discretionary non-elective profit sharing contribution. Employee contributions to the plan are subject to the maximum annual Internal Revenue Service contribution amounts which were $19,500 for 2021 and 2020, for persons under age 50, and for persons over age 50 was $26,000 in both years. The employer matching contribution is made on the compensation of all eligible employees, up to a maximum of 2.5% of an eligible employee’s compensation, at $0.50 for every $1.00 of employee contribution up to 5% of an eligible employee’s salary. The Corporation’s cost for this 401(k) match was $423,000 and $398,000 for 2021 and 2020, respectively. The employer non-elective safe harbor contribution is 3% of all employee compensation for the year. Based on the performance of the Corporation the Compensation Committee determined the discretionary non-elective profit sharing contribution would be 2% of all eligible employee compensation. For the Corporation, the expense of the 401(k) matching contribution will be smaller than the non-elective safe harbor and the discretionary non-elective profit sharing expenses as the Corporation is matching a maximum of up to 2.5% of salary, depending on employee contributions, compared to contributing up to 5.0% of eligible employee’s salaries in the safe harbor and discretionary profit sharing contributions. For purposes of the 401(k) Savings Plan, covered compensation was limited to $290,000 in 2021 and $285,000 in 2020. Total expenses of the plan were $936,000 and $622,000, for 2021 and 2020, respectively. The Corporation’s 401(k) Savings Plan is fully funded as all obligations are funded monthly. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Compensation Arrangements [Abstract] | |
DEFERRED COMPENSATION | NOTE K - DEFERRED COMPENSATION Prior to 1999, directors of the Corporation had the ability to defer their directors’ fees into a directors’ deferred compensation plan. Directors electing to defer their compensation signed a contract that allowed the Corporation to take out a life insurance policy on the director designed to fund the future deferred compensation obligation, which is paid out over a ten-year period at retirement age. A contract and life insurance policy was taken out for each period of pay deferred. The amount of deferred compensation to be paid to each director was actuarially determined based on the amount of life insurance the annual directors’ fees were able to purchase. This amount varies for each director depending on age, general health, and the number of years until the director is entitled to begin receiving payments. The Corporation is the owner and beneficiary of all life insurance policies on the directors. At the time the directors’ pay was deferred, the Corporation used the amount of the annual directors’ fees to pay the premiums on the life insurance policies. The Corporation could continue to pay premiums after the deferment 86 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements period, or could allow the policies to fund annual premiums through loans against the policy’s cash surrender value. The Corporation has continued to pay the premiums on the life insurance policies and no loans exist on the policies. The life insurance policies had an aggregate face amount of $3,409,000 for December 31, 2021, and December 31, 2020. The death benefits totaled $6,843,000 at December 31, 2021, and $6,734,000 at December 31, 2020. The cash surrender value of the above policies totaled $5,270,000 and $5,177,000 as of December 31, 2021, and 2020, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE L - INCOME TAXES Federal income tax expense as reported differs from the amount computed by applying the statutory Federal income tax rate to income before taxes. A reconciliation of the differences by amount and percent is as follows: FEDERAL INCOME TAX SUMMARY (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ % $ % Income tax at statutory rate 3,683 21.0 3,063 21.0 Tax-exempt interest income ( 954 ) ( 5.4 ) (695 ) (4.8 ) Non-deductible interest expense 47 0.3 50 0.3 Bank-owned life insurance ( 160 ) ( 0.9 ) (151 ) (1.0 ) Other 4 0.0 18 0.1 Income tax expense 2,620 15.0 2,285 15.6 The ability to realize the benefit of deferred tax assets is dependent upon a number of factors, including the generation of future taxable income, the ability to carry back losses to recover taxes paid in previous years, the ability to offset capital losses with capital gains, the reversal of deferred tax liabilities, and certain tax planning strategies. U.S. generally accepted accounting principles prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Corporation recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Income. With few exceptions, the Corporation is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2018. 87 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Significant components of income tax expense are as follows: (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ $ Current tax expense 2,605 2,931 Deferred tax (benefit) 15 (646 ) Income tax expense 2,620 2,285 Components of the Corporation's net deferred tax position are as follows: (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Deferred tax assets Allowance for credit losses 2,715 2,589 Allowance for off-balance sheet extensions of credit 191 168 Interest on non-accrual loans 6 11 Other 110 47 Total deferred tax assets 3,022 2,815 Deferred tax liabilities Premises and equipment ( 926 ) (987 ) Net unrealized holding gains on securities available for sale ( 915 ) (2,115 ) Mortgage servicing rights ( 193 ) (93 ) Discount on investment securities ( 114 ) (45 ) Other ( 129 ) (15 ) Total deferred tax liabilities ( 2,277 ) (3,255 ) Net deferred tax assets (liabilities) 745 (440 ) |
REGULATORY MATTERS AND RESTRICT
REGULATORY MATTERS AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY MATTERS AND RESTRICTIONS | NOTE M – REGULATORY MATTERS AND RESTRICTIONS The Corporation and the Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. The consolidated asset limit on small bank holding companies is $3 billion and a company with assets under that limit is not subject to the consolidated capital rules but may disclose capital amounts and ratios. The Corporation has elected to disclose those amounts and ratios. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth below) of tier I capital to average assets, and common equity tier I capital, tier I capital, and total capital to risk-weighted assets. As of December 31, 2021 and 2020, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following chart details the Corporation’s and the Bank’s capital levels as of December 31, 2021 and December 31, 2020, compared to regulatory levels. 88 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements CAPITAL LEVELS To Be Well (DOLLARS IN THOUSANDS) Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provision $ % $ % $ % As of December 31, 2021 Total Capital to Risk-Weighted Assets Consolidated 166,878 15.6 N/A N/A N/A N/A Bank 162,375 14.9 87,281 8.0 109,101 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 133,848 12.5 N/A N/A N/A N/A Bank 148,735 13.6 65,461 6.0 87,281 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 133,848 12.5 N/A N/A N/A N/A Bank 148,735 13.6 49,095 4.5 70,916 6.5 Tier I Capital to Average Assets Consolidated 133,848 8.2 N/A N/A N/A N/A Bank 148,735 9.1 65,721 4.0 81,701 5.0 As of December 31, 2020 Total Capital to Risk-Weighted Assets Consolidated 153,801 16.1 N/A N/A N/A N/A Bank 145,434 15.3 76,249 8.0 95,311 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 122,258 12.8 N/A N/A N/A N/A Bank 133,505 14.0 57,187 6.0 76,249 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 122,258 12.8 N/A N/A N/A N/A Bank 133,505 14.0 42,890 4.5 61,952 6.5 Tier I Capital to Average Assets Consolidated 122,258 9.0 N/A N/A N/A N/A Bank 133,505 9.8 54,334 4.0 67,918 5.0 In addition to the capital guidelines, certain laws restrict the amount of dividends paid to stockholders in any given year. The approval of the OCC shall be required if the total of all dividends declared by the Corporation in any year shall exceed the total of its net profits for that year combined with retained net profits of the preceding two years. Under this restriction, the Corporation could declare dividends in 2021, without the approval of the OCC, of approximately $19.3 million, plus an additional amount equal to the Corporation’s net profits for 2022, up to the date of any such dividend declaration. |
TRANSACTIONS WITH DIRECTORS AND
TRANSACTIONS WITH DIRECTORS AND OFFICERS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH DIRECTORS AND OFFICERS | NOTE N – TRANSACTIONS WITH DIRECTORS AND OFFICERS The following table presents activity in the amounts due from directors, executive officers, immediate family, and affiliated companies. These transactions are made on the same terms and conditions, including interest rates and collateral requirements as those prevailing at the time for comparable transactions with others. An analysis of the activity with respect to such aggregate loans to related parties is shown below. 89 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements LOANS TO INSIDERS (DOLLARS IN THOUSANDS) Year Ended Year Ended December 31, December 31, 2021 2020 $ $ Balance, beginning of year 31 640 Advances 40 16 Repayments ( 71 ) (622 ) Other changes 194 (3 ) Balance, end of year 194 31 In the Corporation’s case, other changes in the table above for the year ended December 31, 2021, represented the addition of an executive officer, and for the year ended December 31, 2020, represented the retirement of one director. Deposits from the insiders totaled $2,855,000 as of December 31, 2021, and $2,313,000 as of December 31, 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE O - COMMITMENTS AND CONTINGENCIES In the normal course of business, the Corporation makes various commitments that are not reflected in the accompanying consolidated financial statements. These are commonly referred to as off-balance sheet commitments and include firm commitments to extend credit, unused lines of credit, and open letters of credit. On December 31, 2021, firm loan commitments totaled approximately $99.0 million; unused lines of credit totaled $378.3 million; and open letters of credit totaled $12.8 million. The sum of these commitments, $490.1 million, represents total exposure to credit loss in the event of nonperformance by customers with respect to these financial instruments; however the vast majority of these commitments are typically not drawn upon. The same credit policies for on-balance sheet instruments apply for making commitments and conditional obligations and the actual credit losses that could arise from the exercise of these commitments is expected to compare favorably with the loan loss experience on the loan portfolio taken as a whole. Commitments to extend credit on December 31, 2020, totaled $408.0 million, representing firm loan commitments of $77.1 million, unused lines of credit of $322.4 million, and open letters of credit totaling $8.5 million. Firm commitments to extend credit and unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on an individual basis. The amount of collateral obtained, if deemed necessary by the extension of credit, is based on management’s credit evaluation of the customer. These commitments are supported by various types of collateral, where it is determined that collateral is required. Open letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most guarantees expire within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. While various assets of the customer act as collateral for these letters of credit, real estate is the primary collateral held for these potential obligations. |
FINANCIAL INSTRUMENTS WITH CONC
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK | NOTE P - FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK The Corporation determines concentrations of credit risk by reviewing loans by borrower, geographical area, and loan purpose. The amount of credit extended to a single borrower or group of borrowers is capped by the legal lending limit, which is defined as 15% of the Bank’s risk-based capital, less the allowance for credit losses. The Corporation’s lending policy further restricts the amount to 75% of the legal lending limit. As of December 31, 2021, the Corporation’s legal lending limit was $24,356,000, and the Corporation’s lending policy limit was $18,267,000. This compared to a legal lending limit of $21,815,000, and lending policy limit of $16,361,000 as of 90 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements December 31, 2020. As of December 31, 2021 and 2020, no lending relationships exceeded the Corporation’s internal lending policy limit. Geographically, the primary lending area for the Corporation encompasses Lancaster, Lebanon, and Berks counties of Pennsylvania, with the vast majority of the loans made in Lancaster County. The ability of debtors to honor their loan agreements is impacted by the health of the local economy. The Corporation’s immediate market area benefits from a diverse economy, which has resulted in a diverse loan portfolio. As a community bank, the largest amount of loans outstanding consists of personal mortgages, residential rental loans, and personal loans secured by real estate. Beyond personal lending, the Corporation’s business and commercial lending includes loans for agricultural, construction, specialized manufacturing, service industries, many types of small businesses, and loans to governmental units and non-profit entities. Management evaluates concentrations of credit based on loan purpose on a quarterly basis. The Corporation’s greatest concentration of loans by purpose is residential real estate, which comprises $403.9 million, or 43.9%, of the $919.1 million gross loans outstanding as of December 31, 2021. This compares to $345.6 million, or 42.0%, of the $822.1 million of gross loans outstanding as of December 31, 2020. Residential real estate consists of first mortgages and home equity loans. A concentration in commercial real estate of 43.6%, or $400.8 million, also exists; however, within that category there is not a concentration by specific industry type. The Corporation remains focused on agricultural purpose loans, of which the vast majority are real estate secured. Agricultural mortgages made up 22.2% of gross loans as of December 31, 2021, compared to 21.4% as of December 31, 2020; however these agricultural mortgages are spread over several broader types of agricultural purpose loans. More specifically within these larger purpose categories, management monitors on a quarterly basis the largest concentrations of non-consumer credit based on the North American Industrial Classification System (NAICS). As of December 31, 2021, the largest specific industry type categories were dairy cattle and milk production loans of $93.8 million, or 10.2% of gross loans, non-residential real estate investment loans of $118.0 million, or 12.8% of gross loans, and residential real estate investment loans with a balance of $51.8 million, or 5.6% of gross loans. Outside of consumer and commercial real estate, including agricultural mortgages, the third largest component of the Corporation’s loans consist of commercial and industrial loans. These loans are generally secured by personal guarantees, inventory, or pledges of municipalities. Out of the $109.3 million of loans designated as commercial and industrial for the Uniform Bank Performance Reports, the largest concentration within that area is $23.0 million of loans to political subdivisions, which account for 2.5% of gross loans outstanding. For the Corporation, these loans consisted of tax-free loans to local municipalities. To evaluate risk for the securities portfolio, the Corporation reviews both geographical concentration and credit ratings. The largest geographical concentrations as of December 31, 2021, were obligations of states and political subdivisions located in the states of Pennsylvania, California, and Texas. Based on fair market value, the Corporation had 20.3% of its portfolio invested in Pennsylvania municipals, 17.4% in California, and 7.7% in Texas. As of December 31, 2021, no municipal bonds were below an A3/A- credit rating. The Corporation held $82.6 million of corporate bonds based on amortized cost as of December 31, 2021. Out of the $82.6 million of total corporate securities, $66.6 million is domestic and $16.0 million is foreign-issued debt. None of the Corporation’s foreign corporate debt originates from the European countries that have struggled with the sovereign debt crisis, namely Portugal, Italy, Ireland, Greece, and Spain. Most of the Corporation’s foreign-issued debt is from the United Kingdom, Australia, and Switzerland. In addition, $52.6 million, or 63.7%, of the corporate bonds held are invested in national or foreign banks, bank holding companies, brokerage firms, or finance companies. The remaining $30.0 million of non-financial related corporate paper consists of $8.0 million in energy companies, $2.0 million in insurance companies, $5.6 million in consumer goods, $5.2 million in healthcare, and $9.2 million in technology. Within the corporate bond segment of the portfolio, $11.9 million is in subordinated debt from 14 different issuers. The majority of these bonds are non-rated, with one bond being rated. By internal policy, at time of purchase, all corporate bonds must carry a credit rating of at least A3 by Moody’s or A- by S&P, and at all times corporate bonds are to be investment grade, which is defined as Baa3 for Moody’s and BBB- for S&P, or above. As of December 31, 2021, all of the Corporation’s corporate bonds carried at least one single A credit rating of A3 by Moody’s or A- by S&P, and all were considered investment grade. