Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 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 | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 39,950,006 | ||
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 | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from depository institutions | $ 9,678 | $ 18,830 |
Interest bearing deposits and short-term investments | 4,349 | 4,132 |
Cash and cash equivalents | 14,027 | 22,962 |
Investment securities, net of allowance for credit losses: | ||
Available for sale, at fair value (allowance for credit losses $926 on December 31, 2023) | 165,711 | 179,508 |
Held to maturity (fair value $58,621 on December 31, 2023 and $55,192 on December 31, 2022; allowance for credit losses $37 on December 31, 2023) | 63,979 | 61,878 |
Loans held for sale | 130 | 59 |
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 1,038,271 | 990,766 |
Less: Allowance for credit losses | 15,053 | 10,743 |
Net loans | 1,023,218 | 980,023 |
Premises and equipment: | ||
Operating lease right-of-use asset | 646 | 630 |
Financing lease right-of-use asset | 2,384 | 2,413 |
Other premises and equipment, net | 14,149 | 14,460 |
Accrued interest income receivable | 5,529 | 4,804 |
Intangible assets: | ||
Goodwill | 13,611 | 13,611 |
Core deposit intangible | 101 | 128 |
Bank owned life insurance | 39,560 | 38,895 |
Net deferred tax asset | 2,679 | 2,789 |
Federal Home Loan Bank stock | 5,210 | 5,754 |
Federal Reserve Bank stock | 2,125 | 2,125 |
Other assets | 36,579 | 33,835 |
TOTAL ASSETS | 1,389,638 | 1,363,874 |
LIABILITIES | ||
Non-interest bearing deposits | 172,070 | 195,123 |
Interest bearing deposits | 986,290 | 913,414 |
Total deposits | 1,158,360 | 1,108,537 |
Short-term borrowings | 40,951 | 88,641 |
Advances from Federal Home Loan Bank | 44,562 | 19,765 |
Operating lease liabilities | 658 | 643 |
Financing lease liabilities | 2,700 | 2,680 |
Subordinated debt | 26,685 | 26,644 |
Total borrowed funds | 115,556 | 138,373 |
Other liabilities | 13,445 | 10,786 |
TOTAL LIABILITIES | 1,287,361 | 1,257,696 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,776,089 shares issued and 17,147,270 shares outstanding on December 31, 2023; 26,746,436 shares issued and 17,117,617 shares outstanding on December 31, 2022 | 268 | 267 |
Treasury stock at cost, 9,628,819 shares on December 31, 2023 and December 31, 2022 | (83,280) | (83,280) |
Capital surplus | 146,364 | 146,225 |
Retained earnings | 58,901 | 65,486 |
Accumulated other comprehensive loss, net | (19,976) | (22,520) |
TOTAL SHAREHOLDERS' EQUITY | 102,277 | 106,178 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,389,638 | $ 1,363,874 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for credit losses | $ 926,000 | |
Held to maturity securities, fair value | 58,621,000 | $ 55,192,000 |
Held to maturity, allowance for credit losses | 37,000 | |
Unearned income | $ 483,000 | $ 343,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,776,089 | 26,746,436 |
Common stock, shares outstanding | 17,147,270 | 17,117,617 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and fees on loans | |||
Taxable | $ 51,539 | $ 41,413 | $ 40,496 |
Tax exempt | 89 | 71 | 89 |
Interest bearing deposits and short-term investments | 251 | 209 | 60 |
Investment securities: | |||
Available for sale | 7,059 | 5,610 | 4,543 |
Held to maturity | 1,922 | 1,755 | 1,481 |
Total Interest Income | 60,860 | 49,058 | 46,669 |
INTEREST EXPENSE | |||
Deposits | 21,014 | 6,424 | 4,806 |
Short-term borrowings | 1,944 | 364 | 1 |
Advances from Federal Home Loan Bank | 731 | 553 | 875 |
Financing lease liabilities | 97 | 100 | 106 |
Guaranteed junior subordinated deferrable interest debentures | 944 | ||
Subordinated debt | 1,054 | 1,054 | 854 |
Total Interest Expense | 24,840 | 8,495 | 7,586 |
Net Interest Income | 36,020 | 40,563 | 39,083 |
Provision for credit losses | 7,429 | 50 | 1,100 |
Net Interest Income after Provision for Credit Losses | 28,591 | 40,513 | 37,983 |
NON-INTEREST INCOME | |||
