Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-11204 | ||
Entity Registrant Name | AMERISERV FINANCIAL INC /PA/ | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 25-1424278 | ||
Entity Address, Address Line One | MAIN & FRANKLIN STREETS | ||
Entity Address, Address Line Two | P.O. BOX 430 | ||
Entity Address, City or Town | JOHNSTOWN | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15907-0430 | ||
City Area Code | 814 | ||
Local Phone Number | 533-5300 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | ASRV | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 60,981,043 | ||
Entity Common Stock, Shares Outstanding | 17,147,270 | ||
Auditor Name | S.R. Snodgrass, P.C. | ||
Auditor Firm ID | 74 | ||
Auditor Location | Cranberry Township, Pennsylvania | ||
Entity Central Index Key | 0000707605 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from depository institutions | $ 18,830,000 | $ 24,748,000 |
Interest bearing deposits | 4,132,000 | 10,942,000 |
Short-term investments | 5,411,000 | |
Cash and cash equivalents | 22,962,000 | 41,101,000 |
Investment securities: | ||
Available for sale, at fair value | 179,508,000 | 163,171,000 |
Held to maturity (fair value $55,192 on December 31, 2022 and $55,516 on December 31, 2021) | 61,878,000 | 53,751,000 |
Loans held for sale | 59,000 | 983,000 |
Loans | 991,109,000 | 985,880,000 |
Less: Unearned income | 343,000 | 826,000 |
Less: Allowance for loan losses | 10,743,000 | 12,398,000 |
Net loans | 980,023,000 | 972,656,000 |
Premises and equipment: | ||
Operating lease right-of-use asset | 630,000 | 667,000 |
Financing lease right-of-use asset | 2,413,000 | 2,684,000 |
Other premises and equipment, net | 14,460,000 | 14,082,000 |
Accrued interest income receivable | 4,804,000 | 3,984,000 |
Goodwill | 13,611,000 | 13,611,000 |
Core deposit intangible | 128,000 | 158,000 |
Bank owned life insurance | 38,895,000 | 38,842,000 |
Net deferred tax asset | 2,789,000 | |
Federal Home Loan Bank stock | 5,754,000 | 2,692,000 |
Federal Reserve Bank stock | 2,125,000 | 2,125,000 |
Other assets | 33,835,000 | 25,053,000 |
TOTAL ASSETS | 1,363,874,000 | 1,335,560,000 |
LIABILITIES | ||
Non-interest bearing deposits | 195,123,000 | 211,106,000 |
Interest bearing deposits | 913,414,000 | 928,272,000 |
Total deposits | 1,108,537,000 | 1,139,378,000 |
Short-term borrowings | 88,641,000 | |
Advances from Federal Home Loan Bank | 19,765,000 | 42,653,000 |
Operating lease liabilities | 643,000 | 682,000 |
Financing lease liabilities | 2,680,000 | 2,899,000 |
Subordinated debt | 26,644,000 | 26,603,000 |
Total borrowed funds | 138,373,000 | 72,837,000 |
Net deferred tax liability | 934,000 | |
Other liabilities | 10,786,000 | 5,862,000 |
TOTAL LIABILITIES | 1,257,696,000 | 1,219,011,000 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,746,436 shares issued and 17,117,617 shares outstanding on December 31, 2022; 26,710,319 shares issued and 17,081,500 shares outstanding on December 31, 2021 | 267,000 | 267,000 |
Treasury stock at cost, 9,628,819 shares on December 31, 2022 and December 31, 2021 | (83,280,000) | (83,280,000) |
Capital surplus | 146,225,000 | 146,069,000 |
Retained earnings | 65,486,000 | 60,005,000 |
Accumulated other comprehensive loss, net | (22,520,000) | (6,512,000) |
TOTAL SHAREHOLDERS' EQUITY | 106,178,000 | 116,549,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,363,874,000 | $ 1,335,560,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Held to maturity securities, fair value | $ 55,192 | $ 55,516 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,746,436 | 26,710,319 |
Common stock, shares outstanding | 17,117,617 | 17,081,500 |
Treasury stock, shares | 9,628,819 | 9,628,819 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and fees on loans | |||
Taxable | $ 41,413 | $ 40,496 | $ 40,518 |
Tax exempt | 71 | 89 | 110 |
Interest bearing deposits | 26 | 6 | 15 |
Short-term investments | 183 | 54 | 231 |
Investment securities: | |||
Available for sale | 5,610 | 4,543 | 4,591 |
Held to maturity | 1,755 | 1,481 | 1,417 |
Total Interest Income | 49,058 | 46,669 | 46,882 |
INTEREST EXPENSE | |||
Deposits | 6,424 | 4,806 | 7,634 |
Short-term borrowings | 364 | 1 | 29 |
Advances from Federal Home Loan Bank | 553 | 875 | 1,099 |
Financing lease liabilities | 100 | 106 | 112 |
Guaranteed junior subordinated deferrable interest debentures | 944 | 1,121 | |
Subordinated debt | 1,054 | 854 | 520 |
Total Interest Expense | 8,495 | 7,586 | 10,515 |
Net Interest Income | 40,563 | 39,083 | 36,367 |
Provision for loan losses | 50 | 1,100 | 2,375 |
Net Interest Income after Provision for Loan Losses | 40,513 | 37,983 | 33,992 |
NON-INTEREST INCOME | |||
Non-interest income | 14,737 | 14,968 | 12,823 |
Net gains on loans held for sale | 208 | 664 | 1,523 |
Mortgage related fees | 115 | 358 | 559 |
Net realized gains on investment securities | 84 | ||
Bank owned life insurance | 1,089 | 1,117 | 782 |
Other income | 2,552 | 2,587 | 2,296 |
Total non-interest income | 16,692 | 17,761 | 16,275 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 28,492 | 27,847 | 27,390 |
Net occupancy expense | 2,883 | 2,620 | 2,510 |
Equipment expense | 1,636 | 1,582 | 1,559 |
Professional fees | 3,210 | 2,872 | 2,909 |
Data processing and IT expense | 3,945 | 3,666 | 3,428 |
Supplies, postage and freight | 651 | 668 | 714 |
Miscellaneous taxes and insurance | 1,373 | 1,236 | 1,143 |
Federal deposit insurance expense | 515 | 655 | 481 |
Branch acquisition costs | 389 | ||
Other expense | 5,299 | 5,435 | 4,321 |
Total Non-Interest Expense | 48,004 | 46,970 | 44,455 |
PRETAX INCOME | 9,201 | 8,774 | 5,812 |
Provision for income taxes | 1,753 | 1,702 | 1,214 |
NET INCOME | $ 7,448 | $ 7,072 | $ 4,598 |
Basic: | |||
Net income | $ 0.44 | $ 0.41 | $ 0.27 |
Average number of shares outstanding | 17,107 | 17,073 | 17,053 |
Diluted: | |||
Net income | $ 0.43 | $ 0.41 | $ 0.27 |
Average number of shares outstanding | 17,146 | 17,114 | 17,063 |
Cash dividends declared | $ 0.115 | $ 0.100 | $ 0.100 |
Wealth management fees | |||
NON-INTEREST INCOME | |||
Non-interest income | $ 11,620 | $ 11,986 | $ 10,212 |
Service charges on deposit accounts | |||
NON-INTEREST INCOME | |||
Non-interest income | $ 1,108 | $ 965 | $ 903 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
COMPREHENSIVE (LOSS) INCOME | |||
Net income | $ 7,448 | $ 7,072 | $ 4,598 |
Other comprehensive (loss) income | |||
Pension obligation change for defined benefit plan | 400 | 11,189 | 1,454 |
Income tax effect | (84) | (2,350) | (305) |
Unrealized holding (losses) gains on available for sale securities arising during period | (20,664) | (2,642) | 2,309 |
Income tax effect | 4,340 | 555 | (485) |
Reclassification adjustment for net realized gains on available for sale securities included in net income | (84) | ||
Income tax effect | 18 | ||
Other comprehensive (loss) income | (16,008) | 6,686 | 2,973 |
Comprehensive (loss) income | $ (8,560) | $ 13,758 | $ 7,571 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | COMMON STOCK | TREASURY STOCK | CAPITAL SURPLUS | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET | Total |
Balance at beginning of period at Dec. 31, 2019 | $ 267 | $ (83,129) | $ 145,888 | $ 51,759 | $ (16,171) | |
New common shares issued for exercise of stock options | 78 | |||||
Treasury stock purchased | (151) | |||||
Stock option expense | 3 | |||||
Net income | 4,598 | $ 4,598 | ||||
Cash dividend declared on common stock | (1,716) | |||||
Other comprehensive (loss) income | 2,973 | 2,973 | ||||
Balance at end of period at Dec. 31, 2020 | 267 | (83,280) | 145,969 | 54,641 | (13,198) | 104,399 |
New common shares issued for exercise of stock options | 57 | |||||
Stock option expense | 43 | |||||
Net income | 7,072 | 7,072 | ||||
Cash dividend declared on common stock | (1,708) | |||||
Other comprehensive (loss) income | 6,686 | 6,686 | ||||
Balance at end of period at Dec. 31, 2021 | 267 | (83,280) | 146,069 | 60,005 | (6,512) | 116,549 |
New common shares issued for exercise of stock options | 106 | |||||
Stock option expense | 50 | |||||
Net income | 7,448 | 7,448 | ||||
Cash dividend declared on common stock | (1,967) | |||||
Other comprehensive (loss) income | (16,008) | (16,008) | ||||
Balance at end of period at Dec. 31, 2022 | $ 267 | $ (83,280) | $ 146,225 | $ 65,486 | $ (22,520) | $ 106,178 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New common shares issued for exercise of stock options, shares | 36,117 | 21,356 | 38,235 |
Cash dividend declared per common share | $ 0.115 | $ 0.100 | $ 0.100 |
COMMON STOCK | |||
New common shares issued for exercise of stock options, shares | 36,117 | 21,356 | 38,235 |
TREASURY STOCK | |||
Treasury stock, purchased at cost, shares | 35,962 | ||
CAPITAL SURPLUS | |||
New common shares issued for exercise of stock options, shares | 36,117 | 21,356 | 38,235 |
RETAINED EARNINGS | |||
Cash dividend declared per common share | $ 0.115 | $ 0.100 | $ 0.100 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 7,448,000 | $ 7,072,000 | $ 4,598,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 50,000 | 1,100,000 | 2,375,000 |
Depreciation and amortization expense | 2,066,000 | 2,016,000 | 1,996,000 |
Amortization expense of core deposit intangible | 30,000 | 19,000 | |
Amortization of fair value adjustment on acquired time deposits | (101,000) | (98,000) | |
Net amortization of investment securities | 108,000 | 222,000 | 285,000 |
Net realized gains on investment securities - available for sale | (84,000) | ||
Net amortization of deferred loan fees | (553,000) | (1,351,000) | (707,000) |
Origination of mortgage loans held for sale | (9,421,000) | (13,806,000) | (87,140,000) |
Net gains on loans held for sale | (208,000) | (664,000) | (1,523,000) |
Sales of mortgage loans held for sale | 10,553,000 | 19,737,000 | 87,281,000 |
(Increase) decrease in accrued interest receivable | (820,000) | 1,084,000 | (1,619,000) |
Increase (decrease) in accrued interest payable | 45,000 | (490,000) | (525,000) |
Earnings on bank-owned life insurance | (1,089,000) | (1,117,000) | (782,000) |
Deferred income taxes | 533,000 | 729,000 | 1,614,000 |
Stock compensation expense | 50,000 | 43,000 | 3,000 |
Net change in operating leases | (84,000) | (94,000) | (89,000) |
Other, net | (3,398,000) | (4,379,000) | (7,140,000) |
Net cash provided by (used in) operating activities | 5,209,000 | 9,939,000 | (1,373,000) |
INVESTING ACTIVITIES | |||
Purchase of investment securities - available for sale | (58,207,000) | (61,578,000) | (36,519,000) |
Purchase of investment securities - held to maturity | (11,104,000) | (16,272,000) | (9,359,000) |
Proceeds from maturities of investment securities - available for sale | 19,638,000 | 38,826,000 | 36,215,000 |
Proceeds from maturities of investment securities - held to maturity | 2,918,000 | 6,665,000 | 4,985,000 |
Proceeds from sales of investment securities - available for sale | 1,519,000 | 960,000 | |
Purchase of regulatory stock | (11,143,000) | (1,799,000) | (9,979,000) |
Proceeds from redemption of regulatory stock | 8,081,000 | 3,928,000 | 9,143,000 |
Long-term loans originated | (223,704,000) | (313,125,000) | (301,210,000) |
Principal collected on long-term loans | 216,787,000 | 301,498,000 | 212,179,000 |
Purchases of premises and equipment | (2,080,000) | (1,241,000) | (1,325,000) |
Proceeds from sale of other real estate owned and repossessed assets | 14,000 | 8,000 | 63,000 |
Cash acquired in branch acquisition, net | 40,431,000 | ||
Proceeds from life insurance policies | 1,000,000 | 1,211,000 | 490,000 |
Net cash used in investing activities | (56,281,000) | (488,000) | (95,317,000) |
FINANCING ACTIVITIES | |||
Net (decrease) increase in deposit balances | (30,740,000) | 42,124,000 | 94,407,000 |
Net increase (decrease) in other short-term borrowings | 88,641,000 | (24,702,000) | 2,290,000 |
Principal borrowings on advances from Federal Home Loan Bank | 2,000,000 | 36,050,000 | |
Principal repayments on advances from Federal Home Loan Bank | (22,888,000) | (24,336,000) | (24,729,000) |
Principal payments on financing lease liabilities | (219,000) | (210,000) | (203,000) |
Redemption of guaranteed junior subordinated deferrable interest debentures | (12,018,000) | ||
Subordinated debt issuance, net | 26,589,000 | ||
Redemption of subordinated debt | (7,650,000) | ||
Stock options exercised | 106,000 | 57,000 | 78,000 |
Purchases of treasury stock | (151,000) | ||
Common stock dividend paid | (1,967,000) | (1,708,000) | (1,716,000) |
Net cash provided by financing activities | 32,933,000 | 146,000 | 106,026,000 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,139,000) | 9,597,000 | 9,336,000 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 41,101,000 | 31,504,000 | 22,168,000 |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ 22,962,000 | $ 41,101,000 | $ 31,504,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS AND NATURE OF OPERATIONS: AmeriServ Financial, Inc. (the Company) is a bank holding company, headquartered in Johnstown, Pennsylvania. Through its banking subsidiary, the Company operates 17 banking locations in five southwestern Pennsylvania counties and Hagerstown, Maryland. These branches provide a full range of consumer, mortgage, and commercial financial products. The AmeriServ Trust and Financial Services Company (the Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $2.3 billion that are not recognized on the Company’s Consolidated Balance Sheets at December 31, 2022. PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of AmeriServ Financial, Inc. and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), the Trust Company, and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 16 locations in Pennsylvania and 1 location in Maryland. AmeriServ Life was a captive insurance company that was formally closed on December 31, 2020. In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company’s most significant estimates relate to the allowance for loan losses, intangible assets, income taxes, investment securities, pension, and the fair value of financial instruments. INVESTMENT SECURITIES: Securities are classified at the time of purchase as investment securities held to maturity if it is management’s intent and the Company has the ability to hold the securities until maturity. These held to maturity securities are carried on the Company’s books at cost, adjusted for amortization of premium and accretion of discount which is computed using the level yield method which approximates the effective interest method. Alternatively, securities are classified as available for sale if it is management’s intent at the time of purchase to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. Securities classified as available for sale include securities which may be sold to effectively manage interest rate risk exposure, prepayment risk, and other factors (such as liquidity requirements). These available for sale securities are reported at fair value with unrealized aggregate appreciation/depreciation excluded from income and credited/charged to accumulated other comprehensive income/loss within shareholders’ equity on a net of tax basis. Any securities classified as trading assets are reported at fair value with unrealized aggregate appreciation/depreciation included in income on a net of tax basis. The Company does not engage in trading activity. Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security’s performance, the creditworthiness of the issuer and the Company’s intent and ability to hold the security to recovery. The Company believes the unrealized losses on certain securities within the investments portfolio are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value. Additionally, the Company holds equity securities which are comprised of mutual funds held within a rabbi trust for the executive deferred compensation plan. Such securities are reported at fair value within other assets on the Consolidated Balance Sheets. Unrealized holding gains and losses on equity securities are included in earnings. FEDERAL HOME LOAN BANK STOCK: The Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB) and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time any such situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (3) the impact of legislative and regulatory changes on the customer base of FHLB; and (4) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. LOANS: Interest income is recognized using the level yield method related to principal amounts outstanding. The Company typically discontinues the accrual of interest income when loans become 90 days past due in either principal or interest. In addition, if circumstances warrant, the accrual of interest may be discontinued prior to 90 days. Payments received on non-accrual loans are credited to principal until full recovery of principal has been recognized; or the loan has been returned to accrual status. The only exception to this policy is for residential mortgage loans wherein interest income is recognized on a cash basis as payments are received. A non-accrual commercial loan is placed on accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are placed on accrual status upon becoming current. LOAN FEES: Loan origination and commitment fees, net of associated direct costs, are deferred and amortized into interest and fees on loans over the loan or commitment period. Fee amortization is determined by the effective interest method. LOANS HELD FOR SALE: Certain newly originated residential mortgage loans are classified as held for sale, because it is management’s intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or fair value. TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain 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. PREMISES AND EQUIPMENT: Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation is charged to operations over the estimated useful lives of the premises and equipment using the straight-line method with a half-year convention. Useful lives of up to 30 years for buildings and up to 10 years for equipment are utilized. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or useful lives of the improvements, whichever is shorter. Maintenance, repairs, and minor alterations are charged to current operations as expenditures are incurred. LEASES: The Company has operating and financing leases for several office locations and equipment. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance. The Company has elected to account for the variable non-lease components separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when incurred. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. Certain of the Company’s leases contain options to renew the lease after the initial term. Management considers the Company’s historical pattern of exercising renewal options on leases and the performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease is the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: As a financial institution, which assumes lending and credit risks as a principal element of its business, the Company anticipates that credit losses will be experienced in the normal course of business. Accordingly, the Company consistently applies a comprehensive methodology and procedural discipline to perform an analysis which is updated on a quarterly basis at the Bank level to determine both the adequacy of the allowance for loan losses and the necessary provision for loan losses to be charged against earnings. This methodology includes: ● Review of all impaired commercial and commercial real estate loans to determine if any specific reserve allocations are required on an individual loan basis. In addition, consumer and residential mortgage loans with a balance of $150,000 or more are evaluated for impairment and specific reserve allocations are established, if applicable. All required specific reserve allocations are based on careful analysis of the loan’s performance, the related collateral value, cash flow considerations and the financial capability of any guarantor. For impaired loans the measurement of impairment may be based upon (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the observable market price of the impaired loan; or (3) the fair value of the collateral of a collateral dependent loan. ● The application of formula driven reserve allocations for all commercial and commercial real estate loans by using a three-year migration analysis of net losses incurred within each risk grade for the entire commercial loan portfolio. The difference between estimated and actual losses is reconciled through the nature of the migration analysis. ● The application of formula driven reserve allocations to consumer and residential mortgage loans which are based upon historical net charge-off experience for those loan types. The residential mortgage loan and consumer loan allocations are based upon the Company’s three-year historical average of actual loan net charge-offs experienced in each of those categories. ● The application of formula driven reserve allocations to all outstanding loans is based upon review of historical losses and qualitative factors, which include but are not limited to, economic trends, delinquencies, levels of non-accrual and TDR loans, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies and trends in policy, financial information and documentation exceptions. ● Management recognizes that there may be events or economic factors that have occurred affecting specific borrowers or segments of borrowers that may not yet be fully reflected in the information that the Company uses for arriving at reserves for a specific loan or portfolio segment. Therefore, the Company believes that there is estimation risk associated with the use of specific and formula driven allowances. After completion of this process, a formal meeting of the Loan Loss Reserve Committee is held to evaluate the adequacy of the reserve. When it is determined that the prospects for recovery of the principal of a loan have significantly diminished, the loan is charged-off against the allowance account; subsequent recoveries, if any, are credited to the allowance account. In addition, non-accrual and large delinquent loans are reviewed monthly to determine potential losses. The Company’s policy is to individually review, as circumstances warrant, its commercial and commercial mortgage loans to determine if a loan is impaired. At a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. The Company defines classified loans as those loans rated substandard or doubtful. The Company has also identified three pools of small dollar value homogeneous loans which are evaluated collectively for impairment. These separate pools are for small business relationships with aggregate balances of $250,000 or less, residential mortgage loans and consumer loans. Individual loans within these pools are reviewed and evaluated for specific impairment if factors such as significant delinquency in payments of 90 days or more, bankruptcy, or other negative economic concerns indicate impairment. ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: The allowance for unfunded loan commitments and letters of credit is maintained at a level believed by management to be sufficient to absorb estimated losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers and the terms and expiration dates of the unfunded credit facilities. Net adjustments to the allowance for unfunded loan commitments and letters of credit are provided for in the unfunded commitment reserve expense line item within other expense in the Consolidated Statements of Operations and a separate reserve is recorded within the other liabilities line item of the Consolidated Balance Sheets. BANK-OWNED LIFE INSURANCE: The Company has purchased life insurance policies on certain current and previous employees. These policies are recorded on the Consolidated Balance Sheets at their cash surrender value, or the amount that can be realized. Income from these policies and changes in the cash surrender value are recorded in bank owned life insurance within non-interest income. Additionally, income is accrued on certain policies that have reached the minimum floor rate of return. This guaranteed portion of income is not added to the cash surrender value of the policy until the policy anniversary date and is reported in other assets on the Consolidated Balance Sheets. INTANGIBLE ASSETS: Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. Goodwill is not amortized, but is periodically evaluated for impairment. The Company tests goodwill for impairment on at least an annual basis. This approach could cause more volatility in the Company’s reported net income because impairment losses, if any, could occur irregularly and in varying amounts. Identifiable intangible assets are amortized to their estimated residual values over their expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. The identifiable intangible assets consist of a core deposit intangible which is being amortized on an accelerated basis over a ten-year useful life. EARNINGS PER COMMON SHARE: Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. Options to purchase 22,000, 22,000, and 139,759 shares of common stock were outstanding during 2022, 2021 and 2020, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Exercise prices of anti-dilutive options to purchase common stock outstanding were $4.00-$4.22, $4.00-$4.22, and $3.18-$4.22 during 2022, 2021 and 2020, respectively. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS, EXCEPT PER SHARE DATA) Numerator: Net income $ 7,448 $ 7,072 $ 4,598 Denominator: Weighted average common shares outstanding (basic) 17,107 17,073 17,053 Effect of stock options 39 41 10 Weighted average common shares outstanding (diluted) 17,146 17,114 17,063 Earnings per common share: Basic $ 0.44 $ 0.41 $ 0.27 Diluted 0.43 0.41 0.27 STOCK-BASED COMPENSATION: The Company uses the modified prospective method for accounting of stock-based compensation. The fair value of each option grant is estimated on the grant date using the Binomial or Black-Scholes option pricing model and the expense is recognized ratably over the service period. Forfeitures are recognized as they occur. See Note 19 for details on the assumptions used. ACCUMULATED OTHER COMPREHENSIVE LOSS: The Company presents the components of other comprehensive (loss) income in the Consolidated Statements of Comprehensive (Loss) Income. These components are comprised of the change in the defined benefit pension obligation and the unrealized holding gains (losses) on available for sale securities, net of any reclassification adjustments for realized gains and losses. CONSOLIDATED STATEMENT OF CASH FLOWS: On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest bearing deposits, and short-term investments in both money market funds and commercial paper. The Company made $1.1 million in income tax payments in 2022; $200,000 in 2021; and $315,000 in 2020. The Company had non-cash transfers to other real estate owned (OREO) and repossessed assets in the amounts of $53,000 in 2022; $8,000 in 2021; and $40,000 in 2020. During 2022 asset On May 21, 2021, AmeriServ Financial Bank completed its acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and related deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. In addition to the branch acquisition related information disclosed on the Consolidated Statements of Cash Flows, the following were recorded as non-cash transfers on the corresponding lines of the Consolidated Balance Sheets as of December 31, 2021 (in thousands). Acquisition of Riverview Bank Branches Non-cash assets acquired Loans $ 36 Other premises and equipment, net 158 Intangible assets 1,844 2,038 Non-cash liabilities assumed Non-interest bearing deposits (7,372) Interest bearing deposits (35,060) Other liabilities (37) (42,469) Net non-cash liabilities assumed $ (40,431) INCOME TAXES: Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or credits are based on the changes in the corresponding asset or liability from period to period. Deferred tax assets are reduced, if necessary, by the amounts of such benefits that are not expected to be realized based upon available evidence. INTEREST RATE CONTRACTS: The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. The Company periodically enters into derivative instruments to meet the financing, interest rate and equity risk management needs of its customers or the Bank. Upon entering into these instruments to meet customer needs, the Company enters into offsetting positions to minimize interest rate and equity risk to the Company. These derivative financial instruments are reported at fair value with any resulting gain or loss recorded in current period earnings in amounts that offset. These instruments and their offsetting positions are recorded in other assets and other liabilities on the Consolidated Balance Sheets. PENSION: Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension obligations and future expense. Additionally, pension expense can also be impacted by settlement accounting charges if the amount of employees selected lump sum distributions exceed the total amount of service and interest component costs of the net periodic pension cost in a particular year. The service cost component of net periodic benefit cost is determined by aggregating the product of the discounted cash flows of the plan’s service cost for each year and an individual spot rate (referred to as the “spot rate” approach). The interest cost component is determined by aggregating the product of the discounted cash flows of the plan’s projected benefit obligations for each year and an individual spot rate. Management believes this methodology is an appropriate measure of the service cost and interest cost as each year’s cash flows are specifically linked to the interest rates of bond payments in the same respective year. Our pension benefits are described further in Note 17 of the Notes to Consolidated Financial Statements. FAIR VALUE OF FINANCIAL INSTRUMENTS: We group our assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: Level I — Valuation is based upon quoted prices for identical instruments traded in active markets. Level II — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level III — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset. We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in generally accepted accounting principles. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments The Company, as a smaller reporting company, evaluated the impact that ASU 2016-13 will have on our consolidated financial statements. We worked with an industry leading third-party consultant and software provider to assist us in the implementation of ASU 2016-13. Our implementation plan included assessment and documentation of processes, internal controls and data sources; model development, documentation and validation, including loan segmentation procedures and analyzing the methodology options; and system configuration, among other things. The Company intends to adopt ASU 2016-13 effective January 1, 2023. The allowance for credit losses (ACL) will be based on our historical loss experience, borrower characteristics, reasonable and supportable forecasts of future economic conditions, and other relevant factors. We will also apply qualitative factors to account for information that may not be reflected in quantitatively derived results to ensure that the ACL reflects the best estimate of current expected credit losses. Our team, under the direction of senior management, has completed the initial data gap assessment, enhancement of existing data, finalized the loan segmentation selections, and analyzed the methodology options regarding the calculation of expected credit losses. After analyzing our data and the nature of our portfolio in relation to the CECL transition, the team agreed to utilize the static pool analysis (cohort) method. This methodology most closely aligns with the Company’s current methodology leveraged in our incurred loss model calculation. The Company’s current methodology will be adjusted to appropriately incorporate and comply with ASU 2016-13 and, thus, offers an effective and efficient path to CECL compliance. The static pool analysis methodology captures loans that qualify for a segment (i.e. balance of a pool of loans with similar risk characteristics) as of a point in time to form a cohort, then tracks that cohort over their remaining lives to determine their loss behavior. The remaining lifetime loss rate is then applied to current loans that qualify for the same segmentation criteria to form a remaining life expectation on current loans. Based on a preliminary parallel calculation as of December 31, 2022, the Company believes that the adoption of ASU 2016-13 will not have a significant impact on our financial statements. The allowance of credit losses under the CECL methodology is estimated to be between $11.8 million and $12.2 million for our loan portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for held to maturity (HTM) debt securities. Based on the credit quality of the Company’s HTM debt securities portfolio, we do not expect the ACL to be significant and estimate it will be between $50,000 and $150,000. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures . The guidance amends ASC 326 to eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying TDR recognition and measurement guidance, creditors will determine whether a modification results in a new loan or continuation of an existing loan. These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, the amendments of ASC 326 require that an entity disclose current-period gross writeoffs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. The guidance is only for entities that have adopted the amendments of ASU 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations which will be adopted with ASU 2016-13 effective January 1, 2023. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 3. REVENUE RECOGNITION ASU 2014-09, Revenue from Contracts with Customers Topic interest revenue sources including net realized gains (losses) on investment securities, mortgage related fees, net gains on loans held for sale, and bank owned life insurance are not within the scope of Topic 606. These sources of revenue cumulatively comprise 77.6% of the total revenue of the Company. Non-interest income within the scope of Topic 606 are as follows: ● Wealth management fees – Wealth management fee income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Company’s performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers’ accounts. Due to this delay in payment, a receivable of $850,000 has been established as of December 31, 2022 and is included in other assets on the Consolidated Balance Sheets in order to properly recognize the revenue earned but not yet received. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions’ price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Also included within wealth management fees are commissions from the sale of mutual funds, annuities, and life insurance products. Commissions on the sale of mutual funds, annuities, and life insurance products are recognized when sold, which is when the Company has satisfied its performance obligation. ● Service charges on deposit accounts — The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Revenue related to account analysis fees and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction. ● Other non-interest income — Other non-interest income consists of other recurring revenue streams such as safe deposit box rental fees, gain (loss) on sale of other real estate owned, ATM and VISA debit card fees, and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized when billed. However, if the safe deposit box rental fee is prepaid (i.e. paid prior to issuance of annual bill), the revenue is recognized upon receipt of payment. The Company has determined that since rentals and renewals occur consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gains and losses on the sale of other real estate owned are recognized at the completion of the property sale when the buyer obtains control of the real estate and all the performance obligations of the Company have been satisfied. The Company offers ATM and VISA debit cards to deposit account holders which allows our customers to access their account electronically at ATMs and POS terminals. Fees related to ATM and VISA debit card transactions are recognized when the transactions are completed and the Company has satisfied it performance obligation. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2022, 2021, and 2020 (in thousands). AT DECEMBER 31, 2022 2021 2020 Non-interest income: In-scope of Topic 606 Wealth management fees $ 11,620 $ 11,986 $ 10,212 Service charges on deposit accounts 1,108 965 903 Other 2,009 2,017 1,708 Non-interest income (in-scope of topic 606) 14,737 14,968 12,823 Non-interest income (out-of-scope of topic 606) 1,955 2,793 3,452 Total non-interest income $ 16,692 $ 17,761 $ 16,275 |