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE Q – LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For the Corporation, Topic 842 primarily affects the accounting treatment for operating lease agreements in which the Corporation is the lessee. All of these leases in which the Corporation is the lessee are comprised of real estate property for branches and office space with terms extending through 2026. All of the Corporation’s leases are classified as operating leases. The following table represents the Consolidated Balance Sheet classification of the Corporation’s ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification December 31, 2021 December 31, 2020 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 617 $ 728 Lease Liabilities Operating lease liabilties Other Liabilities $ 629 $ 740 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As the rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. December 31, 2021 December 31, 2020 Weighted-average remaining lease term Operating leases 3.7 years 4.4 years Weighted-average discount rate Operating leases 2.82 % 3.11% The following table represents lease costs and other lease information. As the Corporation elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2021 were as follows: 92 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: December 31, 2022 $ 189 December 31, 2023 173 December 31, 2024 176 December 31, 2025 106 December 31, 2026 20 Thereafter — Total Future Minimum Lease Payments 664 Amounts Representing Interests ( 35 ) Present Value of Net Future Minimum Lease Payments $ 629 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE R - FAIR VALUE MEASUREMENTS U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no observable pricing as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgement or estimation. This hierarchy requires the use of observable market data when available. The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS REPORTED AT FAIR VALUE ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2021 Level I Level II Level III Total $ $ $ $ U.S. Treasuries — 14,813 — 14,813 U.S. government agencies — 29,021 — 29,021 U.S. agency mortgage-backed securities — 51,988 — 51,988 U. S. agency collateralized mortgage obligations — 31,077 — 31,077 Asset-backed securities — 101,219 — 101,219 Corporate bonds — 82,509 — 82,509 Obligations of states and political subdivisions — 247,466 — 247,466 Marketable equity securities 8,982 — — 8,982 Total securities 8,982 558,093 — 567,075 93 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements On December 31, 2021, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of December 31, 2021, the CRA fund investments had a $7,240,000 book and market value and the bank stocks had a book value of $1,570,000 and a market value of $1,742,000. Financial instruments are considered level III when their values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. ASSETS REPORTED AT FAIR VALUE ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2020 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 54,361 — 54,361 U.S. agency mortgage-backed securities — 71,052 — 71,052 U. S. agency collateralized mortgage obligations — 35,035 — 35,035 Asset-backed securities 60,475 60,475 Corporate bonds — 61,723 — 61,723 Obligations of states and political subdivisions — 193,782 — 193,782 Marketable equity securities 7,105 — — 7,105 Total securities 7,105 476,428 — 483,533 On December 31, 2020, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of December 31, 2020, the CRA fund investments had a $6,176,000 book and market value and the bank stocks had a book value of $982,000 and a market value of $929,000. 94 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table provides the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2021 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 3,177 3,177 — — 3,177 3,177 December 31, 2020 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 4,632 4,632 Total — — 4,632 4,632 The Corporation had a total of $3,324,000 of impaired loans as of December 31, 2021, with $147,000 of specific allocation against these loans. As of December 31, 2020, the Corporation had a total of $5,763,000 of impaired loans with $1,131,000 of specific allocation against these loans. The value of impaired loans is generally determined through independent appraisals of the underlying collateral. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) December 31, 2021 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,177 Appraisal of collateral (1) Appraisal adjustments (2) 0 % to - 20 % (- 20 %) Liquidation expenses (2) 0 % to - 10 % (- 10 %) December 31, 2020 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 4,632 Appraisal of collateral (1) Appraisal adjustments (2) 0% to -20% (-20%) Liquidation expenses (2) 0% to -10% (-10%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Unobservable inputs - Appraisal adjustments | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE S - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Corporation's Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020: FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 158,449 158,449 158,449 — — Regulatory stock 5,380 5,380 5,380 — — Loans held for sale 3,194 3,194 3,194 — — Loans, net of allowance 907,973 914,251 — — 914,251 Mortgage servicing assets 1,768 2,129 — — 2,129 Accrued interest receivable 5,152 5,152 5,152 — — Bank owned life insurance 35,414 35,414 35,414 — — Financial Liabilities: Demand deposits 686,278 686,278 686,278 — — Interest-bearing demand deposits 63,015 63,015 63,015 — — NOW accounts 139,366 139,366 139,366 — — Money market deposit accounts 168,327 168,327 168,327 — — Savings accounts 341,291 341,291 341,291 — — Time deposits 113,936 113,919 — — 113,919 Total deposits 1,512,213 1,512,196 1,398,277 — 113,919 Long-term debt 44,206 43,060 — — 43,060 Subordinated debt 19,680 19,088 — — 19,088 Accrued interest payable 251 251 251 — — 96 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 94,939 94,939 94,939 — — Regulatory stock 6,107 6,107 6,107 — — Loans held for sale 3,029 3,029 3,029 — — Loans, net of allowance 811,043 829,902 — — 829,902 Mortgage servicing assets 1,076 1,083 — — 1,083 Accrued interest receivable 4,546 4,546 4,546 — — Bank owned life insurance 29,646 29,646 29,646 — — Financial Liabilities: Demand deposits 534,853 534,853 534,853 — — Interest-bearing demand deposits 47,092 47,092 47,092 — — NOW accounts 137,279 137,279 137,279 — — Money market deposit accounts 140,113 140,113 140,113 — — Savings accounts 274,386 274,386 274,386 — — Time deposits 119,088 121,470 — — 121,470 Total deposits 1,252,811 1,255,193 1,133,723 — 121,470 Short-term borrowings 54,790 51,800 — — 51,800 Long-term debt 19,601 19,601 — — 19,601 Accrued interest payable 320 320 320 — — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE T – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The activity in accumulated other comprehensive income (loss) for the years ended December 31, 2021 and 2020 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains on Securities Available-for-Sale $ Balance at January 1, 2021 7,958 Other comprehensive income (loss) before reclassifications ( 3,940 ) Amount reclassified from accumulated other comprehensive income ( 577 ) Period change ( 4,517 ) Balance at December 31, 2021 3,441 Balance at January 1, 2020 1,600 Other comprehensive income before reclassifications 6,997 Amount reclassified from accumulated other comprehensive loss (639 ) Period change 6,358 Balance at December 31, 2020 7,958 (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, Affected Line Item 2021 2020 in the Consolidated $ $ Statements of Income Securities available for sale: Net securities gains reclassified into earnings 730 809 Gains on sale of debt securities, net Related income tax expense ( 153 ) (170 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 577 639 Total reclassifications for the period 577 639 (1) Amounts in parentheses indicate debits. |
CONDENSED PARENT ONLY DATA
CONDENSED PARENT ONLY DATA | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT ONLY DATA | NOTE U – CONDENSED PARENT ONLY DATA Condensed Balance Sheets (Parent Company Only) (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Assets Cash 2,638 7,705 Equity securities 1,743 929 Equity in bank subsidiary 152,176 141,463 Other assets 452 165 Total assets 157,009 150,262 Liabilities Subordinated debt 19,680 19,601 Other Liabilities 41 445 Total Liabilities 19,721 20,046 Stockholders' Equity Common stock 574 574 Capital surplus 4,520 4,444 Retained earnings 131,856 120,670 Accumulated other comprehensive income, net of tax 3,441 7,958 Treasury stock ( 3,103 ) (3,430 ) Total stockholders' equity 137,288 130,216 Total liabilities and stockholders' equity 157,009 150,262 Condensed Statements of Comprehensive Income (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ $ Income Dividend income - investment securities 52 27 Gains (losses) on equity securities, net 324 (76 ) Dividend income 3,730 5,073 Undistributed earnings of bank subsidiary 11,730 7,541 Total income 15,836 12,565 Expense Subordinated debt interest expense 800 4 Shareholder expenses 132 153 Other expenses 130 109 Total expense 1,062 266 Provision (benefit) for income taxes ( 142 ) — Net Income 14,916 12,299 Comprehensive Income 10,399 18,657 99 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Condensed Statements of Cash Flows (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 Cash Flows from Operating Activities: $ $ Net Income 14,916 12,299 Equity in undistributed earnings of subsidiaries ( 11,730 ) (7,541 ) (Gains)losses on securities transactions, net ( 324 ) 76 Net amortization of subordinated debt fees 79 — Net increase in other assets ( 287 ) (48 ) Net (decrease) increase in other liabilities ( 404 ) 444 Net cash provided by operating activities 2,250 5,230 Cash Flows from Investing Activities: Proceeds from sales of equity securities 460 — Purchases of equity securities ( 950 ) (367 ) Net cash used for investing activities ( 490 ) (367 ) Cash Flows from Financing Activities: Proceeds from sale of treasury stock 885 660 Proceeds from issuance of subordinated debt — 19,601 Dividend to bank subsidiary ( 3,500 ) (12,500 ) Treasury stock purchased ( 482 ) (2,216 ) Dividends paid ( 3,730 ) (3,573 ) Net cash (used for) provided by financing activities ( 6,827 ) 1,972 Cash and Cash Equivalents: Net change in cash and cash equivalents ( 5,067 ) 6,835 Cash and cash equivalents at beginning of period 7,705 870 Cash and cash equivalents at end of period 2,638 7,705 100 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The unaudited quarterly results of operations for the years ended 2021 and 2020, are as follows: |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE V - SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 10,530 10,537 11,417 11,108 Interest expense 851 806 789 574 Net interest income 9,679 9,731 10,628 10,534 Less provision (credit) for loan losses 375 — ( 250 ) 350 Net interest income after provision (credit) for loan losses 9,304 9,731 10,878 10,184 Other income 5,318 4,077 4,139 4,347 Operating expenses: Salaries and employee benefits 5,699 5,959 6,142 6,665 Occupancy and equipment expenses 950 920 909 897 Other operating expenses 2,538 2,817 3,067 3,878 Total operating expenses 9,187 9,696 10,118 11,440 Income before income taxes 5,435 4,112 4,899 3,091 Provision for Federal income taxes 931 561 760 370 Net income 4,504 3,551 4,139 2,721 FINANCIAL RATIOS Per share data: Net income 0.81 0.64 0.74 0.49 Cash dividends paid 0.16 0.17 0.17 0.17 2020 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 10,487 10,468 10,387 10,752 Interest expense 1,271 999 845 731 Net interest income 9,216 9,469 9,542 10,021 Less provision for loan losses 350 975 1,250 375 Net interest income after provision for loan losses 8,866 8,494 8,292 9,646 Other income 2,767 4,068 4,374 4,151 Operating expenses: Salaries and employee benefits 5,696 4,966 5,860 5,540 Occupancy and equipment expenses 881 932 896 894 Other operating expenses 2,533 2,346 2,442 3,088 Total operating expenses 9,110 8,244 9,198 9,522 Income before income taxes 2,523 4,318 3,468 4,275 Provision for Federal income taxes 358 719 533 675 Net income 2,165 3,599 2,935 3,600 FINANCIAL RATIOS Per share data: Net income 0.38 0.64 0.53 0.65 Cash dividends paid 0.16 0.16 0.16 0.16 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE W – RISKS AND UNCERTAINTIES COVID-19 Update The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, providing over $2 trillion in economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (SBA) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (PPP). As a qualified SBA lender, the Corporation was authorized to originate PPP loans. In terms of qualifying for a PPP loan, an eligible business could apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10 million. The PPP loans have the following terms: (a) an interest rate of 1.0%, (b) a two-year or five-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the PPP loan, including any accrued interest, is eligible to be reduced by the amount of loan forgiveness available under the PPP, provided the employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses such as utilities. In the initial CARES Act, $349 billion of funds were made available for PPP loans. This amount was fully exhausted prior to the end of April 2020. Congress then passed an additional allocation of funds for the PPP loans, allowing a second round of applications to begin. The Corporation generated PPP loans under this initial plan in the amount of approximately $78 million. In the first quarter of 2021, the SBA made another round of PPP funding available and the Corporation made additional loans to qualifying small businesses. Additionally, all rounds of PPP loans became eligible for forgiveness. As a result of the forgiveness of some of the original PPP loans, the initiation of additional PPP loans, and the forgiveness of a portion of these loans, the total balance of PPP loans at December 31, 2021, was $11.3 million compared to $48.0 million at December 31, 2020. Management’s focus has been to serve the customers and market area that the Corporation serves. In accordance with the SBA terms and conditions on these PPP loans, as of December 31, 2021, the Corporation received approximately $5.5 million in fees associated with the processing of all PPP loans originated in 2020 and 2021. All fee income is being deferred over the expected life of each PPP loan. The initial batch of the PPP loans carried a stated maturity of two years. In later batches of PPP loans the maturity can be five years, however the majority of the Corporation’s PPP loans carry a two-year maturity. When a PPP loan is paid off or forgiven, the remaining fee amount is taken into income. This income amounted to $2,496,000 during 2021, and $2,356,000 during 2020. The Corporation expects there to be few loans that are on the books until the stated maturity dates. COVID-19 Loan Forbearance Programs Section 4013 of the CARES Act provides that banks may elect not to categorize a loan modification as a TDR if the loan modification is (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020, under the National Emergencies Act terminates, or (B) December 31, 2020. On December 27, 2020, the president signed into law the Consolidated Appropriations Act, 2021, which amended CARES Act Section 4013. The amendment extends the applicable period for which a financial institution is able to (a) suspend the requirements under United States generally accepted accounting principles for loan modifications related to the coronavirus disease (COVID-19) pandemic that would otherwise be categorized as a troubled debt restructuring and (b) any determination of a loan modified as a result of the effects of the COVID-19 pandemic as being a TDR, including impairment for accounting purposes. The amended end date for the relief related to a financial institution electing to suspend TDR and loan impairment accounting for qualifying modifications was extended from the earlier of December 31, 2020, or 60 days after the national emergency concerning COVID-19 declared by the president terminates to the earlier of January 1, 2022, or 60 days after the national emergency concerning COVID-19 declared by the president terminates. On April 7, 2020, federal banking regulators issued a revised interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not 102 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. According to the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) issued by the federal bank regulatory agencies on April 7, 2020, short-term loan modifications not otherwise eligible under Section 4013 that are made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. As of December 31, 2021, all of the Corporation’s customers who had previously requested payment deferrals were now paying as scheduled. In addition, the risk-rating on COVID-19 modified loans did not change, and these loans were not considered past due during their deferment periods. The credit quality of these loans remains intact and the Corporation’s delinquent and non-performing levels were not materially impacted. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations ENB Financial Corp, through its wholly owned subsidiary, Ephrata National Bank, provides financial services to Northern Lancaster County and surrounding communities. ENB Financial Corp, a bank holding company, was formed on July 1, 2008, to become the parent company of Ephrata National Bank, which existed as a stand-alone national bank since its formation on April 11, 1881. The Corporation’s wholly owned subsidiary, Ephrata National Bank, offers a full array of banking services including loan and deposit products for both personal and commercial customers, as well as trust and investment services, through twelve full-service office locations. |
Basis of Presentation | Basis of Presentation The consolidated financial statements of ENB Financial Corp and its subsidiary, Ephrata National Bank, (collectively “the Corporation”) conform to U.S. generally accepted accounting principles (GAAP). The preparation of these statements requires that management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates of the Corporation, including the allowance for credit losses, the fair market value of financial instruments, and deferred tax assets or liabilities, are evaluated regularly by management. Actual results could differ from the reported estimates given different conditions or assumptions. The accounting and reporting policies followed by the Corporation conform with U.S. GAAP and to general practices within the banking industry. All significant intercompany transactions have been eliminated in consolidation. The following is a summary of the more significant policies. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents are identified as cash and due from banks and include cash on hand, collection items, amounts due from banks, and interest bearing deposits in other banks with maturities of less than 90 days. |
Securities Available for Sale | Securities Available for Sale The Corporation classifies its entire portfolio of debt securities as available for sale securities, which the Corporation reports at fair value. Any unrealized valuation gains or losses on the debt portfolio are reported as a separate component of stockholders' equity, net of deferred income taxes. The constant yield method is used for the amortization of premiums and the accretion of discounts for all of the Corporation’s securities with the exception of collateralized mortgage obligations (CMOs), mortgage-backed securities (MBS) and asset-backed securities (ABS). The constant yield method maintains a stable yield on the instrument through its maturity. For CMOs and MBS, a two-step/proration method is used for amortization and accretion. The first step is a proration based on the current pay down. This component ensures that the book price stays level with par. The second step amortizes or accretes the remaining premium or discount to the calculated final amortization or accretion date based on the current three-month constant prepayment rates. Net gains or losses realized on sales or calls of securities are reported as gains or losses on security transactions during the year of sale, using the specific identification method. |
Equity Securities | Equity Securities Equity securities includes common stocks of public companies that the Corporation has the positive intent and ability to hold for an indeterminate amount of time. Such securities are reported at fair value with changes in unrealized holding gains and losses recognized through earnings on a monthly basis. |