Non-interest income | 14,493 | 14,737 | 14,968 |
Net gains on loans held for sale | 169 | 208 | 664 |
Mortgage related fees | 131 | 115 | 358 |
Net realized gains (losses) on investment securities | (922) | 84 | |
Gain on sale of Visa Class B shares | 1,748 | ||
Bank owned life insurance | 1,047 | 1,089 | 1,117 |
Other income | 1,787 | 2,552 | 2,587 |
Total Non-Interest Income | 16,389 | 16,692 | 17,761 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 29,628 | 28,492 | 27,847 |
Net occupancy expense | 2,917 | 2,883 | 2,620 |
Equipment expense | 1,623 | 1,636 | 1,582 |
Professional fees | 5,317 | 3,210 | 2,872 |
Data processing and IT expense | 4,430 | 3,945 | 3,666 |
Supplies, postage and freight | 668 | 651 | 668 |
Miscellaneous taxes and insurance | 1,301 | 1,373 | 1,236 |
Federal deposit insurance expense | 715 | 515 | 655 |
Branch acquisition costs | 389 | ||
Other expense | 2,769 | 5,299 | 5,435 |
Total Non-Interest Expense | 49,368 | 48,004 | 46,970 |
PRETAX INCOME (LOSS) | (4,388) | 9,201 | 8,774 |
Provision (benefit) for income taxes | (1,042) | 1,753 | 1,702 |
NET INCOME (LOSS) | $ (3,346) | $ 7,448 | $ 7,072 |
Basic: | |||
Net income (loss) | $ (0.20) | $ 0.44 | $ 0.41 |
Average number of shares outstanding | 17,143 | 17,107 | 17,073 |
Diluted: | |||
Net income (loss) | $ (0.20) | $ 0.43 | $ 0.41 |
Average number of shares outstanding | 17,144 | 17,146 | 17,114 |
Cash dividends declared (in $ per share) | $ 0.120 | $ 0.115 | $ 0.100 |
Wealth management fees | |||
NON-INTEREST INCOME | |||
Non-interest income | $ 11,266 | $ 11,620 | $ 11,986 |
Service charges on deposit accounts | |||
NON-INTEREST INCOME | |||
Non-interest income | $ 1,163 | $ 1,108 | $ 965 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (3,346,000) | $ 7,448,000 | $ 7,072,000 |
Other comprehensive income (loss) | |||
Pension obligation change for defined benefit plan | 2,137,000 | 400,000 | 11,189,000 |
Income tax effect | (449,000) | (84,000) | (2,350,000) |
Unrealized holding gains (losses) on available for sale securities arising during period | 606,000 | (20,664,000) | (2,642,000) |
Income tax effect | (127,000) | 4,340,000 | 555,000 |
Reclassification adjustment for net realized (gains) losses on available for sale securities included in net income | 922,000 | (84,000) | |
Income tax effect | (193,000) | 18,000 | |
Fair value change for interest rate hedge | (446,000) | ||
Income tax effect | 94,000 | ||
Other comprehensive income (loss) | 2,544,000 | (16,008,000) | 6,686,000 |
Comprehensive income (loss) | $ (802,000) | $ (8,560,000) | $ 13,758,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | COMMON STOCK | TREASURY STOCK | CAPITAL SURPLUS | RETAINED EARNINGS Impact of adopting ASU 2016-13 | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 267 | $ (83,280) | $ 145,969 | $ 54,641 | $ (13,198) | ||
New common shares issued for exercise of stock options (29,653, 36,117, and 21,356 shares in 2023, 2022, and 2021, respectively) | 57 | ||||||
Stock option expense | 43 | ||||||
Net Income (Loss) | 7,072 | $ 7,072 | |||||
Cash dividend declared on common stock ($0.120, $0.115, and $0.100 per share in 2023, 2022, and 2021, respectively) | (1,708) | ||||||
Other comprehensive income (loss) | 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 (29,653, 36,117, and 21,356 shares in 2023, 2022, and 2021, respectively) | 106 | ||||||
Stock option expense | 50 | ||||||
Net Income (Loss) | 7,448 | 7,448 | |||||
Cash dividend declared on common stock ($0.120, $0.115, and $0.100 per share in 2023, 2022, and 2021, respectively) | (1,967) | ||||||
Other comprehensive income (loss) | (16,008) | (16,008) | |||||
Balance at end of period at Dec. 31, 2022 | 267 | (83,280) | 146,225 | 65,486 | (22,520) | 106,178 | |
New common shares issued for exercise of stock options (29,653, 36,117, and 21,356 shares in 2023, 2022, and 2021, respectively) | 1 | 94 | |||||
Stock option expense | 45 | ||||||
Net Income (Loss) | (3,346) | (3,346) | |||||
Cash dividend declared on common stock ($0.120, $0.115, and $0.100 per share in 2023, 2022, and 2021, respectively) | (2,058) | ||||||