CASH AND DUE FROM DEPOSITORY IN
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | 12 Months Ended |
Dec. 31, 2022 | |
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | |
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | 4. CASH AND DUE FROM DEPOSITORY INSTITUTIONS Cash and due from depository institutions totaled $18.8 million and $24.7 million as of December 31, 2022 and 2021, respectively. The Federal Reserve reduced reserve requirements to zero as of March 26, 2020. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES The cost basis and fair values of investment securities are summarized as follows: Investment securities available for sale: DECEMBER 31, 2022 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 11,797 $ 1 $ (1,265) $ 10,533 U.S. Agency mortgage-backed securities 102,631 64 (12,710) 89,985 Municipal 20,837 — (1,799) 19,038 Corporate bonds 63,152 30 (3,230) 59,952 Total $ 198,417 $ 95 $ (19,004) $ 179,508 Investment securities held to maturity: DECEMBER 31, 2022 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (432) $ 2,068 U.S. Agency mortgage-backed securities 18,877 8 (2,212) 16,673 Municipal 33,993 2 (3,880) 30,115 Corporate bonds and other securities 6,508 — (172) 6,336 Total $ 61,878 $ 10 $ (6,696) $ 55,192 Investment securities available for sale: DECEMBER 31, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 7,371 $ 86 $ (70) $ 7,387 U.S. Agency mortgage-backed securities 80,136 1,202 (1,171) 80,167 Municipal 20,066 851 (25) 20,892 Corporate bonds 53,843 1,028 (146) 54,725 Total $ 161,416 $ 3,167 $ (1,412) $ 163,171 Investment securities held to maturity: DECEMBER 31, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (11) $ 2,489 U.S. Agency mortgage-backed securities 10,556 203 (115) 10,644 Municipal 33,188 1,734 (103) 34,819 Corporate bonds and other securities 7,507 64 (7) 7,564 Total $ 53,751 $ 2,001 $ (236) $ 55,516 Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investors Service or Standard & Poor’s rating of A. At December 31, 2022, 52.5% of the portfolio was rated AAA as compared to 47.1% at December 31, 2021. Approximately 14.7% of the portfolio was rated below A or unrated on December 31, 2022 and 2021. The Company and its subsidiaries, collectively, did not hold securities of any single issuer, excluding U.S. agencies, that exceeded 10% of shareholders’ equity at December 31, 2022. The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $134,002,000 at December 31, 2022 and $122,574,000 at December 31, 2021. The Company realized $5,000 of gross investment security gains and $5,000 of gross investment security losses in 2022, realized $84,000 of gross investment security gains in 2021, and sold no investment securities during 2020. On a net basis, the realized gain for 2022 was zero and the realized gain for 2021 was $66,000 after factoring in tax expense of $18,000. Proceeds from sales of investment securities available for sale were $1.5 million for 2022 and $960,000 for 2021. The Company’s consolidated investment securities portfolio had an effective duration of approximately 4.67 years. The weighted average expected maturity for available for sale securities at December 31, 2022 for U.S. agency, U.S. agency mortgage-backed, corporate bond, and municipal securities was 5.62, 6.99, 4.18, and 4.06 years, respectively. The weighted average expected maturity for held to maturity securities at December 31, 2022 for U.S. agency, U.S. agency mortgage-backed, corporate bond/other securities, and municipal securities was 7.57, 7.39, 2.97, and 5.37 years, respectively. The following table sets forth the contractual maturity distribution of the investment securities, cost basis and fair market values as of December 31, 2022. Investment securities available for sale: AT DECEMBER 31, 2022 TOTAL U.S. AGENCY INVESTMENT MORTGAGE- SECURITIES CORPORATE BACKED AVAILABLE U. S. AGENCY MUNICIPAL BONDS SECURITIES FOR SALE (IN THOUSANDS) COST BASIS Within 1 year $ — $ 1,065 $ 6,000 $ — $ 7,065 After 1 year but within 5 years 4,279 12,538 26,039 1,488 44,344 After 5 years but within 10 years 6,000 7,234 30,463 5,577 49,274 Over 10 years 1,518 — 650 95,566 97,734 Total $ 11,797 $ 20,837 $ 63,152 $ 102,631 $ 198,417 FAIR VALUE Within 1 year $ — $ 1,045 $ 5,970 $ — $ 7,015 After 1 year but within 5 years 4,102 11,873 25,084 1,431 42,490 After 5 years but within 10 years 5,048 6,120 28,364 5,264 44,796 Over 10 years 1,383 — 534 83,290 85,207 Total $ 10,533 $ 19,038 $ 59,952 $ 89,985 $ 179,508 Investment securities held to maturity: AT DECEMBER 31, 2022 TOTAL U.S. AGENCY INVESTMENT CORPORATE MORTGAGE- SECURITIES BONDS AND BACKED HELD TO U.S. AGENCY MUNICIPAL OTHER SECURITIES MATURITY (IN THOUSANDS) COST BASIS Within 1 year $ — $ 425 $ 2,000 $ — $ 2,425 After 1 year but within 5 years — 8,874 3,015 1,005 12,894 After 5 years but within 10 years 2,500 21,315 500 812 25,127 Over 10 years — 3,379 993 17,060 21,432 Total $ 2,500 $ 33,993 $ 6,508 $ 18,877 $ 61,878 FAIR VALUE Within 1 year $ — $ 419 $ 1,942 $ — $ 2,361 After 1 year but within 5 years — 8,411 2,901 979 12,291 After 5 years but within 10 years 2,068 18,550 500 779 21,897 Over 10 years — 2,735 993 14,915 18,643 Total $ 2,068 $ 30,115 $ 6,336 $ 16,673 $ 55,192 The following table presents information concerning investments with unrealized losses as of December 31, 2022 (in thousands): Total investment securities: DECEMBER 31, 2022 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 5,446 $ (350) $ 6,653 $ (1,347) $ 12,099 $ (1,697) U.S. Agency mortgage-backed securities 57,193 (4,018) 44,083 (10,904) 101,276 (14,922) Municipal 37,175 (3,113) 11,475 (2,566) 48,650 (5,679) Corporate bonds and other securities 39,549 (1,923) 16,721 (1,479) 56,270 (3,402) Total $ 139,363 $ (9,404) $ 78,932 $ (16,296) $ 218,295 $ (25,700) The following table presents information concerning investments with unrealized losses as of December 31, 2021 (in thousands): Total investment securities: DECEMBER 31, 2021 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 7,419 $ (81) $ — $ — $ 7,419 $ (81) U.S. Agency mortgage-backed securities 45,422 (972) 6,691 (314) 52,113 (1,286) Municipal 7,832 (128) — — 7,832 (128) Corporate bonds and other securities 14,558 (92) 2,439 (61) 16,997 (153) Total $ 75,231 $ (1,273) $ 9,130 $ (375) $ 84,361 $ (1,648) The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 426 positions that are considered temporarily impaired at December 31, 2022. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. The interest rate environment and market yields can also have a significant impact on the yield earned on mortgage-backed securities (MBS). Prepayment speed assumptions are an important factor to consider when evaluating the returns on an MBS. Generally, as interest rates decline, borrowers have more incentive to refinance into a lower rate, so prepayments will rise. Conversely, as interest rates increase, prepayments will decline. When an MBS is purchased at a premium, the yield will decrease as prepayments increase and the yield will increase as prepayments decrease. As of December 31, 2022, the Company had low premium risk as the book value of our mortgage-backed securities purchased at a premium was only 100.9% of the par value. As of December 31, 2022, 2021, and 2020, the Company reported $502,000, $526,000, and $443,000, respectively, of equity securities within other assets on the Consolidated Balance Sheets. These equity securities are held within a nonqualified deferred compensation plan in which a select group of executives of the Company can participate. An eligible executive can defer a certain percentage of their current salary to be placed into the plan and held within a rabbi trust. The assets of the rabbi trust are invested in various publicly listed mutual funds. The gain or loss on the equity securities (both realized and unrealized) is reported within other income on the Consolidated Statements of Operations. The realized loss on equity securities was $9,000 during 2022 while the realized gain on equity securities was $36,000 and $2,000 during 2021 and 2020, respectively. The unrealized loss was $13,000 in 2022 compared to an unrealized gain of $7,000 and $3,000 in 2021 and 2020, respectively. Additionally, the Company has recognized a deferred compensation liability, which is equal to the balance of the equity securities and is reported within other liabilities on the Consolidated Balance Sheets. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
LOANS | 6. LOANS The loan portfolio of the Company consisted of the following: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Commercial: Commercial and industrial $ 153,398 $ 134,182 Paycheck Protection Program (PPP) 22 17,311 Commercial loans secured by owner occupied real estate (1) 75,158 99,644 Commercial loans secured by non-owner occupied real estate (1) 450,744 430,825 Real estate − residential mortgage (1) 297,971 287,996 Consumer 13,473 15,096 Loans, net of unearned income $ 990,766 $ 985,054 (1) Real estate construction loans constituted 4.7% and 5.6% of the Company’s total loans, net of unearned income as of December 31, 2022 and 2021, respectively. Loan balances at December 31, 2022 and 2021 are net of unearned income of $343,000 and $826,000, respectively. The unearned income balance at December 31, 2022 includes no unrecognized fee income from PPP loan originations compared to $386,000 at December 31, 2021. The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct loan exposure to foreign countries. Additionally, the Company has no significant industry lending concentrations. As of December 31, 2022 and 2021, loans to customers engaged in similar activities and having similar economic characteristics, as defined by standard industrial classifications, did not exceed 10% of total loans. Additionally, the majority of the Company’s lending occurs within a 250-mile radius of the Johnstown market. In the ordinary course of business, the subsidiaries have transactions, including loans, with their officers, directors, and their affiliated companies. In management’s opinion, these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unaffiliated parties and do not involve more than the normal credit risk. These loans totaled $587,000 and $601,000 at December 31, 2022 and 2021, respectively. The following table provides information regarding our potential risk concentrations for commercial and commercial real estate loans by industry type at December 31, 2022 and 2021 (in thousands). DECEMBER 31, 2022 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ — $ — $ — $ 7,690 $ 7,690 Multifamily/apartments/student housing — — 65 83,033 83,098 Office 44,959 — 7,428 23,775 76,162 Retail 6,478 — 17,072 147,601 171,151 Industrial/manufacturing/warehouse 82,540 — 11,016 77,640 171,196 Hotels — — — 36,214 36,214 Eating and drinking places 276 22 4,575 1,354 6,227 Personal care 881 — — 2,647 3,528 Amusement and recreation 66 — 3,223 3 3,292 Mixed use — — 4,268 51,222 55,490 Other 18,198 — 27,511 19,565 65,274 Total $ 153,398 $ 22 $ 75,158 $ 450,744 $ 679,322 DECEMBER 31, 2021 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,246 $ — $ 96 $ 8,565 $ 9,907 Multifamily/apartments/student housing — — 245 73,912 74,157 Office 37,386 203 8,644 28,500 74,733 Retail 7,253 444 20,439 148,668 176,804 Industrial/manufacturing/warehouse 74,508 5,940 21,468 44,316 146,232 Hotels 154 1,764 — 42,425 44,343 Eating and drinking places 484 6,591 4,537 1,752 13,364 Personal care 1,197 173 — 4,315 5,685 Amusement and recreation 92 53 5,402 12 5,559 Mixed use — — 4,031 62,088 66,119 Other 11,862 2,143 34,782 16,272 65,059 Total $ 134,182 $ 17,311 $ 99,644 $ 430,825 $ 681,962 Paycheck Protection Program The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act and subsequent legislation authorized the Small Business Administration (SBA) to temporarily guarantee loans under a new 7(a) program called the Paycheck Protection Program (PPP). As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. An eligible business could apply for a PPP loan up to the lesser of: (1) 2.5 times its average monthly payroll costs; or (2) $10.0 million. PPP loans have: (a) an interest rate of 1.0%; (b) a two-year (if originated prior to June 5, 2020) or five-year (if originated after June 5, 2020) 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 pursuant to standards as defined by the SBA. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and at least 60% of the loan proceeds are used for payroll expenses, with the remaining loan proceeds being used for other qualifying expenses such as interest on mortgages, rent, and utilities. In addition, PPP allows certain eligible borrowers that previously received a PPP loan to apply for a second draw loan with the same general terms described above. The maximum loan amount of a second draw PPP loan is 2.5 times, or 3.5 times for borrowers within the hospitality industry, the average monthly 2019 or 2020 payroll costs up to $2.0 million. Eligibility for a second draw PPP loan is based on the following criteria: (a) borrower previously received a first draw PPP loan and used the full amount for only authorized expenditures; (b) borrower has 300 or less employees; and (c) borrower can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The PPP loan program expired on May 31, 2021 for originating new loans. As of December 31, 2022, the Company had 1 PPP loan outstanding totaling $22,000 and has recorded a total of $434,000 of processing fee income and interest income from PPP lending activity for the year ended. As of December 31, 2021, the Company had 114 PPP loans outstanding totaling $17.3 million and had recorded a total of $2.3 million of processing fee income and interest income from PPP lending activity for the year ended. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR LOAN LOSSES | |
ALLOWANCE FOR LOAN LOSSES | 7. ALLOWANCE FOR LOAN LOSSES The segments of the Company’s loan portfolio are disaggregated into classes that allows management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the commercial and industrial and the owner occupied commercial real estate loan classes while the remaining segments are not separated into classes as management monitors risk in these loans at the segment level. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. The following table summarizes the rollforward of the allowance for loan losses by portfolio segment (in thousands). BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2021 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2022 Commercial $ 3,071 $ (97) $ 4 $ (325) $ 2,653 Commercial loans secured by non-owner occupied real estate 6,392 (1,390) 54 916 5,972 Real estate − residential mortgage 1,590 (28) 19 (201) 1,380 Consumer 113 (334) 67 239 85 Allocation for general risk 1,232 — — (579) 653 Total $ 12,398 $ (1,849) $ 144 $ 50 $ 10,743 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2020 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2021 Commercial $ 3,472 $ (146) $ 89 $ (344) $ 3,071 Commercial loans secured by non-owner occupied real estate 5,373 — 51 968 6,392 Real estate − residential mortgage 1,292 (17) 49 266 1,590 Consumer 115 (131) 58 71 113 Allocation for general risk 1,093 — — 139 1,232 Total $ 11,345 $ (294) $ 247 $ 1,100 $ 12,398 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2019 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2020 Commercial $ 3,951 $ (111) $ 4 $ (372) $ 3,472 Commercial loans secured by non-owner occupied real estate 3,119 — 44 2,210 5,373 Real estate − residential mortgage 1,159 (233) 62 304 1,292 Consumer 126 (143) 68 64 115 Allocation for general risk 924 — — 169 1,093 Total $ 9,279 $ (487) $ 178 $ 2,375 $ 11,345 The $325,000 allowance for loan losses credit recorded during the year ended December 31, 2022 within the commercial portfolio was due to a lower level of criticized assets and, to a lesser extent, portfolio contraction. A $916,000 allowance for loan losses provision was recorded for the non-owner occupied commercial real estate portfolio as a result of the partial charge-down and transfer of one loan relationship into non-accrual status during the third quarter of the year while the borrower pursues the sale of the property. Additionally, the non-owner occupied commercial real estate portfolio was impacted by the risk rating downgrade of another loan relationship as well as portfolio growth. It is further noted that the allocation for general risk eased due to improvement in the qualitative adjustment as the economy demonstrated improvement coming out of the pandemic during 2022. The $344,000 allowance for loan losses credit recorded during the year ended December 31, 2021 within the commercial portfolio was attributable to lower criticized commercial and industrial loans outstanding resulting from upgrades of certain credits originally impacted by the pandemic, as well as lower historical loss rates. While a $968,000 allowance for loan losses provision was recorded for the non-owner occupied commercial real estate portfolio which stemmed from overall portfolio growth as well as elevated classified commercial real estate balances. For the year ended December 31, 2020, a $372,000 allowance for loan losses credit was recognized for the commercial portfolio due to portfolio contraction, reduced classified asset levels, and lower historical loss factors. In addition, a $2.2 million allowance for loan losses provision was recorded for the non-owner occupied commercial real estate portfolio which resulted from overall portfolio growth coupled with escalated criticized asset levels driven primarily by pandemic related downgrades. The following tables summarize the loan portfolio and allowance for loan losses by the primary segments of the loan portfolio. AT DECEMBER 31, 2022 COMMERCIAL LOANS SECURED BY NON- REAL ESTATE − OWNER OCCUPIED RESIDENTIAL Loans: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER TOTAL (IN THOUSANDS) Individually evaluated for impairment $ 1,989 $ 1,586 $ — $ — $ 3,575 Collectively evaluated for impairment 226,589 449,158 297,971 13,473 987,191 Total loans $ 228,578 $ 450,744 $ 297,971 $ 13,473 $ 990,766 AT DECEMBER 31, 2022 COMMERCIAL LOANS ALLOCATION SECURED BY NON- REAL ESTATE − FOR Allowance OWNER OCCUPIED RESIDENTIAL GENERAL for loan losses: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER RISK TOTAL (IN THOUSANDS) Specific reserve allocation $ 520 $ 3 $ — $ — $ — $ 523 General reserve allocation 2,133 5,969 1,380 85 653 10,220 Total allowance for loan losses $ 2,653 $ 5,972 $ 1,380 $ 85 $ 653 $ 10,743 AT DECEMBER 31, 2021 COMMERCIAL LOANS SECURED BY NON- REAL ESTATE − OWNER OCCUPIED RESIDENTIAL Loans: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER TOTAL (IN THOUSANDS) Individually evaluated for impairment $ 2,165 $ 5 $ — $ — $ 2,170 Collectively evaluated for impairment 248,972 430,820 287,996 15,096 982,884 Total loans $ 251,137 $ 430,825 $ 287,996 $ 15,096 $ 985,054 AT DECEMBER 31, 2021 COMMERCIAL LOANS ALLOCATION SECURED BY NON- REAL ESTATE − FOR Allowance OWNER OCCUPIED RESIDENTIAL GENERAL for loan losses: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER RISK TOTAL (IN THOUSANDS) Specific reserve allocation $ 628 $ 5 $ — $ — $ — $ 633 General reserve allocation 2,443 6,387 1,590 113 1,232 11,765 Total allowance for loan losses $ 3,071 $ 6,392 $ 1,590 $ 113 $ 1,232 $ 12,398 Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment that is in non-accrual status or classified as a Troubled Debt Restructure (TDR). In addition, consumer and residential mortgage loans with a balance of Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing either the discounted cash flows or the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Collections and Assigned Risk Department to support the value of the property. When reviewing an appraisal associated with an existing real estate collateral dependent transaction, the Bank’s internal Collections and Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include: ● the passage of time; ● the volatility of the local market; ● the availability of financing; ● natural disasters; ● the inventory of competing properties; ● new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank; ● changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or ● environmental contamination. The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Collections and Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Collections and Assigned Risk Department personnel, rests with the Collections and Assigned Risk Department and not the originating account officer. The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. AT DECEMBER 31, 2022 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 1,989 $ 520 $ — $ 1,989 $ 2,240 Commercial loans secured by non-owner occupied real estate 3 3 1,583 1,586 1,643 Total impaired loans $ 1,992 $ 523 $ 1,583 $ 3,575 $ 3,883 AT DECEMBER 31, 2021 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 2,165 $ 628 $ — $ 2,165 $ 2,260 Commercial loans secured by non-owner occupied real estate 5 5 — 5 27 Total impaired loans $ 2,170 $ 633 $ — $ 2,170 $ 2,287 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Average impaired balance: Commercial $ 2,062 $ 2,301 $ 839 Commercial loans secured by non-owner occupied real estate 805 7 8 Average investment in impaired loans $ 2,867 $ 2,308 $ 847 Interest income recognized: Commercial $ — $ 15 $ 38 Commercial loans secured by non-owner occupied real estate — — — Interest income recognized on a cash basis on impaired loans $ — $ 15 $ 38 Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass-6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for 2022 required review of approximately 40% of the commercial loan portfolio. In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass-6 with aggregate balances greater than $2,000,000, all credits rated Special Mention or Substandard The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system. AT DECEMBER 31, 2022 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 148,361 $ — $ 5,037 $ — $ 153,398 Paycheck Protection Program (PPP) 22 — — — 22 Commercial loans secured by owner occupied real estate 74,187 — 971 — 75,158 Commercial loans secured by non-owner occupied real estate 423,486 11,015 16,240 3 450,744 Total $ 646,056 $ 11,015 $ 22,248 $ 3 $ 679,322 AT DECEMBER 31, 2021 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 125,079 $ 6,722 $ 738 $ 1,643 $ 134,182 Paycheck Protection Program (PPP) 17,311 — — — 17,311 Commercial loans secured by owner occupied real estate 98,271 297 1,076 — 99,644 Commercial loans secured by non-owner occupied real estate 399,104 19,322 12,394 5 430,825 Total $ 639,765 $ 26,341 $ 14,208 $ 1,648 $ 681,962 It is generally the policy of the Bank that the outstanding balance of any residential mortgage loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge-down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is generally the policy of the Bank that the outstanding balance of any consumer loan that exceeds 90-days past due as to principal and/or interest is charged-off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes. AT DECEMBER 31, 2022 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 296,401 $ 1,570 $ 297,971 Consumer 13,457 16 13,473 Total $ 309,858 $ 1,586 $ 311,444 AT DECEMBER 31, 2021 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 286,843 $ 1,153 $ 287,996 Consumer 15,096 — 15,096 Total $ 301,939 $ 1,153 $ 303,092 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans. AT DECEMBER 31, 2022 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 152,314 $ 797 $ 287 $ — $ 1,084 $ 153,398 $ — Paycheck Protection Program (PPP) 22 — — — — 22 — Commercial loans secured by owner occupied real estate 74,960 198 — — 198 75,158 — Commercial loans secured by non-owner occupied real estate 446,809 3,935 — — 3,935 450,744 — Real estate – residential mortgage 295,790 489 422 1,270 2,181 297,971 — Consumer 13,290 60 114 9 183 13,473 — Total $ 983,185 $ 5,479 $ 823 $ 1,279 $ 7,581 $ 990,766 $ — AT DECEMBER 31, 2021 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 133,918 $ 14 $ 250 $ — $ 264 $ 134,182 $ — Paycheck Protection Program (PPP) 17,311 — — — — 17,311 — Commercial loans secured by owner occupied real estate 99,454 — 190 — 190 99,644 — Commercial loans secured by non-owner occupied real estate 428,790 2,035 — — 2,035 430,825 — Real estate – residential mortgage 283,178 2,449 1,240 1,129 4,818 287,996 — Consumer 14,938 151 7 — 158 15,096 — Total $ 977,589 $ 4,649 $ 1,687 $ 1,129 $ 7,465 $ 985,054 $ — An allowance for loan losses (“ALL”) is maintained to support loan growth and cover charge-offs from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors. Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three-year historical average of actual loss experience. The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: (1) an allowance established on specifically identified problem loans, (2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and (3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company’s loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company’s management to establish allocations which accommodate each of the listed risk factors. “Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. |
NON-PERFORMING ASSETS INCLUDING
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) | 12 Months Ended |
Dec. 31, 2022 | |
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) | |
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) | 8. NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) Non-performing assets are comprised of (i) loans which are on a non-accrual basis, (ii) loans which are contractually past due 90 days or more as to interest or principal payments, (iii) performing loans classified as TDR and (iv) OREO (real estate acquired through foreclosure and in-substance foreclosures) and repossessed assets. The following table presents information concerning non-performing assets including TDR: AT DECEMBER 31, 2022 2021 (IN THOUSANDS, EXCEPT PERCENTAGES) Non-accrual loans: Commercial and industrial $ 1,989 $ 2,165 Commercial loans secured by non-owner occupied real estate 1,586 5 Real estate – residential mortgage 1,577 1,153 Consumer 9 — Total 5,161 3,323 Other real estate owned and repossessed assets: Real estate – residential mortgage 38 — Consumer 1 — Total 39 — Total non-performing assets including TDR $ 5,200 $ 3,323 Total non-performing assets as a percent of loans, net of unearned income, other real estate owned and repossessed assets 0.53 % 0.34 % The Company had no loans past due 90 days or more for the periods presented which were accruing interest. Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan. To be considered a TDR, both ● the borrower must be experiencing financial difficulties; and ● the Bank, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would not otherwise be considered. Factors that indicate a borrower is experiencing financial difficulties include, but are not limited to: ● the borrower is currently in default on their loan(s); ● the borrower has filed for bankruptcy; ● the borrower has insufficient cash flows to service their loan(s); or ● the borrower is unable to obtain refinancing from other sources at a market rate similar to rates available to a non-troubled debtor. Factors that indicate that a concession has been granted include, but are not limited to: ● the borrower is granted an interest rate reduction to a level below market rates for debt with similar risk; or ● the borrower is granted a material maturity date extension, or extension of the amortization plan to provide payment relief. For purposes of this policy, a material maturity date extension will generally include any maturity date extension, or the aggregate of multiple consecutive maturity date extensions, that exceed 120 days . A restructuring that results in an insignificant delay in payment, i.e. 120 days or less, is not necessarily a TDR. Insignificant payment delays occur when the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value, and will result in an insignificant shortfall in the originally scheduled contractual amount due, and/or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the original maturity or the original amortization. The determination of whether a restructured loan is a TDR requires consideration of all of the facts and circumstances surrounding the modification. No single factor is determinative of whether a restructuring is a TDR. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean that the borrower is experiencing financial difficulty. Accordingly, determination of whether a modification is a TDR involves a large degree of judgment. Any loan modification where the loan currently maintains a criticized or classified risk rating, i.e. Special Mention, Substandard or Doubtful, or where the loan will be assigned a criticized or classified rating after the modification is evaluated to determine the need for TDR classification. The specific ALL reserve for loans modified as TDR’s was $123,000 and $132,000 as of December 31, 2022 and 2021, respectively. The following table details the loans modified as TDRs during the year ended December 31, 2022 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 452 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate Commercial loans secured by non-owner occupied real estate 1 $ 1,583 Extension of maturity date with an interest only period at below market interest rate The following table details the loan modified as a TDR during the year ended December 31, 2021 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 477 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate In all instances where loans have been modified in troubled debt restructurings the pre- and post-modified balances are the same. Once a loan is classified as a TDR, this classification will remain until documented improvement in the financial position of the borrower supports confidence that all principal and interest will be paid according to terms. Additionally, the customer must have re-established a track record of timely payments according to the restructured contract terms for a minimum of six consecutive months prior to consideration for removing the loan from non-accrual TDR status. However, a loan will continue to be on non-accrual status until, consistent with our policy, the borrower has made a minimum of six consecutive payments in accordance with the terms of the loan. There were no loans that were modified as TDRs in the previous 12 months and defaulted during the reporting periods ending December 31, 2022, 2021 or 2020, respectively All TDRs are individually evaluated for impairment and a related allowance is recorded, as needed. The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above. OREO and repossessed assets are recorded at the lower of (1) fair value minus estimated costs to sell or (2) carrying cost. Foreclosed assets acquired in settlement of loans carried at fair value less estimated costs to sell are included in other assets on the Consolidated Balance Sheets. As of December 31, 2022, a total of $38,000 of residential real estate foreclosed assets were included in other assets. As of December 31, 2021, there were no residential real estate foreclosed assets included in other assets. As of December 31, 2022, the Company had initiated formal foreclosure procedures on $258,000 of consumer residential mortgages. Loan Modifications Related to COVID-19 Under section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes and reporting the loan as past due. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either December 31, 2020 or the 60 th In response to the COVID-19 pandemic, the Company remains committed to prudently working with and supporting our borrowers that have been hardest hit by the pandemic by granting them loan payment modifications. The following table presents information comparing loans which were subject to a loan modification related to COVID-19, as of December 31, 2022 and 2021. Note that the percentage of outstanding loans presented below was calculated based on loan totals excluding PPP loans. Management believes that this method more accurately reflects the concentration of COVID-19 related modifications within the loan portfolio. AT DECEMBER 31, 2022 AT DECEMBER 31, 2021 % of Outstanding % of Outstanding Balance Non-PPP Loans Balance Non-PPP Loans (in thousands) (in thousands) CRE/Commercial $ 199 0.03 % $ 7,488 1.08 % Home Equity/Consumer — — 57 0.06 Residential Mortgage 32 0.02 203 0.11 Total $ 231 0.02 $ 7,748 0.80 The balance of loan modifications related to COVID-19 at December 31, 2022 represents a decrease of $7.5 million, or 97.0%, from the balance of loans modified for COVID-19 at December 31, 2021. In addition, this current level of borrowers requesting payment deferrals is down sharply from its peak level of approximately $200 million that occurred at June 30, 2020. As a result of these loan modifications, the Company has recorded $503,000 of accrued interest income that has not been received as of December 31, 2022. Borrower requested modifications primarily consist of the deferral of principal and/or interest payments. The following table presents the composition of the types of payment relief that have been granted. AT DECEMBER 31, 2022 AT DECEMBER 31, 2021 Number of Loans Balance Number of Loans Balance (in thousands) (in thousands) Type of Payment Relief Interest only payments 1 $ 199 6 $ 3,768 Complete payment deferrals 2 32 5 3,980 Total 3 $ 231 11 $ 7,748 Management continues to carefully monitor asset quality with a particular focus on customers that have requested payment deferrals during this difficult economic time. Deferral extension requests were considered based upon the customer’s needs and their impacted industry, borrower and guarantor capacity to service debt as well as issued regulatory guidance. At December 31, 2022, the COVID-19 related modification within the commercial real estate and commercial loan portfolios is to one borrower in the personal care industry. In order to properly monitor the increased credit risk associated with modified loans, the Asset Quality Task Force meets periodically to review these particular relationships, receiving input from the business lenders regarding their ongoing discussions with the borrowers. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 9. PREMISES AND EQUIPMENT An analysis of premises and equipment follows: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Land $ 1,225 $ 1,225 Premises 30,079 28,944 Furniture and equipment 8,428 8,908 Leasehold improvements 1,202 1,174 Total at cost 40,934 40,251 Less: Accumulated depreciation and amortization 26,474 26,169 Premises and equipment, net $ 14,460 $ 14,082 The Company recorded depreciation and amortization expense of $1.7 million for 2022, $1.7 million for 2021, and $1.6 million for 2020. The Company utilizes a contract cleaner to provide janitorial services for several office locations. The contract cleaner is owned by a Director of the Company. The amount paid to this related party totaled $200,000, $241,000, and $232,000 for the years ended December 31, 2022, 2021, and 2020, respectively. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