Other Than Temporary Impairment ("OTTI") | Other Than Temporary Impairment (“OTTI”) Management monitors all of the Corporation’s securities for OTTI on a monthly basis and determines whether any impairment should be recorded. A number of factors are considered in determining whether a security is impaired, including, but not limited to, the following: • Percentage of unrealized losses, • Period of time the security has had unrealized losses, • Type of security, • Maturity date of the instrument if a debt instrument, • The intent to sell the security or whether it is more likely than not that the Corporation would be required to sell the security before its anticipated recovery in market value, 63 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements • Amount of projected credit losses based on current cash flow analysis, default and severity rates, and • Market dynamics impacting the market for and liquidity of the security. Management will more closely evaluate those securities that have unrealized losses of 10% or more and have had unrealized losses for more than twelve months. If management determines that the declines in value of the security are not temporary, or if management does not have the ability to hold the security until maturity, which is the case with equity securities, then management will record impairment on the security. For debt securities evaluated for impairment, management will determine what portion of the unrealized valuation loss is attributed to projected or known loss of principal, and what portion is attributed to market pricing not reflective of the true value of the security, based on current cash flow analysis. Management will generally record impairment equivalent to the projected or known loss of principal, known as the credit loss. The other portion of the fair market value loss is attributed to market factors and it is management’s opinion that these fair value losses are temporary and not permanent. All impairment is recorded as a loss on securities and is included in the Corporation’s Consolidated Statements of Income. |
Loans Held for Investment | Loans Held for Investment Loans receivable, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, generally are reported at the outstanding principal balances, reduced by any charge-offs and net of any deferred loan origination fees or costs. Net loan origination fees and costs are deferred and recognized as an adjustment of yield over the contractual life of the loan. Interest accrues daily on outstanding loan balances. Generally, the accrual of interest discontinues when the ability to collect the loan becomes doubtful or when a loan becomes more than 90 days past due as to principal and interest. These loans are referred to as non-accrual loans. Management may elect to continue the accrual of interest based on the expectation of future payments and/or the sufficiency of the underlying collateral. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale on the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. In general, fixed-rate residential mortgage loans originated by the Corporation and held for sale are carried in the aggregate at the lower of cost or market. The Corporation originates loans for immediate sale with servicing retained and servicing released to several investors. However, the vast majority of the sold mortgages are sold to the Federal Home Loan Bank of Pittsburgh (FHLB) and Fannie Mae, with servicing retained. As a result, the Corporation has a growing portfolio of mortgages that are serviced on behalf of FHLB and Fannie Mae. In addition, the Corporation originates FHA, VA, and USDA mortgages which are originated for immediate sale to various investors on a service-released basis. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is maintained at a level considered by management to be adequate to provide for known and inherent risks in the loan portfolio at the Consolidated Balance Sheets dates. The monthly provision or credit for loan losses is an expense or a reduction of expense which increases or decreases the allowance, and charge-offs, net of recoveries, decrease the allowance. The Corporation performs ongoing credit reviews of the loan portfolio and considers current economic conditions, historical loan loss experience, and other factors in determining the adequacy of the reserve balance. Loans determined to be uncollectible are charged to the allowance during the period in which such determination is made. In calculating the allowance, management will begin by compiling the balance of loans by credit quality for each loan segment in order that allocations can be made in aggregate based on historic losses and qualitative factors. Prior to calculating these aggregate allocations, management will individually evaluate commercial and commercial real estate loans for impairment. A loan is impaired when it is probable that a creditor will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. All other loan types such as residential mortgages, home equity loans and lines of credit, and all other consumer loans, are not individually evaluated for impairment and are therefore allocated for in aggregate. These loans are considered to be large groups of smaller-balance homogenous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all circumstances concerning the loan, the creditworthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed. 64 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements For loans deemed to be impaired, management will provide a specific allocation. This loan balance is then subtracted from the total loan balances being allocated for in the aggregate. The remaining balances, along with the full loan balances for the other loan types are then multiplied by an adjusted loss ratio, which is the sum of both the historical loss ratio and a qualitative factor adjustment. Generally both the historical loss ratio and the qualitative factor adjustment will increase as the credit rating of the loan deteriorates. The credit ratings begin with unclassified loans, which represent the best internal credit rating, also referred to as a “pass” credit and then continue with declining grades of special mention, substandard, doubtful, and loss. Special mention loans are no longer deemed to be a “pass” credit and require additional management attention. They are essentially placed on “watched” status and attempts are made to improve the credit to an unclassified status. If the credit would deteriorate further it would then be a substandard credit, which for regulatory purposes, is deemed to be a classified loan. Doubtful and loss credit grades represent further credit deterioration and are also considered classified loans. For each loan type, all of these credit rating categories are broken out with adjusted loss ratios. The loan balance is then multiplied by the adjusted loss ratio to produce the required allowance. The allowances are totaled and added to any specific allocations on impaired loans to arrive at the total allowance for credit losses for the Corporation. Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio, calculated on a quarterly basis, with a 60%, 30%, and 10% weighting for the past three years is used. In this manner the historical loss percentage is heavily weighted to the current loss environment, but has sufficient weighting assigned to prior periods to avoid unnecessary volatile fluctuations based on just one period’s data. Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: • levels of and trends in delinquencies, non-accruals, and charge-offs, • trends in the nature and volume of the loan portfolio, • changes in lending policies and procedures, • experience, ability, and depth of lending personnel and management oversight, • national and local economic trends, • concentrations of credit, • external factors such as competition, legal, and regulatory requirements, • changes in the quality of loan review and Board oversight, • changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for any segment of the loan portfolio it is likely that factor would be reduced. In terms of the Corporation’s loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on their financial condition and therefore are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. Commercial real estate lending is highly impacted by the value of collateral so these commercial loans carry a higher qualitative factor for changes in collateral value. While the Corporation’s CRE loans have performed well historically, other commercial loans and commercial mortgage loans have historically been responsible for the majority of the Corporation’s delinquencies, non-accrual loans, and charge-offs, so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Corporation has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans. |
Impaired and Non-Accrual Loans | Impaired and Non-Accrual Loans The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. Generally, a non-accrual loan will always be considered impaired due to payment delinquency or uncertain collection, but there are cases where an impaired loan is not considered non-accrual. The primary factors considered by management in determining impairment include payment status and collateral value, but could also include debt service coverage, financial health of the business, and other external factors that could impact the ability of the borrower to fully repay the loan. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan using the original interest rate and its recorded value or, as a practical expedient in the case of collateral-dependent loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral on a discounted basis, relative to the loan amount. Management will place a business or commercial loan on non-accrual status when it is determined that the loan is impaired, or when the loan is 90 days past due. These customers will generally be placed on non-accrual status at the end of each quarter. Consumer loans over 90 days delinquent are generally charged off, or in the case of residential real estate loans the Corporation will seek to bring the customer current or pursue foreclosure options. When the borrower is on non-accrual, the Corporation will reverse any accrued interest on the books and will discontinue recognizing any interest income until the borrower is placed back on accrual status or fully pays off the loan balance plus any accrued interest. Payments received by the customer while the loan is on non-accrual are fully applied against principal. The Corporation maintains records of the full amount of interest that is owed by the borrower. A non-accrual loan will generally only be placed back on accrual status after the borrower has become current and has demonstrated six consecutive months of non-delinquency. |
Allowance for Off-Balance Sheet Extensions of Credit | Allowance for Off-Balance Sheet Extensions of Credit The Corporation maintains an allowance for off-balance sheet extensions of credit, which would include any unadvanced amount on lines of credit and any letters of credit provided to borrowers. The allowance is carried as a liability and is included in other liabilities on the Corporation’s Consolidated Balance Sheets. The liability was $910,000 as of December 31, 2021, and $798,000 as of December 31, 2020. As the unadvanced portion of lines of credit increases, this provision will increase. Management follows the same methodology as the allowance for credit losses when calculating the allowance for off-balance sheet extensions of credit, with the exception of multiplying the unadvanced total by a high/low balance variance to arrive at the expected unadvanced portion that could be drawn upon at any time, or the amount at risk. The unadvanced amounts for each loan segment are broken down by credit classification. A historical loss ratio and qualitative factor are calculated for each credit classification by loan type. The historical loss ratio and qualitative factor are combined to produce an adjusted loss ratio, which is multiplied by the amount at risk for each credit classification within each loan segment to arrive at an allocation. The allocations are summed to arrive at the total allowance for off-balance sheet extensions of credit. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) OREO represents properties acquired through customer loan defaults. These properties are recorded at the lower of cost or fair value less projected disposal costs at acquisition date. Fair value is determined by current appraisals. Costs associated with holding OREO are charged to operational expense. OREO is a component of other assets on the Corporation’s Consolidated Balance Sheets. The Corporation had no OREO as of December 31, 2021, or December 31, 2020. |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (MSRs) The Corporation has agreements for the express purpose of selling residential mortgage loans on the secondary market, referred to as mortgage servicing rights. The Corporation maintains all servicing rights for loans currently sold through FHLB and Fannie Mae. The Corporation had $1,768,000 of MSRs as of December 31, 2021, compared to $1,076,000 as of December 31, 2020. The value of MSRs increased during 2021 as valuation of new assets outpaced amortization on existing assets. The year ended December 31, 2021, was the second year of elevated mortgage volume resulting in this increase in MSRs. The value of newly originated MSRs is determined by estimating the life of the mortgage and how long the Corporation will have access to the servicing income stream to determine the relative fair value. The Corporation utilizes a third party that calculates the MSR valuation on a quarterly basis. A longer estimated life would increase the MSR valuation, while a shorter estimated life would decrease the value of the MSR. Management records the MSR value based on the third-party reporting. Ultimately the value of the MSRs would be at what level a willing buyer and seller would exchange the MSRs. MSRs are 66 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio. Impairment is evaluated based on the fair value of the rights, portfolio interest rates, and prepayment characteristics. MSRs are a component of other assets on the Consolidated Balance Sheets. The following chart provides the activity of the Corporation’s mortgage servicing rights for the years ended December 31, 2021 and 2020. MORTGAGE SERVICING RIGHTS (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Beginning Balance 1,076 892 Additions 877 753 Amortization ( 48 ) (420 ) Disposals ( 137 ) (149 ) Ending Balance 1,768 1,076 |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. Book depreciation is computed using straight-line methods over the estimated useful lives of generally fifteen thirty-nine four ten years |
Transfer of Assets | Transfer of Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Bank-Owned Life Insurance (BOLI) | Bank-Owned Life Insurance (BOLI) BOLI is carried by the Corporation at the cash surrender value of the underlying policies. Income earned on the policies is based on any increase in cash surrender value less the cost of the insurance, which varies according to age and health of the insured. The life insurance policies owned by the Corporation had a cash surrender value of $35,414,000 and $29,646,000 as of December 31, 2021, and 2020, respectively. The increase in BOLI cash surrender value was primarily due to an additional BOLI investment of $5 million in 2021 and normal appreciation of existing policies as a result of returns exceeding expenses. |
Leases | Leases The Company has operating leases for several branch locations and office space. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company may also lease certain office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components (e.g., common-area or other maintenance costs). The Company accounts for each component separately based on the standalone price of each component. In addition, there are several operating leases with lease terms of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right of use assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at the sole discretion of management and is based on whether the extension options are reasonably certain to be exercised after giving proper consideration to all facts and circumstances of the lease. If management determines that the Company 67 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements is reasonably certain to exercise the extension option(s), the additional term is included in the calculation of the lease liability. As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments. |
Advertising Costs | Advertising Costs The Corporation expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2021 and 2020 were $992,000 and $894,000, respectively. |
Income Taxes | Income Taxes An asset and liability approach is followed for financial accounting and reporting for income taxes. Accordingly, a net deferred tax asset or liability is recorded in the consolidated financial statements for the tax effects of temporary differences, which are items of income and expense reported in different periods for income tax and financial reporting purposes. Deferred tax expense is determined by the change in the assets or liabilities related to deferred income taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. |
Earnings per Share | Earnings per Share The Corporation currently maintains a simple capital structure with no stock option plans that would have a dilutive effect on earnings per share. Earnings per share are calculated by dividing net income by the weighted-average number of shares outstanding for the periods. |
Comprehensive Income | Comprehensive Income The Corporation is required to present comprehensive income in a full set of general-purpose consolidated financial statements for all periods presented. Other comprehensive income consists of unrealized holding gains and losses on the available for sale securities portfolio. |
Segment Disclosure | Segment Disclosure U.S. generally accepted accounting principles establish standards for the manner in which public business enterprises report information about segments in the annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures regarding financial products and services, geographic areas, and major customers. The Corporation has only one operating segment consisting of its banking and fiduciary operations. |
Retirement Plans | Retirement Plans The Corporation provides an optional 401(k) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The Corporation will match 50% of employee contributions up to 5%, limiting the match to 2.5%. As part of the 401(k) Plan, the Corporation also has a noncontributory Profit Sharing Plan which covers substantially all employees. The Corporation provides a 3% non-elective contribution to all employees and contributes a 2% elective contribution to all employees aged 21 or older who work 1,000 or greater hours in a calendar year and have completed at least one full year of employment. |