Other comprehensive income (loss) | 2,544 | 2,544 | |||||
Balance at end of period at Dec. 31, 2023 | $ 268 | $ (83,280) | $ 146,364 | $ (1,181) | $ 58,901 | $ (19,976) | $ 102,277 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New common shares issued for exercise of stock options, shares | 29,653 | 36,117 | 21,356 |
Cash dividends declared (in $ per share) | $ 0.120 | $ 0.115 | $ 0.100 |
COMMON STOCK | |||
New common shares issued for exercise of stock options, shares | 29,653 | 36,117 | 21,356 |
CAPITAL SURPLUS | |||
New common shares issued for exercise of stock options, shares | 29,653 | 36,117 | 21,356 |
RETAINED EARNINGS | |||
Cash dividends declared (in $ per share) | $ 0.120 | $ 0.115 | $ 0.100 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net Income (Loss) | $ (3,346,000) | $ 7,448,000 | $ 7,072,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for credit losses | 7,429,000 | 50,000 | 1,100,000 |
Depreciation and amortization expense | 2,047,000 | 2,066,000 | 2,016,000 |
Amortization expense of core deposit intangible | 27,000 | 30,000 | 19,000 |
Amortization of fair value adjustment on acquired time deposits | (33,000) | (101,000) | (98,000) |
Net amortization of investment securities | 49,000 | 108,000 | 222,000 |
Net realized losses (gains) on investment securities - available for sale | 922,000 | (84,000) | |
Net amortization of deferred loan fees | (104,000) | (553,000) | (1,351,000) |
Net gains on loans held for sale | (169,000) | (208,000) | (664,000) |
Origination of mortgage loans held for sale | (9,210,000) | (9,421,000) | (13,806,000) |
Sales of mortgage loans held for sale | 9,308,000 | 10,553,000 | 19,737,000 |
(Increase) decrease in accrued interest receivable | (725,000) | (820,000) | 1,084,000 |
Increase (decrease) in accrued interest payable | 3,069,000 | 45,000 | (490,000) |
Earnings on bank-owned life insurance | (1,047,000) | (1,089,000) | (1,117,000) |
Deferred income taxes | (565,000) | 533,000 | 729,000 |
Stock compensation expense | 45,000 | 50,000 | 43,000 |
Net change in operating leases | (70,000) | (84,000) | (94,000) |
Other, net | (1,339,000) | (3,398,000) | (4,379,000) |
Net cash provided by operating activities | 6,288,000 | 5,209,000 | 9,939,000 |
INVESTING ACTIVITIES | |||
Purchase of investment securities - available for sale | (21,255,000) | (58,207,000) | (61,578,000) |
Purchase of investment securities - held to maturity | (7,970,000) | (11,104,000) | (16,272,000) |
Proceeds from maturities of investment securities - available for sale | 17,973,000 | 19,638,000 | 38,826,000 |
Proceeds from maturities of investment securities - held to maturity | 5,770,000 | 2,918,000 | 6,665,000 |
Proceeds from sales of investment securities - available for sale | 16,772,000 | 1,519,000 | 960,000 |
Purchase of regulatory stock | (19,672,000) | (11,143,000) | (1,799,000) |
Proceeds from redemption of regulatory stock | 20,216,000 | 8,081,000 | 3,928,000 |
Long-term loans originated | (200,770,000) | (223,704,000) | (313,125,000) |
Principal collected on long-term loans | 149,897,000 | 216,787,000 | 301,498,000 |
Purchases of premises and equipment | (1,381,000) | (2,080,000) | (1,241,000) |
Proceeds from sale of other real estate owned and repossessed assets | 39,000 | 14,000 | 8,000 |
Cash acquired in branch acquisition, net | 40,431,000 | ||
Proceeds from life insurance policies | 387,000 | 1,000,000 | 1,211,000 |
Net cash used in investing activities | (39,994,000) | (56,281,000) | (488,000) |
FINANCING ACTIVITIES | |||
Net increase (decrease) in deposit balances | 49,856,000 | (30,740,000) | 42,124,000 |
Net (decrease) increase in other short-term borrowings | (47,690,000) | 88,641,000 | (24,702,000) |
Principal borrowings on advances from Federal Home Loan Bank | 42,365,000 | 2,000,000 | |
Principal repayments on advances from Federal Home Loan Bank | (17,568,000) | (22,888,000) | (24,336,000) |
Principal payments on financing lease liabilities | (228,000) | (219,000) | (210,000) |