LEASE COMMITMENTS | |
LEASE COMMITMENTS | 10. LEASE COMMITMENTS The Company has operating and financing leases for several office locations and equipment. Several assumptions and judgments were made when applying the requirements of ASU 2016-02, Leases (Topic 842) The following table presents the lease cost associated with both operating and financing leases for the years ended December 31, 2022, 2021, and 2020. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Lease cost Financing lease cost: Amortization of right-of-use asset $ 271 $ 272 $ 271 Interest expense 100 106 112 Operating lease cost 106 116 116 Total lease cost $ 477 $ 494 $ 499 The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at December 31, 2022 and 2021. AT DECEMBER 31, 2022 2021 OPERATING FINANCING OPERATING FINANCING Weighted-average remaining term (years) 10.0 15.1 11.0 15.5 Weighted-average discount rate 3.54 % 3.62 % 3.53 % 3.56 % The following table presents the undiscounted cash flows due related to operating and financing leases as of December 31, 2022 and 2021, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. DECEMBER 31, 2022 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2023 $ 85 $ 309 2024 85 249 2025 75 248 2026 69 181 2027 69 181 Thereafter 382 2,397 Total undiscounted cash flows 765 3,565 Discount on cash flows (122) (885) Total lease liabilities $ 643 $ 2,680 DECEMBER 31, 2021 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2022 $ 98 $ 320 2023 69 309 2024 69 249 2025 69 248 2026 69 181 Thereafter 452 2,578 Total undiscounted cash flows 826 3,885 Discount on cash flows (144) (986) Total lease liabilities $ 682 $ 2,899 The Company leases approximately 1,049 square feet of office space within its headquarters building to a Director of the Company. The amount paid by this related party totaled |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS. | |
DEPOSITS | 11. DEPOSITS The following table sets forth the balance of the Company’s deposits: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Demand: Non-interest bearing $ 195,123 $ 211,106 Interest bearing 236,746 235,582 Savings 135,796 133,163 Money market 254,868 267,202 Certificates of deposit 286,004 292,325 Total deposits $ 1,108,537 $ 1,139,378 The following table sets forth the balance of certificates of deposit as of December 31, 2022 maturing in the periods presented: CERTIFICATES OF YEAR: DEPOSIT (IN THOUSANDS) 2023 $ 166,109 2024 79,097 2025 14,550 2026 7,566 2027 7,044 2028 and after 11,638 Total $ 286,004 The aggregate amount of certificates of deposit that exceed the FDIC insurance limit of $250,000 at December 31, 2022 and 2021 are $74.0 million and $66.7 million, respectively. The amount of related party deposits totaled $3,135,000 and $3,499,000 at December 31, 2022 and 2021, respectively |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | 12. SHORT-TERM BORROWINGS Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows: AT DECEMBER 31, 2022 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 88,641 Maximum balance at any month end — 88,641 Average balance during year 113 9,155 Average rate paid for the year 3.11 % 3.93 % Interest rate on year-end balance — 4.45 AT DECEMBER 31, 2021 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ — Maximum balance at any month end — 4,077 Average balance during year — 389 Average rate paid for the year — % 0.37 % Interest rate on year-end balance — 0.28 AT DECEMBER 31, 2020 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 24,702 Maximum balance at any month end 2,000 41,632 Average balance during year 18 4,929 Average rate paid for the year 0.87 % 0.58 % Interest rate on year-end balance — 0.41 Average amounts outstanding during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances. These borrowing transactions have an average maturity of overnight. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2022 | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | 13. ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT Advances from the Federal Home Loan Bank (FHLB) consist of the following: AT DECEMBER 31, 2022 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2023 1.59 % $ 15,568 2024 1.19 4,197 Total advances from FHLB 1.50 $ 19,765 AT DECEMBER 31, 2021 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2022 1.88 % $ 22,888 2023 1.59 15,568 2024 1.19 4,197 Total advances from FHLB 1.71 $ 42,653 The Company’s subsidiary Bank is a member of the FHLB which provides this subsidiary with the opportunity to obtain short to longer-term advances based upon the Company’s investment in assets secured by one- to four-family residential real estate and certain types of commercial and commercial real estate loans. The rate on open repo plus advances, which are typically overnight borrowings, can change daily, while the rates on the advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances, are pledged as collateral to the FHLB of Pittsburgh to support these borrowings. At December 31, 2022, the Company had immediately available $302 million of overnight borrowing capability at the FHLB, $41 million of short-term borrowing availability at the Federal Reserve Bank and $35 million of unsecured federal funds lines with correspondent banks. Subordinated Debt: On August 26, 2021, the Company completed a private placement of $27 million in fixed-to-floating rate subordinated notes to certain accredited investors. The notes mature September 1, 2031 and are non-callable for five years. The notes have a fixed annual interest rate of 3.75%, payable until September 1, 2026. From and including September 1, 2026, the interest rate will reset quarterly to the then-current three-month Secured Overnight Financing Rate (SOFR) plus 3.11%. The subordinated debt was structured to qualify as tier 2 capital under the Federal Reserve’s capital guidelines. The Company used approximately $20 million of the net proceeds to retire its existing subordinated debt and guaranteed junior subordinated deferrable interest debentures (trust preferred securities) on September 30, 2021. Specifically, the Company retired $12 million of 8.45% trust preferred securities which had been issued on April 28, 1998 and $7.7 million of 6.50% subordinated debt which had been issued on December 29, 2015. The remainder of the proceeds were utilized for general corporate purposes, including the downstream of $3.5 million as capital to the Bank in the third quarter of 2021. The net balance of subordinated debt as of December 31, 2022 and 2021 was $26.6 million. |
DISCLOSURES ABOUT FAIR VALUE ME
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 14. DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three broad levels defined within this 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 pricing observability 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 judgment or estimation. Assets and Liability Measured and Recorded on a Recurring Basis Equity securities are reported at fair value utilizing Level 1 inputs. These securities are mutual funds held within a rabbi trust for the Company’s executive deferred compensation plan. The mutual funds held are open-end funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair values of the interest rate swaps used for interest rate risk management and the risk participation agreement associated with a commercial real estate loan are based on an external derivative valuation model using data inputs from similar transactions as of the valuation date and classified Level 2. The following table presents the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of December 31, 2022 and 2021 by level within the fair value hierarchy (in thousands). FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 502 $ 502 $ — $ — Available for sale securities: U.S. Agency 10,533 — 10,533 — U.S. Agency mortgage-backed securities 89,985 — 89,985 — Municipal 19,038 — 19,038 — Corporate bonds 59,952 — 59,952 — Interest rate swap asset (1) 6,992 — 6,992 — Interest rate swap liability (2) (6,872) — (6,872) — Risk participation agreement (2) — — — — FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 526 $ 526 $ — $ — Available for sale securities: U.S. Agency 7,387 — 7,387 — U.S. Agency mortgage-backed securities 80,167 — 80,167 — Municipal 20,892 — 20,892 — Corporate bonds 54,725 — 54,725 — Interest rate swap asset (1) 1,226 — 1,226 — Interest rate swap liability (2) (1,226) — (1,226) — Risk participation agreement (2) — — — — (1) Included within other assets on the Consolidated Balance Sheets. (2) Included within other liabilities on the Consolidated Balance Sheets. Assets Measured and Recorded on a Non-Recurring Basis Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are reported at the fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted using unobservable inputs. At December 31, 2022, impaired loans evaluated using the collateral method with a carrying value of $1.6 million were reduced by a specific valuation allowance totaling $3,000 resulting in a net fair value of $1.6 million. At December 31, 2021, impaired loans evaluated using the collateral method with a carrying value of $5,000 were reduced by a specific valuation allowance totaling $5,000 resulting in a net fair value of zero. Other real estate owned is measured at fair value based on appraisals, less estimated costs to sell at the date of foreclosure. The Bank’s internal Collections and Assigned Risk Department estimates the fair value of repossessed assets, such as vehicles and equipment, using a formula driven analysis based on automobile or other industry data, less estimated costs to sell at the time of repossession. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO and repossessed assets. Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1,583 $ — $ — $ 1,583 Other real estate owned and repossessed assets 39 — — 39 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ — $ — $ — $ — Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2022 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 1,583 Appraisal of Appraisal 0% to 100% (0.2%) collateral (1) adjustments (2) Other real estate owned and repossessed assets 39 Appraisal of Appraisal 52% (52%) collateral (1) adjustments (2) Liquidation 10% to 39% (11%) expenses Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2021 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ — Appraisal of Appraisal 100% (100%) collateral (1) adjustments (2) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure. Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturities, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements. The estimated fair values based on US GAAP measurements and recorded carrying values at December 31, 2022 and 2021, for the remaining financial instruments not required to be reported at fair value were as follows: AT DECEMBER 31, 2022 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 61,878 $ 55,192 $ — $ 52,323 $ 2,869 Loans held for sale 59 57 57 — — Loans, net of allowance for loan loss and unearned income 980,023 938,188 — — 938,188 FINANCIAL LIABILITIES: Deposits with stated maturities 286,004 281,297 — — 281,297 All other borrowings (1) 46,409 44,759 — — 44,759 AT DECEMBER 31, 2021 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 53,751 $ 55,516 $ — $ 52,523 $ 2,993 Loans held for sale 983 1,022 1,022 — — Loans, net of allowance for loan loss and unearned income 972,656 969,681 — — 969,681 FINANCIAL LIABILITIES: Deposits with stated maturities 292,325 294,280 — — 294,280 All other borrowings (1) 69,256 69,506 — — 69,506 (1) All other borrowings include advances from Federal Home Loan Bank and subordinated debt. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 16. INCOME TAXES The expense for income taxes is summarized below and includes both federal and applicable state corporate income taxes: YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Current $ 1,220 $ 973 $ (400) Deferred 533 729 1,614 Income tax expense $ 1,753 $ 1,702 $ 1,214 The reconciliation between the federal statutory tax rate and the Company’s effective consolidated income tax rate is as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 AMOUNT RATE AMOUNT RATE AMOUNT RATE (IN THOUSANDS, EXCEPT PERCENTAGES) Income tax expense based on federal statutory rate $ 1,932 21.0 % $ 1,843 21.0 % $ 1,221 21.0 % Tax exempt income (244) (2.6) (253) (2.9) (188) (3.2) Other 65 0.7 112 1.3 181 3.1 Total expense for income taxes $ 1,753 19.1 % $ 1,702 19.4 % $ 1,214 20.9 % The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) DEFERRED TAX ASSETS: Allowance for loan losses $ 2,256 $ 2,604 Unfunded commitment reserve 157 208 Unrealized investment security losses 3,971 — Premises and equipment 955 743 Lease liabilities 698 752 Other 185 175 Total tax assets 8,222 4,482 DEFERRED TAX LIABILITIES: Investment accretion (107) (51) Unrealized investment security gains — (369) Lease right-of-use assets (639) (704) Accrued pension obligation (4,494) (4,098) Other (193) (194) Total tax liabilities (5,433) (5,416) Net deferred tax asset (liability) $ 2,789 $ (934) At December 31, 2022 and 2021, the Company had no valuation allowance established against its deferred tax assets as we believe the Company will generate sufficient future taxable income to fully utilize these assets. The Company utilizes 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 fifty 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. The Company has no tax liability for uncertain tax positions. The Company’s federal and state income tax returns for taxable years through 2018 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 17. EMPLOYEE BENEFIT PLANS PENSION PLAN: The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants shall have a vested interest in their accrued benefit after five PENSION BENEFITS: YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 50,287 $ 54,861 Service cost 1,419 1,708 Interest cost 1,462 894 Actuarial (gain) loss (9,787) 273 Settlements (7,541) (6,516) Benefits paid (934) (933) Benefit obligation at end of year 34,906 50,287 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year 70,432 58,447 Actual return on plan assets (9,700) 11,434 Employer contributions 4,000 8,000 Settlements (7,541) (6,516) Benefits paid (934) (933) Fair value of plan assets at end of year 56,257 70,432 Funded status of the plan $ 21,351 $ 20,145 YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) AMOUNTS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC PENSION COST: Amounts recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 9,597 $ 9,319 Total $ 9,597 $ 9,319 YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) ACCUMULATED BENEFIT OBLIGATION: Accumulated benefit obligation $ 32,190 $ 46,319 The weighted-average assumptions used to determine benefit obligations at December 31, 2022 and 2021 were as follows: YEAR ENDED DECEMBER 31, 2022 2021 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.45 % 2.80 % Salary scale Ages 30-34 5.00 2.50 Ages 35-44 4.00 2.50 Ages 45-54 3.00 2.50 Ages 55+ 2.50 2.50 YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 1,419 $ 1,708 $ 1,676 Interest cost 1,462 894 1,281 Expected return on plan assets (4,193) (4,008) (3,241) Amortization of net loss 1,330 2,421 2,453 Settlement charge 2,498 1,736 — Net periodic pension cost $ 2,516 $ 2,751 $ 2,169 The service cost component of net periodic benefit cost is included in salaries and employee benefits and all other components of net periodic benefit cost are included in other expense on the Consolidated Statements of Operations. The Company recognized a settlement charge in connection with its defined benefit pension plan of $2.5 million and $1.7 million in 2022 and 2021, respectively. A settlement charge must be recognized when the total dollar amount of lump sum distributions paid from the pension plan to retired employees exceeds a threshold of expected annual service and interest costs in the current year. The value of the lump sums continued to be elevated this year due to the lower interest rate levels late in 2021 when the lump sums were calculated. It is important to note that since the retired employees have chosen to take the lump sum payments, these individuals are no longer included in the pension plan. Therefore, we anticipate that the Company’s normal annual pension expense should be lower in the future. This was evident in 2022 as the basic amount of pension expense required to be recognized, excluding the impact of settlement charges, was $997,000, or 98.2%, lower for the full year of 2022 compared to basic pension expense for the full year of 2021. Note that pension settlement charges are dependent upon the level of national interest rates from the previous year and the impact that interest rates have on lump sum distributions to those employees eligible to retire. Pension settlement charges are also dependent upon the choice of retiring employees to either take a lump sum distribution or receive future monthly annuity payments. The accrued pension liability, which had a positive (debit) balance of $21.3 million and $19.5 million, was reclassified to other assets on the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. The balance of the accrued pension liability remained a positive value as a result of the Company’s contributions to the plan during the year and the revaluation of the obligation due to the recognition of the settlement charge. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS Net loss (gain) $ 4,106 $ (7,153) $ 968 Recognized loss (3,828) (4,157) (2,453) Total recognized in other comprehensive loss before tax effect $ 278 $ (11,310) $ (1,485) Total recognized in net benefit cost and other comprehensive loss before tax effect $ 2,794 $ (8,559) $ 684 For the year ended December 31, 2022, actuarial gains in the projected benefit obligation were primarily the result of the increase in discount rate. Other sources of gain/loss such as plan experience, updated census data, and minor adjustments to actuarial assumptions, including updates to the retirement rates, form of payment election, salary scale, lump sum interest rates, and lump sum mortality tables, generated a combined gain of about 19% of expected year end obligations. The weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 were as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 2.81 % 2.48 % 3.20 % Expected return on plan assets 7.00 7.00 7.00 Rate of compensation increase 2.50 2.50 2.50 The Company has assumed a 7.00% long-term expected return on plan assets. This assumption was based upon the plan’s historical investment performance over a longer-term period of 20 years combined with the plan’s investment objective of balanced growth and income. Additionally, this assumption also incorporates a targeted range for equity securities of approximately 0% to 60% of plan assets. PLAN ASSETS: The plan’s measurement date is December 31, 2022. This plan’s asset allocation at December 31, 2022 and 2021, by asset category are as follows: YEAR ENDED DECEMBER 31, 2022 2021 ASSET CATEGORY: Cash and cash equivalents 89.9 % 0.1 % Domestic equities 7.1 12.1 Mutual funds/ETFs — 84.1 International equities — 0.3 Corporate bonds 3.0 3.4 Total 100.0 % 100.0 % The major categories of assets in the Company’s pension plan as of year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value. YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) Level 1: Cash and cash equivalents $ 50,553 $ 56 Domestic equities 4,026 8,488 Mutual funds/ETFs — 59,306 International equities — 199 Level 2: Corporate bonds 1,678 2,383 Total fair value of plan assets $ 56,257 $ 70,432 Cash and cash equivalents may include uninvested cash balances along with money market mutual funds, treasury bills, or other assets normally categorized as cash equivalents. Domestic equities may include common or preferred stocks, covered options, rights or warrants, or American Depository Receipts which are traded on any U.S. equity market. Mutual funds/ETFs may include any equity, fixed income, balanced, international, or global mutual fund or exchange traded fund including any propriety fund managed by the Trust Company. Agencies may include any U.S. government agency security or asset-backed security. Collective investment funds may include equity, fixed income, or balanced collective investment funds managed by West Chester Capital Advisors. Corporate bonds may include any corporate bond or note. The investment strategy objective for the pension plan is a balance of growth and income. This objective seeks to develop a portfolio for acceptable levels of current income together with the opportunity for capital appreciation. The balanced growth and income objective reflects an equal balance between equity and fixed income investments such as debt securities. The allocation between equity and fixed income assets may vary by a moderate degree during normal market cycles. The pension plan’s allocation to equities is 0% to 60% while the allocation to fixed income can fall within the range of 0% to 100% of the plan assets. In addition, cash equivalents can range from 0% to 100% of the plan assets. The plan is also able to invest in ASRV common stock up to a maximum level of CASH FLOWS: The Company presently expects that the contribution to be made to the plan in 2023 will approximate $2.0 million. Funding requirements for subsequent years are uncertain and will significantly depend on whether the plan’s actuary changes any assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the plan, and any legislative or regulatory changes affecting plan funding requirements. For tax planning, financial planning, cash flow management or cost reduction purposes the Company may increase, accelerate, decrease or delay contributions to the plan to the extent permitted by law. ESTIMATED FUTURE BENEFIT PAYMENTS: The following benefit payments, which reflect future service, as appropriate, are expected to be paid. ESTIMATED FUTURE YEAR: BENEFIT PAYMENTS (IN THOUSANDS) 2023 $ 3,422 2024 4,177 2025 3,934 2026 4,059 2027 3,534 Years 2028-2032 12,780 401(k) PLAN: The Company maintains a qualified 401(k) plan that allows for participation by Company employees. Under the plan, employees may elect to make voluntary contributions to their accounts which the Company will match one half on the first 2% of contribution up to a maximum of 1%. The Company also contributes 4% of salaries for union members who are in the plan. These contribution percentages apply to employees who are eligible to participate in our defined benefit pension plan. Effective January 1, 2013, any new non-union employees receive a 4% non-elective contribution and these employees may elect to make voluntary contributions to their accounts which the Company will match one half on the first 6% of contribution up to a maximum of 3%. Effective January 1, 2014, any new union employees receive a 4% non-elective contribution and these employees may elect to make voluntary contributions to their accounts which the Company will match dollar for dollar up to a maximum of 4%. Contributions by the Company charged to operations were $808,000, $704,000 and $653,000 for the years ended December 31, 2022, 2021 and 2020, respectively. The fair value of plan assets includes $425,000 pertaining to the value of the Company’s common stock that was held by the plan at December 31, 2022. DEFERRED COMPENSATION PLAN: The Company maintains a nonqualified deferred compensation plan in which a select group of executives are permitted to participate. An eligible executive can defer a certain percentage of their current salary to be placed into the plan. The Company has established a rabbi trust to provide funding for the benefits payable under our deferred compensation plan. As of December 31, 2022 and 2021, the Company reported a deferred compensation liability of Except for the above described benefit plans, the Company has no significant additional exposure for any other post-retirement or post-employment benefits. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 18. COMMITMENTS AND CONTINGENT LIABILITIES The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit. Such commitments and standby letters of credit involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated financial statements. Commitments to extend credit are obligations to lend to a customer as long as there is no violation of any condition established in the loan agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Collateral which secures these types of commitments is the same as for other types of secured lending such as accounts receivable, inventory, fixed assets, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including normal business activities, bond financings, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Letters of credit are issued both on an unsecured and secured basis. Collateral securing these types of transactions is similar to collateral securing the Company’s commercial loans. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Company uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending. At December 31, 2022, the Company had various outstanding commitments to extend credit approximating $227.6 million and standby letters of credit of $9.0 million, compared to commitments to extend credit of $216.6 million and standby letters of credit of $13.1 million at December 31, 2021. Standby letters of credit had terms ranging from one Pursuant to its bylaws, the Company provides indemnification to its directors and officers against certain liabilities incurred as a result of their service on behalf of the Company. In connection with this indemnification obligation, the Company can advance on behalf of covered individuals costs incurred in defending against certain claims. Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
STOCK COMPENSATION PLANS | |
STOCK COMPENSATION PLANS | 19. STOCK COMPENSATION PLANS The Company uses the modified prospective method for accounting for stock-based compensation and recognized $50,000 of compensation expense for the year 2022, $43,000 in 2021 and $3,000 in 2020. During 2021, the Company’s Board adopted, and its shareholders approved, the AmeriServ Financial, Inc. 2021 Equity Incentive Plan (the Plan) authorizing the grant of options or restricted stock covering 600,000 shares of common stock. This Plan replaced the expired 2011 Stock Incentive Plan. Under the Plan, options or restricted stock can be granted (the Grant Date) to directors, officers, and employees that provide services to the Company and its affiliates, as selected by the compensation committee of the Board. The option price at which a granted stock option may be exercised will not be less than 100% of the fair market value per share of common stock on the Grant Date. The maximum term of any option granted under the Plan cannot exceed 10 years. Generally, options vest over a three-year period and become exercisable in equal installments over the vesting period. At times, options with a one year vesting period may also be issued. A summary of the status of the Company’s Equity Incentive Plan at December 31, 2022, 2021, and 2020, and changes during the years then ended is presented in the table and narrative following: YEAR ENDED DECEMBER 31, 2022 2021 2020 WEIGHTED WEIGHTED WEIGHTED AVERAGE AVERAGE AVERAGE SHARES EXERCISE PRICE SHARES EXERCISE PRICE SHARES EXERCISE PRICE Outstanding at beginning of year 369,047 $ 3.47 230,913 $ 3.14 296,648 $ 3.02 Granted — — 160,000 3.84 — — Exercised (36,117) 2.96 (21,356) 2.68 (38,235) 2.06 Forfeited (9,144) 3.62 (510) 3.23 (27,500) 3.30 Outstanding at end of year 323,786 3.52 369,047 3.47 230,913 3.14 Exercisable at end of year 223,784 3.38 206,713 3.18 224,580 3.11 Weighted average fair value of options granted in current year $ — $ 1.78 $ — A total of 223,784 of the 323,786 options outstanding at December 31, 2022, are exercisable and have exercise prices between $2.96 and $4.22, with a weighted average exercise price of $3.38 and a weighted average remaining contractual life of 3.51 years. The remaining 100,002 options that are not yet exercisable have exercise prices between $3.83 and $3.84, with a weighted average exercise price of $3.84 and a weighted average remaining contractual life of 8.13 years. The fair value of each option grant is estimated on the date of grant using the Binomial or Black-Scholes option pricing model with the following assumptions used for grants in 2021. No stock options were granted during 2022 and 2020. YEAR ENDED DECEMBER 31, PRICING MODEL ASSUMPTION RANGES 2021 Risk-free interest rate 1.27 - 1.42 % Expected lives in years 10 Expected volatility 40.38 - 45.03 % Expected dividend rate 2.60 - 2.61 % The intrinsic value of stock options exercised was $47,000, $27,000, and $56,000 in 2022, 2021, and 2020, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 20. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the periods ending December 31, 2022, 2021, and 2020 (in thousands): YEAR ENDING DECEMBER 31, 2022 YEAR ENDED DECEMBER 31, 2021 YEAR ENDING DECEMBER 31, 2020 Net Net Net Unrealized Unrealized Unrealized Gains and Gains and Gains and Losses on Defined Losses on Defined Losses on Defined Investment Benefit Investment Benefit Investment Benefit Securities Pension Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) $ 1,715 $ (17,886) $ (16,171) Other comprehensive income (loss) before reclassifications (16,324) (2,708) (19,032) (2,087) 5,555 3,468 1,824 (789) 1,035 Amounts reclassified from accumulated other comprehensive loss — 3,024 3,024 (66) 3,284 3,218 — 1,938 1,938 Net current period other comprehensive income (loss) (16,324) 316 (16,008) (2,153) 8,839 6,686 1,824 1,149 2,973 Ending balance $ (14,938) $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the periods ending December 31, 2022, 2021, and 2020 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) Details about accumulated other YEAR ENDING YEAR ENDING YEAR ENDING Affected line item in the comprehensive loss components DECEMBER 31, 2022 DECEMBER 31, 2021 DECEMBER 31, 2020 statement of operations Realized gains on sale of securities $ — $ (84) $ — Net realized gains on investment securities — 18 — Provision for income taxes $ — $ (66) $ — Amortization of estimated defined benefit pension plan loss (2) $ 3,828 $ 4,157 $ 2,453 Other expense (804) (873) (515) Provision for income taxes $ 3,024 $ 3,284 $ 1,938 Total reclassifications for the period $ 3,024 $ 3,218 $ 1,938 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 17 for additional details) . |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 21. INTANGIBLE ASSETS The Company’s Consolidated Balance Sheets show both tangible assets (such as loans, buildings, and investments) and intangible assets (such as goodwill and core deposit intangible). Goodwill has an indefinite life and is not amortized. Instead such intangible is evaluated for impairment at the reporting unit level at least annually, or more frequently if indicators of impairment are present. Any resulting impairment would be reflected as a non-interest expense. Based on this analysis, no impairment was recorded in 2022 or 2021. Of the Company’s goodwill of $13.6 million, $11.2 million is allocated to the community banking segment and $2.4 million relates to the WCCA acquisition which is included in the wealth management segment. The balance of the Company’s goodwill at December 31, 2022 and 2021 was $13.6 million. During 2021, the Company recorded $1.7 million of goodwill as a result of the Riverview Bank branch acquisition. YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) GOODWILL Balance at beginning of year $ 13,611 $ 11,944 Goodwill acquired — 1,667 Balance at end of year $ 13,611 $ 13,611 Other identifiable intangible assets, such as core deposit intangible, are assigned useful lives, which are amortized on an accelerated basis over their useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the years ended December 31, 2022 and 2021, no such adjustments were recorded. During 2021, the Company recorded a core deposit intangible of $177,000 as a result of the Riverview Bank branch acquisition. As of December 31, 2022 and 2021, accumulated amortization on the core deposit intangible totaled YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) CORE DEPOSIT INTANGIBLE Balance at beginning of year $ 158 $ — Core deposit intangible acquired — 177 Amortization (30) (19) Balance at end of year $ 128 $ 158 As of December 31, 2022, the estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2023 $ 27 2024 24 2025 21 2026 17 2027 14 After five years 25 $ 128 |