Trust Assets and Income | Trust Assets and Income Assets held by ENB’s Money Management Group in a fiduciary or agency capacity for customers are not included in the Corporation’s Consolidated Balance Sheets since these items are not assets of the Corporation. In accordance with banking industry practice, trust income is recognized on a cash basis; as such income does not differ significantly from amounts that would be recognized on an accrual basis. Trust income is reported in the Corporation’s Consolidated Statements of Income under other income. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). 68 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no material effect on net income or stockholders’ equity. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments ‒ Credit Losses In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses 69 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. For entities that have not yet adopted ASU 2016-13 as of November 26, 2019, the effective dates for ASU 2019-11 are the same as the effective dates and transition requirements in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-11 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Corporation' qualifies as a smaller reporting company and does not expect to early adopt these ASUs. In March 2020, the FASB issued ASU 2020-03 , Codification Improvements to Financial Instruments. Financial Instruments In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Mortgage Servicing Rights | The following chart provides the activity of the Corporation’s mortgage servicing rights for the years ended December 31, 2021 and 2020. MORTGAGE SERVICING RIGHTS (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Beginning Balance 1,076 892 Additions 877 753 Amortization ( 48 ) (420 ) Disposals ( 137 ) (149 ) Ending Balance 1,768 1,076 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The amortized cost and fair value of debt securities held at December 31, 2021, and 2020, are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2021 U. S. Treasuries 14,821 14 ( 22 ) 14,813 U.S. government agencies 29,613 50 ( 642 ) 29,021 U.S. agency mortgage-backed securities 51,964 502 ( 478 ) 51,988 U.S. agency collateralized mortgage obligations 30,917 241 ( 81 ) 31,077 Asset-backed securities 100,998 605 ( 384 ) 101,219 Corporate bonds 82,617 420 ( 528 ) 82,509 Obligations of states and political subdivisions 242,807 5,848 ( 1,189 ) 247,466 Total securities available for sale 553,737 7,680 ( 3,324 ) 558,093 December 31, 2020 U.S. government agencies 54,224 144 (7 ) 54,361 U.S. agency mortgage-backed securities 69,777 1,441 (166 ) 71,052 U.S. agency collateralized mortgage obligations 34,449 640 (54 ) 35,035 Asset-backed securities 60,387 433 (345 ) 60,475 Corporate bonds 60,387 1,348 (12 ) 61,723 Obligations of states and political subdivisions 187,132 6,727 (77 ) 193,782 Total securities available for sale 466,356 10,733 (661 ) 476,428 |
Schedule of contractual maturity of debt securities | The amortized cost and fair value of debt securities available for sale at December 31, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 28,348 28,490 Due after one year through five years 109,795 110,615 Due after five years through ten years 148,147 147,710 Due after ten years 267,447 271,278 Total debt securities 553,737 558,093 |
Schedule of proceeds and gains and losses on securities available for sale | PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Securities Available for Sale 2021 2020 $ $ Proceeds from sales 79,019 54,291 Gross realized gains 809 836 Gross realized losses 79 27 |
Schedule of securities in an unrealized loss position (temporary impairment) | TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of December 31, 2021 U.S. Treasuries 4,959 ( 22 ) — — 4,959 ( 22 ) U.S. government agencies 16,386 ( 519 ) 7,375 ( 123 ) 23,761 ( 642 ) U.S. agency mortgage-backed securities 24,090 ( 468 ) 2,458 ( 10 ) 26,548 ( 478 ) U.S. agency collateralized mortgage obligations 14,206 ( 66 ) 2,965 ( 15 ) 17,171 ( 81 ) Asset-backed securities 50,466 ( 338 ) 2,826 ( 46 ) 53,292 ( 384 ) Corporate bonds 44,907 ( 528 ) — — 44,907 ( 528 ) Obligations of states & political subdivisions 70,021 ( 1,043 ) 6,023 ( 146 ) 76,044 ( 1,189 ) Total temporarily impaired securities 225,035 ( 2,984 ) 21,647 ( 340 ) 246,682 ( 3,324 ) As of December 31, 2020 U.S. government agencies 42,988 (7 ) — — 42,988 (7 ) U.S. agency mortgage-backed securities 15,995 (157 ) 2,221 (9 ) 18,216 (166 ) U.S. agency collateralized mortgage obligations 12,933 (54 ) — — 12,933 (54 ) Asset-backed securities 8,465 (20 ) 18,080 (325 ) 26,545 (345 ) Corporate bonds — — 3,016 (12 ) 3,016 (12 ) Obligations of states & political subdivisions 15,666 (77 ) — — 15,666 (77 ) Total temporarily impaired securities 96,047 (315 ) 23,317 (346 ) 119,364 (661 ) |
Schedule of unrealized gains and losses, and fair value of equity securities | The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at December 31, 2021 and December 31, 2020. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2021 CRA-qualified mutual funds 7,240 — — 7,240 Bank stocks 1,570 184 ( 12 ) 1,742 Total equity securities 8,810 184 ( 12 ) 8,982 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2020 CRA-qualified mutual funds 6,176 — — 6,176 Bank stocks 982 53 (106 ) 929 Total equity securities 7,158 53 (106 ) 7,105 |
Schedule of unrealized gains and losses | NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Year Ended Year Ended December 31, 2021 December 31, 2020 $ $ Net gains (losses) recognized in equity securities during the period 324 (76 ) Less: Net gains realized on the sale of equity securities during the period ( 99 ) — Unrealized gains (losses) recognized in equity securities held at reporting date 225 (76 ) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of loan portfolio by category | The following table presents the Corporation’s loan portfolio by category of loans for 2021 and 2020. LOAN PORTFOLIO (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Commercial real estate Commercial mortgages 177,396 142,698 Agriculture mortgages 203,725 176,005 Construction 19,639 23,441 Total commercial real estate 400,760 342,144 Consumer real estate (a) 1-4 family residential mortgages 317,037 263,569 Home equity loans 11,181 10,708 Home equity lines of credit 75,698 71,290 Total consumer real estate 403,916 345,567 Commercial and industrial Commercial and industrial 65,615 97,896 Tax-free loans 23,009 10,949 Agriculture loans 20,717 20,365 Total commercial and industrial 109,341 129,210 Consumer 5,132 5,155 Gross loans prior to deferred costs and allowance for loan losses 919,149 822,076 Deferred loan costs, net 1,755 1,294 Allowance for credit losses ( 12,931 ) (12,327 ) Total net loans 907,973 811,043 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $289,263,000 and $235,437,000 as of December 31, 2021, and 2020, respectively. |
Schedule of commercial and consumer credit exposure | COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) Commercial Commercial Agriculture and Tax-free Agriculture December 31, 2021 Mortgages Mortgages Construction Industrial Loans Loans Total $ $ $ $ $ $ $ Grade: Pass 172,540 192,943 13,544 57,214 23,009 19,980 479,230 Special Mention 2,443 2,542 6,095 4,657 — 90 15,827 Substandard 2,413 8,240 — 3,744 — 647 15,044 Doubtful — — — — — — — Loss — — — — — — — Total 177,396 203,725 19,639 65,615 23,009 20,717 510,101 COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) Commercial Commercial Agriculture and Tax-free Agriculture December 31, 2020 Mortgages Mortgages Construction Industrial Loans Loans Total $ $ $ $ $ $ $ Grade: Pass 133,853 166,102 21,142 87,767 10,949 18,586 438,399 Special Mention 3,683 1,651 2,299 5,592 — 774 13,999 Substandard 5,162 8,252 — 4,537 — 1,005 18,956 Doubtful — — — — — — — Loss — — — — — — — Total 142,698 176,005 23,441 97,896 10,949 20,365 471,354 For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. A consumer loan is considered non-performing when it is over 90 days past due. Management will generally charge off consumer loans more than 120 days past due for closed end loans and over 180 days for open-end consumer loans. The following table presents the balances of consumer loans by classes of the loan portfolio based on payment performance as of December 31, 2021 and 2020: 75 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2021 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 316,722 11,181 75,659 5,132 408,694 Non-performing 315 — 39 — 354 Total 317,037 11,181 75,698 5,132 409,048 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2020 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 262,185 10,708 71,267 5,141 349,301 Non-performing 1,384 — 23 14 1,421 Total 263,569 10,708 71,290 5,155 350,722 |
Schedule of aging of loans receivable | The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of December 31, 2021 and 2020: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Receivable December 31, 2021 Greater >90 Days 30-59 Days 60-89 Days than 90 Total Past Total Loans and Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages 22 — 184 206 177,190 177,396 — Agriculture mortgages 232 — 1,838 2,070 201,655 203,725 — Construction — — — — 19,639 19,639 — Consumer real estate 1-4 family residential mortgages 1,464 68 315 1,847 315,190 317,037 276 Home equity loans 19 — — 19 11,162 11,181 — Home equity lines of credit — — 39 39 75,659 75,698 39 Commercial and industrial Commercial and industrial 43 — 395 438 65,177 65,615 10 Tax-free loans — — — — 23,009 23,009 — Agriculture loans — 9 110 119 20,598 20,717 — Consumer 22 — — 22 5,110 5,132 — Total 1,802 77 2,881 4,760 914,389 919,149 325 76 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Receivable December 31, 2020 Greater >90 Days 30-59 Days 60-89 Days than 90 Total Past Total Loans and Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 208 208 142,490 142,698 — Agriculture mortgages — — — — 176,005 176,005 — Construction — — — — 23,441 23,441 — Consumer real estate 1-4 family residential mortgages 618 — 1,384 2,002 261,567 263,569 1,336 Home equity loans 1 — — 1 10,707 10,708 — Home equity lines of credit — — 23 23 71,267 71,290 23 Commercial and industrial Commercial and industrial — — 469 469 97,427 97,896 — Tax-free loans — — — — 10,949 10,949 — Agriculture loans 42 — — 42 20,323 20,365 — Consumer 23 3 14 40 5,115 5,155 14 Total 684 3 2,098 2,785 819,291 822,076 1,373 |
Schedule of nonaccrual loans by class | 2021 2020 $ $ Commercial real estate Commercial mortgages 184 208 Agriculture mortgages 1,838 — Construction — — Consumer real estate 1-4 family residential mortgages 39 48 Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial 385 469 Tax-free loans — — Agriculture loans 110 — Consumer — — Total 2,556 725 |
Schedule of impaired loans | The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2021: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 223 263 — 2,153 106 Agriculture mortgages 2,055 2,066 — 1,313 54 Construction — — — — — Total commercial real estate 2,278 2,329 — 3,466 160 Commercial and industrial Commercial and industrial 385 438 — 419 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 385 438 — 419 — Total with no related allowance 2,663 2,767 — 3,885 160 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages 551 559 37 144 — Construction — — — — — Total commercial real estate 551 559 37 144 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 110 111 110 26 — Total commercial and industrial 110 111 110 26 — Total with a related allowance 661 670 147 170 — Total by loan class: Commercial real estate Commercial mortgages 223 263 — 2,153 106 Agriculture mortgages 2,606 2,625 37 1,457 54 Construction — — — — — Total commercial real estate 2,829 2,888 37 3,610 160 Commercial and industrial Commercial and industrial 385 438 — 419 — Tax-free loans — — — — — Agriculture loans 110 111 110 26 — Total commercial and industrial 495 549 110 445 — Total 3,324 3,437 147 4,055 160 79 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2020: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 256 318 — 798 — Agriculture mortgages 806 835 — 1,170 46 Construction — — — — — Total commercial real estate 1,062 1,153 — 1,968 46 Commercial and industrial Commercial and industrial 469 504 — 513 23 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 469 504 — 513 23 Total with no related allowance 1,531 1,657 — 2,481 69 With an allowance recorded: Commercial real estate Commercial mortgages 3,581 3,581 1,110 1,468 57 Agriculture mortgages 651 651 21 679 34 Construction — — — — — Total commercial real estate 4,232 4,232 1,131 2,147 91 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 4,232 4,232 1,131 2,147 91 Total by loan class: Commercial real estate Commercial mortgages 3,837 3,899 1,110 2,266 57 Agriculture mortgages 1,457 1,486 21 1,849 80 Construction — — — — — Total commercial real estate 5,294 5,385 1,131 4,115 137 Commercial and industrial Commercial and industrial 469 504 — 513 23 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 469 504 — 513 23 Total 5,763 5,889 1,131 4,628 160 |
Schedule of allowance for credit losses | The following table details activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2021: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 6,329 3,449 1,972 52 525 12,327 Charge-offs — ( 20 ) — ( 35 ) — ( 55 ) Recoveries 109 2 56 17 — 184 Provision ( 175 ) 403 84 53 110 475 Ending balance 6,263 3,834 2,112 87 635 12,931 Ending balance: individually evaluated for impairment 37 — 110 — — 147 Ending balance: collectively evaluated for impairment 6,226 3,834 2,002 87 635 12,784 Loans receivable: Ending balance 400,760 403,916 109,341 5,132 919,149 Ending balance: individually evaluated for impairment 2,829 — 495 — 3,324 Ending balance: collectively evaluated for impairment 397,931 403,916 108,846 5,132 915,825 The dollar amount of the allowance increased for all loan segments except commercial real estate since December 31, 2020. The lower provision in the commercial real estate sector was due to a specific allocation of $1.1 million made during 2020 for a customer with ongoing business concerns. This loan paid off in 2021 resulting in a reversal of this specific allocation. The higher provisions across the other categories were primarily caused by growth within these segments of the loan portfolio. Recoveries exceeded charge-offs during the year ended December 31, 2021, so the provision expense was primarily related to loan portfolio growth and minor increases in qualitative factors. The Corporation’s allowance allocation is still overweighted toward commercial real estate loans due to the higher historical losses experienced. Approximately 48% of the allowance is dedicated to this sector that comprises 44% of total loan balances. This compares to 30% of the allowance being allocated to the consumer real estate sector which comprises 44% of all loan balances. Losses on consumer real estate have traditionally been lower than commercial loans. The commercial and industrial sector has 16% of the allowance allocated and comprises 16% of loan balances. Commercial and industrial historical losses have generally been lower than commercial real estate but higher than consumer real estate, based on loan balances outstanding. The December 31, 2021 ending balance of the allowance was up $604,000, or 4.9%, from December 31, 2020, and the allowance as a percentage of total loans was 1.40% as of December 31, 2021, and 1.50% as of December 31, 2020. 81 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements The following table details activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2020: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 4,319 2,855 1,784 41 448 9,447 Charge-offs (45 ) — (23 ) (20 ) — (88 ) Recoveries 11 — 4 3 — 18 Provision (credit) 2,044 594 207 28 77 2,950 Ending balance 6,329 3,449 1,972 52 525 12,327 Ending balance: individually evaluated for impairment 1,131 — — — — 1,131 Ending balance: collectively evaluated for impairment 5,198 3,449 1,972 52 525 11,196 Loans receivable: Ending balance 342,144 345,567 129,210 5,155 822,076 Ending balance: individually evaluated for impairment 5,294 — 469 — 5,763 Ending balance: collectively evaluated for impairment 336,850 345,567 128,741 5,155 816,313 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The major classes of the Corporation’s premises and equipment and accumulated depreciation are as follows: December 31, 2021 2020 $ $ Land 5,043 5,043 Buildings and improvements 30,265 29,742 Furniture and equipment 10,864 15,890 Construction in process 369 385 Total 46,541 51,060 Less accumulated depreciation ( 22,065 ) (26,300 ) Premises and equipment 24,476 24,760 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits: | |
Schedule of Deposit Liabilities | Deposits by major classifications are summarized as follows: December 31, 2021 2020 $ $ Non-interest bearing demand 686,278 534,853 Interest-bearing demand 63,015 47,092 NOW accounts 139,366 137,279 Money market deposit accounts 168,327 140,113 Savings accounts 341,291 274,386 Time deposits under $250,000 105,615 111,001 Time deposits of $250,000 or more 8,321 8,087 Total deposits 1,512,213 1,252,811 |
Maturities of time deposits | At December 31, 2021, the scheduled maturities of time deposits are as follows: 2022 63,603 2023 18,057 2024 17,121 2025 6,863 2026 8,292 Total 113,936 |
SHORT TERM BORROWINGS (Tables)
SHORT TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
Schedule of Short-term borrowings | A summary of short-term borrowings is as follows for the years ended December 31, 2021 and 2020: 2021 2020 $ $ Total short-term borrowings outstanding at year end — — Average interest rate at year end — — Maximum outstanding at any month end — 11,012 Average amount outstanding for the year 22 2,342 Weighted-average interest rate for the year 0.25 % 0.33% |
OTHER BORROWED FUNDS (Tables)
OTHER BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Federal Home Loan Bank Advances by Maturity | Maturities of FHLB borrowings at December 31, 2021, and 2020, are summarized as follows: December 31, 2021 2020 Weighted- Weighted- Average Average Amount Rate Amount Rate $ % $ % FHLB fixed rate loans 2022 — — 10,584 2.13 2023 13,816 2.77 13,816 2.77 2024 17,407 2.02 17,407 2.02 2025 12,983 1.47 12,983 1.47 2026 Total other borrowings 44,206 2.09 54,790 2.10 |
Schedule of Subordinated debt | Subordinated debt at December 31, 2021 and 2020 was as follows: (Dollars in thousands) December 31, 2021 2020 Carrying Carrying Issued Amount Amount Rate Amount Issued by Ranking $ $ % $ Date Issued Maturity ENB Financial Corp Subordinated (1)(2) 19,680 19,601 4.00 % 20,000 12/30/20 12/30/30 (1) The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (2) ENB Financial Corp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2025. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Reconciliation | Federal income tax expense as reported differs from the amount computed by applying the statutory Federal income tax rate to income before taxes. A reconciliation of the differences by amount and percent is as follows: FEDERAL INCOME TAX SUMMARY (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ % $ % Income tax at statutory rate 3,683 21.0 3,063 21.0 Tax-exempt interest income ( 954 ) ( 5.4 ) (695 ) (4.8 ) Non-deductible interest expense 47 0.3 50 0.3 Bank-owned life insurance ( 160 ) ( 0.9 ) (151 ) (1.0 ) Other 4 0.0 18 0.1 Income tax expense 2,620 15.0 2,285 15.6 |
Schedule of Components of Income Tax Expense | Significant components of income tax expense are as follows: (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ $ Current tax expense 2,605 2,931 Deferred tax (benefit) 15 (646 ) Income tax expense 2,620 2,285 |
Schedule of Deferred Tax Assets and Liabilities | Components of the Corporation's net deferred tax position are as follows: (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Deferred tax assets Allowance for credit losses 2,715 2,589 Allowance for off-balance sheet extensions of credit 191 168 Interest on non-accrual loans 6 11 Other 110 47 Total deferred tax assets 3,022 2,815 Deferred tax liabilities Premises and equipment ( 926 ) (987 ) Net unrealized holding gains on securities available for sale ( 915 ) (2,115 ) Mortgage servicing rights ( 193 ) (93 ) Discount on investment securities ( 114 ) (45 ) Other ( 129 ) (15 ) Total deferred tax liabilities ( 2,277 ) (3,255 ) Net deferred tax assets (liabilities) 745 (440 ) |
REGULATORY MATTERS AND RESTRI_2
REGULATORY MATTERS AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Regulatory Capital Requirements | As of December 31, 2021 and 2020, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following chart details the Corporation’s and the Bank’s capital levels as of December 31, 2021 and December 31, 2020, compared to regulatory levels. 88 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements CAPITAL LEVELS To Be Well (DOLLARS IN THOUSANDS) Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provision $ % $ % $ % As of December 31, 2021 Total Capital to Risk-Weighted Assets Consolidated 166,878 15.6 N/A N/A N/A N/A Bank 162,375 14.9 87,281 8.0 109,101 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 133,848 12.5 N/A N/A N/A N/A Bank 148,735 13.6 65,461 6.0 87,281 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 133,848 12.5 N/A N/A N/A N/A Bank 148,735 13.6 49,095 4.5 70,916 6.5 Tier I Capital to Average Assets Consolidated 133,848 8.2 N/A N/A N/A N/A Bank 148,735 9.1 65,721 4.0 81,701 5.0 As of December 31, 2020 Total Capital to Risk-Weighted Assets Consolidated 153,801 16.1 N/A N/A N/A N/A Bank 145,434 15.3 76,249 8.0 95,311 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 122,258 12.8 N/A N/A N/A N/A Bank 133,505 14.0 57,187 6.0 76,249 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 122,258 12.8 N/A N/A N/A N/A Bank 133,505 14.0 42,890 4.5 61,952 6.5 Tier I Capital to Average Assets Consolidated 122,258 9.0 N/A N/A N/A N/A Bank 133,505 9.8 54,334 4.0 67,918 5.0 |
TRANSACTIONS WITH DIRECTORS A_2
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Loans | The following table presents activity in the amounts due from directors, executive officers, immediate family, and affiliated companies. These transactions are made on the same terms and conditions, including interest rates and collateral requirements as those prevailing at the time for comparable transactions with others. An analysis of the activity with respect to such aggregate loans to related parties is shown below. 89 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements LOANS TO INSIDERS (DOLLARS IN THOUSANDS) Year Ended Year Ended December 31, December 31, 2021 2020 $ $ Balance, beginning of year 31 640 Advances 40 16 Repayments ( 71 ) (622 ) Other changes 194 (3 ) Balance, end of year 194 31 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheet classification of the Corporation’s ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification December 31, 2021 December 31, 2020 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 617 $ 728 Lease Liabilities Operating lease liabilties Other Liabilities $ 629 $ 740 |
Schedule of Opreating Leases Weighted-Average Discount Term and Rate | The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As the rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. December 31, 2021 December 31, 2020 Weighted-average remaining lease term Operating leases 3.7 years 4.4 years Weighted-average discount rate Operating leases 2.82 % 3.11% |
Schedule of Maturities of Operating Leases | Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2021 were as follows: 92 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: December 31, 2022 $ 189 December 31, 2023 173 December 31, 2024 176 December 31, 2025 106 December 31, 2026 20 Thereafter — Total Future Minimum Lease Payments 664 Amounts Representing Interests ( 35 ) Present Value of Net Future Minimum Lease Payments $ 629 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a recurring basis | The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS REPORTED AT FAIR VALUE ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2021 Level I Level II Level III Total $ $ $ $ U.S. Treasuries — 14,813 — 14,813 U.S. government agencies — 29,021 — 29,021 U.S. agency mortgage-backed securities — 51,988 — 51,988 U. S. agency collateralized mortgage obligations — 31,077 — 31,077 Asset-backed securities — 101,219 — 101,219 Corporate bonds — 82,509 — 82,509 Obligations of states and political subdivisions — 247,466 — 247,466 Marketable equity securities 8,982 — — 8,982 Total securities 8,982 558,093 — 567,075 93 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements On December 31, 2021, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of December 31, 2021, the CRA fund investments had a $7,240,000 book and market value and the bank stocks had a book value of $1,570,000 and a market value of $1,742,000. Financial instruments are considered level III when their values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. ASSETS REPORTED AT FAIR VALUE ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2020 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 54,361 — 54,361 U.S. agency mortgage-backed securities — 71,052 — 71,052 U. S. agency collateralized mortgage obligations — 35,035 — 35,035 Asset-backed securities 60,475 60,475 Corporate bonds — 61,723 — 61,723 Obligations of states and political subdivisions — 193,782 — 193,782 Marketable equity securities 7,105 — — 7,105 Total securities 7,105 476,428 — 483,533 |
Schedule of assets measured on a nonrecurring basis | The following table provides the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2021 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 3,177 3,177 — — 3,177 3,177 December 31, 2020 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 4,632 4,632 Total — — 4,632 4,632 |
Schedule of Level III inputs | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) December 31, 2021 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,177 Appraisal of collateral (1) Appraisal adjustments (2) 0 % to - 20 % (- 20 %) Liquidation expenses (2) 0 % to - 10 % (- 10 %) December 31, 2020 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 4,632 Appraisal of collateral (1) Appraisal adjustments (2) 0% to -20% (-20%) Liquidation expenses (2) 0% to -10% (-10%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
DISCLOSURES ABOUT FAIR VALUE _2
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Unobservable inputs - Liquidation expenses | |
Schedule of carrying amount and fair value of financial instruments | The following tables provide the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Corporation's Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020: FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 158,449 158,449 158,449 — — Regulatory stock 5,380 5,380 5,380 — — Loans held for sale 3,194 3,194 3,194 — — Loans, net of allowance 907,973 914,251 — — 914,251 Mortgage servicing assets 1,768 2,129 — — 2,129 Accrued interest receivable 5,152 5,152 5,152 — — Bank owned life insurance 35,414 35,414 35,414 — — Financial Liabilities: Demand deposits 686,278 686,278 686,278 — — Interest-bearing demand deposits 63,015 63,015 63,015 — — NOW accounts 139,366 139,366 139,366 — — Money market deposit accounts 168,327 168,327 168,327 — — Savings accounts 341,291 341,291 341,291 — — Time deposits 113,936 113,919 — — 113,919 Total deposits 1,512,213 1,512,196 1,398,277 — 113,919 Long-term debt 44,206 43,060 — — 43,060 Subordinated debt 19,680 19,088 — — 19,088 Accrued interest payable 251 251 251 — — 96 Table of Contents ENB FINANCIAL CORP Notes to Consolidated Financial Statements FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 94,939 94,939 94,939 — — Regulatory stock 6,107 6,107 6,107 — — Loans held for sale 3,029 3,029 3,029 — — Loans, net of allowance 811,043 829,902 — — 829,902 Mortgage servicing assets 1,076 1,083 — — 1,083 Accrued interest receivable 4,546 4,546 4,546 — — Bank owned life insurance 29,646 29,646 29,646 — — Financial Liabilities: Demand deposits 534,853 534,853 534,853 — — Interest-bearing demand deposits 47,092 47,092 47,092 — — NOW accounts 137,279 137,279 137,279 — — Money market deposit accounts 140,113 140,113 140,113 — — Savings accounts 274,386 274,386 274,386 — — Time deposits 119,088 121,470 — — 121,470 Total deposits 1,252,811 1,255,193 1,133,723 — 121,470 Short-term borrowings 54,790 51,800 — — 51,800 Long-term debt 19,601 19,601 — — 19,601 Accrued interest payable 320 320 320 — — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income | The activity in accumulated other comprehensive income (loss) for the years ended December 31, 2021 and 2020 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains on Securities Available-for-Sale $ Balance at January 1, 2021 7,958 Other comprehensive income (loss) before reclassifications ( 3,940 ) Amount reclassified from accumulated other comprehensive income ( 577 ) Period change ( 4,517 ) Balance at December 31, 2021 3,441 Balance at January 1, 2020 1,600 Other comprehensive income before reclassifications 6,997 Amount reclassified from accumulated other comprehensive loss (639 ) Period change 6,358 Balance at December 31, 2020 7,958 (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, Affected Line Item 2021 2020 in the Consolidated $ $ Statements of Income Securities available for sale: Net securities gains reclassified into earnings 730 809 Gains on sale of debt securities, net Related income tax expense ( 153 ) (170 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 577 639 Total reclassifications for the period 577 639 (1) Amounts in parentheses indicate debits. |
CONDENSED PARENT ONLY DATA (Tab
CONDENSED PARENT ONLY DATA (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets (Parent Company Only) (DOLLARS IN THOUSANDS) December 31, 2021 2020 $ $ Assets Cash 2,638 7,705 Equity securities 1,743 929 Equity in bank subsidiary 152,176 141,463 Other assets 452 165 Total assets 157,009 150,262 Liabilities Subordinated debt 19,680 19,601 Other Liabilities 41 445 Total Liabilities 19,721 20,046 Stockholders' Equity Common stock 574 574 Capital surplus 4,520 4,444 Retained earnings 131,856 120,670 Accumulated other comprehensive income, net of tax 3,441 7,958 Treasury stock ( 3,103 ) (3,430 ) Total stockholders' equity 137,288 130,216 Total liabilities and stockholders' equity 157,009 150,262 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 $ $ Income Dividend income - investment securities 52 27 Gains (losses) on equity securities, net 324 (76 ) Dividend income 3,730 5,073 Undistributed earnings of bank subsidiary 11,730 7,541 Total income 15,836 12,565 Expense Subordinated debt interest expense 800 4 Shareholder expenses 132 153 Other expenses 130 109 Total expense 1,062 266 Provision (benefit) for income taxes ( 142 ) — Net Income 14,916 12,299 Comprehensive Income 10,399 18,657 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (DOLLARS IN THOUSANDS) Year Ended December 31, 2021 2020 Cash Flows from Operating Activities: $ $ Net Income 14,916 12,299 Equity in undistributed earnings of subsidiaries ( 11,730 ) (7,541 ) (Gains)losses on securities transactions, net ( 324 ) 76 Net amortization of subordinated debt fees 79 — Net increase in other assets ( 287 ) (48 ) Net (decrease) increase in other liabilities ( 404 ) 444 Net cash provided by operating activities 2,250 5,230 Cash Flows from Investing Activities: Proceeds from sales of equity securities 460 — Purchases of equity securities ( 950 ) (367 ) Net cash used for investing activities ( 490 ) (367 ) Cash Flows from Financing Activities: Proceeds from sale of treasury stock 885 660 Proceeds from issuance of subordinated debt — 19,601 Dividend to bank subsidiary ( 3,500 ) (12,500 ) Treasury stock purchased ( 482 ) (2,216 ) Dividends paid ( 3,730 ) (3,573 ) Net cash (used for) provided by financing activities ( 6,827 ) 1,972 Cash and Cash Equivalents: Net change in cash and cash equivalents ( 5,067 ) 6,835 Cash and cash equivalents at beginning of period 7,705 870 Cash and cash equivalents at end of period 2,638 7,705 |
SUMMARY OF QUARTERLY FINANCIA_2
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Results of Operations | 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 10,530 10,537 11,417 11,108 Interest expense 851 806 789 574 Net interest income 9,679 9,731 10,628 10,534 Less provision (credit) for loan losses 375 — ( 250 ) 350 Net interest income after provision (credit) for loan losses 9,304 9,731 10,878 10,184 Other income 5,318 4,077 4,139 4,347 Operating expenses: Salaries and employee benefits 5,699 5,959 6,142 6,665 Occupancy and equipment expenses 950 920 909 897 Other operating expenses 2,538 2,817 3,067 3,878 Total operating expenses 9,187 9,696 10,118 11,440 Income before income taxes 5,435 4,112 4,899 3,091 Provision for Federal income taxes 931 561 760 370 Net income 4,504 3,551 4,139 2,721 FINANCIAL RATIOS Per share data: Net income 0.81 0.64 0.74 0.49 Cash dividends paid 0.16 0.17 0.17 0.17 2020 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 10,487 10,468 10,387 10,752 Interest expense 1,271 999 845 731 Net interest income 9,216 9,469 9,542 10,021 Less provision for loan losses 350 975 1,250 375 Net interest income after provision for loan losses 8,866 8,494 8,292 9,646 Other income 2,767 4,068 4,374 4,151 Operating expenses: Salaries and employee benefits 5,696 4,966 5,860 5,540 Occupancy and equipment expenses 881 932 896 894 Other operating expenses 2,533 2,346 2,442 3,088 Total operating expenses 9,110 8,244 9,198 9,522 Income before income taxes 2,523 4,318 3,468 4,275 Provision for Federal income taxes 358 719 533 675 Net income 2,165 3,599 2,935 3,600 FINANCIAL RATIOS Per share data: Net income 0.38 0.64 0.53 0.65 Cash dividends paid 0.16 0.16 0.16 0.16 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowances for off-balance sheet extensions of credit | $ 910,000 | $ 798,000 | |
Other Real Estate Owned (OREO) | |||
Mortgage Servicing Rights (MSRs) | 1,768,000 | 1,076,000 | $ 892,000 |
Bank owned life insurance | 35,414,000 | 29,646,000 | |
Advertising costs | 992,000 | $ 894,000 | |
Additional investment in Bank Owned Life Insurance attributing to increase in cash surrender value | $ 500,000 | ||
401(K) Plan [Member] | |||
Employer contribution percentage | 5.00% | ||
Employer matching contribution, maximum percentage of employee pay | 2.50% | ||
Employer matching contribution, matching percentage | 50.00% | ||
Working hour in a calender year | 1,000 | ||
401(K) Plan [Member] | Non-Elective contribution [Member] | |||
Employer contribution percentage | 3.00% | ||
401(K) Plan [Member] | Elective contribution [Member] | |||
Employer contribution percentage | 2.00% | ||
Lower Range [Member] | 401(K) Plan [Member] | Non-Elective contribution [Member] | |||
Employer contribution percentage | 2.00% | ||
Upper Range [Member] | 401(K) Plan [Member] | Non-Elective contribution [Member] | |||
Employer contribution percentage | 3.00% | ||
Buildings and improvements [Member] | Lower Range [Member] | |||
Useful life | 15 years | ||
Buildings and improvements [Member] | Upper Range [Member] | |||
Useful life | 39 years | ||
Furniture and Equipment [Member] | Lower Range [Member] | |||
Useful life | 4 years | ||
Furniture and Equipment [Member] | Upper Range [Member] | |||
Useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ 1,076 | $ 892 |
Additions | 877 | 753 |
Amortization | (48) | (420) |
Disposals | (137) | (149) |
Ending Balance | $ 1,768 | $ 1,076 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale debt securities pledged or restricted for public funds, par value | $ 94,283,000 | $ 86,849,000 |
Available for sale debt securities pledged or restricted for public funds, fair value | 96,521,000 | 91,666,000 |
Proceeds from sales of equity securities | $ 460,000 | |
Debt Security Portfolio [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities considered temporarily impaired | 115 |
SECURITIES (Schedule of Amortiz
SECURITIES (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Securities Available For Sale | ||
Amortized Cost | $ 553,737 | $ 466,356 |
Gross Unrealized Gains | 7,680 | 10,733 |
Gross Unrealized Losses | (3,324) | (661) |
Fair Value | 558,093 | 476,428 |
U.S. Treasuries [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 14,821 | |
Gross Unrealized Gains | 14 | |
Gross Unrealized Losses | (22) | |
Fair Value | 14,813 | |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 29,613 | 54,224 |
Gross Unrealized Gains | 50 | 144 |
Gross Unrealized Losses | (642) | (7) |
Fair Value | 29,021 | 54,361 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 51,964 | 69,777 |
Gross Unrealized Gains | 502 | 1,441 |
Gross Unrealized Losses | (478) | (166) |
Fair Value | 51,988 | 71,052 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 30,917 | 34,449 |
Gross Unrealized Gains | 241 | 640 |
Gross Unrealized Losses | (81) | (54) |
Fair Value | 31,077 | 35,035 |
Asset-backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 100,998 | 60,387 |
Gross Unrealized Gains | 605 | 433 |
Gross Unrealized Losses | (384) | (345) |
Fair Value | 101,219 | 60,475 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 82,617 | 60,387 |
Gross Unrealized Gains | 420 | 1,348 |
Gross Unrealized Losses | (528) | (12) |
Fair Value | 82,509 | 61,723 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 242,807 | 187,132 |
Gross Unrealized Gains | 5,848 | 6,727 |
Gross Unrealized Losses | (1,189) | (77) |
Fair Value | $ 247,466 | $ 193,782 |
SECURITIES (Schedule of Contrac
SECURITIES (Schedule of Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contractual maturity of debt securities, Amortized Cost | ||
Due in one year or less | $ 28,348 | |
Due after one year through five years | 109,795 | |
Due after five years through ten years | 148,147 | |
Due after ten years | 267,447 | |
Total debt securities | 553,737 | $ 466,356 |
Contractual maturity of debt securities, Fair Value | ||
Due in one year or less | 28,490 | |
Due after one year through five years | 110,615 | |
Due after five years through ten years | 147,710 | |
Due after ten years | 271,278 | |
Securities available for sale | $ 558,093 | $ 476,428 |
SECURITIES (Schedule of Proceed
SECURITIES (Schedule of Proceeds and Gains and Losses on Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 79,019 | $ 54,291 |
Gross realized gains | 809 | 836 |
Gross realized losses | $ 79 | $ 27 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 months | $ 225,035 | $ 96,047 |
More than 12 months | 21,647 | 23,317 |
Total | 246,682 | 119,364 |
Gross Unrealized Losses | ||
Less than 12 months | (2,984) | (315) |
More than 12 months | (340) | (346) |
Total | (3,324) | (661) |
U.S. Treasuries [Member] | ||
Fair Value | ||
Less than 12 months | 4,959 | |
More than 12 months | ||
Total | 4,959 | |
Gross Unrealized Losses | ||
Less than 12 months | (22) | |
More than 12 months | ||
Total | (22) | |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | 16,386 | 42,988 |
More than 12 months | 7,375 | |
Total | 23,761 | 42,988 |
Gross Unrealized Losses | ||
Less than 12 months | (519) | (7) |
More than 12 months | (123) | |
Total | (642) | (7) |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 24,090 | 15,995 |
More than 12 months | 2,458 | 2,221 |
Total | 26,548 | 18,216 |
Gross Unrealized Losses | ||
Less than 12 months | (468) | (157) |
More than 12 months | (10) | (9) |
Total | (478) | (166) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 14,206 | 12,933 |
More than 12 months | 2,965 | |
Total | 17,171 | 12,933 |
Gross Unrealized Losses | ||
Less than 12 months | (66) | (54) |
More than 12 months | (15) | |
Total | (81) | (54) |
Asset-backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 50,466 | 8,465 |
More than 12 months | 2,826 | 18,080 |
Total | 53,292 | 26,545 |
Gross Unrealized Losses | ||
Less than 12 months | (338) | (20) |
More than 12 months | (46) | (325) |
Total | (384) | (345) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 44,907 | |
More than 12 months | 3,016 | |
Total | 44,907 | 3,016 |
Gross Unrealized Losses | ||
Less than 12 months | (528) | |
More than 12 months | (12) | |
Total | (528) | (12) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 70,021 | 15,666 |
More than 12 months | 6,023 | |
Total | 76,044 | 15,666 |
Gross Unrealized Losses | ||
Less than 12 months | (1,043) | (77) |
More than 12 months | (146) | |