DERIVATIVE HEDGING INSTRUMENTS
DERIVATIVE HEDGING INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVE HEDGING INSTRUMENTS | |
DERIVATIVE HEDGING INSTRUMENTS | 22. DERIVATIVE HEDGING INSTRUMENTS The Company can use various interest rate contracts, such as interest rate swaps, caps, floors and swaptions to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities. The Company can use derivative instruments, primarily interest rate swaps, to manage interest rate risk and match the rates on certain assets by hedging the fair value of certain fixed rate debt, which converts the debt to variable rates and by hedging the cash flow variability associated with certain variable rate debt by converting the debt to fixed rates. Interest Rate Swap Agreements To accommodate the needs of our customers and support the Company’s asset/liability positioning, we may enter into interest rate swap agreements with customers and a large financial institution that specializes in these types of transactions. These arrangements involve the exchange of interest payments based on the notional amounts. The Company entered into floating rate loans and fixed rate swaps with our customers. Simultaneously, the Company entered into offsetting fixed rate swaps with this large financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay the large financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. For the years ended December 31, 2022 and 2021, the Company received $8,000 and $191,000, respectively, in fees on the interest rate swap transactions, which are recognized as revenue when received. These swaps are considered free-standing derivatives and are reported at fair value within other assets and other liabilities on the Consolidated Balance Sheets. Disclosures related to the fair value of the swap transactions can be found in Note 14. The following table summarizes the interest rate swap transactions that impacted the Company’s 2022 and 2021 performance (in thousands, except percentages). DECEMBER 31, 2022 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 65,431 4.23 % Monthly $ 21 Swap liabilities N/A (65,431) (4.23) Monthly (21) Net exposure — — — DECEMBER 31, 2021 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 67,280 2.59 % Monthly $ (857) Swap liabilities N/A (67,280) (2.59) Monthly 857 Net exposure — — — Risk Participation Agreement The Company entered into a risk participation agreement (RPA) with the lead bank of a commercial real estate loan arrangement. As a participating bank, the Company guarantees the performance on a borrower-related interest rate swap contract. The Company has no obligations under the RPA unless the borrower defaults on their swap transaction with the lead bank and the swap is a liability to the borrower. In that instance, the Company has agreed to pay the lead bank a pre-determined percentage of the swap’s value at the time of default. In exchange for providing the guarantee, the Company received an upfront fee from the lead bank. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings with a corresponding offset within other liabilities. Disclosures related to the fair value of the RPA can be found in Note 14. The notional amount of the risk participation agreement outstanding at December 31, 2022 and 2021 was $2.1 million and $2.5 million, respectively. The Company monitors and controls all derivative products with a comprehensive Board of Directors approved Hedging Policy. This policy permits a total maximum notional amount outstanding of $500 million for interest rate swaps, interest rate caps/floors, and swaptions. All hedge transactions must be approved in advance by the Investment Asset/Liability Committee (ALCO) of the Board of Directors, unless otherwise approved, as per the terms, within the Board of Directors approved Hedging Policy. The Company had no caps or floors outstanding at December 31, 2022 and 2021. None of the Company’s derivatives are designated as hedging instruments. |
SEGMENT RESULTS
SEGMENT RESULTS | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT RESULTS | |
SEGMENT RESULTS | 23. SEGMENT RESULTS The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include community banking, wealth management, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution. The community banking segment includes both retail and commercial banking activities. Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial Services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also include the union collective investment funds (ERECT funds) which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material. The contribution of the major business segments to the Consolidated Statements of Operations were as follows: YEAR ENDED DECEMBER 31, 2022 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 46,135 $ 65 $ (5,637) $ 40,563 Provision for loan loss 50 — — 50 Non-interest income (loss) 5,174 11,620 (102) 16,692 Non-interest expense 36,216 8,834 2,954 48,004 Income (loss) before income taxes 15,043 2,851 (8,693) 9,201 Income tax expense (benefit) 2,638 688 (1,573) 1,753 Net income (loss) $ 12,405 $ 2,163 $ (7,120) $ 7,448 Total assets $ 1,114,923 $ 10,867 $ 238,084 $ 1,363,874 YEAR ENDED DECEMBER 31, 2021 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 45,934 $ 72 $ (6,923) $ 39,083 Provision for loan loss 1,100 — — 1,100 Non-interest income 5,649 11,986 126 17,761 Non-interest expense 35,636 8,349 2,985 46,970 Income (loss) before income taxes 14,847 3,709 (9,782) 8,774 Income tax expense (benefit) 2,797 841 (1,936) 1,702 Net income (loss) $ 12,050 $ 2,868 $ (7,846) $ 7,072 Total assets $ 1,111,856 $ 10,822 $ 212,882 $ 1,335,560 YEAR ENDED DECEMBER 31, 2020 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 42,862 $ 55 $ (6,550) $ 36,367 Provision for loan loss 2,375 — — 2,375 Non-interest income 6,022 10,212 41 16,275 Non-interest expense 34,136 7,683 2,636 44,455 Income (loss) before income taxes 12,373 2,584 (9,145) 5,812 Income tax expense (benefit) 2,303 598 (1,687) 1,214 Net income (loss) $ 10,070 $ 1,986 $ (7,458) $ 4,598 Total assets $ 1,086,653 $ 10,471 $ 185,609 $ 1,282,733 |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | 24. REGULATORY CAPITAL The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet 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 Company’s consolidated financial statements. For a more detailed discussion see the Capital Resources section of Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A). Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, common equity tier 1, and tier 1 capital to risk-weighted assets (as defined) and tier 1 capital to average assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2022 and 2021 , the Company was categorized as “well capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as well capitalized, the Company must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table. AT DECEMBER 31, 2022 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 153,092 13.87 % $ 136,767 12.44 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 114,959 10.41 125,278 11.39 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,959 10.41 125,278 11.39 6.00 8.00 Tier 1 Capital (To Average Assets) 114,959 8.52 125,278 9.39 4.00 5.00 AT DECEMBER 31, 2021 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 149,177 14.04 % $ 133,881 12.66 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 109,292 10.29 120,656 11.41 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 109,292 10.29 120,656 11.41 6.00 8.00 Tier 1 Capital (To Average Assets) 109,292 8.17 120,656 9.12 4.00 5.00 * Applies to the Bank only. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | 25. PARENT COMPANY FINANCIAL INFORMATION The parent company functions primarily as a coordinating and servicing unit for all subsidiary entities. Provided services include general management, accounting and taxes, loan review, internal auditing, investment advisory, marketing, insurance, risk management, general corporate services, and financial and strategic planning. The following financial information relates only to the parent company operations: BALANCE SHEETS AT DECEMBER 31, 2022 2021 (IN THOUSANDS) ASSETS Cash $ 100 $ 100 Short-term investments 3,178 5,533 Cash and cash equivalents 3,278 5,633 Investment securities available for sale 6,334 3,692 Equity investment in banking subsidiary 117,432 127,874 Equity investment in non-banking subsidiaries 6,533 6,707 Other assets 1,008 866 TOTAL ASSETS $ 134,585 $ 144,772 LIABILITIES Subordinated debt $ 26,644 $ 26,603 Other liabilities 1,763 1,620 TOTAL LIABILITIES 28,407 28,223 STOCKHOLDERS’ EQUITY Total stockholders’ equity 106,178 116,549 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 134,585 $ 144,772 STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) INCOME Inter-entity management and other fees $ 2,566 $ 2,520 $ 2,708 Dividends from banking subsidiary 4,000 2,000 2,000 Dividends from non-banking subsidiaries 1,055 1,550 1,944 Interest, dividend and other income 146 115 106 TOTAL INCOME 7,767 6,185 6,758 EXPENSE Interest expense 1,054 1,798 1,642 Salaries and employee benefits 2,811 2,871 2,667 Other expense 1,948 1,783 1,749 TOTAL EXPENSE 5,813 6,452 6,058 INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES 1,954 (267) 700 Benefit for income taxes (652) (802) (681) Equity in undistributed earnings of subsidiaries 4,842 6,537 3,217 NET INCOME $ 7,448 $ 7,072 $ 4,598 COMPREHENSIVE (LOSS) INCOME $ (8,560) $ 13,758 $ 7,571 STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) OPERATING ACTIVITIES Net income $ 7,448 $ 7,072 $ 4,598 Adjustment to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (4,842) (6,537) (3,217) Stock compensation expense 50 43 3 Other – net 189 1,204 (133) NET CASH PROVIDED BY OPERATING ACTIVITIES 2,845 1,782 1,251 INVESTING ACTIVITIES Purchase of investment securities – available for sale (3,994) (1,008) (1,254) Proceeds from maturity and sales of investment securities – available for sale 655 991 1,246 Capital contribution to banking subsidiary — (3,500) — NET CASH USED IN INVESTING ACTIVITIES (3,339) (3,517) (8) FINANCING ACTIVITIES Redemption of guaranteed junior subordinated deferrable interest debentures — (12,018) — Subordinated debt issuance, net — 26,589 — Redemption of subordinated debt — (7,650) — Stock options exercised 106 57 78 Purchases of treasury stock — — (151) Common stock dividends paid (1,967) (1,708) (1,716) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,861) 5,270 (1,789) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,355) 3,535 (546) CASH AND CASH EQUIVALENTS AT JANUARY 1 5,633 2,098 2,644 CASH AND CASH EQUIVALENTS AT DECEMBER 31 $ 3,278 $ 5,633 $ 2,098 The ability of the subsidiary Bank to upstream cash to the parent company is restricted by regulations. Federal law prevents the parent company from borrowing from its subsidiary Bank unless the loans are secured by specified assets. Further, such secured loans are limited in amount to ten percent of the subsidiary Bank’s capital and surplus. In addition, the Bank is subject to legal limitations on the amount of dividends that can be paid to its shareholder. The dividend limitation generally restricts dividend payments to a bank’s retained net income for the current and preceding two calendar years. The subsidiary Bank had a combined $121,974,000 of restricted surplus and retained earnings at December 31, 2022. Cash may also be upstreamed to the parent company by the subsidiaries as an inter-entity management fee. |
SELECTED QUARTERLY CONSOLIDATED
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | 26. SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) The following table sets forth certain unaudited quarterly consolidated financial data regarding the Company: 2022 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 13,803 $ 12,700 $ 11,527 $ 11,028 Interest expense 3,660 2,171 1,403 1,261 Net interest income 10,143 10,529 10,124 9,767 Provision (credit) for loan losses 275 500 (325) (400) Net interest income after provision (credit) for loan losses 9,868 10,029 10,449 10,167 Non-interest income 3,893 4,326 4,138 4,335 Non-interest expense 12,688 11,727 12,110 11,479 Income before income taxes 1,073 2,628 2,477 3,023 Provision for income taxes 126 526 496 605 Net income $ 947 $ 2,102 $ 1,981 $ 2,418 Basic earnings per common share $ 0.06 $ 0.12 $ 0.12 $ 0.14 Diluted earnings per common share 0.06 0.12 0.12 0.14 Cash dividends declared per common share 0.030 0.030 0.030 0.025 2021 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 11,690 $ 11,372 $ 11,838 $ 11,769 Interest expense 1,392 2,146 1,971 2,077 Net interest income 10,298 9,226 9,867 9,692 Provision for loan losses 250 350 100 400 Net interest income after provision for loan losses 10,048 8,876 9,767 9,292 Non-interest income 4,332 4,416 4,399 4,614 Non-interest expense 12,107 11,520 12,038 11,305 Income before income taxes 2,273 1,772 2,128 2,601 Provision for income taxes 421 341 420 520 Net income $ 1,852 $ 1,431 $ 1,708 $ 2,081 Basic earnings per common share $ 0.11 $ 0.08 $ 0.10 $ 0.12 Diluted earnings per common share 0.11 0.08 0.10 0.12 Cash dividends declared per common share 0.025 0.025 0.025 0.025 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 27. SUBSEQUENT EVENTS Management has evaluated subsequent events through the filing of this Form 10-K, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements except for the following: The Company has a $918,000 investment in a debt security with Signature Bank which was closed by the banking regulators on March 12, 2023. In a press release issued by the Federal Deposit Insurance Corporation (FDIC), it was disclosed that unsecured debt holders of the institution will not be protected, therefore, the Company expects to recognize a substantial loss on this investment in the first quarter of 2023. Management has reviewed the December 31, 2022 Form 10-K filed by Signature and determined that no circumstances existed to indicate that the debt security held by the Company was impaired as of year-end. Specifically, as of December 31, 2022, Signature had total assets of On March 17, 2023, AmeriServ Financial Bank agreed to sell all 7,859 shares of the Class B common stock of Visa Inc. that the bank owned for a purchase price of $1.7 million. The shares had no carrying value on the Bank’s balance sheet and, as the Bank had no historical cost basis in the shares, the entire purchase will be realized as a pre-tax gain. The Company believes that this was an appropriate time to capture the gain on these shares due to the current volatility and future uncertainty in the financial markets. The transaction will have a positive impact on the Company's first quarter 2023 earnings. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BUSINESS AND NATURE OF OPERATIONS: | BUSINESS AND NATURE OF OPERATIONS: AmeriServ Financial, Inc. (the Company) is a bank holding company, headquartered in Johnstown, Pennsylvania. Through its banking subsidiary, the Company operates 17 banking locations in five southwestern Pennsylvania counties and Hagerstown, Maryland. These branches provide a full range of consumer, mortgage, and commercial financial products. The AmeriServ Trust and Financial Services Company (the Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $2.3 billion that are not recognized on the Company’s Consolidated Balance Sheets at December 31, 2022. |
PRINCIPLES OF CONSOLIDATION: | PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of AmeriServ Financial, Inc. and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), the Trust Company, and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 16 locations in Pennsylvania and 1 location in Maryland. AmeriServ Life was a captive insurance company that was formally closed on December 31, 2020. In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company’s most significant estimates relate to the allowance for loan losses, intangible assets, income taxes, investment securities, pension, and the fair value of financial instruments. |
INVESTMENT SECURITIES: | INVESTMENT SECURITIES: Securities are classified at the time of purchase as investment securities held to maturity if it is management’s intent and the Company has the ability to hold the securities until maturity. These held to maturity securities are carried on the Company’s books at cost, adjusted for amortization of premium and accretion of discount which is computed using the level yield method which approximates the effective interest method. Alternatively, securities are classified as available for sale if it is management’s intent at the time of purchase to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. Securities classified as available for sale include securities which may be sold to effectively manage interest rate risk exposure, prepayment risk, and other factors (such as liquidity requirements). These available for sale securities are reported at fair value with unrealized aggregate appreciation/depreciation excluded from income and credited/charged to accumulated other comprehensive income/loss within shareholders’ equity on a net of tax basis. Any securities classified as trading assets are reported at fair value with unrealized aggregate appreciation/depreciation included in income on a net of tax basis. The Company does not engage in trading activity. Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security’s performance, the creditworthiness of the issuer and the Company’s intent and ability to hold the security to recovery. The Company believes the unrealized losses on certain securities within the investments portfolio are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value. Additionally, the Company holds equity securities which are comprised of mutual funds held within a rabbi trust for the executive deferred compensation plan. Such securities are reported at fair value within other assets on the Consolidated Balance Sheets. Unrealized holding gains and losses on equity securities are included in earnings. |
FEDERAL HOME LOAN BANK STOCK: | FEDERAL HOME LOAN BANK STOCK: The Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB) and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time any such situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (3) the impact of legislative and regulatory changes on the customer base of FHLB; and (4) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. |
LOANS: | LOANS: Interest income is recognized using the level yield method related to principal amounts outstanding. The Company typically discontinues the accrual of interest income when loans become 90 days past due in either principal or interest. In addition, if circumstances warrant, the accrual of interest may be discontinued prior to 90 days. Payments received on non-accrual loans are credited to principal until full recovery of principal has been recognized; or the loan has been returned to accrual status. The only exception to this policy is for residential mortgage loans wherein interest income is recognized on a cash basis as payments are received. A non-accrual commercial loan is placed on accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are placed on accrual status upon becoming current. |
LOAN FEES: | LOAN FEES: Loan origination and commitment fees, net of associated direct costs, are deferred and amortized into interest and fees on loans over the loan or commitment period. Fee amortization is determined by the effective interest method. |
LOANS HELD FOR SALE: | LOANS HELD FOR SALE: Certain newly originated residential mortgage loans are classified as held for sale, because it is management’s intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or fair value. |
TRANSFERS OF FINANCIAL ASSETS: | TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain 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. |
PREMISES AND EQUIPMENT: | PREMISES AND EQUIPMENT: Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation is charged to operations over the estimated useful lives of the premises and equipment using the straight-line method with a half-year convention. Useful lives of up to 30 years for buildings and up to 10 years for equipment are utilized. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or useful lives of the improvements, whichever is shorter. Maintenance, repairs, and minor alterations are charged to current operations as expenditures are incurred. |
LEASES: | LEASES: The Company has operating and financing leases for several office locations and equipment. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance. The Company has elected to account for the variable non-lease components separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when incurred. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. Certain of the Company’s leases contain options to renew the lease after the initial term. Management considers the Company’s historical pattern of exercising renewal options on leases and the performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease is the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. |
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: As a financial institution, which assumes lending and credit risks as a principal element of its business, the Company anticipates that credit losses will be experienced in the normal course of business. Accordingly, the Company consistently applies a comprehensive methodology and procedural discipline to perform an analysis which is updated on a quarterly basis at the Bank level to determine both the adequacy of the allowance for loan losses and the necessary provision for loan losses to be charged against earnings. This methodology includes: ● Review of all impaired commercial and commercial real estate loans to determine if any specific reserve allocations are required on an individual loan basis. In addition, consumer and residential mortgage loans with a balance of $150,000 or more are evaluated for impairment and specific reserve allocations are established, if applicable. All required specific reserve allocations are based on careful analysis of the loan’s performance, the related collateral value, cash flow considerations and the financial capability of any guarantor. For impaired loans the measurement of impairment may be based upon (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the observable market price of the impaired loan; or (3) the fair value of the collateral of a collateral dependent loan. ● The application of formula driven reserve allocations for all commercial and commercial real estate loans by using a three-year migration analysis of net losses incurred within each risk grade for the entire commercial loan portfolio. The difference between estimated and actual losses is reconciled through the nature of the migration analysis. ● The application of formula driven reserve allocations to consumer and residential mortgage loans which are based upon historical net charge-off experience for those loan types. The residential mortgage loan and consumer loan allocations are based upon the Company’s three-year historical average of actual loan net charge-offs experienced in each of those categories. ● The application of formula driven reserve allocations to all outstanding loans is based upon review of historical losses and qualitative factors, which include but are not limited to, economic trends, delinquencies, levels of non-accrual and TDR loans, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies and trends in policy, financial information and documentation exceptions. ● Management recognizes that there may be events or economic factors that have occurred affecting specific borrowers or segments of borrowers that may not yet be fully reflected in the information that the Company uses for arriving at reserves for a specific loan or portfolio segment. Therefore, the Company believes that there is estimation risk associated with the use of specific and formula driven allowances. After completion of this process, a formal meeting of the Loan Loss Reserve Committee is held to evaluate the adequacy of the reserve. When it is determined that the prospects for recovery of the principal of a loan have significantly diminished, the loan is charged-off against the allowance account; subsequent recoveries, if any, are credited to the allowance account. In addition, non-accrual and large delinquent loans are reviewed monthly to determine potential losses. The Company’s policy is to individually review, as circumstances warrant, its commercial and commercial mortgage loans to determine if a loan is impaired. At a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. The Company defines classified loans as those loans rated substandard or doubtful. The Company has also identified three pools of small dollar value homogeneous loans which are evaluated collectively for impairment. These separate pools are for small business relationships with aggregate balances of $250,000 or less, residential mortgage loans and consumer loans. Individual loans within these pools are reviewed and evaluated for specific impairment if factors such as significant delinquency in payments of 90 days or more, bankruptcy, or other negative economic concerns indicate impairment. |
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: | ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: The allowance for unfunded loan commitments and letters of credit is maintained at a level believed by management to be sufficient to absorb estimated losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers and the terms and expiration dates of the unfunded credit facilities. Net adjustments to the allowance for unfunded loan commitments and letters of credit are provided for in the unfunded commitment reserve expense line item within other expense in the Consolidated Statements of Operations and a separate reserve is recorded within the other liabilities line item of the Consolidated Balance Sheets. |
BANK-OWNED LIFE INSURANCE: | BANK-OWNED LIFE INSURANCE: The Company has purchased life insurance policies on certain current and previous employees. These policies are recorded on the Consolidated Balance Sheets at their cash surrender value, or the amount that can be realized. Income from these policies and changes in the cash surrender value are recorded in bank owned life insurance within non-interest income. Additionally, income is accrued on certain policies that have reached the minimum floor rate of return. This guaranteed portion of income is not added to the cash surrender value of the policy until the policy anniversary date and is reported in other assets on the Consolidated Balance Sheets. |
INTANGIBLE ASSETS: | INTANGIBLE ASSETS: Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. Goodwill is not amortized, but is periodically evaluated for impairment. The Company tests goodwill for impairment on at least an annual basis. This approach could cause more volatility in the Company’s reported net income because impairment losses, if any, could occur irregularly and in varying amounts. Identifiable intangible assets are amortized to their estimated residual values over their expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. The identifiable intangible assets consist of a core deposit intangible which is being amortized on an accelerated basis over a ten-year useful life. |
EARNINGS PER COMMON SHARE: | EARNINGS PER COMMON SHARE: Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. Options to purchase 22,000, 22,000, and 139,759 shares of common stock were outstanding during 2022, 2021 and 2020, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Exercise prices of anti-dilutive options to purchase common stock outstanding were $4.00-$4.22, $4.00-$4.22, and $3.18-$4.22 during 2022, 2021 and 2020, respectively. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS, EXCEPT PER SHARE DATA) Numerator: Net income $ 7,448 $ 7,072 $ 4,598 Denominator: Weighted average common shares outstanding (basic) 17,107 17,073 17,053 Effect of stock options 39 41 10 Weighted average common shares outstanding (diluted) 17,146 17,114 17,063 Earnings per common share: Basic $ 0.44 $ 0.41 $ 0.27 Diluted 0.43 0.41 0.27 |
STOCK-BASED COMPENSATION: | STOCK-BASED COMPENSATION: The Company uses the modified prospective method for accounting of stock-based compensation. The fair value of each option grant is estimated on the grant date using the Binomial or Black-Scholes option pricing model and the expense is recognized ratably over the service period. Forfeitures are recognized as they occur. See Note 19 for details on the assumptions used. |
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ACCUMULATED OTHER COMPREHENSIVE LOSS: The Company presents the components of other comprehensive (loss) income in the Consolidated Statements of Comprehensive (Loss) Income. These components are comprised of the change in the defined benefit pension obligation and the unrealized holding gains (losses) on available for sale securities, net of any reclassification adjustments for realized gains and losses. |
CONSOLIDATED STATEMENT OF CASH FLOWS: | CONSOLIDATED STATEMENT OF CASH FLOWS: On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest bearing deposits, and short-term investments in both money market funds and commercial paper. The Company made $1.1 million in income tax payments in 2022; $200,000 in 2021; and $315,000 in 2020. The Company had non-cash transfers to other real estate owned (OREO) and repossessed assets in the amounts of $53,000 in 2022; $8,000 in 2021; and $40,000 in 2020. During 2022 asset On May 21, 2021, AmeriServ Financial Bank completed its acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and related deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. In addition to the branch acquisition related information disclosed on the Consolidated Statements of Cash Flows, the following were recorded as non-cash transfers on the corresponding lines of the Consolidated Balance Sheets as of December 31, 2021 (in thousands). Acquisition of Riverview Bank Branches Non-cash assets acquired Loans $ 36 Other premises and equipment, net 158 Intangible assets 1,844 2,038 Non-cash liabilities assumed Non-interest bearing deposits (7,372) Interest bearing deposits (35,060) Other liabilities (37) (42,469) Net non-cash liabilities assumed $ (40,431) |
INCOME TAXES: | INCOME TAXES: Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or credits are based on the changes in the corresponding asset or liability from period to period. Deferred tax assets are reduced, if necessary, by the amounts of such benefits that are not expected to be realized based upon available evidence. |
INTEREST RATE CONTRACTS: | INTEREST RATE CONTRACTS: The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. The Company periodically enters into derivative instruments to meet the financing, interest rate and equity risk management needs of its customers or the Bank. Upon entering into these instruments to meet customer needs, the Company enters into offsetting positions to minimize interest rate and equity risk to the Company. These derivative financial instruments are reported at fair value with any resulting gain or loss recorded in current period earnings in amounts that offset. These instruments and their offsetting positions are recorded in other assets and other liabilities on the Consolidated Balance Sheets. |
PENSION: | PENSION: Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension obligations and future expense. Additionally, pension expense can also be impacted by settlement accounting charges if the amount of employees selected lump sum distributions exceed the total amount of service and interest component costs of the net periodic pension cost in a particular year. The service cost component of net periodic benefit cost is determined by aggregating the product of the discounted cash flows of the plan’s service cost for each year and an individual spot rate (referred to as the “spot rate” approach). The interest cost component is determined by aggregating the product of the discounted cash flows of the plan’s projected benefit obligations for each year and an individual spot rate. Management believes this methodology is an appropriate measure of the service cost and interest cost as each year’s cash flows are specifically linked to the interest rates of bond payments in the same respective year. Our pension benefits are described further in Note 17 of the Notes to Consolidated Financial Statements. |