Total | $ (1,189) | $ (77) |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Gains and Losses, and Fair Value of Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 553,737 | $ 466,356 |
Gross Unrealized Gains | 7,680 | 10,733 |
Gross Unrealized Losses | (3,324) | (661) |
Fair Value | 558,093 | 476,428 |
CRA-qualified mutual fund [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,240 | 6,176 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 7,240 | 6,176 |
Bank Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,570 | 982 |
Gross Unrealized Gains | 184 | 53 |
Gross Unrealized Losses | (12) | (106) |
Fair Value | 1,742 | 929 |
Total equity securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,810 | 7,158 |
Gross Unrealized Gains | 184 | 53 |
Gross Unrealized Losses | (12) | (106) |
Fair Value | $ 8,982 | $ 7,105 |
SECURITIES (Schedule of Unrea_2
SECURITIES (Schedule of Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains (losses) recognized in equity securities during the period | $ 324 | $ (76) |
Less: Net gains realized on the sale of equity securities during the period | (99) | |
Unrealized gains (losses) recognized in equity securities held at reporting date | $ 225 | $ (76) |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDRs loan | $ 3,600,000 | ||
Provision for specific allocation | $ 1,100,000 | $ 1,100,000 | |
Percentage of loans balance | 48.00% | ||
Percetage of loan losses balance | 44.00% | ||
Increase/Decrease in ending balance of allowance for loan losses | $ 604,000 | ||
Increase/Decrease in ending balance of allowance for loan losses | 4.90% | ||
Allowance as percentage of total loans | 1.40% | 1.50% | |
Loans Serviced for Others [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real estate loans serviced for others | $ 289,263,000 | $ 235,437,000 | |
Two Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDRs loan | $ 768,000 | ||
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of loans balance | 30.00% | ||
Percetage of loan losses balance | 44.00% | ||
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of loans balance | 16.00% | ||
Percetage of loan losses balance | 16.00% |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | $ 919,149 | $ 822,076 | ||
Deferred loan costs, net | 1,755 | 1,294 | ||
Allowance for credit losses | (12,931) | (12,327) | $ (9,447) | |
Net loans | 907,973 | 811,043 | ||
Home Equity Loan [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 11,181 | 10,708 | |
Consumer Home Equity Lines of Credit [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 75,698 | 71,290 | |
Commercial Real Estate [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 400,760 | 342,144 | ||
Allowance for credit losses | (6,263) | (6,329) | (4,319) | |
Commercial Real Estate [Member] | Construction Loans [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 19,639 | 23,441 | ||
Commercial Real Estate [Member] | Commercial and Industrial [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 177,396 | 142,698 | ||
Commercial Real Estate [Member] | Agriculture mortgages loans [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 203,725 | 176,005 | ||
Residential Portfolio Segment [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 403,916 | 345,567 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 317,037 | 263,569 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 11,181 | 10,708 | ||
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 75,698 | 71,290 | ||
Commercial mortgages [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 109,341 | 129,210 | ||
Commercial mortgages [Member] | Commercial and Industrial [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 65,615 | 97,896 | ||
Commercial mortgages [Member] | Agriculture mortgages loans [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 20,717 | 20,365 | ||
Commercial mortgages [Member] | Government Sector [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 23,009 | 10,949 | ||
Consumer [Member] | ||||
Loan Portfolio | ||||
Gross loans prior to deferred costs and allowance for loan losses | 5,132 | 5,155 | ||
Allowance for credit losses | $ (87) | $ (52) | $ (41) | |
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $289,263,000 and $235,437,000 as of December 31, 2021, and 2020, respectively. |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total | $ 510,101 | $ 471,354 |
Pass [Member] | ||
Total | 479,230 | 438,399 |
Special Mention [Member] | ||
Total | 15,827 | 13,999 |
Substandard [Member] | ||
Total | 15,044 | 18,956 |
Doubtful [Member] | ||
Total | ||
Loss [Member] | ||
Total | ||
Construction Loans [Member] | ||
Total | 19,639 | 23,441 |
Construction Loans [Member] | Pass [Member] | ||
Total | 13,544 | 21,142 |
Construction Loans [Member] | Special Mention [Member] | ||
Total | 6,095 | 2,299 |
Construction Loans [Member] | Substandard [Member] | ||
Total | ||
Construction Loans [Member] | Doubtful [Member] | ||
Total | ||
Construction Loans [Member] | Loss [Member] | ||
Total | ||
Agriculture mortgages loans [Member] | ||
Total | 203,725 | 176,005 |
Agriculture mortgages loans [Member] | Pass [Member] | ||
Total | 192,943 | 166,102 |
Agriculture mortgages loans [Member] | Special Mention [Member] | ||
Total | 2,542 | 1,651 |
Agriculture mortgages loans [Member] | Substandard [Member] | ||
Total | 8,240 | 8,252 |
Agriculture mortgages loans [Member] | Doubtful [Member] | ||
Total | ||
Agriculture mortgages loans [Member] | Loss [Member] | ||
Total | ||
Commercial and Industrial [Member] | ||
Total | 65,615 | 97,896 |
Commercial and Industrial [Member] | Pass [Member] | ||
Total | 57,214 | 87,767 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Total | 4,657 | 5,592 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Total | 3,744 | 4,537 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Total | ||
Commercial and Industrial [Member] | Loss [Member] | ||
Total | ||
Government Sector [Member] | ||
Total | 23,009 | 10,949 |
Government Sector [Member] | Pass [Member] | ||
Total | 23,009 | 10,949 |
Government Sector [Member] | Special Mention [Member] | ||
Total | ||
Government Sector [Member] | Substandard [Member] | ||
Total | ||
Government Sector [Member] | Doubtful [Member] | ||
Total | ||
Government Sector [Member] | Loss [Member] | ||
Total | ||
Agriculture loans [Member] | ||
Total | 20,717 | 20,365 |
Agriculture loans [Member] | Pass [Member] | ||
Total | 19,980 | 18,586 |
Agriculture loans [Member] | Special Mention [Member] | ||
Total | 90 | 774 |
Agriculture loans [Member] | Substandard [Member] | ||
Total | 647 | 1,005 |
Agriculture loans [Member] | Doubtful [Member] | ||
Total | ||
Agriculture loans [Member] | Loss [Member] | ||
Total | ||
Commercial mortgages [Member] | ||
Total | 177,396 | 142,698 |
Commercial mortgages [Member] | Pass [Member] | ||
Total | 172,540 | 133,853 |
Commercial mortgages [Member] | Special Mention [Member] | ||
Total | 2,443 | 3,683 |
Commercial mortgages [Member] | Substandard [Member] | ||
Total | 2,413 | 5,162 |
Commercial mortgages [Member] | Doubtful [Member] | ||
Total | ||
Commercial mortgages [Member] | Loss [Member] | ||
Total |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Credit Risk Profile by Payment Performance) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Gross loans prior to deferred costs and allowance for loan losses | $ 919,149 | $ 822,076 | |
Consumer Borrower [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 409,048 | 350,722 | |
Home Equity Loan [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 11,181 | 10,708 |
Consumer Home Equity Lines of Credit [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 75,698 | 71,290 |
1-4 Family Residential Mortgages [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 317,037 | 263,569 | |
Consumer [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 5,132 | 5,155 | |
Performing [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 408,694 | 349,301 | |
Performing [Member] | Home Equity Loan [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 11,181 | 10,708 | |
Performing [Member] | Consumer Home Equity Lines of Credit [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 75,659 | 71,267 | |
Performing [Member] | 1-4 Family Residential Mortgages [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 316,722 | 262,185 | |
Performing [Member] | Consumer [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 5,132 | 5,141 | |
Nonperforming [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 354 | 1,421 | |
Nonperforming [Member] | Home Equity Loan [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | |||
Nonperforming [Member] | Consumer Home Equity Lines of Credit [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 39 | 23 | |
Nonperforming [Member] | 1-4 Family Residential Mortgages [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | 315 | 1,384 | |
Nonperforming [Member] | Consumer [Member] | |||
Gross loans prior to deferred costs and allowance for loan losses | $ 14 | ||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $289,263,000 and $235,437,000 as of December 31, 2021, and 2020, respectively. |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 4,760 | $ 2,785 | |
Current | 914,389 | 819,291 | |
Total Loans Receivable | 919,149 | 822,076 | |
Loans Receivable - Greater than 90 Days and Accruing | 325 | 1,373 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,802 | 684 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 77 | 3 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,881 | 2,098 | |
Home Equity Loan [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | [1] | 11,181 | 10,708 |
Consumer Home Equity Lines of Credit [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | [1] | 75,698 | 71,290 |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 400,760 | 342,144 | |
Commercial Real Estate [Member] | Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Current | 19,639 | 23,441 | |
Total Loans Receivable | 19,639 | 23,441 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Commercial Real Estate [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial Real Estate [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial Real Estate [Member] | Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial Real Estate [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 206 | 208 | |
Current | 177,190 | 142,490 | |
Total Loans Receivable | 177,396 | 142,698 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Commercial Real Estate [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 22 | ||
Commercial Real Estate [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial Real Estate [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 184 | 208 | |
Commercial Real Estate [Member] | Agriculture mortgages loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,070 | ||
Current | 201,655 | 176,005 | |
Total Loans Receivable | 203,725 | 176,005 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Commercial Real Estate [Member] | Agriculture mortgages loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 232 | ||
Commercial Real Estate [Member] | Agriculture mortgages loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial Real Estate [Member] | Agriculture mortgages loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,838 | ||
Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | [1] | 403,916 | 345,567 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,847 | 2,002 | |
Current | 315,190 | 261,567 | |
Total Loans Receivable | [1] | 317,037 | 263,569 |
Loans Receivable - Greater than 90 Days and Accruing | 276 | 1,336 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,464 | 618 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 68 | ||
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 315 | 1,384 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 19 | 1 | |
Current | 11,162 | 10,707 | |
Total Loans Receivable | 11,181 | 10,708 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 19 | 1 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 39 | 23 | |
Current | 75,659 | 71,267 | |
Total Loans Receivable | 75,698 | 71,290 | |
Loans Receivable - Greater than 90 Days and Accruing | 39 | 23 | |
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 39 | 23 | |
Commercial mortgages [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 109,341 | 129,210 | |
Commercial mortgages [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 438 | 469 | |
Current | 65,177 | 97,427 | |
Total Loans Receivable | 65,615 | 97,896 | |
Loans Receivable - Greater than 90 Days and Accruing | 10 | ||
Commercial mortgages [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 43 | ||
Commercial mortgages [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial mortgages [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 395 | 469 | |
Commercial mortgages [Member] | Agriculture mortgages loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 119 | 42 | |
Current | 20,598 | 20,323 | |
Total Loans Receivable | 20,717 | 20,365 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Commercial mortgages [Member] | Agriculture mortgages loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 42 | ||
Commercial mortgages [Member] | Agriculture mortgages loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 9 | ||
Commercial mortgages [Member] | Agriculture mortgages loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 110 | ||
Commercial mortgages [Member] | Government Sector [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Current | 23,009 | 10,949 | |
Total Loans Receivable | 23,009 | 10,949 | |
Loans Receivable - Greater than 90 Days and Accruing | |||
Commercial mortgages [Member] | Government Sector [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial mortgages [Member] | Government Sector [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Commercial mortgages [Member] | Government Sector [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | |||
Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 22 | 40 | |
Current | 5,110 | 5,115 | |
Total Loans Receivable | 5,132 | 5,155 | |
Loans Receivable - Greater than 90 Days and Accruing | 14 | ||
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 22 | 23 | |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 14 | ||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $289,263,000 and $235,437,000 as of December 31, 2021, and 2020, respectively. |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | $ 2,556 | $ 725 |
Commercial Real Estate [Member] | Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 39 | 48 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Residential Portfolio Segment [Member] | Consumer Home Equity Lines of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial [Member] | Commercial Real Estate [Member] | Real Estate Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 184 | 208 |
Commercial and Industrial [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 385 | 469 |
Agriculture mortgages loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 1,838 | |
Agriculture mortgages loans [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 110 | |
Government Sector [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans with no related allowance recorded: | ||
Recorded Investment | $ 2,663 | $ 1,531 |
Unpaid Principal Balance | 2,767 | 1,657 |
Related Allowance | ||
Average Recorded Investment | 3,885 | 2,481 |
Interest Income Recognized | 160 | 69 |
Loans with an allowance recorded: | ||
Recorded Investment | 661 | 4,232 |
Unpaid Principal Balance | 670 | 4,232 |
Related Allowance | 147 | 1,131 |
Average Recorded Investment | 170 | 2,147 |
Interest Income Recognized | 91 | |
Total impaired loans | ||
Recorded Investment | 3,324 | 5,763 |
Unpaid Principal Balance | 3,437 | 5,889 |
Related Allowance | 147 | 1,131 |
Average Recorded Investment | 4,055 | 4,628 |
Interest Income Recognized | 160 | 160 |
Commercial real estate [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | 2,278 | 1,062 |
Unpaid Principal Balance | 2,329 | 1,153 |
Related Allowance | ||
Average Recorded Investment | 3,466 | 1,968 |
Interest Income Recognized | 160 | 46 |
Loans with an allowance recorded: | ||
Recorded Investment | 551 | 4,232 |
Unpaid Principal Balance | 559 | 4,232 |
Related Allowance | 37 | 1,131 |
Average Recorded Investment | 144 | 2,147 |
Interest Income Recognized | 91 | |
Total impaired loans | ||
Recorded Investment | 2,829 | 5,294 |
Unpaid Principal Balance | 2,888 | 5,385 |
Related Allowance | 37 | 1,131 |
Average Recorded Investment | 3,610 | 4,115 |
Interest Income Recognized | 160 | 137 |
Commercial real estate [Member] | Mortgages [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | 223 | 256 |
Unpaid Principal Balance | 263 | 318 |
Related Allowance | ||
Average Recorded Investment | 2,153 | 798 |
Interest Income Recognized | 106 | |
Loans with an allowance recorded: | ||
Recorded Investment | 3,581 | |
Unpaid Principal Balance | 3,581 | |
Related Allowance | 1,110 | |
Average Recorded Investment | 1,468 | |
Interest Income Recognized | 57 | |
Total impaired loans | ||
Recorded Investment | 223 | 3,837 |
Unpaid Principal Balance | 263 | 3,899 |
Related Allowance | 1,110 | |
Average Recorded Investment | 2,153 | 2,266 |
Interest Income Recognized | 106 | 57 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | 2,055 | 806 |
Unpaid Principal Balance | 2,066 | 835 |
Related Allowance | ||
Average Recorded Investment | 1,313 | 1,170 |
Interest Income Recognized | 54 | 46 |
Loans with an allowance recorded: | ||
Recorded Investment | 551 | 651 |
Unpaid Principal Balance | 559 | 651 |
Related Allowance | 37 | 21 |
Average Recorded Investment | 144 | 679 |
Interest Income Recognized | 34 | |
Total impaired loans | ||
Recorded Investment | 2,606 | 1,457 |
Unpaid Principal Balance | 2,625 | 1,486 |
Related Allowance | 37 | 21 |
Average Recorded Investment | 1,457 | 1,849 |
Interest Income Recognized | 54 | 80 |
Commercial real estate [Member] | Construction [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans with an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Total impaired loans | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Total Commercial and Industrial Sector [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | 385 | 469 |
Unpaid Principal Balance | 438 | 504 |
Related Allowance | ||
Average Recorded Investment | 419 | 513 |
Interest Income Recognized | 23 | |
Loans with an allowance recorded: | ||
Recorded Investment | 110 | |
Unpaid Principal Balance | 111 | |
Related Allowance | ||
Total impaired loans | ||
Recorded Investment | 495 | 469 |
Unpaid Principal Balance | 549 | |
Related Allowance | 110 | |
Interest Income Recognized | 23 | |
Commercial and Industrial Sector [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | 385 | 469 |
Unpaid Principal Balance | 438 | 504 |
Average Recorded Investment | 445 | 513 |
Interest Income Recognized | 23 | |
Loans with an allowance recorded: | ||
Average Recorded Investment | 26 | |
Total impaired loans | ||
Recorded Investment | 469 | |
Related Allowance | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans with an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | 111 | |
Related Allowance | 110 | |
Average Recorded Investment | ||
Interest Income Recognized | ||
Total impaired loans | ||
Recorded Investment | 110 | |
Unpaid Principal Balance | ||
Related Allowance | 110 | |
Average Recorded Investment | ||
Interest Income Recognized | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Loans with an allowance recorded: | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | 26 | |
Interest Income Recognized | ||
Total impaired loans | ||
Recorded Investment | ||
Related Allowance | ||
Interest Income Recognized |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Schedule of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses: | ||
Beginning balance | $ 12,327 | $ 9,447 |
Charge-offs | (55) | (88) |
Recoveries | 184 | 18 |
Provision (credit) | 475 | 2,950 |
Ending balance | 12,931 | 12,327 |
Ending balance: Individually evaluated for impairment | 147 | 1,131 |
Ending balance: Collectively evaluated for impairment | 12,784 | 11,196 |
Loans receivable: | ||
Total Loans Receivable | 919,149 | 822,076 |
Ending balance: Individually evaluated for impairment | 3,324 | 5,763 |
Ending balance: Collectively evaluated for impairment | 915,825 | 816,313 |
Commercial Real Estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 6,329 | 4,319 |
Charge-offs | (45) | |
Recoveries | 109 | 11 |
Provision (credit) | (175) | 2,044 |
Ending balance | 6,263 | 6,329 |
Ending balance: Individually evaluated for impairment | 37 | 1,131 |
Ending balance: Collectively evaluated for impairment | 6,226 | 5,198 |
Loans receivable: | ||
Total Loans Receivable | 400,760 | 342,144 |
Ending balance: Individually evaluated for impairment | 2,829 | 5,294 |
Ending balance: Collectively evaluated for impairment | 397,931 | 336,850 |
Consumer Real Estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 3,449 | 2,855 |
Charge-offs | (20) | |
Recoveries | 2 | |
Provision (credit) | 403 | 594 |
Ending balance | 3,834 | 3,449 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 3,834 | 3,449 |
Loans receivable: | ||
Total Loans Receivable | 403,916 | 345,567 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 403,916 | 345,567 |
Commercial and Industrial [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,972 | 1,784 |
Charge-offs | (23) | |
Recoveries | 56 | 4 |
Provision (credit) | 84 | 207 |
Ending balance | 2,112 | 1,972 |
Ending balance: Individually evaluated for impairment | 110 | |
Ending balance: Collectively evaluated for impairment | 2,002 | 1,972 |
Loans receivable: | ||
Total Loans Receivable | 109,341 | 129,210 |
Ending balance: Individually evaluated for impairment | 495 | 469 |
Ending balance: Collectively evaluated for impairment | 108,846 | 128,741 |
Consumer [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 52 | 41 |
Charge-offs | (35) | (20) |
Recoveries | 17 | 3 |
Provision (credit) | 53 | 28 |
Ending balance | 87 | 52 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 87 | 52 |
Loans receivable: | ||
Total Loans Receivable | 5,132 | 5,155 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 5,132 | 5,155 |
Unallocated [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 525 | 448 |
Charge-offs | ||
Recoveries | ||
Provision (credit) | 110 | 77 |
Ending balance | 635 | 525 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | $ 635 | $ 525 |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,320,000 | $ 1,377,000 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and Equipment and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Premises and equipment, gross | $ 46,541 | $ 51,060 |
Less accumulated depreciation | (22,065) | (26,300) |
Premises and equipment, net | 24,476 | 24,760 |
Land [Member] | ||
Premises and equipment, gross | 5,043 | 5,043 |
Buildings and improvements [Member] | ||
Premises and equipment, gross | 30,265 | 29,742 |
Furniture and Equipment [Member] | ||
Premises and equipment, gross | 10,864 | 15,890 |
Construction in process [Member] | ||
Premises and equipment, gross | $ 369 | $ 385 |
REGULATORY STOCK (Narrative) (D
REGULATORY STOCK (Narrative) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract] | ||
Federal Home Loan Bank Stock | $ 4,742,000 | $ 5,919,000 |
Federal Reserve Bank Stock | 601,000 | 151,000 |
Atlantic Community Bankers' Bank Stock | $ 37,000 | $ 37,000 |
Federal Home Loan Bank quarterly dividend yield, annualized on activity stock | 5.25% | |
Federal Home Loan Bank quarterly dividend yield, annualized on membership stock | 1.25% |
DEPOSITS (Schedule of Deposits
DEPOSITS (Schedule of Deposits by Major Classification) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits: | ||
Non-interest bearing demand | $ 686,278 | $ 534,853 |
Interest-bearing demand | 63,015 | 47,092 |
NOW accounts | 139,366 | 137,279 |
Money market deposit accounts | 168,327 | 140,113 |
Savings accounts | 341,291 | 274,386 |
Time deposits under $250,000 | 105,615 | 111,001 |
Time deposits of $250,000 or more | 8,321 | 8,087 |
Total deposits | $ 1,512,213 | $ 1,252,811 |
DEPOSITS (Schedule of Maturitie
DEPOSITS (Schedule of Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Maturities of time deposits | |
2022 | $ 63,603 |
2023 | 18,057 |
2024 | 17,121 |
2025 | 6,863 |
2026 | 8,292 |
Total | $ 113,936 |
SHORT TERM BORROWINGS (Narrativ
SHORT TERM BORROWINGS (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Federal Fund Lines [Member] | |
Amount of borrowings available | $ 32 |
FRB Discount Window [Member] | |
Amount of borrowings available | $ 28.3 |
SHORT TERM BORROWINGS (Schedule
SHORT TERM BORROWINGS (Schedule of Short-Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total short-term borrowings outstanding at year end | ||
Short-term Borrowings [Member] | ||
Average interest rate at year end | 0.00% | |
Maximum outstanding at any month end | $ 11,012 | |
Average amount outstanding for the year | $ 22 | $ 2,342 |
Weighted-average interest rate for the year | 0.25% | 0.33% |
OTHER BORROWED FUNDS (Narrative
OTHER BORROWED FUNDS (Narrative) (Details) - Federal Home Loan Bank Advances [Member] $ in Millions | Dec. 31, 2021USD ($) |
Maximum borrowing capacity | $ 505.1 |
Amount available to be borrowed | $ 457.6 |
OTHER BORROWED FUNDS (Schedule
OTHER BORROWED FUNDS (Schedule of Maturities of FHLB borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan bank Advances | ||
Federal Home Loan Bank Advances | $ 44,206 | $ 54,790 |
Weighted- Average Rate % | 2.09% | 2.10% |
FHLB Fixed Rate Loans 1 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2022 | 2022 |
Federal Home Loan Bank Advances | $ 10,584 | |
Weighted- Average Rate % | 2.13% | |
FHLB Fixed Rate Loans 2 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2023 | 2023 |
Federal Home Loan Bank Advances | $ 13,816 | $ 13,816 |
Weighted- Average Rate % | 2.77% | 2.77% |
FHLB Fixed Rate Loans 3 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2024 | 2024 |
Federal Home Loan Bank Advances | $ 17,407 | $ 17,407 |
Weighted- Average Rate % | 2.02% | 2.02% |
FHLB Fixed Rate Loans 4 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2025 | 2025 |
Federal Home Loan Bank Advances | $ 12,983 | $ 12,983 |
Weighted- Average Rate % | 1.47% | 1.47% |
FHLB Fixed Rate Loans 5 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2026 | 2026 |
OTHER BORROWED FUNDS (Schedul_2
OTHER BORROWED FUNDS (Schedule of Subordinated debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Issued company name | ENB Financial Corp | ||
Ranking | [1],[2] | Subordinated | |
Carrying Amount | $ 19,680 | $ 19,601 | |
Debt rate | 4.00% | ||
Debt Issued Amount | $ 20,000 | ||
Maturity | Dec. 30, 2030 | ||
Debt Issuance [Member] | |||
Date Issued | Dec. 30, 2020 | ||
[1] | ENB Financial Corp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2025. | ||
[2] | The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. |
CAPITAL TRANSACTIONS (Details)
CAPITAL TRANSACTIONS (Details) - USD ($) | 12 Months Ended | 180 Months Ended | 228 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Oct. 21, 2020 | |
Class of Stock Disclosures [Abstract] | |||||
Stock buyback plan authorized | 200,000 | ||||
Weighted-average cost per share of shares repurchased | $ 20.33 | ||||
Repurchased shares | 32,900 | ||||
Repurchased shares, value | $ 669,000 | ||||
Share discount via stock purchase plan | 15.00% | 15.00% | 15.00% | ||
Treasury stock issued, shares | 40,626 | 34,891 | |||
Shares issued under Employee Stock Purchase Plan (ESPP) | 25,982 | 20,624 | 281,870 | ||
Shares issued under Dividend Reinvestment Plan (DRP) | 12,227 | 12,773 | 229,453 | ||
Shares issued under Directors' Stock Purchase Plan | 2,417 | 1,494 | 39,949 | ||
Treasury shares | 155,158 | 172,884 | 155,158 | 155,158 | |
Weighted-average cost per share of treasury stock | $ 20 | $ 20 | $ 20 | ||
Cost basis of treasury shares | $ 3,103,000 | $ 3,103,000 | $ 3,103,000 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
401(K) Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution, percentage | 2.50% | |
Employer contribution | 5.00% | |
Non-Elective contribution [Member] | 401(K) Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution | 3.00% | |
Non-Elective contribution [Member] | 401(K) Plan [Member] | Upper Range [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution | 3.00% | |
Non-Elective contribution [Member] | 401(K) Plan [Member] | Lower Range [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution | 2.00% | |
401(k) Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Expenses recognized for defined contribution plans | $ 423,000 | $ 398,000 |
Contribution, percentage | 2.50% | |
Eligiblity of employees compensation | an eligible employee’s compensation, at $0.50 for every $1.00 | |
Employer contribution | 5.00% | |
401(k) Plan [Member] | Participants Under Age 50 [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Maximum contribution to plans | $ 19,500 | 19,500 |
401(k) Plan [Member] | Participants Over Age 50 [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Maximum contribution to plans | 26,000 | 26,000 |
Pension [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Covered compensation limit of the defined contribution pension plan | 290,000 | 285,000 |
Expenses recognized for defined contribution plans | $ 936,000 | $ 622,000 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Compensation Arrangements [Abstract] | ||
Life insurance policies, aggregate face amount | $ 3,409,000 | $ 3,409,000 |
Death benefits of life insurance policies | 6,843,000 | 6,734,000 |
Cash surrender value of life insurance policies | $ 5,270,000 | $ 5,177,000 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||||||
Income tax at statutory rate | $ 3,683 | $ 3,063 | ||||||||
Tax-exempt interest income | (954) | (695) | ||||||||
Non-deductible interest expense | 47 | 50 | ||||||||
Bank-owned life insurance | (160) | (151) | ||||||||
Other | 4 | 18 | ||||||||
Income tax expense | $ 370 | $ 760 | $ 561 | $ 931 | $ 675 | $ 533 | $ 719 | $ 358 | $ 2,620 | $ 2,285 |
Income tax at statutory rate, rate | 21.00% | 21.00% | ||||||||
Tax-exempt interest income, rate | (5.40%) | (4.80%) | ||||||||
Non-deductible interest expense, rate | 0.30% | 0.30% | ||||||||
Bank-owned life insurance, rate | (0.90%) | (1.00%) | ||||||||
Other, rate | 0.00% | 0.10% | ||||||||
Income tax expense, rate | 15.00% | 15.60% |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||||||
Current tax expense | $ 2,605 | $ 2,931 | ||||||||
Deferred tax expense (benefit) | 15 | (646) | ||||||||
Income tax expense | $ 370 | $ 760 | $ 561 | $ 931 | $ 675 | $ 533 | $ 719 | $ 358 | $ 2,620 | $ 2,285 |
INCOME TAXES (Schedule of Com_2
INCOME TAXES (Schedule of Components of Corporation's Net Deferred Tax Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Allowance for credit losses | $ 2,715 | $ 2,589 |
Allowance for off-balance sheet extensions of credit | 191 | 168 |
Interest on non-accrual loans | 6 | 11 |
Other | 110 | 47 |
Total deferred tax assets | 3,022 | 2,815 |
Deferred tax liabilities | ||
Premises and equipment | (926) | (987) |
Net unrealized holding gains on securities available for sale | (915) | (2,115) |
Mortgage servicing rights | (193) | (93) |
Discount on investment securities | (114) | (45) |
Other | (129) | (15) |
Total deferred tax liabilities | (2,277) | (3,255) |
Net deferred tax assets (liabilities) | $ 745 | $ (440) |
REGULATORY MATTERS AND RESTRI_3
REGULATORY MATTERS AND RESTRICTIONS (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Retained net profits available to pay dividends | $ 19.3 |
Small bank holding companies consolidated asset limit | $ 3,000 |
REGULATORY MATTERS AND RESTRI_4
REGULATORY MATTERS AND RESTRICTIONS (Schedule of Retained Net Profits Available to Pay Dividends) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Bank [Member] | ||
Total Capital | ||
Total Capital | $ 162,375 | $ 145,434 |
Total Capital (to risk-weighted assets) ratio | 14.90% | 15.30% |
Amount of capital for adequacy purposes | $ 87,281 | $ 76,249 |
Amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
To be well-capitalized | $ 109,101 | $ 95,311 |
To be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 148,735 | $ 133,505 |
Tier 1 Capital (to risk-weighted assets) ratio | 13.60% | 14.00% |
Amount of Tier 1 Capital for adequacy purposes | $ 65,461 | $ 57,187 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 6.00% |
Tier 1 Capital to be well-capitalized | $ 87,281 | $ 76,249 |
Tier 1 Capital to be well-capitalized, ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to risk-weighted assets) | ||
Common Equity Tier I Capital | $ 148,735 | $ 133,505 |
Common Equity Tier I Capital ratio | 13.60% | 14.00% |
Amount of Common Equity Tier 1 Capital for adequacy purposes | $ 49,095 | $ 42,890 |
Amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to be well-capitalized | $ 70,916 | $ 61,952 |
Common Equity Tier 1 Capital to be well-capitalized, ratio | 6.50% | 6.50% |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 148,735 | $ 133,505 |
Tier 1 Capital (to average assets) ratio | 9.10% | 9.80% |
Amount of Tier 1 Capital for adequacy purposes | $ 65,721 | $ 54,334 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 81,701 | $ 67,918 |
Tier 1 Capital to be well-capitalized, ratio | 5.00% | 5.00% |
Consolidated [Member] | ||
Total Capital | ||
Total Capital | $ 166,878 | $ 153,801 |
Total Capital (to risk-weighted assets) ratio | 15.60% | 16.10% |
Amount of capital for adequacy purposes | ||
Amount of capital for adequacy purposes, ratio | ||
To be well-capitalized | ||
To be well-capitalized, ratio | ||
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 133,848 | $ 122,258 |
Tier 1 Capital (to risk-weighted assets) ratio | 12.50% | 12.80% |
Amount of Tier 1 Capital for adequacy purposes | ||
Amount of Tier 1 Capital for adequacy purposes, ratio | ||
Tier 1 Capital to be well-capitalized | ||
Tier 1 Capital to be well-capitalized, ratio | ||
Common Equity Tier I Capital (to risk-weighted assets) | ||
Common Equity Tier I Capital | $ 133,848 | $ 122,258 |
Common Equity Tier I Capital ratio | 12.50% | 12.80% |
Amount of Common Equity Tier 1 Capital for adequacy purposes | ||
Amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | ||
Common Equity Tier 1 Capital to be well-capitalized | ||
Common Equity Tier 1 Capital to be well-capitalized, ratio | ||
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 133,848 | $ 122,258 |
Tier 1 Capital (to average assets) ratio | 8.20% | 9.00% |
Amount of Tier 1 Capital for adequacy purposes | ||
Amount of Tier 1 Capital for adequacy purposes, ratio | ||
Tier 1 Capital to be well-capitalized | ||
Tier 1 Capital to be well-capitalized, ratio |
TRANSACTIONS WITH DIRECTORS A_3
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Narrative) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Related party deposit liabilities | $ 2,855,000 | $ 2,313,000 |
TRANSACTIONS WITH DIRECTORS A_4
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Schedule of Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans to Insiders | ||
Balance, beginning of year | $ 31 | $ 640 |
Advances | 40 | 16 |
Repayments | (71) | (622) |
Other changes | 194 | (3) |
Balance, beginning of year | $ 194 | $ 31 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitment to extend credit | $ 490.1 | $ 408 |
Loan Commitments [Member] | ||
Commitment to extend credit | 99 | 77.1 |
Line of Credit [Member] | ||
Commitment to extend credit | 378.3 | 322.4 |
Open Letter of Credit [Member] | ||
Commitment to extend credit | $ 12.8 | $ 8.5 |
FINANCIAL INSTRUMENTS WITH CO_2
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans receivable: | ||
Legal Lending Limit | $ 24,356,000 | $ 21,815,000 |
Legal Lending Limit, percent | 15.00% | |
Policy Lending Limit | $ 18,267,000 | 16,361,000 |
Policy Lending Limit, percent | 75.00% | |
Gross loans prior to deferred costs and allowance for loan losses | $ 919,149,000 | 822,076,000 |
Securities Available for sale: | ||
Gross Amortized Cost | 553,737,000 | 466,356,000 |
Total Consumer Real Estate [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 403,900,000 | $ 345,600,000 |
Total Consumer Real Estate [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 43.90% | 42.00% |
Commercial Real Estate [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 400,800,000 | |
Commercial Real Estate [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 43.60% | |
Commercial Real Estate Agriculture Mortgages [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 22.20% | 21.40% |
NAICS Dairy Cattle and Milk Production Loans [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 93,800,000 | |
NAICS Dairy Cattle and Milk Production Loans [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 10.20% | |
NAICS Non-Residential Real Estate Investment Loans [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 118,000,000 | |
NAICS Non-Residential Real Estate Investment Loans [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 12.80% | |
Broilers and other chicken production loans [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 51,800,000 | |
Broilers and other chicken production loans [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 5.60% | |
Total Commercial and Industrial [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 109,300,000 | |
Commercial and Industrial Tax Free Loans [Member] | ||
Loans receivable: | ||
Gross loans prior to deferred costs and allowance for loan losses | $ 23,000,000 | |
Commercial and Industrial Tax Free Loans [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 2.50% | |
Obligations of states and political subdivisions - State of Pennsylvania [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 20.30% | |
Obligations of States and Political Subdivisions - State of Texas [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 17.40% | |
Obligations of States and Political Subdivisions - States of Texas [Member] | Loan [Member] | Credit concentration risk [Member] | ||
Loans receivable: | ||
Concentration risk (as a percentage) | 7.70% | |
Corporate Bonds [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | $ 82,617,000 | $ 60,387,000 |
Corporate Bonds [Member] | Domestic Issuers [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 66,600,000 | |
Corporate Bonds [Member] | Foreign Issuers [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 16,000,000 | |
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 30,000,000 | |
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Real Estate Companies [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 2,000,000 | |
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Healthcare [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 5,600,000 | |
Corporate Bonds [Member] | Financial and Brokerage Issuers [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | $ 52,600,000 | |
Concentration Risk Percentage, as compared to total corporate bond securities | 63.70% | |
Energy companies [Member] | Non-Financial Commercial Paper [Member] | Corporate Bonds [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | $ 8,000,000 | |
Corporate Bonds [Member] | Financial and Brokerage Issuers [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 11,900,000 | |