FAIR VALUE OF FINANCIAL INSTRUMENTS: | FAIR VALUE OF FINANCIAL INSTRUMENTS: We group our assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: Level I — Valuation is based upon quoted prices for identical instruments traded in active markets. Level II — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level III — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset. We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in generally accepted accounting principles. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Earnings Per Common Share | YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS, EXCEPT PER SHARE DATA) Numerator: Net income $ 7,448 $ 7,072 $ 4,598 Denominator: Weighted average common shares outstanding (basic) 17,107 17,073 17,053 Effect of stock options 39 41 10 Weighted average common shares outstanding (diluted) 17,146 17,114 17,063 Earnings per common share: Basic $ 0.44 $ 0.41 $ 0.27 Diluted 0.43 0.41 0.27 |
Schedule of non-cash assets acquired and liabilities assumed | On May 21, 2021, AmeriServ Financial Bank completed its acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and related deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. In addition to the branch acquisition related information disclosed on the Consolidated Statements of Cash Flows, the following were recorded as non-cash transfers on the corresponding lines of the Consolidated Balance Sheets as of December 31, 2021 (in thousands). Acquisition of Riverview Bank Branches Non-cash assets acquired Loans $ 36 Other premises and equipment, net 158 Intangible assets 1,844 2,038 Non-cash liabilities assumed Non-interest bearing deposits (7,372) Interest bearing deposits (35,060) Other liabilities (37) (42,469) Net non-cash liabilities assumed $ (40,431) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE RECOGNITION | |
Schedule of non-interest income, segregated by revenue | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2022, 2021, and 2020 (in thousands). AT DECEMBER 31, 2022 2021 2020 Non-interest income: In-scope of Topic 606 Wealth management fees $ 11,620 $ 11,986 $ 10,212 Service charges on deposit accounts 1,108 965 903 Other 2,009 2,017 1,708 Non-interest income (in-scope of topic 606) 14,737 14,968 12,823 Non-interest income (out-of-scope of topic 606) 1,955 2,793 3,452 Total non-interest income $ 16,692 $ 17,761 $ 16,275 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT SECURITIES | |
Schedule of cost basis and fair values of investment securities | The cost basis and fair values of investment securities are summarized as follows: Investment securities available for sale: DECEMBER 31, 2022 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 11,797 $ 1 $ (1,265) $ 10,533 U.S. Agency mortgage-backed securities 102,631 64 (12,710) 89,985 Municipal 20,837 — (1,799) 19,038 Corporate bonds 63,152 30 (3,230) 59,952 Total $ 198,417 $ 95 $ (19,004) $ 179,508 Investment securities held to maturity: DECEMBER 31, 2022 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (432) $ 2,068 U.S. Agency mortgage-backed securities 18,877 8 (2,212) 16,673 Municipal 33,993 2 (3,880) 30,115 Corporate bonds and other securities 6,508 — (172) 6,336 Total $ 61,878 $ 10 $ (6,696) $ 55,192 Investment securities available for sale: DECEMBER 31, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 7,371 $ 86 $ (70) $ 7,387 U.S. Agency mortgage-backed securities 80,136 1,202 (1,171) 80,167 Municipal 20,066 851 (25) 20,892 Corporate bonds 53,843 1,028 (146) 54,725 Total $ 161,416 $ 3,167 $ (1,412) $ 163,171 Investment securities held to maturity: DECEMBER 31, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (11) $ 2,489 U.S. Agency mortgage-backed securities 10,556 203 (115) 10,644 Municipal 33,188 1,734 (103) 34,819 Corporate bonds and other securities 7,507 64 (7) 7,564 Total $ 53,751 $ 2,001 $ (236) $ 55,516 |
Schedule of investments with unrealized losses | The following table presents information concerning investments with unrealized losses as of December 31, 2022 (in thousands): Total investment securities: DECEMBER 31, 2022 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 5,446 $ (350) $ 6,653 $ (1,347) $ 12,099 $ (1,697) U.S. Agency mortgage-backed securities 57,193 (4,018) 44,083 (10,904) 101,276 (14,922) Municipal 37,175 (3,113) 11,475 (2,566) 48,650 (5,679) Corporate bonds and other securities 39,549 (1,923) 16,721 (1,479) 56,270 (3,402) Total $ 139,363 $ (9,404) $ 78,932 $ (16,296) $ 218,295 $ (25,700) The following table presents information concerning investments with unrealized losses as of December 31, 2021 (in thousands): Total investment securities: DECEMBER 31, 2021 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 7,419 $ (81) $ — $ — $ 7,419 $ (81) U.S. Agency mortgage-backed securities 45,422 (972) 6,691 (314) 52,113 (1,286) Municipal 7,832 (128) — — 7,832 (128) Corporate bonds and other securities 14,558 (92) 2,439 (61) 16,997 (153) Total $ 75,231 $ (1,273) $ 9,130 $ (375) $ 84,361 $ (1,648) |
Schedule of investment securities | Investment securities available for sale: AT DECEMBER 31, 2022 TOTAL U.S. AGENCY INVESTMENT MORTGAGE- SECURITIES CORPORATE BACKED AVAILABLE U. S. AGENCY MUNICIPAL BONDS SECURITIES FOR SALE (IN THOUSANDS) COST BASIS Within 1 year $ — $ 1,065 $ 6,000 $ — $ 7,065 After 1 year but within 5 years 4,279 12,538 26,039 1,488 44,344 After 5 years but within 10 years 6,000 7,234 30,463 5,577 49,274 Over 10 years 1,518 — 650 95,566 97,734 Total $ 11,797 $ 20,837 $ 63,152 $ 102,631 $ 198,417 FAIR VALUE Within 1 year $ — $ 1,045 $ 5,970 $ — $ 7,015 After 1 year but within 5 years 4,102 11,873 25,084 1,431 42,490 After 5 years but within 10 years 5,048 6,120 28,364 5,264 44,796 Over 10 years 1,383 — 534 83,290 85,207 Total $ 10,533 $ 19,038 $ 59,952 $ 89,985 $ 179,508 Investment securities held to maturity: AT DECEMBER 31, 2022 TOTAL U.S. AGENCY INVESTMENT CORPORATE MORTGAGE- SECURITIES BONDS AND BACKED HELD TO U.S. AGENCY MUNICIPAL OTHER SECURITIES MATURITY (IN THOUSANDS) COST BASIS Within 1 year $ — $ 425 $ 2,000 $ — $ 2,425 After 1 year but within 5 years — 8,874 3,015 1,005 12,894 After 5 years but within 10 years 2,500 21,315 500 812 25,127 Over 10 years — 3,379 993 17,060 21,432 Total $ 2,500 $ 33,993 $ 6,508 $ 18,877 $ 61,878 FAIR VALUE Within 1 year $ — $ 419 $ 1,942 $ — $ 2,361 After 1 year but within 5 years — 8,411 2,901 979 12,291 After 5 years but within 10 years 2,068 18,550 500 779 21,897 Over 10 years — 2,735 993 14,915 18,643 Total $ 2,068 $ 30,115 $ 6,336 $ 16,673 $ 55,192 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
Schedule of loan portfolio | The loan portfolio of the Company consisted of the following: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Commercial: Commercial and industrial $ 153,398 $ 134,182 Paycheck Protection Program (PPP) 22 17,311 Commercial loans secured by owner occupied real estate (1) 75,158 99,644 Commercial loans secured by non-owner occupied real estate (1) 450,744 430,825 Real estate − residential mortgage (1) 297,971 287,996 Consumer 13,473 15,096 Loans, net of unearned income $ 990,766 $ 985,054 (1) Real estate construction loans constituted 4.7% and 5.6% of the Company’s total loans, net of unearned income as of December 31, 2022 and 2021, respectively. |
Summary of risk concentrations for commercial and commercial real estate loans by industry type | The following table provides information regarding our potential risk concentrations for commercial and commercial real estate loans by industry type at December 31, 2022 and 2021 (in thousands). DECEMBER 31, 2022 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ — $ — $ — $ 7,690 $ 7,690 Multifamily/apartments/student housing — — 65 83,033 83,098 Office 44,959 — 7,428 23,775 76,162 Retail 6,478 — 17,072 147,601 171,151 Industrial/manufacturing/warehouse 82,540 — 11,016 77,640 171,196 Hotels — — — 36,214 36,214 Eating and drinking places 276 22 4,575 1,354 6,227 Personal care 881 — — 2,647 3,528 Amusement and recreation 66 — 3,223 3 3,292 Mixed use — — 4,268 51,222 55,490 Other 18,198 — 27,511 19,565 65,274 Total $ 153,398 $ 22 $ 75,158 $ 450,744 $ 679,322 DECEMBER 31, 2021 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,246 $ — $ 96 $ 8,565 $ 9,907 Multifamily/apartments/student housing — — 245 73,912 74,157 Office 37,386 203 8,644 28,500 74,733 Retail 7,253 444 20,439 148,668 176,804 Industrial/manufacturing/warehouse 74,508 5,940 21,468 44,316 146,232 Hotels 154 1,764 — 42,425 44,343 Eating and drinking places 484 6,591 4,537 1,752 13,364 Personal care 1,197 173 — 4,315 5,685 Amusement and recreation 92 53 5,402 12 5,559 Mixed use — — 4,031 62,088 66,119 Other 11,862 2,143 34,782 16,272 65,059 Total $ 134,182 $ 17,311 $ 99,644 $ 430,825 $ 681,962 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR LOAN LOSSES | |
Schedule of Loan losses by portfolio segment | The segments of the Company’s loan portfolio are disaggregated into classes that allows management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the commercial and industrial and the owner occupied commercial real estate loan classes while the remaining segments are not separated into classes as management monitors risk in these loans at the segment level. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. The following table summarizes the rollforward of the allowance for loan losses by portfolio segment (in thousands). BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2021 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2022 Commercial $ 3,071 $ (97) $ 4 $ (325) $ 2,653 Commercial loans secured by non-owner occupied real estate 6,392 (1,390) 54 916 5,972 Real estate − residential mortgage 1,590 (28) 19 (201) 1,380 Consumer 113 (334) 67 239 85 Allocation for general risk 1,232 — — (579) 653 Total $ 12,398 $ (1,849) $ 144 $ 50 $ 10,743 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2020 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2021 Commercial $ 3,472 $ (146) $ 89 $ (344) $ 3,071 Commercial loans secured by non-owner occupied real estate 5,373 — 51 968 6,392 Real estate − residential mortgage 1,292 (17) 49 266 1,590 Consumer 115 (131) 58 71 113 Allocation for general risk 1,093 — — 139 1,232 Total $ 11,345 $ (294) $ 247 $ 1,100 $ 12,398 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2019 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2020 Commercial $ 3,951 $ (111) $ 4 $ (372) $ 3,472 Commercial loans secured by non-owner occupied real estate 3,119 — 44 2,210 5,373 Real estate − residential mortgage 1,159 (233) 62 304 1,292 Consumer 126 (143) 68 64 115 Allocation for general risk 924 — — 169 1,093 Total $ 9,279 $ (487) $ 178 $ 2,375 $ 11,345 |
Schedule of Loan loss by the primary segments | The following tables summarize the loan portfolio and allowance for loan losses by the primary segments of the loan portfolio. AT DECEMBER 31, 2022 COMMERCIAL LOANS SECURED BY NON- REAL ESTATE − OWNER OCCUPIED RESIDENTIAL Loans: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER TOTAL (IN THOUSANDS) Individually evaluated for impairment $ 1,989 $ 1,586 $ — $ — $ 3,575 Collectively evaluated for impairment 226,589 449,158 297,971 13,473 987,191 Total loans $ 228,578 $ 450,744 $ 297,971 $ 13,473 $ 990,766 AT DECEMBER 31, 2022 COMMERCIAL LOANS ALLOCATION SECURED BY NON- REAL ESTATE − FOR Allowance OWNER OCCUPIED RESIDENTIAL GENERAL for loan losses: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER RISK TOTAL (IN THOUSANDS) Specific reserve allocation $ 520 $ 3 $ — $ — $ — $ 523 General reserve allocation 2,133 5,969 1,380 85 653 10,220 Total allowance for loan losses $ 2,653 $ 5,972 $ 1,380 $ 85 $ 653 $ 10,743 AT DECEMBER 31, 2021 COMMERCIAL LOANS SECURED BY NON- REAL ESTATE − OWNER OCCUPIED RESIDENTIAL Loans: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER TOTAL (IN THOUSANDS) Individually evaluated for impairment $ 2,165 $ 5 $ — $ — $ 2,170 Collectively evaluated for impairment 248,972 430,820 287,996 15,096 982,884 Total loans $ 251,137 $ 430,825 $ 287,996 $ 15,096 $ 985,054 AT DECEMBER 31, 2021 COMMERCIAL LOANS ALLOCATION SECURED BY NON- REAL ESTATE − FOR Allowance OWNER OCCUPIED RESIDENTIAL GENERAL for loan losses: COMMERCIAL REAL ESTATE MORTGAGE CONSUMER RISK TOTAL (IN THOUSANDS) Specific reserve allocation $ 628 $ 5 $ — $ — $ — $ 633 General reserve allocation 2,443 6,387 1,590 113 1,232 11,765 Total allowance for loan losses $ 3,071 $ 6,392 $ 1,590 $ 113 $ 1,232 $ 12,398 |
Schedule of Present impaired loans by portfolio segment | The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. AT DECEMBER 31, 2022 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 1,989 $ 520 $ — $ 1,989 $ 2,240 Commercial loans secured by non-owner occupied real estate 3 3 1,583 1,586 1,643 Total impaired loans $ 1,992 $ 523 $ 1,583 $ 3,575 $ 3,883 AT DECEMBER 31, 2021 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 2,165 $ 628 $ — $ 2,165 $ 2,260 Commercial loans secured by non-owner occupied real estate 5 5 — 5 27 Total impaired loans $ 2,170 $ 633 $ — $ 2,170 $ 2,287 |
Schedule of Investment in impaired loans and related interest income | The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated. YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Average impaired balance: Commercial $ 2,062 $ 2,301 $ 839 Commercial loans secured by non-owner occupied real estate 805 7 8 Average investment in impaired loans $ 2,867 $ 2,308 $ 847 Interest income recognized: Commercial $ — $ 15 $ 38 Commercial loans secured by non-owner occupied real estate — — — Interest income recognized on a cash basis on impaired loans $ — $ 15 $ 38 |
Schedule of Commercial and commercial real estate loan portfolios | The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system. AT DECEMBER 31, 2022 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 148,361 $ — $ 5,037 $ — $ 153,398 Paycheck Protection Program (PPP) 22 — — — 22 Commercial loans secured by owner occupied real estate 74,187 — 971 — 75,158 Commercial loans secured by non-owner occupied real estate 423,486 11,015 16,240 3 450,744 Total $ 646,056 $ 11,015 $ 22,248 $ 3 $ 679,322 AT DECEMBER 31, 2021 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 125,079 $ 6,722 $ 738 $ 1,643 $ 134,182 Paycheck Protection Program (PPP) 17,311 — — — 17,311 Commercial loans secured by owner occupied real estate 98,271 297 1,076 — 99,644 Commercial loans secured by non-owner occupied real estate 399,104 19,322 12,394 5 430,825 Total $ 639,765 $ 26,341 $ 14,208 $ 1,648 $ 681,962 |
Schedule of Residential and consumer portfolio | AT DECEMBER 31, 2022 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 296,401 $ 1,570 $ 297,971 Consumer 13,457 16 13,473 Total $ 309,858 $ 1,586 $ 311,444 AT DECEMBER 31, 2021 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 286,843 $ 1,153 $ 287,996 Consumer 15,096 — 15,096 Total $ 301,939 $ 1,153 $ 303,092 |
Schedule of Credit quality of the loan portfolio | AT DECEMBER 31, 2022 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 152,314 $ 797 $ 287 $ — $ 1,084 $ 153,398 $ — Paycheck Protection Program (PPP) 22 — — — — 22 — Commercial loans secured by owner occupied real estate 74,960 198 — — 198 75,158 — Commercial loans secured by non-owner occupied real estate 446,809 3,935 — — 3,935 450,744 — Real estate – residential mortgage 295,790 489 422 1,270 2,181 297,971 — Consumer 13,290 60 114 9 183 13,473 — Total $ 983,185 $ 5,479 $ 823 $ 1,279 $ 7,581 $ 990,766 $ — AT DECEMBER 31, 2021 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 133,918 $ 14 $ 250 $ — $ 264 $ 134,182 $ — Paycheck Protection Program (PPP) 17,311 — — — — 17,311 — Commercial loans secured by owner occupied real estate 99,454 — 190 — 190 99,644 — Commercial loans secured by non-owner occupied real estate 428,790 2,035 — — 2,035 430,825 — Real estate – residential mortgage 283,178 2,449 1,240 1,129 4,818 287,996 — Consumer 14,938 151 7 — 158 15,096 — Total $ 977,589 $ 4,649 $ 1,687 $ 1,129 $ 7,465 $ 985,054 $ — |
NON-PERFORMING ASSETS INCLUDI_2
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) | |
Schedule of nonperforming assets including trouble debt restructurings | The following table presents information concerning non-performing assets including TDR: AT DECEMBER 31, 2022 2021 (IN THOUSANDS, EXCEPT PERCENTAGES) Non-accrual loans: Commercial and industrial $ 1,989 $ 2,165 Commercial loans secured by non-owner occupied real estate 1,586 5 Real estate – residential mortgage 1,577 1,153 Consumer 9 — Total 5,161 3,323 Other real estate owned and repossessed assets: Real estate – residential mortgage 38 — Consumer 1 — Total 39 — Total non-performing assets including TDR $ 5,200 $ 3,323 Total non-performing assets as a percent of loans, net of unearned income, other real estate owned and repossessed assets 0.53 % 0.34 % |
Schedule of troubled debt restructurings on financing receivables | The following table details the loans modified as TDRs during the year ended December 31, 2022 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 452 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate Commercial loans secured by non-owner occupied real estate 1 $ 1,583 Extension of maturity date with an interest only period at below market interest rate The following table details the loan modified as a TDR during the year ended December 31, 2021 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 477 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate |
Summary of loans for which payment relief has been requested related to COVID-19 | AT DECEMBER 31, 2022 AT DECEMBER 31, 2021 % of Outstanding % of Outstanding Balance Non-PPP Loans Balance Non-PPP Loans (in thousands) (in thousands) CRE/Commercial $ 199 0.03 % $ 7,488 1.08 % Home Equity/Consumer — — 57 0.06 Residential Mortgage 32 0.02 203 0.11 Total $ 231 0.02 $ 7,748 0.80 |
Summary of deferral of principal and interest payments | AT DECEMBER 31, 2022 AT DECEMBER 31, 2021 Number of Loans Balance Number of Loans Balance (in thousands) (in thousands) Type of Payment Relief Interest only payments 1 $ 199 6 $ 3,768 Complete payment deferrals 2 32 5 3,980 Total 3 $ 231 11 $ 7,748 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | An analysis of premises and equipment follows: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Land $ 1,225 $ 1,225 Premises 30,079 28,944 Furniture and equipment 8,428 8,908 Leasehold improvements 1,202 1,174 Total at cost 40,934 40,251 Less: Accumulated depreciation and amortization 26,474 26,169 Premises and equipment, net $ 14,460 $ 14,082 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASE COMMITMENTS | |
Schedule of lease cost associated with both operating and financing leases | YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Lease cost Financing lease cost: Amortization of right-of-use asset $ 271 $ 272 $ 271 Interest expense 100 106 112 Operating lease cost 106 116 116 Total lease cost $ 477 $ 494 $ 499 |
Schedule of weighted-average remaining lease term and discount rates | The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at December 31, 2022 and 2021. AT DECEMBER 31, 2022 2021 OPERATING FINANCING OPERATING FINANCING Weighted-average remaining term (years) 10.0 15.1 11.0 15.5 Weighted-average discount rate 3.54 % 3.62 % 3.53 % 3.56 % |
Schedule of reconciliation to the discounted amount recorded on the consolidated balance sheets | The following table presents the undiscounted cash flows due related to operating and financing leases as of December 31, 2022 and 2021, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. DECEMBER 31, 2022 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2023 $ 85 $ 309 2024 85 249 2025 75 248 2026 69 181 2027 69 181 Thereafter 382 2,397 Total undiscounted cash flows 765 3,565 Discount on cash flows (122) (885) Total lease liabilities $ 643 $ 2,680 DECEMBER 31, 2021 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2022 $ 98 $ 320 2023 69 309 2024 69 249 2025 69 248 2026 69 181 Thereafter 452 2,578 Total undiscounted cash flows 826 3,885 Discount on cash flows (144) (986) Total lease liabilities $ 682 $ 2,899 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS. | |
Schedule of company's deposits | The following table sets forth the balance of the Company’s deposits: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) Demand: Non-interest bearing $ 195,123 $ 211,106 Interest bearing 236,746 235,582 Savings 135,796 133,163 Money market 254,868 267,202 Certificates of deposit 286,004 292,325 Total deposits $ 1,108,537 $ 1,139,378 |
Schedule of time deposit maturities | The following table sets forth the balance of certificates of deposit as of December 31, 2022 maturing in the periods presented: CERTIFICATES OF YEAR: DEPOSIT (IN THOUSANDS) 2023 $ 166,109 2024 79,097 2025 14,550 2026 7,566 2027 7,044 2028 and after 11,638 Total $ 286,004 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | |
Schedule of short-term borrowings | Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows: AT DECEMBER 31, 2022 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 88,641 Maximum balance at any month end — 88,641 Average balance during year 113 9,155 Average rate paid for the year 3.11 % 3.93 % Interest rate on year-end balance — 4.45 AT DECEMBER 31, 2021 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ — Maximum balance at any month end — 4,077 Average balance during year — 389 Average rate paid for the year — % 0.37 % Interest rate on year-end balance — 0.28 AT DECEMBER 31, 2020 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 24,702 Maximum balance at any month end 2,000 41,632 Average balance during year 18 4,929 Average rate paid for the year 0.87 % 0.58 % Interest rate on year-end balance — 0.41 |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | |
Schedule of federal home loan bank borrowings | Advances from the Federal Home Loan Bank (FHLB) consist of the following: AT DECEMBER 31, 2022 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2023 1.59 % $ 15,568 2024 1.19 4,197 Total advances from FHLB 1.50 $ 19,765 AT DECEMBER 31, 2021 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2022 1.88 % $ 22,888 2023 1.59 15,568 2024 1.19 4,197 Total advances from FHLB 1.71 $ 42,653 |
DISCLOSURES ABOUT FAIR VALUE _2
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities measured and recorded at fair value on a recurring basis | The following table presents the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of December 31, 2022 and 2021 by level within the fair value hierarchy (in thousands). FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 502 $ 502 $ — $ — Available for sale securities: U.S. Agency 10,533 — 10,533 — U.S. Agency mortgage-backed securities 89,985 — 89,985 — Municipal 19,038 — 19,038 — Corporate bonds 59,952 — 59,952 — Interest rate swap asset (1) 6,992 — 6,992 — Interest rate swap liability (2) (6,872) — (6,872) — Risk participation agreement (2) — — — — FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 526 $ 526 $ — $ — Available for sale securities: U.S. Agency 7,387 — 7,387 — U.S. Agency mortgage-backed securities 80,167 — 80,167 — Municipal 20,892 — 20,892 — Corporate bonds 54,725 — 54,725 — Interest rate swap asset (1) 1,226 — 1,226 — Interest rate swap liability (2) (1,226) — (1,226) — Risk participation agreement (2) — — — — (1) Included within other assets on the Consolidated Balance Sheets. (2) Included within other liabilities on the Consolidated Balance Sheets. |
Schedule of assets measured and recorded at fair value on a non-recurring basis | Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1,583 $ — $ — $ 1,583 Other real estate owned and repossessed assets 39 — — 39 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ — $ — $ — $ — Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2022 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 1,583 Appraisal of Appraisal 0% to 100% (0.2%) collateral (1) adjustments (2) Other real estate owned and repossessed assets 39 Appraisal of Appraisal 52% (52%) collateral (1) adjustments (2) Liquidation 10% to 39% (11%) expenses Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2021 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ — Appraisal of Appraisal 100% (100%) collateral (1) adjustments (2) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. |
DISCLOSURES ABOUT FAIR VALUE _3
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of estimated fair value and recorded carrying value | AT DECEMBER 31, 2022 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 61,878 $ 55,192 $ — $ 52,323 $ 2,869 Loans held for sale 59 57 57 — — Loans, net of allowance for loan loss and unearned income 980,023 938,188 — — 938,188 FINANCIAL LIABILITIES: Deposits with stated maturities 286,004 281,297 — — 281,297 All other borrowings (1) 46,409 44,759 — — 44,759 AT DECEMBER 31, 2021 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 53,751 $ 55,516 $ — $ 52,523 $ 2,993 Loans held for sale 983 1,022 1,022 — — Loans, net of allowance for loan loss and unearned income 972,656 969,681 — — 969,681 FINANCIAL LIABILITIES: Deposits with stated maturities 292,325 294,280 — — 294,280 All other borrowings (1) 69,256 69,506 — — 69,506 (1) All other borrowings include advances from Federal Home Loan Bank and subordinated debt. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of expense for income taxes, includes both federal and applicable state corporate income taxes | The expense for income taxes is summarized below and includes both federal and applicable state corporate income taxes: YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) Current $ 1,220 $ 973 $ (400) Deferred 533 729 1,614 Income tax expense $ 1,753 $ 1,702 $ 1,214 |
Schedule of reconciliation between the federal statutory tax rate and the Company's effective consolidated income tax rate | The reconciliation between the federal statutory tax rate and the Company’s effective consolidated income tax rate is as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 AMOUNT RATE AMOUNT RATE AMOUNT RATE (IN THOUSANDS, EXCEPT PERCENTAGES) Income tax expense based on federal statutory rate $ 1,932 21.0 % $ 1,843 21.0 % $ 1,221 21.0 % Tax exempt income (244) (2.6) (253) (2.9) (188) (3.2) Other 65 0.7 112 1.3 181 3.1 Total expense for income taxes $ 1,753 19.1 % $ 1,702 19.4 % $ 1,214 20.9 % |
Schedule of deferred tax assets and liabilities | The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented: AT DECEMBER 31, 2022 2021 (IN THOUSANDS) DEFERRED TAX ASSETS: Allowance for loan losses $ 2,256 $ 2,604 Unfunded commitment reserve 157 208 Unrealized investment security losses 3,971 — Premises and equipment 955 743 Lease liabilities 698 752 Other 185 175 Total tax assets 8,222 4,482 DEFERRED TAX LIABILITIES: Investment accretion (107) (51) Unrealized investment security gains — (369) Lease right-of-use assets (639) (704) Accrued pension obligation (4,494) (4,098) Other (193) (194) Total tax liabilities (5,433) (5,416) Net deferred tax asset (liability) $ 2,789 $ (934) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of pension benefits | PENSION BENEFITS: YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 50,287 $ 54,861 Service cost 1,419 1,708 Interest cost 1,462 894 Actuarial (gain) loss (9,787) 273 Settlements (7,541) (6,516) Benefits paid (934) (933) Benefit obligation at end of year 34,906 50,287 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year 70,432 58,447 Actual return on plan assets (9,700) 11,434 Employer contributions 4,000 8,000 Settlements (7,541) (6,516) Benefits paid (934) (933) Fair value of plan assets at end of year 56,257 70,432 Funded status of the plan $ 21,351 $ 20,145 |
Schedule of amounts not yet recognized as a component of periodic pension cost | YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) AMOUNTS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC PENSION COST: Amounts recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 9,597 $ 9,319 Total $ 9,597 $ 9,319 |
Schedule of accumulated benefit obligation | YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) ACCUMULATED BENEFIT OBLIGATION: Accumulated benefit obligation $ 32,190 $ 46,319 |
Schedule of weighted-average assumptions used to determine benefit obligations | The weighted-average assumptions used to determine benefit obligations at December 31, 2022 and 2021 were as follows: YEAR ENDED DECEMBER 31, 2022 2021 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.45 % 2.80 % Salary scale Ages 30-34 5.00 2.50 Ages 35-44 4.00 2.50 Ages 45-54 3.00 2.50 Ages 55+ 2.50 2.50 |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive loss | YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS Net loss (gain) $ 4,106 $ (7,153) $ 968 Recognized loss (3,828) (4,157) (2,453) Total recognized in other comprehensive loss before tax effect $ 278 $ (11,310) $ (1,485) Total recognized in net benefit cost and other comprehensive loss before tax effect $ 2,794 $ (8,559) $ 684 |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | The weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 were as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 2.81 % 2.48 % 3.20 % Expected return on plan assets 7.00 7.00 7.00 Rate of compensation increase 2.50 2.50 2.50 |
Schedule of plan's asset allocations | The plan’s measurement date is December 31, 2022. This plan’s asset allocation at December 31, 2022 and 2021, by asset category are as follows: YEAR ENDED DECEMBER 31, 2022 2021 ASSET CATEGORY: Cash and cash equivalents 89.9 % 0.1 % Domestic equities 7.1 12.1 Mutual funds/ETFs — 84.1 International equities — 0.3 Corporate bonds 3.0 3.4 Total 100.0 % 100.0 % |
Schedule of fair value of plan assets | The major categories of assets in the Company’s pension plan as of year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value. YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) Level 1: Cash and cash equivalents $ 50,553 $ 56 Domestic equities 4,026 8,488 Mutual funds/ETFs — 59,306 International equities — 199 Level 2: Corporate bonds 1,678 2,383 Total fair value of plan assets $ 56,257 $ 70,432 |
Schedule of benefit payments | The following benefit payments, which reflect future service, as appropriate, are expected to be paid. ESTIMATED FUTURE YEAR: BENEFIT PAYMENTS (IN THOUSANDS) 2023 $ 3,422 2024 4,177 2025 3,934 2026 4,059 2027 3,534 Years 2028-2032 12,780 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STOCK COMPENSATION PLANS | |
Schedule of company's stock incentive plan | A summary of the status of the Company’s Equity Incentive Plan at December 31, 2022, 2021, and 2020, and changes during the years then ended is presented in the table and narrative following: YEAR ENDED DECEMBER 31, 2022 2021 2020 WEIGHTED WEIGHTED WEIGHTED AVERAGE AVERAGE AVERAGE SHARES EXERCISE PRICE SHARES EXERCISE PRICE SHARES EXERCISE PRICE Outstanding at beginning of year 369,047 $ 3.47 230,913 $ 3.14 296,648 $ 3.02 Granted — — 160,000 3.84 — — Exercised (36,117) 2.96 (21,356) 2.68 (38,235) 2.06 Forfeited (9,144) 3.62 (510) 3.23 (27,500) 3.30 Outstanding at end of year 323,786 3.52 369,047 3.47 230,913 3.14 Exercisable at end of year 223,784 3.38 206,713 3.18 224,580 3.11 Weighted average fair value of options granted in current year $ — $ 1.78 $ — |
Schedule of fair value assumptions of each option grant | The fair value of each option grant is estimated on the date of grant using the Binomial or Black-Scholes option pricing model with the following assumptions used for grants in 2021. No stock options were granted during 2022 and 2020. YEAR ENDED DECEMBER 31, PRICING MODEL ASSUMPTION RANGES 2021 Risk-free interest rate 1.27 - 1.42 % Expected lives in years 10 Expected volatility 40.38 - 45.03 % Expected dividend rate 2.60 - 2.61 % |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss, net of tax | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the periods ending December 31, 2022, 2021, and 2020 (in thousands): YEAR ENDING DECEMBER 31, 2022 YEAR ENDED DECEMBER 31, 2021 YEAR ENDING DECEMBER 31, 2020 Net Net Net Unrealized Unrealized Unrealized Gains and Gains and Gains and Losses on Defined Losses on Defined Losses on Defined Investment Benefit Investment Benefit Investment Benefit Securities Pension Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) $ 1,715 $ (17,886) $ (16,171) Other comprehensive income (loss) before reclassifications (16,324) (2,708) (19,032) (2,087) 5,555 3,468 1,824 (789) 1,035 Amounts reclassified from accumulated other comprehensive loss — 3,024 3,024 (66) 3,284 3,218 — 1,938 1,938 Net current period other comprehensive income (loss) (16,324) 316 (16,008) (2,153) 8,839 6,686 1,824 1,149 2,973 Ending balance $ (14,938) $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
Schedule of reclassification out of accumulated other comprehensive loss | The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the periods ending December 31, 2022, 2021, and 2020 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) Details about accumulated other YEAR ENDING YEAR ENDING YEAR ENDING Affected line item in the comprehensive loss components DECEMBER 31, 2022 DECEMBER 31, 2021 DECEMBER 31, 2020 statement of operations Realized gains on sale of securities $ — $ (84) $ — Net realized gains on investment securities — 18 — Provision for income taxes $ — $ (66) $ — Amortization of estimated defined benefit pension plan loss (2) $ 3,828 $ 4,157 $ 2,453 Other expense (804) (873) (515) Provision for income taxes $ 3,024 $ 3,284 $ 1,938 Total reclassifications for the period $ 3,024 $ 3,218 $ 1,938 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 17 for additional details) . |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS | |
Schedule of Goodwill | YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) GOODWILL Balance at beginning of year $ 13,611 $ 11,944 Goodwill acquired — 1,667 Balance at end of year $ 13,611 $ 13,611 |
Schedule of Finite-Lived Intangible Assets | YEAR ENDED DECEMBER 31, 2022 2021 (IN THOUSANDS) CORE DEPOSIT INTANGIBLE Balance at beginning of year $ 158 $ — Core deposit intangible acquired — 177 Amortization (30) (19) Balance at end of year $ 128 $ 158 |
Schedule of future amortization expense | As of December 31, 2022, the estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2023 $ 27 2024 24 2025 21 2026 17 2027 14 After five years 25 $ 128 |