Insurance Companies [Member] | Non-Financial Commercial Paper [Member] | Corporate Bonds [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | 5,200,000 | |
Biotechnology [Member] | Non-Financial Commercial Paper [Member] | Corporate Bonds [Member] | ||
Securities Available for sale: | ||
Gross Amortized Cost | $ 9,200,000 |
LEASES (Schedule of ROU Assets
LEASES (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lease Right-of-Use Assets | ||
Operating lease right-of use assets | $ 617 | $ 728 |
Lease Liabilities | ||
Operating lease liabilties | $ 629 | $ 740 |
LEASES (Schedule of Opreating L
LEASES (Schedule of Opreating Leases Weighted-Average Discount Term and Rate) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term Operating leases | 3 years 8 months 12 days | 4 years 4 months 24 days |
Weighted-average discount rate Operating leases | 2.82% | 3.11% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Operating Leases) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Twelve Months Ended: | |
December 31, 2022 | $ 189 |
December 31, 2023 | 173 |
December 31, 2024 | 176 |
December 31, 2025 | 106 |
December 31, 2026 | 20 |
Thereafter | |
Total Future Minimum Lease Payments | 664 |
Amounts Representing Interests | (35) |
Present Value of Net Future Minimum Lease Payments | $ 629 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities, market value | $ 8,982,000 | $ 7,105,000 |
Impaired Financing Receivable, Recorded Investment | 3,324,000 | 5,763,000 |
Related Allowance | 147,000 | 1,131,000 |
CRA Investment Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities, book value | 7,240,000 | 6,176,000 |
Regulatory Bank Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities, book value | 1,570,000 | 982,000 |
Regulatory Bank Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities, market value | $ 1,742,000 | $ 929,000 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 558,093 | $ 476,428 |
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 29,021 | 54,361 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 51,988 | 71,052 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 31,077 | 35,035 |
Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 101,219 | 60,475 |
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 82,509 | 61,723 |
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 247,466 | 193,782 |
Fair Value Measured on a Recurring Basis [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 567,075 | 483,533 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 29,021 | 54,361 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 51,988 | 71,052 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 31,077 | 35,035 |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 101,219 | 60,475 |
Fair Value Measured on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 82,509 | 61,723 |
Fair Value Measured on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 247,466 | 193,782 |
Fair Value Measured on a Recurring Basis [Member] | Total equity securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,982 | 7,105 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Treasuries [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 14,813 | |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,982 | 7,105 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Total equity securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,982 | 7,105 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Treasuries [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 558,093 | 476,428 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 29,021 | 54,361 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 51,988 | 71,052 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 31,077 | 35,035 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 101,219 | 60,475 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 82,509 | 61,723 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 247,466 | 193,782 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Total equity securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Treasuries [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 14,813 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Total equity securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Treasuries [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured on Nonrecurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 3,177 | $ 4,632 |
Total Fair Value, non-recurring | 3,177 | 4,632 |
Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Other Observable Inputs (Level II) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Unobservable Inputs (Level III) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | 3,177 | 4,632 |
Total Fair Value, non-recurring | $ 3,177 | $ 4,632 |
FAIR VALUE MEASUREMENTS (Sche_3
FAIR VALUE MEASUREMENTS (Schedule of Level III Inputs to Determine Fair Value) (Details) - Impaired Loans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Fair Value, non-recurring | $ 3,177 | $ 4,632 | |
Valuation Techniques | [1] | Appraisal of collateral | Appraisal of collateral |
Lower Range [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
Upper Range [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable inputs - Appraisal adjustments | [2] | 0.00% | 0.00% |
Unobservable inputs - Liquidation expenses | [2] | 0.00% | 0.00% |
Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable. | ||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
DISCLOSURES ABOUT FAIR VALUE _3
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | |||
Cash and cash equivalents | $ 158,449 | $ 94,939 | $ 41,053 |
Regulatory stock | 5,380 | 6,107 | |
Loans, net of allowance | 907,973 | 811,043 | |
Bank owned life insurance | 35,414 | 29,646 | |
Financial Liabilities: | |||
Demand deposits | 686,278 | 534,853 | |
Interest-bearing demand deposits | 63,015 | 47,092 | |
NOW accounts | 139,366 | 137,279 | |
Money market deposit accounts | 168,327 | 140,113 | |
Savings accounts | 341,291 | 274,386 | |
Total deposits | 1,512,213 | 1,252,811 | |
Short-term borrowings | |||
Subordinated debt | 19,680 | 19,601 | |
Carrying Amount [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 158,449 | 94,939 | |
Regulatory stock | 5,380 | 6,107 | |
Loans held for sale | 3,194 | 3,029 | |
Loans, net of allowance | 907,973 | 811,043 | |
Mortgage servicing assets | 1,768 | 1,076 | |
Accrued interest receivable | 5,152 | 4,546 | |
Bank owned life insurance | 35,414 | 29,646 | |
Financial Liabilities: | |||
Demand deposits | 686,278 | 534,853 | |
Interest-bearing demand deposits | 63,015 | 47,092 | |
NOW accounts | 139,366 | 137,279 | |
Money market deposit accounts | 168,327 | 140,113 | |
Savings accounts | 341,291 | 274,386 | |
Time deposits | 113,936 | 119,088 | |
Total deposits | 1,512,213 | 1,252,811 | |
Short-term borrowings | 54,790 | ||
Long-term debt | 44,206 | 19,601 | |
Subordinated debt | 19,680 | ||
Accrued interest payable | 251 | 320 | |
Fair Value [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 158,449 | 94,939 | |
Regulatory stock | 5,380 | 6,107 | |
Loans held for sale | 3,194 | 3,029 | |
Loans, net of allowance | 914,251 | 829,902 | |
Mortgage servicing assets | 2,129 | 1,083 | |
Accrued interest receivable | 5,152 | 4,546 | |
Bank owned life insurance | 35,414 | 29,646 | |
Financial Liabilities: | |||
Demand deposits | 686,278 | 534,853 | |
Interest-bearing demand deposits | 63,015 | 47,092 | |
NOW accounts | 139,366 | 137,279 | |
Money market deposit accounts | 168,327 | 140,113 | |
Savings accounts | 341,291 | 274,386 | |
Time deposits | 113,919 | 121,470 | |
Total deposits | 1,512,196 | 1,255,193 | |
Short-term borrowings | 51,800 | ||
Long-term debt | 43,060 | 19,601 | |
Subordinated debt | 19,088 | ||
Accrued interest payable | 251 | 320 | |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 158,449 | 94,939 | |
Regulatory stock | 5,380 | 6,107 | |
Loans held for sale | 3,194 | 3,029 | |
Loans, net of allowance | |||
Mortgage servicing assets | |||
Accrued interest receivable | 5,152 | 4,546 | |
Bank owned life insurance | 35,414 | 29,646 | |
Financial Liabilities: | |||
Demand deposits | 686,278 | 534,853 | |
Interest-bearing demand deposits | 63,015 | 47,092 | |
NOW accounts | 139,366 | 137,279 | |
Money market deposit accounts | 168,327 | 140,113 | |
Savings accounts | 341,291 | 274,386 | |
Time deposits | |||
Total deposits | 1,398,277 | 1,133,723 | |
Short-term borrowings | |||
Long-term debt | |||
Subordinated debt | |||
Accrued interest payable | 251 | 320 | |
Fair Value [Member] | Significant Other Observable Inputs (Level II) [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | |||
Regulatory stock | |||
Loans held for sale | |||
Loans, net of allowance | |||
Mortgage servicing assets | |||
Accrued interest receivable | |||
Bank owned life insurance | |||
Financial Liabilities: | |||
Demand deposits | |||
Interest-bearing demand deposits | |||
NOW accounts | |||
Money market deposit accounts | |||
Savings accounts | |||
Time deposits | |||
Total deposits | |||
Short-term borrowings | |||
Long-term debt | |||
Subordinated debt | |||
Accrued interest payable | |||
Fair Value [Member] | Significant Unobservable Inputs (Level III) [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | |||
Regulatory stock | |||
Loans held for sale | |||
Loans, net of allowance | 914,251 | 829,902 | |
Mortgage servicing assets | 2,129 | 1,083 | |
Accrued interest receivable | |||
Bank owned life insurance | |||
Financial Liabilities: | |||
Demand deposits | |||
Interest-bearing demand deposits | |||
NOW accounts | |||
Money market deposit accounts | |||
Savings accounts | |||
Time deposits | 113,919 | 121,470 | |
Total deposits | 113,919 | 121,470 | |
Short-term borrowings | 51,800 | ||
Long-term debt | 43,060 | 19,601 | |
Subordinated debt | 19,088 | ||
Accrued interest payable |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | $ 130,216 | $ 116,688 | |
Other comprehensive (loss) income, net of tax | (4,517) | 6,358 | |
Balance, ending | 137,288 | 130,216 | |
Unrealized Gain (Losses) on Securities AFS [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | [1],[2] | 7,958 | 1,600 |
Other comprehensive income before reclassifications | [1],[2] | (3,940) | 6,997 |
Amount reclassified from accumulated other comprehensive loss | [1],[2] | (577) | (639) |
Other comprehensive (loss) income, net of tax | [1],[2] | (4,517) | 6,358 |
Balance, ending | [1],[2] | $ 3,441 | $ 7,958 |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. | ||
[2] | Amounts in parentheses indicate debits. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Provision for federal income taxes | $ (370) | $ (760) | $ (561) | $ (931) | $ (675) | $ (533) | $ (719) | $ (358) | $ (2,620) | $ (2,285) | |
Reclassifications for the period | $ 2,721 | $ 4,139 | $ 3,551 | $ 4,504 | $ 3,600 | $ 2,935 | $ 3,599 | $ 2,165 | 14,916 | 12,299 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassifications for the period | [1] | 577 | 639 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains on sale of debt securities, net | [1] | 730 | 809 | ||||||||
Provision for federal income taxes | [1] | (153) | (170) | ||||||||
Reclassifications for the period | [1] | $ 577 | $ 639 | ||||||||
[1] | Amounts in parentheses indicate debits. |
CONDENSED PARENT ONLY DATA (Con
CONDENSED PARENT ONLY DATA (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Cash | $ 158,449 | $ 94,939 | $ 41,053 |
Equity securities | 558,093 | 476,428 | |
Other assets | 15,269 | 9,256 | |
Total assets | 1,717,230 | 1,462,313 | |
Liabilities | |||
Subordinated debt | 19,680 | 19,601 | |
Other Liabilities | 3,843 | 4,895 | |
Total Liabilities | 1,579,942 | 1,332,097 | |
Stockholders' Equity: | |||
Common stock | 574 | 574 | |
Capital surplus | 4,520 | 4,444 | |
Retained earnings | 131,856 | 120,670 | |
Accumulated other comprehensive income, net of tax | 3,441 | 7,958 | |
Treasury stock | (3,103) | (3,430) | |
Total stockholders' equity | 137,288 | 130,216 | 116,688 |
Total liabilities and stockholders' equity | 1,717,230 | 1,462,313 | |
Parent Company [Member] | |||
Assets | |||
Cash | 2,638 | 7,705 | $ 870 |
Equity securities | 1,743 | 929 | |
Equity in bank subsidiary | 152,176 | 141,463 | |
Other assets | 452 | 165 | |
Total assets | 157,009 | 150,262 | |
Liabilities | |||
Subordinated debt | 19,680 | 19,601 | |
Other Liabilities | 41 | 445 | |
Total Liabilities | 19,721 | 20,046 | |
Stockholders' Equity: | |||
Common stock | 574 | 574 | |
Capital surplus | 4,520 | 4,444 | |
Retained earnings | 131,856 | 120,670 | |
Accumulated other comprehensive income, net of tax | 3,441 | 7,958 | |
Treasury stock | (3,103) | (3,430) | |
Total stockholders' equity | 137,288 | 130,216 | |
Total liabilities and stockholders' equity | $ 157,009 | $ 150,262 |
CONDENSED PARENT ONLY DATA (C_2
CONDENSED PARENT ONLY DATA (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income | ||||||||||
Dividend income | $ 398 | $ 541 | ||||||||
Expense | ||||||||||
Other expenses | 3,509 | 2,990 | ||||||||
Total expenses | $ 11,440 | $ 10,118 | $ 9,696 | $ 9,187 | $ 9,522 | $ 9,198 | $ 8,244 | $ 9,110 | 40,441 | 36,074 |
Provision (benefit) for income taxes | 370 | 760 | 561 | 931 | 675 | 533 | 719 | 358 | 2,620 | 2,285 |
Net income | $ 2,721 | $ 4,139 | $ 3,551 | $ 4,504 | $ 3,600 | $ 2,935 | $ 3,599 | $ 2,165 | 14,916 | 12,299 |
Comprehensive Income | 10,399 | 18,657 | ||||||||
Parent Company [Member] | ||||||||||
Income | ||||||||||
Dividend income - investment securities | 52 | 27 | ||||||||
Gains (losses) on equity securities, net | 324 | (76) | ||||||||
Dividend income | 3,730 | 5,073 | ||||||||
Undistributed earnings of bank subsidiary | 11,730 | 7,541 | ||||||||
Total Income | 15,836 | 12,565 | ||||||||
Expense | ||||||||||
Subordinated debt interest expense | 800 | 4 | ||||||||
Shareholder expenses | 132 | 153 | ||||||||
Other expenses | 130 | 109 | ||||||||
Total expenses | 1,062 | 266 | ||||||||
Provision (benefit) for income taxes | (142) | |||||||||
Net income | 14,916 | 12,299 | ||||||||
Comprehensive Income | $ 10,399 | $ 18,657 |
CONDENSED PARENT ONLY DATA (C_3
CONDENSED PARENT ONLY DATA (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | ||||||||||
Net Income | $ 2,721 | $ 4,139 | $ 3,551 | $ 4,504 | $ 3,600 | $ 2,935 | $ 3,599 | $ 2,165 | $ 14,916 | $ 12,299 |
Net amortization of subordinated debt fees | (79) | |||||||||
Net cash provided by operating activities | 13,256 | 16,443 | ||||||||
Cash Flows from Investing Activities: | ||||||||||
Proceeds from sales of equity securities | 460 | |||||||||
Purchases of equity securities | 245,788 | 283,041 | ||||||||
Net cash used for investing activities | (195,237) | (232,470) | ||||||||
Cash Flows from Financing Activities: | ||||||||||
Proceeds from sale of treasury stock | 885 | 660 | ||||||||
Proceeds from issuance of subordinated debt | 19,601 | |||||||||
Treasury stock purchased | (482) | (2,216) | ||||||||
Dividends paid | (3,730) | (3,573) | ||||||||
Net cash (used for) provided by financing activities | 245,491 | 269,913 | ||||||||
Cash and Cash Equivalents: | ||||||||||
Net change in cash and cash equivalents | 63,510 | 53,886 | ||||||||
Cash and cash equivalents at beginning of period | 94,939 | 41,053 | 94,939 | 41,053 | ||||||
Cash and cash equivalents at end of period | 158,449 | 94,939 | 158,449 | 94,939 | ||||||
Parent Company [Member] | ||||||||||
Cash Flows from Operating Activities: | ||||||||||
Net Income | 14,916 | 12,299 | ||||||||
Equity in undistributed earnings of subsidiaries | (11,730) | (7,541) | ||||||||
(Gains)losses on securities transactions, net | (324) | 76 | ||||||||
Net amortization of subordinated debt fees | 79 | |||||||||
Net increase in other assets | (287) | (48) | ||||||||
Net (decrease) increase in other liabilities | (404) | 444 | ||||||||
Net cash provided by operating activities | 2,250 | 5,230 | ||||||||
Cash Flows from Investing Activities: | ||||||||||
Proceeds from sales of equity securities | 460 | |||||||||
Purchases of equity securities | (950) | (367) | ||||||||
Net cash used for investing activities | (490) | (367) | ||||||||
Cash Flows from Financing Activities: | ||||||||||
Proceeds from sale of treasury stock | 885 | 660 | ||||||||
Proceeds from issuance of subordinated debt | 19,601 | |||||||||
Dividend to bank subsidiary | (3,500) | (12,500) | ||||||||
Treasury stock purchased | (482) | (2,216) | ||||||||
Dividends paid | (3,730) | (3,573) | ||||||||
Net cash (used for) provided by financing activities | (6,827) | 1,972 | ||||||||
Cash and Cash Equivalents: | ||||||||||
Net change in cash and cash equivalents | (5,067) | 6,835 | ||||||||
Cash and cash equivalents at beginning of period | $ 7,705 | $ 870 | 7,705 | 870 | ||||||
Cash and cash equivalents at end of period | $ 2,638 | $ 7,705 | $ 2,638 | $ 7,705 |
SUMMARY OF QUARTERLY FINANCIA_3
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | ||||||||||
Interest income | $ 11,108 | $ 11,417 | $ 10,537 | $ 10,530 | $ 10,752 | $ 10,387 | $ 10,468 | $ 10,487 | $ 43,591 | $ 42,094 |
Interest expense | 574 | 789 | 806 | 851 | 731 | 845 | 999 | 1,271 | 3,020 | 3,846 |
Net interest income | 10,534 | 10,628 | 9,731 | 9,679 | 10,021 | 9,542 | 9,469 | 9,216 | 40,571 | 38,248 |
Less provision (credit) for loan losses | 350 | (250) | 375 | 375 | 1,250 | 975 | 350 | |||
Net interest income after provision (credit) for loan losses | 10,184 | 10,878 | 9,731 | 9,304 | 9,646 | 8,292 | 8,494 | 8,866 | 40,096 | 35,298 |
Other income | 4,347 | 4,139 | 4,077 | 5,318 | 4,151 | 4,374 | 4,068 | 2,767 | 17,881 | 15,360 |
Operating expenses: | ||||||||||
Salaries and employee benefits | 6,665 | 6,142 | 5,959 | 5,699 | 5,540 | 5,860 | 4,966 | 5,696 | 24,465 | 22,062 |
Occupancy and equipment expenses | 897 | 909 | 920 | 950 | 894 | 896 | 932 | 881 | ||
Other operating expenses | 3,878 | 3,067 | 2,817 | 2,538 | 3,088 | 2,442 | 2,346 | 2,533 | ||
Total operating expenses | 11,440 | 10,118 | 9,696 | 9,187 | 9,522 | 9,198 | 8,244 | 9,110 | 40,441 | 36,074 |
Income before income taxes | 3,091 | 4,899 | 4,112 | 5,435 | 4,275 | 3,468 | 4,318 | 2,523 | 17,536 | 14,584 |
Provision for Federal income taxes | 370 | 760 | 561 | 931 | 675 | 533 | 719 | 358 | 2,620 | 2,285 |
Net income | $ 2,721 | $ 4,139 | $ 3,551 | $ 4,504 | $ 3,600 | $ 2,935 | $ 3,599 | $ 2,165 | $ 14,916 | $ 12,299 |
Earnings per share of common stock | $ 0.49 | $ 0.74 | $ 0.64 | $ 0.81 | $ 0.65 | $ 0.53 | $ 0.38 | $ 2.68 | $ 2.20 | |
Cash dividends paid per share | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.67 | $ 0.64 |
RISKS AND UNCERTAINTIES (Narrat
RISKS AND UNCERTAINTIES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Mar. 27, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | |||||
Amount of relief fund | $ 2,000,000,000 | ||||
Eligibility and guidline for PPP loan | an eligible business could apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10 million. The PPP loans have the following terms: (a) an interest rate of 1.0%, (b) a two-year or five-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the PPP loan, including any accrued interest, is eligible to be reduced by the amount of loan forgiveness available under the PPP, provided the employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses such as utilities. | ||||
Amount of funds available for PPP loans | $ 349,000,000 | ||||
Processing fee assumed | $ 5,500 | ||||
PPP loans [Member] | |||||
Concentration Risk [Line Items] | |||||
Loans approved current balance | $ 78,000 | ||||
PPP loans Forgiveness | $ 11,300 | $ 48,000 | |||
Maturity period of loan | 2 years | ||||
Remaining fee amount income | $ 2,496 | $ 2,356 |