DERIVATIVE HEDGING INSTRUMENTS
DERIVATIVE HEDGING INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVE HEDGING INSTRUMENTS | |
Schedule of interest rate swap transactions | The following table summarizes the interest rate swap transactions that impacted the Company’s 2022 and 2021 performance (in thousands, except percentages). DECEMBER 31, 2022 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 65,431 4.23 % Monthly $ 21 Swap liabilities N/A (65,431) (4.23) Monthly (21) Net exposure — — — DECEMBER 31, 2021 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 67,280 2.59 % Monthly $ (857) Swap liabilities N/A (67,280) (2.59) Monthly 857 Net exposure — — — |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT RESULTS | |
Schedule of business segments | The contribution of the major business segments to the Consolidated Statements of Operations were as follows: YEAR ENDED DECEMBER 31, 2022 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 46,135 $ 65 $ (5,637) $ 40,563 Provision for loan loss 50 — — 50 Non-interest income (loss) 5,174 11,620 (102) 16,692 Non-interest expense 36,216 8,834 2,954 48,004 Income (loss) before income taxes 15,043 2,851 (8,693) 9,201 Income tax expense (benefit) 2,638 688 (1,573) 1,753 Net income (loss) $ 12,405 $ 2,163 $ (7,120) $ 7,448 Total assets $ 1,114,923 $ 10,867 $ 238,084 $ 1,363,874 YEAR ENDED DECEMBER 31, 2021 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 45,934 $ 72 $ (6,923) $ 39,083 Provision for loan loss 1,100 — — 1,100 Non-interest income 5,649 11,986 126 17,761 Non-interest expense 35,636 8,349 2,985 46,970 Income (loss) before income taxes 14,847 3,709 (9,782) 8,774 Income tax expense (benefit) 2,797 841 (1,936) 1,702 Net income (loss) $ 12,050 $ 2,868 $ (7,846) $ 7,072 Total assets $ 1,111,856 $ 10,822 $ 212,882 $ 1,335,560 YEAR ENDED DECEMBER 31, 2020 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 42,862 $ 55 $ (6,550) $ 36,367 Provision for loan loss 2,375 — — 2,375 Non-interest income 6,022 10,212 41 16,275 Non-interest expense 34,136 7,683 2,636 44,455 Income (loss) before income taxes 12,373 2,584 (9,145) 5,812 Income tax expense (benefit) 2,303 598 (1,687) 1,214 Net income (loss) $ 10,070 $ 1,986 $ (7,458) $ 4,598 Total assets $ 1,086,653 $ 10,471 $ 185,609 $ 1,282,733 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY CAPITAL | |
Schedule of compliance with regulatory capital requirements under banking regulations | AT DECEMBER 31, 2022 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 153,092 13.87 % $ 136,767 12.44 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 114,959 10.41 125,278 11.39 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,959 10.41 125,278 11.39 6.00 8.00 Tier 1 Capital (To Average Assets) 114,959 8.52 125,278 9.39 4.00 5.00 AT DECEMBER 31, 2021 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 149,177 14.04 % $ 133,881 12.66 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 109,292 10.29 120,656 11.41 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 109,292 10.29 120,656 11.41 6.00 8.00 Tier 1 Capital (To Average Assets) 109,292 8.17 120,656 9.12 4.00 5.00 * Applies to the Bank only. |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of parent company information of balance sheets | BALANCE SHEETS AT DECEMBER 31, 2022 2021 (IN THOUSANDS) ASSETS Cash $ 100 $ 100 Short-term investments 3,178 5,533 Cash and cash equivalents 3,278 5,633 Investment securities available for sale 6,334 3,692 Equity investment in banking subsidiary 117,432 127,874 Equity investment in non-banking subsidiaries 6,533 6,707 Other assets 1,008 866 TOTAL ASSETS $ 134,585 $ 144,772 LIABILITIES Subordinated debt $ 26,644 $ 26,603 Other liabilities 1,763 1,620 TOTAL LIABILITIES 28,407 28,223 STOCKHOLDERS’ EQUITY Total stockholders’ equity 106,178 116,549 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 134,585 $ 144,772 |
Schedule of parent company information of statements of operations | STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) INCOME Inter-entity management and other fees $ 2,566 $ 2,520 $ 2,708 Dividends from banking subsidiary 4,000 2,000 2,000 Dividends from non-banking subsidiaries 1,055 1,550 1,944 Interest, dividend and other income 146 115 106 TOTAL INCOME 7,767 6,185 6,758 EXPENSE Interest expense 1,054 1,798 1,642 Salaries and employee benefits 2,811 2,871 2,667 Other expense 1,948 1,783 1,749 TOTAL EXPENSE 5,813 6,452 6,058 INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES 1,954 (267) 700 Benefit for income taxes (652) (802) (681) Equity in undistributed earnings of subsidiaries 4,842 6,537 3,217 NET INCOME $ 7,448 $ 7,072 $ 4,598 COMPREHENSIVE (LOSS) INCOME $ (8,560) $ 13,758 $ 7,571 |
Schedule of parent company information of statements of cash flows | STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 2021 2020 (IN THOUSANDS) OPERATING ACTIVITIES Net income $ 7,448 $ 7,072 $ 4,598 Adjustment to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (4,842) (6,537) (3,217) Stock compensation expense 50 43 3 Other – net 189 1,204 (133) NET CASH PROVIDED BY OPERATING ACTIVITIES 2,845 1,782 1,251 INVESTING ACTIVITIES Purchase of investment securities – available for sale (3,994) (1,008) (1,254) Proceeds from maturity and sales of investment securities – available for sale 655 991 1,246 Capital contribution to banking subsidiary — (3,500) — NET CASH USED IN INVESTING ACTIVITIES (3,339) (3,517) (8) FINANCING ACTIVITIES Redemption of guaranteed junior subordinated deferrable interest debentures — (12,018) — Subordinated debt issuance, net — 26,589 — Redemption of subordinated debt — (7,650) — Stock options exercised 106 57 78 Purchases of treasury stock — — (151) Common stock dividends paid (1,967) (1,708) (1,716) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,861) 5,270 (1,789) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,355) 3,535 (546) CASH AND CASH EQUIVALENTS AT JANUARY 1 5,633 2,098 2,644 CASH AND CASH EQUIVALENTS AT DECEMBER 31 $ 3,278 $ 5,633 $ 2,098 |
SELECTED QUARTERLY CONSOLIDAT_2
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |
Schedule of quarterly consolidated financial data | The following table sets forth certain unaudited quarterly consolidated financial data regarding the Company: 2022 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 13,803 $ 12,700 $ 11,527 $ 11,028 Interest expense 3,660 2,171 1,403 1,261 Net interest income 10,143 10,529 10,124 9,767 Provision (credit) for loan losses 275 500 (325) (400) Net interest income after provision (credit) for loan losses 9,868 10,029 10,449 10,167 Non-interest income 3,893 4,326 4,138 4,335 Non-interest expense 12,688 11,727 12,110 11,479 Income before income taxes 1,073 2,628 2,477 3,023 Provision for income taxes 126 526 496 605 Net income $ 947 $ 2,102 $ 1,981 $ 2,418 Basic earnings per common share $ 0.06 $ 0.12 $ 0.12 $ 0.14 Diluted earnings per common share 0.06 0.12 0.12 0.14 Cash dividends declared per common share 0.030 0.030 0.030 0.025 2021 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 11,690 $ 11,372 $ 11,838 $ 11,769 Interest expense 1,392 2,146 1,971 2,077 Net interest income 10,298 9,226 9,867 9,692 Provision for loan losses 250 350 100 400 Net interest income after provision for loan losses 10,048 8,876 9,767 9,292 Non-interest income 4,332 4,416 4,399 4,614 Non-interest expense 12,107 11,520 12,038 11,305 Income before income taxes 2,273 1,772 2,128 2,601 Provision for income taxes 421 341 420 520 Net income $ 1,852 $ 1,431 $ 1,708 $ 2,081 Basic earnings per common share $ 0.11 $ 0.08 $ 0.10 $ 0.12 Diluted earnings per common share 0.11 0.08 0.10 0.12 Cash dividends declared per common share 0.025 0.025 0.025 0.025 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Computation of diluted earnings per common share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Mar. 31, 2021 USD ($) $ / shares | Dec. 31, 2022 USD ($) location $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Number of locations in Pennsylvania | location | 16 | ||||||||||
Number of locations in state Maryland | location | 1 | ||||||||||
Numerator: | |||||||||||
Net income | $ | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ 1,852 | $ 1,431 | $ 1,708 | $ 2,081 | $ 7,448 | $ 7,072 | $ 4,598 |
Denominator: | |||||||||||
Weighted average common shares outstanding (basic) | 17,107 | 17,073 | 17,053 | ||||||||
Effect of stock options | 39 | 41 | 10 | ||||||||
Weighted average common shares outstanding (diluted) | 17,146 | 17,114 | 17,063 | ||||||||
Earnings per common share: | |||||||||||
Basic | $ / shares | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.11 | $ 0.08 | $ 0.10 | $ 0.12 | $ 0.44 | $ 0.41 | $ 0.27 |
Diluted | $ / shares | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.11 | $ 0.08 | $ 0.10 | $ 0.12 | $ 0.43 | $ 0.41 | $ 0.27 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-cash assets acquired and Liabilities Assumed (Details) - Riverview Bank $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Non-cash assets acquired | |
Loans | $ 36 |
Other premises and equipment, net | 158 |
Intangible assets | 1,844 |
Total non-cash assets acquired | 2,038 |
Non-cash liabilities assumed | |
Non-interest bearing deposits | (7,372) |
Interest bearing deposits | (35,060) |
Other liabilities | (37) |
Total liabilities assumed | (42,469) |
Net non-cash liabilities assumed | $ (40,431) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) lease $ / shares shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of Stores | 17 | ||
Number of locations in Southwestern Pennsylvania Counties | item | 5 | ||
Assets under Management, Carrying Amount | $ 2,300,000,000 | ||
Federal Home Loan Bank Stock Par Value | $ / shares | $ 100 | ||
Threshold Period Past Due for Write-off of Financing Receivable | 90 days | ||
Description Of Accounting Treatment For Short Term Operating Lease | As of December 31, 2022, the Company had one short-term lease for an office location compared to no short-term leases as of December 31, 2021. | ||
Financing Receivable, Individually Evaluated for Impairment | $ 3,575,000 | $ 2,170,000 | |
Financing receivable, recorded investment | $ 983,185,000 | $ 977,589,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 22,000 | 22,000 | 139,759 |
Income Taxes Paid | $ 1,100,000 | $ 200,000 | $ 315,000 |
Real Estate Owned, Transfer from Real Estate Owned | 53,000 | 8,000 | 40,000 |
Operating Lease, Right-of-Use Asset | 630,000 | 667,000 | |
Operating Lease, Liability | 643,000 | 682,000 | |
Finance Lease, Right-of-Use Asset | 2,413,000 | 2,684,000 | |
Finance Lease, Liability | 2,680,000 | 2,899,000 | |
Cumulative effect adjustment for change in accounting principal | 65,486,000 | 60,005,000 | |
Total interest payments | 8,450,000 | 8,049,000 | $ 11,040,000 |
Deposits | 4,132,000 | 10,942,000 | |
Financing Receivables 30To 59Days Past Due Member | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Financing receivable, recorded investment | 5,479,000 | 4,649,000 | |
Financing Receivables Equal To Greater Than 90Days Past Due Member | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Financing receivable, recorded investment | 1,279,000 | 1,129,000 | |
Financing Receivables 60To 89Days Past Due Member | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Financing receivable, recorded investment | $ 823,000 | $ 1,687,000 | |
Core Deposits Intangibles | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Finite-lived intangible asset useful life | 10 years | ||
Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Price Of Anti Dilutive Option Amount | $ / shares | $ 4 | $ 4 | $ 3.18 |
Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Price Of Anti Dilutive Option Amount | $ / shares | $ 4.22 | $ 4.22 | $ 4.22 |
Commercial | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | $ 1,000,000 | ||
Small Business Loans | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Financing receivable, recorded investment | 250,000 | ||
Consumer and Residential Mortgage Loans | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Financing Receivable, Individually Evaluated for Impairment | $ 150,000 | ||
Premises | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Equipment | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
New Finance Leased Assets | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of financing leases | lease | 2 | ||
Number of financing leases relating to office equipment | lease | 1 | ||
Finance Lease, Right-of-Use Asset | $ 45,000 | $ 149,000 | |
Finance Lease, Liability | $ 45,000 | $ 149,000 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses | $ 10,743,000 | $ 12,398,000 | $ 11,345,000 | $ 9,279,000 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Maximum | ||||
Allowance for loan losses | 12,200,000 | |||
Debt securities, Allowance for credit losses | 150,000 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Minimum | ||||
Allowance for loan losses | 11,800,000 | |||
Debt securities, Allowance for credit losses | $ 50,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-interest income (in-scope of Topic 606) | $ 14,737 | $ 14,968 | $ 12,823 | ||||||||
Non-interest income (out-of-scope of topic 606) | 1,955 | 2,793 | 3,452 | ||||||||
Total non-interest income | $ 3,893 | $ 4,326 | $ 4,138 | $ 4,335 | $ 4,332 | $ 4,416 | $ 4,399 | $ 4,614 | 16,692 | 17,761 | 16,275 |
Wealth management fees | |||||||||||
Non-interest income (in-scope of Topic 606) | 11,620 | 11,986 | 10,212 | ||||||||
Service charges on deposit accounts | |||||||||||
Non-interest income (in-scope of Topic 606) | 1,108 | 965 | 903 | ||||||||
Other | |||||||||||
Non-interest income (in-scope of Topic 606) | $ 2,009 | $ 2,017 | $ 1,708 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Percentage of entity revenue | 77.60% |
Other assets. | |
Wealth management fees receivable | $ 850,000 |
CASH AND DUE FROM DEPOSITORY _2
CASH AND DUE FROM DEPOSITORY INSTITUTIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 26, 2020 |
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | |||
Restricted cash and cash equivalents | $ 0 | ||
Cash and due from depository institutions | $ 18,830 | $ 24,748 |
INVESTMENT SECURITIES - Cost ba
INVESTMENT SECURITIES - Cost basis and fair values of investment securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | $ 198,417 | $ 161,416 |
Investment securities available for sale, Gross Unrealized Gains | 95 | 3,167 |
Investment securities available for sale, Gross Unrealized Losses | (19,004) | (1,412) |
Available for Sale, Fair Value, Total | 179,508 | 163,171 |
Investment securities held to maturity, Cost Basis | 61,878 | 53,751 |
Investment securities held to maturity, Gross Unrealized Gains | 10 | 2,001 |
Investment securities held to maturity, Gross Unrealized Losses | (6,696) | (236) |
Held to Maturity, Fair Value, Total | 55,192 | 55,516 |
U.S. Agency | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 11,797 | 7,371 |
Investment securities available for sale, Gross Unrealized Gains | 1 | 86 |
Investment securities available for sale, Gross Unrealized Losses | (1,265) | (70) |
Available for Sale, Fair Value, Total | 10,533 | 7,387 |
Investment securities held to maturity, Cost Basis | 2,500 | 2,500 |
Investment securities held to maturity, Gross Unrealized Losses | (432) | (11) |
Held to Maturity, Fair Value, Total | 2,068 | 2,489 |
U.S. Agency mortgage-backed securities | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 102,631 | 80,136 |
Investment securities available for sale, Gross Unrealized Gains | 64 | 1,202 |
Investment securities available for sale, Gross Unrealized Losses | (12,710) | (1,171) |
Available for Sale, Fair Value, Total | 89,985 | 80,167 |
Investment securities held to maturity, Cost Basis | 18,877 | 10,556 |
Investment securities held to maturity, Gross Unrealized Gains | 8 | 203 |
Investment securities held to maturity, Gross Unrealized Losses | (2,212) | (115) |
Held to Maturity, Fair Value, Total | 16,673 | 10,644 |
Municipal | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 20,837 | 20,066 |
Investment securities available for sale, Gross Unrealized Gains | 851 | |
Investment securities available for sale, Gross Unrealized Losses | (1,799) | (25) |
Available for Sale, Fair Value, Total | 19,038 | 20,892 |
Investment securities held to maturity, Cost Basis | 33,993 | 33,188 |
Investment securities held to maturity, Gross Unrealized Gains | 2 | 1,734 |
Investment securities held to maturity, Gross Unrealized Losses | (3,880) | (103) |
Held to Maturity, Fair Value, Total | 30,115 | 34,819 |
Corporate bonds. | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 63,152 | 53,843 |
Investment securities available for sale, Gross Unrealized Gains | 30 | 1,028 |
Investment securities available for sale, Gross Unrealized Losses | (3,230) | (146) |
Available for Sale, Fair Value, Total | 59,952 | 54,725 |
Corporate bonds and other securities | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities held to maturity, Cost Basis | 6,508 | 7,507 |
Investment securities held to maturity, Gross Unrealized Gains | 64 | |
Investment securities held to maturity, Gross Unrealized Losses | (172) | (7) |
Held to Maturity, Fair Value, Total | $ 6,336 | $ 7,564 |
INVESTMENT SECURITIES - Informa
INVESTMENT SECURITIES - Information concerning investments with unrealized losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | $ 139,363 | $ 75,231 |
Less than 12 months, Unrealized Losses | (9,404) | (1,273) |
12 months or longer, Fair Value | 78,932 | 9,130 |
12 months and longer, Unrealized Losses | (16,296) | (375) |
Total, Fair Value | 218,295 | 84,361 |
Total, Unrealized Losses | (25,700) | (1,648) |
U.S. Agency | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 5,446 | 7,419 |
Less than 12 months, Unrealized Losses | (350) | (81) |
12 months or longer, Fair Value | 6,653 | |
12 months and longer, Unrealized Losses | (1,347) | |
Total, Fair Value | 12,099 | 7,419 |
Total, Unrealized Losses | (1,697) | (81) |
U.S. Agency mortgage-backed securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 57,193 | 45,422 |
Less than 12 months, Unrealized Losses | (4,018) | (972) |
12 months or longer, Fair Value | 44,083 | 6,691 |
12 months and longer, Unrealized Losses | (10,904) | (314) |
Total, Fair Value | 101,276 | 52,113 |
Total, Unrealized Losses | (14,922) | (1,286) |
Municipal | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 37,175 | 7,832 |
Less than 12 months, Unrealized Losses | (3,113) | (128) |
12 months or longer, Fair Value | 11,475 | |
12 months and longer, Unrealized Losses | (2,566) | |
Total, Fair Value | 48,650 | 7,832 |
Total, Unrealized Losses | (5,679) | (128) |
Corporate bonds and other securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 39,549 | 14,558 |
Less than 12 months, Unrealized Losses | (1,923) | (92) |
12 months or longer, Fair Value | 16,721 | 2,439 |
12 months and longer, Unrealized Losses | (1,479) | (61) |
Total, Fair Value | 56,270 | 16,997 |
Total, Unrealized Losses | $ (3,402) | $ (153) |
INVESTMENT SECURITIES - Total i
INVESTMENT SECURITIES - Total investment securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $ 7,065 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 44,344 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 49,274 | |
Available for Sale, Cost Basis, Over 10 years | 97,734 | |
Available for Sale, Cost Basis, Total | 198,417 | $ 161,416 |
Available for Sale, Fair Value, Within 1 year | 7,015 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 42,490 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 44,796 | |
Available for Sale, Fair Value, Over 10 years | 85,207 | |
Available for Sale, Fair Value, Total | 179,508 | 163,171 |
Held to Maturity, Cost Basis, Within 1 year | 2,425 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 12,894 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 25,127 | |
Held to Maturity, Cost Basis, Over 10 years | 21,432 | |
Held to Maturity, Cost Basis, Total | 61,878 | 53,751 |
Held to Maturity, Fair Value, Within 1 year | 2,361 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 12,291 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 21,897 | |
Held to Maturity, Fair Value, Over 10 years | 18,643 | |
Held to Maturity, Fair Value, Total | 55,192 | 55,516 |
Municipal | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 1,065 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 12,538 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 7,234 | |
Available for Sale, Cost Basis, Total | 20,837 | 20,066 |
Available for Sale, Fair Value, Within 1 year | 1,045 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 11,873 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 6,120 | |
Available for Sale, Fair Value, Total | 19,038 | 20,892 |
Held to Maturity, Cost Basis, Within 1 year | 425 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 8,874 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 21,315 | |
Held to Maturity, Cost Basis, Over 10 years | 3,379 | |
Held to Maturity, Cost Basis, Total | 33,993 | 33,188 |
Held to Maturity, Fair Value, Within 1 year | 419 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 8,411 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 18,550 | |
Held to Maturity, Fair Value, Over 10 years | 2,735 | |
Held to Maturity, Fair Value, Total | 30,115 | 34,819 |
Corporate bonds. | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 6,000 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 26,039 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 30,463 | |
Available for Sale, Cost Basis, Over 10 years | 650 | |
Available for Sale, Cost Basis, Total | 63,152 | 53,843 |
Available for Sale, Fair Value, Within 1 year | 5,970 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 25,084 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 28,364 | |
Available for Sale, Fair Value, Over 10 years | 534 | |
Available for Sale, Fair Value, Total | 59,952 | 54,725 |
Corporate bonds and other securities | ||
Contractual maturities of securities | ||
Held to Maturity, Cost Basis, Within 1 year | 2,000 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 3,015 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 500 | |
Held to Maturity, Cost Basis, Over 10 years | 993 | |
Held to Maturity, Cost Basis, Total | 6,508 | 7,507 |
Held to Maturity, Fair Value, Within 1 year | 1,942 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 2,901 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 500 | |
Held to Maturity, Fair Value, Over 10 years | 993 | |
Held to Maturity, Fair Value, Total | 6,336 | 7,564 |
U.S. Agency | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, After 1 year but within 5 years | 4,279 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 6,000 | |
Available for Sale, Cost Basis, Over 10 years | 1,518 | |
Available for Sale, Cost Basis, Total | 11,797 | 7,371 |
Available for Sale, Fair Value, After 1 year but within 5 years | 4,102 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 5,048 | |
Available for Sale, Fair Value, Over 10 years | 1,383 | |
Available for Sale, Fair Value, Total | 10,533 | 7,387 |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 2,500 | |
Held to Maturity, Cost Basis, Total | 2,500 | 2,500 |
Held to Maturity, Fair Value, After 5 years but within 10 years | 2,068 | |
Held to Maturity, Fair Value, Total | 2,068 | 2,489 |
U.S. Agency mortgage-backed securities | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, After 1 year but within 5 years | 1,488 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 5,577 | |
Available for Sale, Cost Basis, Over 10 years | 95,566 | |
Available for Sale, Cost Basis, Total | 102,631 | 80,136 |
Available for Sale, Fair Value, After 1 year but within 5 years | 1,431 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 5,264 | |
Available for Sale, Fair Value, Over 10 years | 83,290 | |
Available for Sale, Fair Value, Total | 89,985 | 80,167 |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 1,005 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 812 | |
Held to Maturity, Cost Basis, Over 10 years | 17,060 | |
Held to Maturity, Cost Basis, Total | 18,877 | 10,556 |
Held to Maturity, Fair Value, After 1 year but within 5 years | 979 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 779 | |
Held to Maturity, Fair Value, Over 10 years | 14,915 | |
Held to Maturity, Fair Value, Total | $ 16,673 | $ 10,644 |
IINVESTMENT SECURITIES - Additi
IINVESTMENT SECURITIES - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) position | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) item | |
INVESTMENT SECURITIES | |||
Gross investment losses | $ 5,000 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | $ 18,000 | $ (66,000) |
Investment Securities: | |||
Proceeds from sales of investment securities - available for sale | 1,519,000 | 960,000 | |
Gross investment gains | 5,000 | 84,000 | |
Gross investment losses | 5,000 | ||
Book value of securities available for sale and held to maturity | $ 134,002,000 | 122,574,000 | |
Number of positions | position | 426 | ||
Premium percentage on mortgage backed securities purchased | 100.90% | ||
Consolidated investment securities portfolio modified, years | 4 years 8 months 1 day | ||
Number of investment | item | 0 | ||
Realized gain on equity securities | 36,000 | $ 2,000 | |
Unrealized gain on equity securities | 7,000 | 3,000 | |
Available-for-sale Securities, Equity Securities | $ 502,000 | $ 526,000 | |
Realized loss on equity securities | 9,000 | ||
Unrealized loss on equity securities | $ 13,000 | ||
U.S. Agency | |||
Investment Securities: | |||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 5 years 7 months 13 days | ||
Weighted Average Expected Maturity For Held To Maturity Securities | 7 years 6 months 25 days | ||
U.S. Agency mortgage-backed securities | |||
Investment Securities: | |||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 6 years 11 months 26 days | ||
Weighted Average Expected Maturity For Held To Maturity Securities | 7 years 4 months 20 days | ||
Corporate bonds. | |||
Investment Securities: | |||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 4 years 2 months 4 days | ||
Weighted Average Expected Maturity For Held To Maturity Securities | 2 years 11 months 19 days | ||
Municipal | |||
Investment Securities: | |||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 4 years 21 days | ||
Weighted Average Expected Maturity For Held To Maturity Securities | 5 years 4 months 13 days | ||
Standard & Poor's, AAA Rating | |||
INVESTMENT SECURITIES | |||
Portfolio rated | 52.50% | 47.10% | |
Securities rated below A | |||
INVESTMENT SECURITIES | |||
Portfolio rated | 14.70% | ||
Deferred Compensation, Share-based Payments | Assets Held With Rabbi Trust | |||
Investment Securities: | |||
Available-for-sale Securities, Equity Securities | $ 502,000 | $ 526,000 | $ 443,000 |
LOANS - Loan Portfolio (Details
LOANS - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Loans, net of unearned income | $ 990,766 | $ 985,054 |
Commercial and industrial | ||
LOANS | ||
Loans, net of unearned income | 153,398 | 134,182 |
Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 22 | 17,311 |
Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 75,158 | 99,644 |
Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 450,744 | 430,825 |
Real estate - residential mortgage | ||
LOANS | ||
Loans, net of unearned income | 297,971 | 287,996 |
CONSUMER | ||
LOANS | ||
Loans, net of unearned income | 13,473 | 15,096 |
Commercial | ||
LOANS | ||
Loans, net of unearned income | 679,322 | 681,962 |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 17,311 | |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans, net of unearned income | 153,398 | 134,182 |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 22 | 17,311 |
Commercial | Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 75,158 | 99,644 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 450,744 | 430,825 |
Consumer. | Real estate - residential mortgage | ||
LOANS | ||
Loans, net of unearned income | 297,971 | 287,996 |
Consumer. | CONSUMER | ||
LOANS | ||
Loans, net of unearned income | $ 13,473 | $ 15,096 |
LOANS - Commercial real estate
LOANS - Commercial real estate loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Loans, net of unearned income | $ 990,766 | $ 985,054 |
1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 7,690 | 9,907 |
Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 83,098 | 74,157 |
Office | ||
LOANS | ||
Loans, net of unearned income | 76,162 | 74,733 |
Retail | ||
LOANS | ||
Loans, net of unearned income | 171,151 | 176,804 |
Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 171,196 | 146,232 |
Hotels | ||
LOANS | ||
Loans, net of unearned income | 36,214 | 44,343 |
Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 6,227 | 13,364 |
Personal care | ||
LOANS | ||
Loans, net of unearned income | 3,528 | 5,685 |
Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 3,292 | 5,559 |
Mixed use | ||
LOANS | ||
Loans, net of unearned income | 55,490 | 66,119 |
Other. | ||
LOANS | ||
Loans, net of unearned income | 65,274 | 65,059 |
Commercial and industrial | ||
LOANS | ||
Loans, net of unearned income | 153,398 | 134,182 |
Commercial and industrial | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 1,246 | |
Commercial and industrial | Office | ||
LOANS | ||
Loans, net of unearned income | 44,959 | 37,386 |
Commercial and industrial | Retail | ||
LOANS | ||
Loans, net of unearned income | 6,478 | 7,253 |
Commercial and industrial | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 82,540 | 74,508 |
Commercial and industrial | Hotels | ||
LOANS | ||
Loans, net of unearned income | 154 | |
Commercial and industrial | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 276 | 484 |
Commercial and industrial | Personal care | ||
LOANS | ||
Loans, net of unearned income | 881 | 1,197 |
Commercial and industrial | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 66 | 92 |
Commercial and industrial | Other. | ||
LOANS | ||
Loans, net of unearned income | 18,198 | 11,862 |
Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 22 | 17,311 |
Paycheck Protection Program (PPP) | Office | ||
LOANS | ||
Loans, net of unearned income | 203 | |
Paycheck Protection Program (PPP) | Retail | ||
LOANS | ||
Loans, net of unearned income | 444 | |
Paycheck Protection Program (PPP) | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 5,940 | |
Paycheck Protection Program (PPP) | Hotels | ||
LOANS | ||
Loans, net of unearned income | 1,764 | |
Paycheck Protection Program (PPP) | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 22 | 6,591 |
Paycheck Protection Program (PPP) | Personal care | ||
LOANS | ||
Loans, net of unearned income | 173 | |
Paycheck Protection Program (PPP) | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 53 | |
Paycheck Protection Program (PPP) | Other. | ||
LOANS | ||
Loans, net of unearned income | 2,143 | |
Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 75,158 | 99,644 |
Commercial loans secured by owner occupied real estate | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 96 | |
Commercial loans secured by owner occupied real estate | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 65 | 245 |
Commercial loans secured by owner occupied real estate | Office | ||
LOANS | ||
Loans, net of unearned income | 7,428 | 8,644 |
Commercial loans secured by owner occupied real estate | Retail | ||
LOANS | ||
Loans, net of unearned income | 17,072 | 20,439 |
Commercial loans secured by owner occupied real estate | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 11,016 | 21,468 |
Commercial loans secured by owner occupied real estate | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 4,575 | 4,537 |
Commercial loans secured by owner occupied real estate | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 3,223 | 5,402 |
Commercial loans secured by owner occupied real estate | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 4,268 | 4,031 |
Commercial loans secured by owner occupied real estate | Other. | ||
LOANS | ||
Loans, net of unearned income | 27,511 | 34,782 |
Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 450,744 | 430,825 |
Commercial loans secured by non-owner occupied real estate | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 7,690 | 8,565 |
Commercial loans secured by non-owner occupied real estate | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 83,033 | 73,912 |
Commercial loans secured by non-owner occupied real estate | Office | ||
LOANS | ||
Loans, net of unearned income | 23,775 | 28,500 |
Commercial loans secured by non-owner occupied real estate | Retail | ||
LOANS | ||
Loans, net of unearned income | 147,601 | 148,668 |
Commercial loans secured by non-owner occupied real estate | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 77,640 | 44,316 |
Commercial loans secured by non-owner occupied real estate | Hotels | ||
LOANS | ||
Loans, net of unearned income | 36,214 | 42,425 |
Commercial loans secured by non-owner occupied real estate | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 1,354 | 1,752 |
Commercial loans secured by non-owner occupied real estate | Personal care | ||
LOANS | ||
Loans, net of unearned income | 2,647 | 4,315 |
Commercial loans secured by non-owner occupied real estate | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 3 | 12 |
Commercial loans secured by non-owner occupied real estate | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 51,222 | 62,088 |
Commercial loans secured by non-owner occupied real estate | Other. | ||
LOANS | ||
Loans, net of unearned income | 19,565 | 16,272 |
Commercial | ||
LOANS | ||
Loans, net of unearned income | 679,322 | 681,962 |
Commercial | ||
LOANS | ||
Loans, net of unearned income | 679,322 | 681,962 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans, net of unearned income | 153,398 | 134,182 |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 22 | 17,311 |
Commercial | Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 75,158 | 99,644 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | $ 450,744 | $ 430,825 |
LOANS - Additional information
LOANS - Additional information (Details) | 12 Months Ended | ||
Mar. 27, 2020 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) loan | |
LOANS | |||
Real estate-construction loans, percentage | 4.70% | 5.60% | |
Loan balances net of unearned income | $ 343,000 | $ 826,000 | |
Loans and Leases Receivable, Related Parties | 587,000 | 601,000 | |
Loans, net of unearned income | 990,766,000 | 985,054,000 | |
Unrecognized fee income from the PPP loans originations | $ 0 | $ 386,000 | |
Paycheck Protection Program (PPP) | |||
LOANS | |||
Number of times of average monthly payroll costs | item | 2.5 | ||
Loan amount | $ 10,000,000 | ||
Interest rate | 1% | ||
Percentage of guarantee by SBA | 100% | ||
Percentage of loan proceeds used for payroll expenses | 60% | ||
Loans Receivable, Number Of Applications Received | 1 | 114 | |
Loans Receivable, Excess Of Loan Application Received | $ 22,000 | $ 17,300,000 | |
Fee Income from Loans | $ 434,000 | $ 2,300,000 | |
Paycheck Protection Program (PPP) | originated prior to June 5, 2020 | |||
LOANS | |||
Loan term | 2 years | ||
Paycheck Protection Program (PPP) | originated after June 5, 2020 | |||
LOANS | |||
Loan term | 5 years |
ALLOWANCE FOR LOAN LOSSES - Loa
ALLOWANCE FOR LOAN LOSSES - Loan losses by portfolio segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | $ 12,398,000 | $ 11,345,000 | $ 9,279,000 |
Charge-Offs | (1,849,000) | (294,000) | (487,000) |
Recoveries | 144,000 | 247,000 | 178,000 |
Provision (Credit) | 50,000 | 1,100,000 | 2,375,000 |
Balance at End of Period | 10,743,000 | 12,398,000 | 11,345,000 |
Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 3,071,000 | ||
Charge-Offs | (97,000) | ||
Recoveries | 4,000 | ||
Provision (Credit) | (325,000) | ||
Balance at End of Period | 2,653,000 | 3,071,000 | |
Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 6,392,000 | ||
Charge-Offs | (1,390,000) | ||
Recoveries | 54,000 | ||
Provision (Credit) | 916,000 | ||
Balance at End of Period | 5,972,000 | 6,392,000 | |
Commercial loans secured by non-owner occupied real estate | COVID 19 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision (Credit) | 916,000 | 968,000 | 2,200,000 |
Real estate - residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 1,590,000 | ||
Charge-Offs | (28,000) | ||
Recoveries | 19,000 | ||
Provision (Credit) | (201,000) | ||
Balance at End of Period | 1,380,000 | 1,590,000 | |
CONSUMER | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 113,000 | ||
Charge-Offs | (334,000) | ||
Recoveries | 67,000 | ||
Provision (Credit) | 239,000 | ||
Balance at End of Period | 85,000 | 113,000 | |
Allocation for general risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 1,232,000 | 1,093,000 | 924,000 |
Charge-Offs | 0 | ||
Recoveries | 0 | ||
Provision (Credit) | (579,000) | 139,000 | 169,000 |
Balance at End of Period | 653,000 | 1,232,000 | 1,093,000 |
Commercial | COVID 19 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision (Credit) | 325,000 | (344,000) | (372,000) |
Commercial | Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 3,071,000 | 3,472,000 | 3,951,000 |
Charge-Offs | (146,000) | (111,000) | |
Recoveries | 89,000 | 4,000 | |
Provision (Credit) | (344,000) | (372,000) | |
Balance at End of Period | 2,653,000 | 3,071,000 | 3,472,000 |
Commercial | Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 6,392,000 | 5,373,000 | 3,119,000 |
Recoveries | 51,000 | 44,000 | |
Provision (Credit) | 968,000 | 2,210,000 | |
Balance at End of Period | 5,972,000 | 6,392,000 | 5,373,000 |
Consumer. | Real estate - residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 1,590,000 | 1,292,000 | 1,159,000 |
Charge-Offs | (17,000) | (233,000) | |
Recoveries | 49,000 | 62,000 | |
Provision (Credit) | 266,000 | 304,000 | |
Balance at End of Period | 1,380,000 | 1,590,000 | 1,292,000 |
Consumer. | CONSUMER | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at Beginning of Period | 113,000 | 115,000 | 126,000 |
Charge-Offs | (131,000) | (143,000) | |
Recoveries | 58,000 | 68,000 | |
Provision (Credit) | 71,000 | 64,000 | |
Balance at End of Period | $ 85,000 | $ 113,000 | $ 115,000 |
ALLOWANCE FOR LOAN LOSSES - L_2
ALLOWANCE FOR LOAN LOSSES - Loan loss by the primary segments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans: | ||||
Individually evaluated for impairment | $ 3,575 | $ 2,170 | ||
Collectively evaluated for impairment | 987,191 | 982,884 | ||
Total loans | 990,766 | 985,054 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 523 | 633 | ||
General reserve allocation | 10,220 | 11,765 | ||
Total allowance for loan losses | 10,743 | 12,398 | $ 11,345 | $ 9,279 |
Commercial. | ||||
Loans: | ||||
Individually evaluated for impairment | 2,165 | |||
Collectively evaluated for impairment | 248,972 | |||
Total loans | 251,137 | |||
Allowance for loan losses: | ||||
Total allowance for loan losses | 2,653 | 3,071 | ||
Commercial loans secured by non-owner occupied real estate | ||||
Loans: | ||||
Individually evaluated for impairment | 5 | |||
Collectively evaluated for impairment | 430,820 | |||
Total loans | 450,744 | 430,825 | ||
Allowance for loan losses: | ||||
Total allowance for loan losses | 5,972 | 6,392 | ||
Real estate - residential mortgage | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 287,996 | |||
Total loans | 297,971 | 287,996 | ||
Allowance for loan losses: | ||||
Total allowance for loan losses | 1,380 | 1,590 | ||
CONSUMER | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 15,096 | |||
Total loans | 13,473 | 15,096 | ||
Allowance for loan losses: | ||||
Total allowance for loan losses | 85 | 113 | ||
Allocation for general risk | ||||
Allowance for loan losses: | ||||
Specific reserve allocation | 0 | 0 | ||
General reserve allocation | 653 | 1,232 | ||
Total allowance for loan losses | 653 | 1,232 | 1,093 | 924 |
Commercial | ||||
Loans: | ||||
Total loans | 679,322 | 681,962 | ||
Commercial | Commercial. | ||||
Loans: | ||||
Individually evaluated for impairment | 1,989 | |||
Collectively evaluated for impairment | 226,589 | |||
Total loans | 228,578 | |||
Allowance for loan losses: | ||||
Specific reserve allocation | 520 | 628 | ||
General reserve allocation | 2,133 | 2,443 | ||
Total allowance for loan losses | 2,653 | 3,071 | 3,472 | 3,951 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||||
Loans: | ||||
Individually evaluated for impairment | 1,586 | |||
Collectively evaluated for impairment | 449,158 | |||
Total loans | 450,744 | 430,825 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 3 | 5 | ||
General reserve allocation | 5,969 | 6,387 | ||
Total allowance for loan losses | 5,972 | 6,392 | 5,373 | 3,119 |
Consumer. | Real estate - residential mortgage | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 297,971 | |||
Total loans | 297,971 | 287,996 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 0 | 0 | ||
General reserve allocation | 1,380 | 1,590 | ||
Total allowance for loan losses | 1,380 | 1,590 | 1,292 | 1,159 |
Consumer. | CONSUMER | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 13,473 | |||
Total loans | 13,473 | 15,096 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 0 | 0 | ||
General reserve allocation | 85 | 113 | ||
Total allowance for loan losses | $ 85 | $ 113 | $ 115 | $ 126 |
ALLOWANCE FOR LOAN LOSSES - Pre
ALLOWANCE FOR LOAN LOSSES - Present impaired loans by portfolio segment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 3,575,000 | $ 2,170,000 | |
Related Allowance | 3,000 | $ 5,000 | |
Unpaid Principal Balance | 3,883,000 | 2,287,000 | |
Loans, net of unearned income | 990,766,000 | 985,054,000 | |
Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income | 251,137,000 | ||
Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income | 450,744,000 | 430,825,000 | |
CONSUMER | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income | 13,473,000 | 15,096,000 | |
Impaired Loans with Specific Allowance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,992,000 | 2,170,000 | |
Related Allowance | 523,000 | 633,000 | |
Impaired Loans With No Specific Allowance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,583,000 | 0 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income | 679,322,000 | 681,962,000 | |
Commercial | Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,989,000 | 2,165,000 | |
Unpaid Principal Balance | 2,240,000 | 2,260,000 | |
Loans, net of unearned income | 228,578,000 | ||
Commercial | Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,586,000 | 5,000 | |
Unpaid Principal Balance | 1,643,000 | 27,000 | |
Loans, net of unearned income | 450,744,000 | 430,825,000 | |
Commercial | Impaired Loans with Specific Allowance | Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,989,000 | 2,165,000 | |
Related Allowance | 520,000 | 628,000 | |
Commercial | Impaired Loans with Specific Allowance | Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 3,000 | 5,000 | |
Related Allowance | 3,000 | 5,000 | |
Commercial | Impaired Loans With No Specific Allowance | Commercial. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 0 | ||
Commercial | Impaired Loans With No Specific Allowance | Commercial loans secured by non-owner occupied real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | 1,583,000 | 0 | |
Consumer. | CONSUMER | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income | $ 13,473,000 | $ 15,096,000 |
ALLOWANCE FOR LOAN LOSSES - Inv
ALLOWANCE FOR LOAN LOSSES - Investment in impaired loans and related interest income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Average loan balance: | |||
Average investment in impaired loans | $ 2,867 | $ 2,308 | $ 847 |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | 15 | 38 | |
Commercial | Commercial. | |||
Average loan balance: | |||
Average investment in impaired loans | 2,062 | 2,301 | 839 |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | 15 | 38 | |
Commercial | Commercial loans secured by non-owner occupied real estate | |||
Average loan balance: | |||
Average investment in impaired loans | 805 | 7 | 8 |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES - Com
ALLOWANCE FOR LOAN LOSSES - Commercial and commercial real estate loan portfolios (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 990,766 | $ 985,054 |
Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 22 | 17,311 |
Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 75,158 | 99,644 |
Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 450,744 | 430,825 |
CONSUMER | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 13,473 | 15,096 |
Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 679,322 | 681,962 |
Commercial | Commercial and industrial. | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 153,398 | 134,182 |
Commercial | Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 22 | 17,311 |
Commercial | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 75,158 | 99,644 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 450,744 | 430,825 |
Commercial | Pass | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 646,056 | 639,765 |
Commercial | Pass | Commercial and industrial. | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 148,361 | 125,079 |
Commercial | Pass | Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 22 | |
Commercial | Pass | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 74,187 | 98,271 |
Commercial | Pass | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 423,486 | 399,104 |
Commercial | Special Mention | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 11,015 | 26,341 |
Commercial | Special Mention | Commercial and industrial. | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 6,722 | |
Commercial | Special Mention | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 297 | |
Commercial | Special Mention | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 11,015 | 19,322 |
Commercial | Substandard | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 22,248 | 14,208 |
Commercial | Substandard | Commercial and industrial. | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 5,037 | 738 |
Commercial | Substandard | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 971 | 1,076 |
Commercial | Substandard | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 16,240 | 12,394 |
Commercial | Doubtful | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 3 | 1,648 |
Commercial | Doubtful | Commercial and industrial. | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,643 | |
Commercial | Doubtful | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 3 | $ 5 |
ALLOWANCE FOR LOAN LOSSES - Res
ALLOWANCE FOR LOAN LOSSES - Residential and consumer portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 990,766 | $ 985,054 |
Commercial | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 679,322 | 681,962 |
Real estate - residential mortgage | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 297,971 | 287,996 |
Real estate - residential mortgage | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 297,971 | 287,996 |
CONSUMER | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 13,473 | 15,096 |
CONSUMER | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 13,473 | 15,096 |
Residential and Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 311,444 | 303,092 |
Performing | Real estate - residential mortgage | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 296,401 | 286,843 |
Performing | CONSUMER | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 13,457 | 15,096 |
Performing | Residential and Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 309,858 | 301,939 |
Non-performing | Real estate - residential mortgage | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 1,570 | 1,153 |
Non-performing | CONSUMER | Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 16 | 0 |
Non-performing | Residential and Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 1,586 | $ 1,153 |
ALLOWANCE FOR LOAN LOSSES - Cre
ALLOWANCE FOR LOAN LOSSES - Credit quality of the loan portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 990,766 | $ 985,054 |
90 Days Past Due and Still Accruing | 0 | 0 |
Financing receivable, recorded investment | 983,185 | 977,589 |
Financing receivable recorded investment past due | 7,581 | 7,465 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 5,479 | 4,649 |
Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 823 | 1,687 |
Financing Receivables Equal To Greater Than 90Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 1,279 | 1,129 |
Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 153,398 | 134,182 |
Financing receivable, recorded investment | 152,314 | 133,918 |
Financing receivable recorded investment past due | 1,084 | 264 |
Commercial and industrial | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 797 | 14 |
Commercial and industrial | Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 287 | 250 |
Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | 17,311 |
Financing receivable, recorded investment | 22 | 17,311 |
Commercial loans secured by owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 75,158 | 99,644 |
Financing receivable, recorded investment | 74,960 | 99,454 |
Financing receivable recorded investment past due | 198 | 190 |
Commercial loans secured by owner occupied real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 198 | |
Commercial loans secured by owner occupied real estate | Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 190 | |
Commercial loans secured by non-owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 450,744 | 430,825 |
Financing receivable, recorded investment | 446,809 | 428,790 |
Financing receivable recorded investment past due | 3,935 | 2,035 |
Commercial loans secured by non-owner occupied real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 3,935 | 2,035 |
Real estate - residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 297,971 | 287,996 |
Financing receivable, recorded investment | 295,790 | 283,178 |
Financing receivable recorded investment past due | 2,181 | 4,818 |
Real estate - residential mortgage | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 489 | 2,449 |
Real estate - residential mortgage | Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 422 | 1,240 |
Real estate - residential mortgage | Financing Receivables Equal To Greater Than 90Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 1,270 | 1,129 |
CONSUMER | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 13,473 | 15,096 |
Financing receivable, recorded investment | 13,290 | 14,938 |
Financing receivable recorded investment past due | 183 | 158 |
CONSUMER | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 60 | 151 |
CONSUMER | Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 114 | 7 |
CONSUMER | Financing Receivables Equal To Greater Than 90Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Financing receivable, recorded investment | 9 | |
Commercial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 679,322 | 681,962 |
Commercial | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 17,311 | |
Commercial | Pass | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 646,056 | 639,765 |
Commercial | Pass | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 17,311 | |
Commercial | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 153,398 | 134,182 |
Commercial | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | 17,311 |
Commercial | Paycheck Protection Program (PPP) | Pass | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | |
Commercial | Commercial loans secured by owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 75,158 | 99,644 |
Commercial | Commercial loans secured by owner occupied real estate | Pass | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 74,187 | 98,271 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 450,744 | 430,825 |
Commercial | Commercial loans secured by non-owner occupied real estate | Pass | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 423,486 | 399,104 |
Consumer. | Real estate - residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 297,971 | 287,996 |
Consumer. | CONSUMER | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | $ 13,473 | $ 15,096 |
ALLOWANCE FOR LOAN LOSSES - Add
ALLOWANCE FOR LOAN LOSSES - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision expense for loan losses | $ 275,000 | $ 500,000 | $ (325,000) | $ (400,000) | $ 250,000 | $ 350,000 | $ 100,000 | $ 400,000 | $ 50,000 | $ 1,100,000 | $ 2,375,000 |
Loans, net of unearned income | $ 990,766,000 | $ 985,054,000 | $ 990,766,000 | $ 985,054,000 | |||||||
Non-performing assets as a percent of loans | 0.53% | 0.34% | 0.53% | 0.34% | |||||||
Individually evaluated for impairment | $ 3,575,000 | $ 2,170,000 | $ 3,575,000 | $ 2,170,000 | |||||||
Financing receivable, recorded investment | 983,185,000 | 977,589,000 | 983,185,000 | 977,589,000 | |||||||
Financing receivable recorded investment past due | 7,581,000 | 7,465,000 | |||||||||
Commercial. | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 251,137,000 | 251,137,000 | |||||||||
Individually evaluated for impairment | 2,165,000 | 2,165,000 | |||||||||
CONSUMER | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 13,473,000 | 15,096,000 | 13,473,000 | 15,096,000 | |||||||
Individually evaluated for impairment | 0 | 0 | |||||||||
Financing receivable, recorded investment | 13,290,000 | 14,938,000 | 13,290,000 | 14,938,000 | |||||||
Financing receivable recorded investment past due | 183,000 | 158,000 | |||||||||
Commercial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 679,322,000 | 681,962,000 | 679,322,000 | 681,962,000 | |||||||
Commercial and industrial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 153,398,000 | 134,182,000 | 153,398,000 | 134,182,000 | |||||||
Financing receivable, recorded investment | 152,314,000 | 133,918,000 | 152,314,000 | 133,918,000 | |||||||
Financing receivable recorded investment past due | 1,084,000 | 264,000 | |||||||||
Pass | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum individual loan balance requiring quarterly review | 2,000,000 | 2,000,000 | |||||||||
Special Mention | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Financing Receivable Threshold For Individually Evaluating Of Impairment | 250,000 | 250,000 | |||||||||
Substandard | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Financing Receivable Threshold For Individually Evaluating Of Impairment | 250,000 | 250,000 | |||||||||
Doubtful | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum individual loan balance requiring quarterly review | 100,000 | $ 100,000 | |||||||||
Minimum | Commercial. | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum percent of portfolio to be reviewed | 40% | ||||||||||
Commercial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 679,322,000 | 681,962,000 | $ 679,322,000 | 681,962,000 | |||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | 1,000,000 | 1,000,000 | |||||||||
Commercial | Commercial. | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 228,578,000 | 228,578,000 | |||||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | 1,000,000 | 1,000,000 | |||||||||
Individually evaluated for impairment | 1,989,000 | 1,989,000 | |||||||||
Commercial | Commercial and industrial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 153,398,000 | 134,182,000 | 153,398,000 | 134,182,000 | |||||||
Commercial | Pass | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 646,056,000 | 639,765,000 | 646,056,000 | 639,765,000 | |||||||
Commercial | Special Mention | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 11,015,000 | 26,341,000 | 11,015,000 | 26,341,000 | |||||||
Commercial | Substandard | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 22,248,000 | 14,208,000 | 22,248,000 | 14,208,000 | |||||||
Commercial | Doubtful | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 3,000 | 1,648,000 | 3,000 | 1,648,000 | |||||||
Consumer. | CONSUMER | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans, net of unearned income | 13,473,000 | $ 15,096,000 | 13,473,000 | $ 15,096,000 | |||||||
Individually evaluated for impairment | 0 | 0 | |||||||||
Consumer. | Minimum | Consumer and Residential Mortgage Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Individually evaluated for impairment | $ 150,000 | $ 150,000 |
NON-PERFORMING ASSETS INCLUDI_3
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Non-Performing assets including TDR | ||
Non-accrual loans | $ 5,161 | $ 3,323 |
Other real estate owned | 39 | |
Total non-performing assets including TDR | $ 5,200 | $ 3,323 |
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned and repossessed assets | 0.53% | 0.34% |
90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Commercial and industrial | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,989 | 2,165 |
Commercial loans secured by non-owner occupied real estate | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,586 | 5 |
Real estate - residential mortgage | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,577 | $ 1,153 |
Other real estate owned | 38 | |
CONSUMER | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 9 | |
Other real estate owned | $ 1 |
NON-PERFORMING ASSETS INCLUDI_4
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) - Loans in accrual and non-accrual status (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 loan | |
Schedule of TDRs | |||
TDR subsequently default | 0 | 0 | 0 |
Loans in non-accrual status | Commercial and industrial | |||
Schedule of TDRs | |||
Number of loans | 1 | 1 | |
Current Balance | $ | $ 452 | $ 477 | |
Concession Granted | Subsequent modification of a TDR - Extension of maturity date with a below market interest rate | Subsequent modification of a TDR - Extension of maturity date with a below market interest rate | |
Loans in non-accrual status | Commercial loans secured by owner occupied real estate | |||
Schedule of TDRs | |||
Number of loans | 1 | ||
Current Balance | $ | $ 1,583 | ||
Concession Granted | Extension of maturity date with an interest only period at below market interest rate |
NON-PERFORMING ASSETS INCLUDI_5
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) - concentration of COVID-19 related modifications within the loan portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 231 | $ 7,748 |
% of Outstanding Non-PPP Loans | 0.02% | 0.80% |
Commercial loans secured by Non-Owner Occupied real estate [Member] | Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 199 | $ 7,488 |
% of Outstanding Non-PPP Loans | 0.03% | 1.08% |
Home Equity | Consumer. | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 57 | |
% of Outstanding Non-PPP Loans | 0.06% | |
Real estate - residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 32 | $ 203 |
% of Outstanding Non-PPP Loans | 0.02% | 0.11% |
NON-PERFORMING ASSETS INCLUDI_6
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) - types of payment relief that have been granted (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 231 | $ 7,748 |
Interest only payments | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 1 | 6 |
Loans For Which Payment Relief Has Been Requested | $ 199 | $ 3,768 |
Complete payment deferrals | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 2 | 5 |
Loans For Which Payment Relief Has Been Requested | $ 32 | $ 3,980 |
Maturity date extensions | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 3 | 11 |
Loans For Which Payment Relief Has Been Requested | $ 231 | $ 7,748 |
NON-PERFORMING ASSETS INCLUDI_7
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) - Additional information (Details) | 12 Months Ended | ||
Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Aggregate of multiple consecutive maturity date extensions delay in payment, days | 120 days | ||
ALL reserve for TDR's | $ 123,000 | $ 132,000 | |
Decrease in loan modifications to COVID-19 | $ 200,000,000 | ||
Increase in loan modifications to COVID-19 | $ (7,500,000) | ||
Percentage of increase in balance of loan modifications | 97% | ||
Accrued interest receivable due to loan modification | $ 503,000,000,000 | ||
Second payment deferral | |||
Number of loans | loan | 1 | ||
Residential Real Estate [Member] | |||
Other Assets, Noncurrent | $ 38,000 | $ 0 | |
Residential Mortgages [Member] | |||
Mortgage Loans in Process of Foreclosure, Amount | $ 258,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and Equipment | ||
Cost | $ 40,934 | $ 40,251 |
Less: Accumulated depreciation and amortization | 26,474 | 26,169 |
Premises and equipment, net | 14,460 | 14,082 |
Land | ||
Premises and Equipment | ||
Cost | 1,225 | 1,225 |
Premises | ||
Premises and Equipment | ||
Cost | 30,079 | 28,944 |
Furniture and equipment | ||
Premises and Equipment | ||
Cost | 8,428 | 8,908 |
Leasehold Improvements | ||
Premises and Equipment | ||
Cost | $ 1,202 | $ 1,174 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Premises and Equipment | |||
Depreciation and amortization expense | $ 1,700,000 | $ 1,700,000 | $ 1,600,000 |
Director | |||
Premises and Equipment | |||
Expense paid to related party | $ 200,000 | $ 241,000 | $ 232,000 |
LEASE COMMITMENTS - Lease Cost
LEASE COMMITMENTS - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
LEASE COMMITMENTS | |||
Amortization of right-of-use asset | $ 271 | $ 272 | $ 271 |
Interest expense | 100 | 106 | 112 |
Operating lease cost | 106 | 116 | 116 |
Total lease cost | $ 477 | $ 494 | $ 499 |
LEASE COMMITMENTS - Leases outs
LEASE COMMITMENTS - Leases outstanding (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
LEASE COMMITMENTS | ||
Operating Lease, Weighted-average remaining term | 10 years | 11 years |
Financing Lease, Weighted-average remaining term | 15 years 1 month 6 days | 15 years 6 months |
Operating Lease, Weighted-average discount rate | 3.54% | 3.53% |
Financing Lease, Weighted-average discount rate | 3.62% | 3.56% |
LEASE COMMITMENTS - Operating a
LEASE COMMITMENTS - Operating and financing leases - (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LEASE COMMITMENTS | ||
2023 | $ 85 | $ 98 |
2024 | 85 | 69 |
2025 | 75 | 69 |
2026 | 69 | 69 |
2027 | 69 | 69 |
Thereafter | 382 | 452 |
Total undiscounted cash flows | 765 | 826 |
Discount on cash flows | (122) | (144) |
Total lease liabilities | 643 | 682 |
2023 | 309 | 320 |
2024 | 249 | 309 |
2025 | 248 | 249 |
2026 | 181 | 248 |
2027 | 181 | 181 |
Thereafter | 2,397 | 2,578 |
Total undiscounted cash flows | 3,565 | 3,885 |
Discount on cash flows | (885) | (986) |
Total lease liabilities | $ 2,680 | $ 2,899 |
LEASE COMMITMENTS - Additional
LEASE COMMITMENTS - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Description Of Accounting Treatment For Short Term Operating Lease | As of December 31, 2022, the Company had one short-term lease for an office location compared to no short-term leases as of December 31, 2021. | ||
Net occupancy expense | $ 2,883,000 | $ 2,620,000 | $ 2,510,000 |
Director | |||
Property, Plant and Equipment [Line Items] | |||
Area of lease | ft² | 1,049 | ||
Lease income received from related party | $ 13,000 | $ 13,000 | $ 13,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Demand: | ||
Non-interest bearing | $ 195,123 | $ 211,106 |
Interest bearing | 236,746 | 235,582 |
Savings | 135,796 | 133,163 |
Money market | 254,868 | 267,202 |
Certificates of deposit in denominations of $100,000 or more | 286,004 | 292,325 |
Total deposits | $ 1,108,537 | $ 1,139,378 |
DEPOSITS - Deposits and certifi
DEPOSITS - Deposits and certificates of deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CERTIFICATES OF DEPOSIT OF $100,000 OR MORE | ||
2023 | $ 166,109 | |
2024 | 79,097 | |
2025 | 14,550 | |
2026 | 7,566 | |
2027 | 7,044 | |
2028 and after | 11,638 | |
Total | $ 286,004 | $ 292,325 |
DEPOSITS - Additional informati
DEPOSITS - Additional information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS. | ||
Time Deposits | $ 286,004,000 | $ 292,325,000 |
Time deposits meet or exceed the FDIC insurance limit | 74,000,000 | 66,700,000 |
Related party deposits | $ 3,135,000 | $ 3,499,000 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SHORT-TERM BORROWINGS | |||
Open Repo Plus | $ 88,641 | ||
Federal Funds Purchased | |||
SHORT-TERM BORROWINGS | |||
Open Repo Plus | $ 0 | $ 0 | |
Maximum balance at any month end | 2,000 | ||
Average balance during year | $ 113 | $ 18 | |
Average rate paid for the year | 3.11% | 0.87% | |
Short-Term Borrowings [Member] | |||
SHORT-TERM BORROWINGS | |||
Open Repo Plus | $ 88,641 | 0 | $ 24,702 |
Maximum balance at any month end | 88,641 | 4,077 | 41,632 |
Average balance during year | $ 9,155 | $ 389 | $ 4,929 |
Average rate paid for the year | 3.93% | 0.37% | 0.58% |
Interest rate on year-end balance | 4.45% | 0.28% | 0.41% |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
WEIGHTED AVERAGE YIELD | ||
2022/2023 | 1.59% | 1.88% |
2023/2024 | 1.19% | 1.59% |
2024/2025 | 1.19% | |
Total advances from FHLB | 1.50% | 1.71% |
BALANCE | ||
2022/2023 | $ 15,568 | $ 22,888 |
2023/2024 | 4,197 | 15,568 |
2024/2025 | 4,197 | |
Total advances from FHLB | $ 19,765 | $ 42,653 |
ADVANCES FROM FEDERAL HOME LO_4
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 26, 2021 | Dec. 29, 2015 | Apr. 28, 1998 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | $ 302,000 | |||||
Available Unsecured Federal Funds | 35,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.45% | |||||
Payments for Repurchase of Trust Preferred Securities | $ 12,000 | $ 12,018 | ||||
Subordinated Debt | 26,644 | 26,603 | ||||
Federal Reserve Bank [Member] | ||||||
Availability Of Short term Borrowings Federal Reserve | 41,000 | |||||
Subordinated Debt. | ||||||
Debt Instrument, Face Amount | $ 27,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 6.50% | ||||
Maturity term | 5 years | |||||
Net Proceeds | $ 20,000 | |||||
Early Repayment of Subordinated Debt | $ 7,700 | |||||
Subordinated Debt | 26,600 | $ 26,600 | ||||
Debt Conversion, Downstream of Capital | $ 3,500 | |||||
Subordinated Debt. | Secured Overnight Financing Rate (SOFR) | ||||||
SOFR rate percentage | 3.11% |
DISCLOSURES ABOUT FAIR VALUE _4
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS- Schedule of assets and liability measured and recorded on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | $ 502 | $ 526 |
Available for sale, at fair value | 179,508 | 163,171 |
Interest rate swap asset | $ 6,992 | $ 1,226 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Interest rate swap liability | $ (6,872) | $ (1,226) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Risk participation agreement | $ 0 | |
U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 10,533 | $ 7,387 |
U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 89,985 | 80,167 |
Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 19,038 | 20,892 |
Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 59,952 | 54,725 |
Level 1 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | 502 | 526 |
Interest rate swap asset | 0 | |
Risk participation agreement | 0 | |
Level 1 | U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 0 | |
Level 1 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 0 | |
Level 1 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 0 | |
Level 2 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Interest rate swap asset | 6,992 | 1,226 |
Interest rate swap liability | (6,872) | (1,226) |
Risk participation agreement | 0 | |
Level 2 | U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 10,533 | 7,387 |
Level 2 | U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 89,985 | 80,167 |
Level 2 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 19,038 | 20,892 |
Level 2 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 59,952 | $ 54,725 |
Level 3 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Interest rate swap asset | 0 | |
Risk participation agreement | 0 | |
Level 3 | U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 0 | |
Level 3 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 0 | |
Level 3 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | $ 0 |
DISCLOSURES ABOUT FAIR VALUE _5
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS - Schedule of assets measured and recorded at fair value on a non-recurring basis (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loan with carrying value | $ 1,600,000 | $ 5,000 | |
Specific valuation allowance | $ 3,000 | 5,000 | |
Impaired loans | 1,600,000 | $ 0 | |
Fair Value Measurements, Nonrecurring Basis | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | 1,583,000 | ||
Other real estate owned and repossessed assets | 39,000 | ||
Fair Value Measurements, Nonrecurring Basis | Level 1 | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | 0 | 0 | |
Other real estate owned and repossessed assets | 0 | ||
Fair Value Measurements, Nonrecurring Basis | Level 2 | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | 0 | $ 0 | |
Other real estate owned and repossessed assets | 0 | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | 1,583,000 | ||
Other real estate owned and repossessed assets | 39,000 | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Impaired loans | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | 1,583,000 | ||
Appraisal adjustments | 100% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Other real estate owned | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Impaired loans | $ 39,000 | ||
Appraisal adjustments | 52% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Minimum | Impaired loans | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Appraisal adjustments | 0% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Minimum | Other real estate owned | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Liquidation expenses | 10% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Maximum | Impaired loans | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Appraisal adjustments | 100% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Maximum | Other real estate owned | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Liquidation expenses | 39% | ||
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Impaired loans | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Appraisal adjustments | 0.20% | 100% | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Other real estate owned | |||
Disclosures about Fair Value Measurements and Financial Instruments | |||
Appraisal adjustments | 52% | ||
Liquidation expenses | 11% |
DISCLOSURES ABOUT FAIR VALUE _6
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of estimated fair value and recorded carrying value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Carrying Value | $ 61,878 | $ 53,751 |
Loans held for sale, Carrying Value | 59 | 983 |
Loans, net of allowance for loan loss and unearned income, Carrying Value | 980,023 | 972,656 |
Investment securities - HTM, Fair Value | 55,192 | 55,516 |
Loans held for sale, Fair Value | 57 | 1,022 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 938,188 | 969,681 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Carrying Value | 286,004 | 292,325 |
All other borrowings, Carrying Value | 46,409 | 69,256 |
Deposits with stated maturities, Fair Value | 281,297 | 294,280 |
All other borrowings, Fair Value | $ 44,759 | 69,506 |
Assets and liabilities considered financial instruments, percentage | 90% | |
Level 1 | ||
FINANCIAL ASSETS: Carrying Value | ||
Loans held for sale, Fair Value | $ 57 | 1,022 |
Level 2 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 52,323 | 52,523 |
Level 3 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 2,869 | 2,993 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 938,188 | 969,681 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Fair Value | 281,297 | 294,280 |
All other borrowings, Fair Value | $ 44,759 | $ 69,506 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||||||||||
Current | $ 1,220 | $ 973 | $ (400) | ||||||||
Deferred | 533 | 729 | 1,614 | ||||||||
Income tax expense | $ 126 | $ 526 | $ 496 | $ 605 | $ 421 | $ 341 | $ 420 | $ 520 | $ 1,753 | $ 1,702 | $ 1,214 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AMOUNT | |||||||||||
Income tax expense based on federal statutory rate | $ 1,932 | $ 1,843 | $ 1,221 | ||||||||
Tax exempt income | (244) | (253) | (188) | ||||||||
Other | 65 | 112 | 181 | ||||||||
Income tax expense | $ 126 | $ 526 | $ 496 | $ 605 | $ 421 | $ 341 | $ 420 | $ 520 | $ 1,753 | $ 1,702 | $ 1,214 |
RATE | |||||||||||
Income tax expense based on federal statutory rate | 21% | 21% | 21% | ||||||||
Tax exempt income | (2.60%) | (2.90%) | (3.20%) | ||||||||
Other | 0.70% | 1.30% | 3.10% | ||||||||
Total expense for income taxes | 19.10% | 19.40% | 20.90% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
DEFERRED TAX ASSETS: | ||
Allowance for loan losses | $ 2,256 | $ 2,604 |
Unfunded commitment reserve | 157 | 208 |
Unrealized investment security losses | 3,971 | |
Premises and equipment | 955 | 743 |
Lease liabilities | 698 | 752 |
Other | 185 | 175 |
Total tax assets | 8,222 | 4,482 |
DEFERRED TAX LIABILITIES: | ||
Investment accretion | (107) | (51) |
Unrealized investment security gains | 0 | (369) |
Lease right-of-use assets | (639) | (704) |
Accrued pension obligation | (4,494) | (4,098) |
Other | (193) | (194) |
Total tax liabilities | (5,433) | (5,416) |
Net deferred tax asset (liability) | $ 2,789 | |
Net deferred tax asset (liability) | $ (934) |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in obligations and assets (Details) - Defined Benefit Pension Items - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CHANGE IN BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 50,287 | $ 54,861 | |
Service cost | 1,419 | 1,708 | $ 1,676 |
Interest cost | 1,462 | 894 | 1,281 |
Actuarial (gain) loss | (9,787) | 273 | |
Settlements | (7,541) | (6,516) | |
Benefits paid | (934) | (933) | |
Benefit obligation at end of year | 34,906 | 50,287 | 54,861 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 70,432 | 58,447 | |
Actual return on plan assets | (9,700) | 11,434 | |
Employer contributions | 4,000 | 8,000 | |
Settlements | (7,541) | (6,516) | |
Benefits paid | (934) | (933) | |
Fair value of plan assets at end of year | 56,257 | 70,432 | $ 58,447 |
Funded status of the plan | $ 21,351 | $ 20,145 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts not recognized as components of net periodic pension cost (Details) - Defined Benefit Pension Items - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amounts recognized in accumulated other comprehensive loss consists of: | ||
Net actuarial loss | $ 9,597 | $ 9,319 |
Total | $ 9,597 | $ 9,319 |
EMPLOYEE BENEFIT PLANS - Accumu
EMPLOYEE BENEFIT PLANS - Accumulated benefit obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Pension Items | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 32,190 | $ 46,319 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted-average assumptions used to determine benefit obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Discount rate | 5.45% | 2.80% |
Ages 30-34 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 5% | 2.50% |
Ages 35-44 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 4% | 2.50% |
Ages 45-54 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 3% | 2.50% |
Ages 55+ | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 2.50% | 2.50% |
EMPLOYEE BENEFIT PLANS - Chan_2
EMPLOYEE BENEFIT PLANS - Changes in plan assets and benefit obligations (Details) - Defined Benefit Pension Items - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS | |||
Net loss (gain) | $ 4,106 | $ (7,153) | $ 968 |
Recognized loss | (3,828) | (4,157) | (2,453) |
Total recognized in other comprehensive loss before tax effect | 278 | (11,310) | (1,485) |
Total recognized in net benefit cost and other comprehensive loss before tax effect | $ 2,794 | $ (8,559) | $ 684 |
EMPLOYEE BENEFIT PLANS - Weig_2
EMPLOYEE BENEFIT PLANS - Weighted-average assumptions used to determine net periodic benefit cost (Details) - Defined Benefit Pension Items | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Discount rate | 2.81% | 2.48% | 3.20% |
Expected return on plan assets | 7% | 7% | 7% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset allocation (Details) - Defined Benefit Pension Items | Dec. 31, 2022 | Dec. 31, 2021 |
ASSET CATEGORY: | ||
Asset allocations | 100% | 100% |
Cash and Cash Equivalents | ||
ASSET CATEGORY: | ||
Asset allocations | 89.90% | 0.10% |
Equity securities | ||
ASSET CATEGORY: | ||
Asset allocations | 7.10% | 12.10% |
Mutual funds/ETFs | ||
ASSET CATEGORY: | ||
Asset allocations | 0% | 84.10% |
International equities | ||
ASSET CATEGORY: | ||
Asset allocations | 0% | 0.30% |
Corporate bonds | ||
ASSET CATEGORY: | ||
Asset allocations | 3% | 3.40% |
EMPLOYEE BENEFIT PLANS - Segreg
EMPLOYEE BENEFIT PLANS - Segregation of assets by the level of valuations inputs (Details) - Defined Benefit Pension Items - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 56,257 | $ 70,432 | $ 58,447 |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 50,553 | 56 | |
Domestic equities. | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 4,026 | 8,488 | |
International equities | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 199 | |
Mutual funds/ETFs | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 59,306 | ||
Corporate bonds | Level 2 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 1,678 | $ 2,383 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Component of net periodic benefit cost (Details) - Defined Benefit Pension Items - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of net periodic benefit cost | |||
Service cost | $ 1,419 | $ 1,708 | $ 1,676 |
Interest cost | 1,462 | 894 | 1,281 |
Expected return on plan assets | (4,193) | (4,008) | (3,241) |
Amortization of net loss | 1,330 | 2,421 | 2,453 |
Settlement charge | 2,498 | 1,736 | |
Net periodic pension cost | $ 2,516 | $ 2,751 | $ 2,169 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated future benefit payments (Details) - Defined Benefit Pension Items $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 3,422 |
2024 | 4,177 |
2025 | 3,934 |
2026 | 4,059 |
2027 | 3,534 |
Years 2028-2032 | $ 12,780 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) Y | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum number of annual hours | 1,000 | ||||
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10% | ||||
Period of investment performance | 20 years | ||||
Percentage gain combined from other sources | 19% | ||||
Defined contribution plan, employer matching contribution, percent of match | 2% | 6% | |||
Non-elective contribution by employer for non union employees | 4% | ||||
Non-elective contribution by employer for union employees | 4% | ||||
Defined contribution plan maximum annual contribution per union employee percent | 4% | ||||
Defined contribution plan, cost | $ 808,000 | $ 704,000 | $ 653,000 | ||
Defined Contribution Plan assets in common stocks | $ 425,000 | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer matching | 1% | 3% | |||
Defined contribution plan, employer matching contribution, percent of match | 4% | ||||
Other expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation plan expense | $ 15,000 | 44,000 | $ 7,000 | ||
Other liabilities. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation liability | $ 502,000 | 526,000 | |||
Equity securities | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 0% | ||||
Equity securities | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 60% | ||||
Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets of the company's common stock | $ 1,900,000 | ||||
Debt Securities | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 0% | ||||
Debt Securities | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 100% | ||||
Cash and Cash Equivalents | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 0% | ||||
Cash and Cash Equivalents | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 100% | ||||
Defined Benefit Pension Items | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Requisite service period | 5 years | ||||
Number of consecutive calendar years | Y | 5 | ||||
Period of employment | 10 years | ||||
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10% | ||||
Settlement charge | $ 2,498,000 | 1,736,000 | |||
Employer contributions | $ 4,000,000 | $ 8,000,000 | |||
Expected return on plan assets | 7% | 7% | 7% | ||
Defined benefit plan percent of assets comprised of entity common stock | 3.30% | ||||
Charges for benefit obligation of defined benefit plan | $ 997,000 | ||||
Percentage of charges for benefit obligation of defined benefit plan | 98.20% | ||||
Defined Benefit Pension Items | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 2,000,000 | ||||
Defined Benefit Pension Items | Other assets. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets for pension benefits | 21,300,000 | $ 19,500,000 | |||
401(k) PLAN | Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets of the company's common stock | $ 425,000 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||
Financing receivable, recorded investment | $ 983,185,000 | $ 977,589,000 | ||
Carrying value of commitment | 746,000 | 989,000 | ||
Allowance for loan losses | 10,743,000 | 12,398,000 | $ 11,345,000 | $ 9,279,000 |
Commitments to extend credit | ||||
Loss Contingencies [Line Items] | ||||
Amount of commitment | 227,600,000 | 216,600,000 | ||
Standby letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Amount of commitment | 9,000,000 | 13,100,000 | ||
Standby letters of credit | $ 5,600,000 | $ 8,500,000 | ||
Standby letters of Credit | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Term of commitment | 5 years | |||
Standby letters of Credit | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Term of commitment | 1 year |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Details) - $ / shares | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
SHARES | ||||
Outstanding at beginning of year | 369,047 | 230,913 | 296,648 | 296,648 |
Granted | 160,000 | 0 | ||
Exercised | (36,117) | (21,356) | (38,235) | |
Forfeited | (9,144) | (510) | (27,500) | |
Outstanding at end of year | 323,786 | 369,047 | 230,913 | 323,786 |
Exercisable at end of year | 223,784 | 206,713 | 224,580 | 223,784 |
WEIGHTED AVERAGE EXERCISE PRICE | ||||
Outstanding at beginning of year | $ 3.47 | $ 3.14 | $ 3.02 | $ 3.02 |
Granted | 3.84 | |||
Exercised | 2.96 | 2.68 | 2.06 | |
Forfeited | 3.62 | 3.23 | 3.30 | |
Outstanding at end of year | 3.52 | 3.47 | 3.14 | 3.52 |
Exercisable at end of year | $ 3.38 | 3.18 | $ 3.11 | $ 3.38 |
Weighted average fair value of options granted in current year | $ 1.78 |
STOCK COMPENSATION PLANS - Pric
STOCK COMPENSATION PLANS - Pricing model assumption ranges (Details) | 12 Months Ended |
Dec. 31, 2021 | |
STOCK COMPENSATION PLANS | |
Expected lives in years | 10 years |
STOCK COMPENSATION PLANS - Addi
STOCK COMPENSATION PLANS - Additional information (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2019 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock based compensation | $ 50,000 | $ 43,000 | $ 3,000 | ||
Number of Shares Authorized | 600,000 | 600,000 | |||
Purchase Price of Common Stock, Percent | 100% | ||||
Expiration Period | 10 years | ||||
Award Vesting Period | 3 years | ||||
Options Outstanding | 323,786 | 369,047 | 230,913 | 323,786 | 296,648 |
Grants in Period | 160,000 | 0 | |||
Intrinsic Value | $ 47,000 | $ 27,000 | $ 56,000 | ||
Range One [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Number of Exercisable Options | 223,784 | 223,784 | |||
Exercise Price Range, Lower Range Limit | $ 2.96 | ||||
Exercise Price Range, Upper Range Limit | 4.22 | ||||
Weighted Average Exercise Price | $ 3.38 | $ 3.38 | |||
Weighted Average Remaining Contractual Term | 3 years 6 months 3 days | ||||
Range Two [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Number of not yet exercisable options | 100,002 | 100,002 | |||
Exercise Price Range, Lower Range Limit | $ 3.83 | ||||
Exercise Price Range, Upper Range Limit | 3.84 | ||||
Weighted Average Exercise Price | $ 3.84 | $ 3.84 | |||
Weighted Average Remaining Contractual Term | 8 years 1 month 17 days |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (6,512) | $ (13,198) | $ (16,171) |
Other comprehensive income (loss) before reclassifications | (19,032) | 3,468 | 1,035 |
Amounts reclassified from accumulated other comprehensive loss | 3,024 | 3,218 | 1,938 |
Net current period other comprehensive income (loss) | (16,008) | 6,686 | 2,973 |
Ending balance | (22,520) | (6,512) | (13,198) |
Net Unrealized Gains and Losses on Investment Securities AFS | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,386 | 3,539 | 1,715 |
Other comprehensive income (loss) before reclassifications | (16,324) | (2,087) | 1,824 |
Amounts reclassified from accumulated other comprehensive loss | (66) | ||
Net current period other comprehensive income (loss) | (16,324) | (2,153) | 1,824 |
Ending balance | (14,938) | 1,386 | 3,539 |
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (7,898) | (16,737) | (17,886) |
Other comprehensive income (loss) before reclassifications | (2,708) | 5,555 | (789) |
Amounts reclassified from accumulated other comprehensive loss | 3,024 | 3,284 | 1,938 |
Net current period other comprehensive income (loss) | 316 | 8,839 | 1,149 |
Ending balance | $ (7,582) | $ (7,898) | $ (16,737) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS- Reclassification of component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized gains on sale of securities | |||
Net realized gains on investment securities | $ (84) | ||
Provision for income taxes | 18 | ||
Net of tax | (66) | ||
Amortization of estimated defined benefit pension plan loss | |||
Other expense | $ (3,828) | (4,157) | $ (2,453) |
Provision for income taxes | (804) | (873) | (515) |
Net of tax | 3,024 | 3,284 | 1,938 |
Total reclassifications for the period | $ 3,024 | $ 3,218 | $ 1,938 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Goodwill | 13,611,000 | 13,611,000 | $ 11,944,000 |
West Chester Capital Advisors [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 2,400,000 | ||
Riverview Bank | |||
Goodwill [Line Items] | |||
Goodwill | 1,700,000 | ||
Core deposit intangible | 177,000 | ||
Accumulated amortization on core deposit intangible | 49,000 | $ 19,000 | |
Retail Banking [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 13,600,000 | ||
Community banking | |||
Goodwill [Line Items] | |||
Goodwill | $ 11,200,000 |
INTANGIBLE ASSETS - Goodwill (D
INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 11,944 |
Goodwill acquired | 1,667 |
Goodwill, Ending Balance | 13,611 |
Riverview Bank | |
Goodwill [Roll Forward] | |
Goodwill, Ending Balance | $ 1,700 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization of intangible (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Roll Forward] | ||
Amortization | $ 30 | $ 19 |
Riverview Bank | ||
Finite-Lived Intangible Assets [Roll Forward] | ||
Finite-Lived Intangible Assets, Net, Beginning Balance | 158 | |
Core deposit intangible acquired | 177 | |
Amortization | (30) | (19) |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 128 | $ 158 |
INTANGIBLE ASSETS - Future Amor
INTANGIBLE ASSETS - Future Amortization (Details) - Riverview Bank - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 27 | |
2023 | 24 | |
2024 | 21 | |
2025 | 17 | |
2026 | 14 | |
After five years | 25 | |
Finite-Lived Intangible Assets, Net, Total | $ 128 | $ 158 |
DERIVATIVE HEDGING INSTRUMENT_2
DERIVATIVE HEDGING INSTRUMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative, Notional Amount | $ 0 | |
Weighted Average Rate Received (Paid) | 0% | 0% |
Increase (Decrease) in Interest Expense | $ 0 | $ 0 |
Derivative Financial Instruments, Liabilities | Swap | ||
Derivative, Swap Type | N/A | N/A |
Derivative Liability, Notional Amount | $ (65,431) | $ (67,280) |
Weighted Average Rate Received (Paid) | (4.23%) | (2.59%) |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ (21,000) | $ 857,000 |
Derivative Financial Instruments, Assets | Swap | ||
Derivative, Swap Type | N/A | N/A |
Derivative Asset, Notional Amount | $ 65,431 | $ 67,280 |
Weighted Average Rate Received (Paid) | 4.23% | 2.59% |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ 21,000 | $ (857,000) |
DERIVATIVE HEDGING INSTRUMENT_3
DERIVATIVE HEDGING INSTRUMENTS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Proceeds from Fees Received | $ 8,000 | $ 191,000 |
Notional amount | 0 | |
Maximum amount outstanding | 500,000,000 | 500,000,000 |
Interest Rate Swap | Risk Participation Agreement | ||
Notional amount | $ 2,100,000 | $ 2,500,000 |
SEGMENT RESULTS (Details)
SEGMENT RESULTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | $ 10,143 | $ 10,529 | $ 10,124 | $ 9,767 | $ 10,298 | $ 9,226 | $ 9,867 | $ 9,692 | $ 40,563 | $ 39,083 | $ 36,367 |
Provision for loan losses | 275 | 500 | (325) | (400) | 250 | 350 | 100 | 400 | 50 | 1,100 | 2,375 |
Non-interest income (loss) | 3,893 | 4,326 | 4,138 | 4,335 | 4,332 | 4,416 | 4,399 | 4,614 | 16,692 | 17,761 | 16,275 |
Noninterest expense | 12,688 | 11,727 | 12,110 | 11,479 | 12,107 | 11,520 | 12,038 | 11,305 | 48,004 | 46,970 | 44,455 |
Income (loss) before income taxes | 1,073 | 2,628 | 2,477 | 3,023 | 2,273 | 1,772 | 2,128 | 2,601 | 9,201 | 8,774 | 5,812 |
Income tax expense (benefit) | 126 | 526 | 496 | 605 | 421 | 341 | 420 | 520 | 1,753 | 1,702 | 1,214 |
Net income (loss) | 947 | $ 2,102 | $ 1,981 | $ 2,418 | 1,852 | $ 1,431 | $ 1,708 | $ 2,081 | 7,448 | 7,072 | 4,598 |
Total assets | 1,363,874 | 1,335,560 | 1,363,874 | 1,335,560 | 1,282,733 | ||||||
Community banking | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | 46,135 | 45,934 | 42,862 | ||||||||
Provision for loan losses | 50 | 1,100 | 2,375 | ||||||||
Non-interest income (loss) | 5,174 | 5,649 | 6,022 | ||||||||
Noninterest expense | 36,216 | 35,636 | 34,136 | ||||||||
Income (loss) before income taxes | 15,043 | 14,847 | 12,373 | ||||||||
Income tax expense (benefit) | 2,638 | 2,797 | 2,303 | ||||||||
Net income (loss) | 12,405 | 12,050 | 10,070 | ||||||||
Total assets | 1,114,923 | 1,111,856 | 1,114,923 | 1,111,856 | 1,086,653 | ||||||
Wealth management | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | 65 | 72 | 55 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Non-interest income (loss) | 11,620 | 11,986 | 10,212 | ||||||||
Noninterest expense | 8,834 | 8,349 | 7,683 | ||||||||
Income (loss) before income taxes | 2,851 | 3,709 | 2,584 | ||||||||
Income tax expense (benefit) | 688 | 841 | 598 | ||||||||
Net income (loss) | 2,163 | 2,868 | 1,986 | ||||||||
Total assets | 10,867 | 10,822 | 10,867 | 10,822 | 10,471 | ||||||
Investment/Parent | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | (5,637) | (6,923) | (6,550) | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Non-interest income (loss) | (102) | 126 | 41 | ||||||||
Noninterest expense | 2,954 | 2,985 | 2,636 | ||||||||
Income (loss) before income taxes | (8,693) | (9,782) | (9,145) | ||||||||
Income tax expense (benefit) | (1,573) | (1,936) | (1,687) | ||||||||
Net income (loss) | (7,120) | (7,846) | (7,458) | ||||||||
Total assets | $ 238,084 | $ 212,882 | $ 238,084 | $ 212,882 | $ 185,609 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 136,767 | $ 133,881 |
Tier 1 Common Equity (To RWA), Actual Amount | 125,278 | 120,656 |
Tier 1 Capital (To RWA), Actual Amount | 125,278 | 120,656 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 125,278 | $ 120,656 |
Total Capital (To RWA), Actual Ratio | 0.1244 | 0.1266 |
Tier 1 Common Equity (To RWA), Actual Ratio | 0.1139 | 0.1141 |
Tier 1 Capital (To RWA), Actual Ratio | 0.1139 | 0.1141 |
Tier 1 Capital (To Average Assets), Actual Ratio | 0.0939 | 0.0912 |
Total Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 0.0800 | 0.0800 |
Tier 1 Common Equity (To RWA), Minimum Required For Capital Adequacy Purpose | 0.045% | 0.045% |
Tier 1 Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 0.0600 | 0.0600 |
Tier 1 Capital (To Average Assets), Minimum Required For Capital Adequacy Purpose | 0.0400 | 0.0400 |
Total Capital (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 0.1000 | 0.1000 |
Tier 1 Common Equity (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 0.065% | 0.065% |
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Regulations | 0.0800 | 0.0800 |
Tier 1 Capital (To Average Assets), To Be Will Capitalized Under Prompt Corrective Action Regulations | 0.0500 | 0.0500 |
Parent Company | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 153,092 | $ 149,177 |
Tier 1 Common Equity (To RWA), Actual Amount | 114,959 | 109,292 |
Tier 1 Capital (To RWA), Actual Amount | 114,959 | 109,292 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 114,959 | $ 109,292 |
Total Capital (To RWA), Actual Ratio | 0.1387 | 0.1404 |
Tier 1 Common Equity (To RWA), Actual Ratio | 0.1041 | 0.1029 |
Tier 1 Capital (To RWA), Actual Ratio | 0.1041 | 0.1029 |
Tier 1 Capital (To Average Assets), Actual Ratio | 0.0852 | 0.0817 |
REGULATORY CAPITAL - Additional
REGULATORY CAPITAL - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 26, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Subordinated Debt | $ 26,644 | $ 26,603 | ||
Subordinated Debt. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Debt Instrument, Face Amount | $ 27,000 | |||
Net Proceeds | $ 20,000 | |||
Subordinated Debt | 26,600 | $ 26,600 | ||
Debt Conversion, Downstream of Capital | $ 3,500 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Cash | $ 18,830 | $ 24,748 | |
Short-term investments | 5,411 | ||
Cash and cash equivalents | 22,962 | 41,101 | |
Investment securities available for sale | 179,508 | 163,171 | |
Other assets | 33,835 | 25,053 | |
TOTAL ASSETS | 1,363,874 | 1,335,560 | $ 1,282,733 |
LIABILITIES | |||
Subordinated debt | 26,644 | 26,603 | |
Other liabilities | 10,786 | 5,862 | |
TOTAL LIABILITIES | 1,257,696 | 1,219,011 | |
STOCKHOLDERS' EQUITY | |||
Total stockholders' equity | 106,178 | 116,549 | $ 104,399 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,363,874 | 1,335,560 | |
Parent Company | |||
ASSETS | |||
Cash | 100 | 100 | |
Short-term investments | 3,178 | 5,533 | |
Cash and cash equivalents | 3,278 | 5,633 | |
Investment securities available for sale | 6,334 | 3,692 | |
Other assets | 1,008 | 866 | |
TOTAL ASSETS | 134,585 | 144,772 | |
LIABILITIES | |||
Subordinated debt | 26,644 | 26,603 | |
Other liabilities | 1,763 | 1,620 | |
TOTAL LIABILITIES | 28,407 | 28,223 | |
STOCKHOLDERS' EQUITY | |||
Total stockholders' equity | 106,178 | 116,549 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 134,585 | 144,772 | |
Parent Company | Banking Subsidiary [Member] | |||
ASSETS | |||
Equity investment | 117,432 | 127,874 | |
Parent Company | Non Banking Subsidiaries [Member] | |||
ASSETS | |||
Equity investment | $ 6,533 | $ 6,707 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME | |||||||||||
Interest, dividend and other income | $ 13,803 | $ 12,700 | $ 11,527 | $ 11,028 | $ 11,690 | $ 11,372 | $ 11,838 | $ 11,769 | $ 49,058 | $ 46,669 | $ 46,882 |
EXPENSE | |||||||||||
Interest expense | 3,660 | 2,171 | 1,403 | 1,261 | 1,392 | 2,146 | 1,971 | 2,077 | 8,495 | 7,586 | 10,515 |
Salaries and employee benefits | 28,492 | 27,847 | 27,390 | ||||||||
Other expense | 5,299 | 5,435 | 4,321 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | 1,073 | 2,628 | 2,477 | 3,023 | 2,273 | 1,772 | 2,128 | 2,601 | 9,201 | 8,774 | 5,812 |
Benefit for income taxes | 126 | 526 | 496 | 605 | 421 | 341 | 420 | 520 | 1,753 | 1,702 | 1,214 |
NET INCOME | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ 1,852 | $ 1,431 | $ 1,708 | $ 2,081 | 7,448 | 7,072 | 4,598 |
COMPREHENSIVE (LOSS) INCOME | (8,560) | 13,758 | 7,571 | ||||||||
Parent Company | |||||||||||
INCOME | |||||||||||
Inter-entity management and other fees | 2,566 | 2,520 | 2,708 | ||||||||
Interest, dividend and other income | 146 | 115 | 106 | ||||||||
TOTAL INCOME | 7,767 | 6,185 | 6,758 | ||||||||
EXPENSE | |||||||||||
Interest expense | 1,054 | 1,798 | 1,642 | ||||||||
Salaries and employee benefits | 2,811 | 2,871 | 2,667 | ||||||||
Other expense | 1,948 | 1,783 | 1,749 | ||||||||
TOTAL EXPENSE | 5,813 | 6,452 | 6,058 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | 1,954 | (267) | 700 | ||||||||
Benefit for income taxes | (652) | (802) | (681) | ||||||||
Equity in undistributed earnings of subsidiaries | 4,842 | 6,537 | 3,217 | ||||||||
NET INCOME | 7,448 | 7,072 | 4,598 | ||||||||
COMPREHENSIVE (LOSS) INCOME | (8,560) | 13,758 | 7,571 | ||||||||
Parent Company | Banking Subsidiary [Member] | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | 4,000 | 2,000 | 2,000 | ||||||||
Parent Company | Non Banking Subsidiaries [Member] | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | $ 1,055 | $ 1,550 | $ 1,944 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 28, 1998 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||||||||||||
Net income | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ 1,852 | $ 1,431 | $ 1,708 | $ 2,081 | $ 7,448 | $ 7,072 | $ 4,598 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Stock compensation expense | 50 | 43 | 3 | |||||||||
Other - net | (3,398) | (4,379) | (7,140) | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of investment securities - available for sale | (58,207) | (61,578) | (36,519) | |||||||||
Proceeds from maturity and sales of investment securities - available for sale | 19,638 | 38,826 | 36,215 | |||||||||
FINANCING ACTIVITIES | ||||||||||||
Redemption of guaranteed junior subordinated deferrable interest debentures | $ (12,000) | (12,018) | ||||||||||
Subordinated debt issuance, net | 26,589 | |||||||||||
Redemption of subordinated debt | (7,650) | |||||||||||
Stock options exercised | 106 | 57 | 78 | |||||||||
Common stock dividends paid | (1,967) | (1,708) | (1,716) | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,139) | 9,597 | 9,336 | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 41,101 | 31,504 | 41,101 | 31,504 | 22,168 | |||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | 22,962 | 41,101 | 22,962 | 41,101 | 31,504 | |||||||
Parent Company | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income | 7,448 | 7,072 | 4,598 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (4,842) | (6,537) | (3,217) | |||||||||
Stock compensation expense | 50 | 43 | 3 | |||||||||
Other - net | 189 | 1,204 | (133) | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,845 | 1,782 | 1,251 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of investment securities - available for sale | (3,994) | (1,008) | (1,254) | |||||||||
Proceeds from maturity and sales of investment securities - available for sale | 655 | 991 | 1,246 | |||||||||
Capital contribution to banking subsidiary | (3,500) | |||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (3,339) | (3,517) | (8) | |||||||||
FINANCING ACTIVITIES | ||||||||||||
Redemption of guaranteed junior subordinated deferrable interest debentures | (12,018) | |||||||||||
Subordinated debt issuance, net | 26,589 | |||||||||||
Redemption of subordinated debt | (7,650) | |||||||||||
Stock options exercised | 106 | 57 | 78 | |||||||||
Purchases of treasury stock | 0 | 0 | (151) | |||||||||
Common stock dividends paid | (1,967) | (1,708) | (1,716) | |||||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (1,861) | 5,270 | (1,789) | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2,355) | 3,535 | (546) | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | $ 5,633 | $ 2,098 | 5,633 | 2,098 | 2,644 | |||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ 3,278 | $ 5,633 | $ 3,278 | $ 5,633 | $ 2,098 |
PARENT COMPANY FINANCIAL INFO_6
PARENT COMPANY FINANCIAL INFORMATION - Additional information (Details) | Dec. 31, 2022 USD ($) |
PARENT COMPANY FINANCIAL INFORMATION | |
Dividend Payments Restrictions Schedule, Statutory Capital and Surplus | $ 121,974,000 |
SELECTED QUARTERLY CONSOLIDAT_3
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |||||||||||
Interest income | $ 13,803 | $ 12,700 | $ 11,527 | $ 11,028 | $ 11,690 | $ 11,372 | $ 11,838 | $ 11,769 | $ 49,058 | $ 46,669 | $ 46,882 |
Interest expense | 3,660 | 2,171 | 1,403 | 1,261 | 1,392 | 2,146 | 1,971 | 2,077 | 8,495 | 7,586 | 10,515 |
Net interest income | 10,143 | 10,529 | 10,124 | 9,767 | 10,298 | 9,226 | 9,867 | 9,692 | 40,563 | 39,083 | 36,367 |
Provision for loan losses | 275 | 500 | (325) | (400) | 250 | 350 | 100 | 400 | 50 | 1,100 | 2,375 |
Net interest income after provision (credit) for loan losses | 9,868 | 10,029 | 10,449 | 10,167 | 10,048 | 8,876 | 9,767 | 9,292 | 40,513 | 37,983 | 33,992 |
Non-interest income (loss) | 3,893 | 4,326 | 4,138 | 4,335 | 4,332 | 4,416 | 4,399 | 4,614 | 16,692 | 17,761 | 16,275 |
Non-interest expense | 12,688 | 11,727 | 12,110 | 11,479 | 12,107 | 11,520 | 12,038 | 11,305 | 48,004 | 46,970 | 44,455 |
Income before income taxes | 1,073 | 2,628 | 2,477 | 3,023 | 2,273 | 1,772 | 2,128 | 2,601 | 9,201 | 8,774 | 5,812 |
Provision for income taxes | 126 | 526 | 496 | 605 | 421 | 341 | 420 | 520 | 1,753 | 1,702 | 1,214 |
Net income | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ 1,852 | $ 1,431 | $ 1,708 | $ 2,081 | $ 7,448 | $ 7,072 | $ 4,598 |
Basic earnings per common share | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.11 | $ 0.08 | $ 0.10 | $ 0.12 | $ 0.44 | $ 0.41 | $ 0.27 |
Diluted earnings per common share | 0.06 | 0.12 | 0.12 | 0.14 | 0.11 | 0.08 | 0.10 | 0.12 | 0.43 | 0.41 | 0.27 |
Cash dividends declared per common share | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.115 | $ 0.100 | $ 0.100 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 17, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 12, 2023 | |
Subsequent Event [Line Items] | |||||||||||||
Investment securities available for sale, Cost Basis | $ 198,417,000 | $ 161,416,000 | $ 198,417,000 | $ 161,416,000 | |||||||||
Total assets | 1,363,874,000 | 1,335,560,000 | 1,363,874,000 | 1,335,560,000 | $ 1,282,733,000 | ||||||||
Net income | 947,000 | $ 2,102,000 | $ 1,981,000 | $ 2,418,000 | $ 1,852,000 | $ 1,431,000 | $ 1,708,000 | $ 2,081,000 | 7,448,000 | 7,072,000 | 4,598,000 | ||
Realized gain on equity securities | $ 36,000 | $ 2,000 | |||||||||||
Signature Bank | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Total assets | $ 110,400,000,000 | 110,400,000,000 | |||||||||||
Net income | $ 1,300,000,000 | ||||||||||||
Subsequent event | U.S. Agency | Signature Bank | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Securities | $ 918,000 | ||||||||||||
Subsequent event | Equity securities | Visa Inc. [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of shares of equity securities to be sold | 7,859 | ||||||||||||
Purchase price | $ 1,700,000 | ||||||||||||
Cost of equity securities | $ 0 |