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 | 94,000 | 106,000 | 57,000 |
Common stock dividend paid | (2,058,000) | (1,967,000) | (1,708,000) |
Net cash provided by financing activities | 24,771,000 | 32,933,000 | 146,000 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (8,935,000) | (18,139,000) | 9,597,000 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 22,962,000 | 41,101,000 | 31,504,000 |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ 14,027,000 | $ 22,962,000 | $ 41,101,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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. AmeriServ Trust and Financial Services Company (the Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $2.5 billion and $2.3 billion that are not recognized on the Company’s Consolidated Balance Sheets at December 31, 2023 and 2022, respectively. PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of AmeriServ Financial, Inc. and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank) and the Trust Company. The Bank is a Pennsylvania state-chartered full service bank with 16 locations in Pennsylvania and 1 location in Maryland. 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 credit losses (related to investment securities, loans, and unfunded commitments), pension, and derivatives (interest rate swaps/hedges). 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. Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. 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. 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. Allowance for Credit Losses – Held to Maturity Securities The Company measures expected credit losses on held to maturity debt securities, which are comprised of U.S. government agency and mortgage-backed securities as well as taxable municipal, corporate, and other bonds. The Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no allowance for credit losses has been established for these securities. The allowance for credit losses on the taxable municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the probability of default/loss given default (PD/LGD) method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. Additionally, based on management judgment, certain qualitative adjustments, such as the Company’s historical loss experience and/or the issuer’s credit quality, may be applied. At December 31, 2023, the allowance for credit losses on the held to maturity securities portfolio totaled $37,000. The allowance for credit losses on held to maturity debt securities is included within investment securities held to maturity on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Operations. Accrued interest receivable on held to maturity debt securities totaled $388,000 at December 31, 2023 and is included within accrued interest income receivable on the Consolidated Balance Sheets. This amount is excluded from the estimate of expected credit losses. Held to maturity debt securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held to maturity debt securities are placed on non-accrual status, unpaid interest credited to income is reversed. The Company had no held to maturity debt securities in non-accrual status at December 31, 2023. Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available for sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. At December 31, 2023, the allowance for credit losses on the available for sale securities portfolio totaled $926,000. The allowance for credit losses on available for sale debt securities is included within investment securities available for sale on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Operations. Losses are charged against the allowance when the Company believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities totaled $988,000 at December Credit Losses on Investment Securities – Prior to adopting ASU 2016-13 The Company adopted ASU 2016-13 effective January 1, 2023. Financial statement amounts related to investment securities recorded as of December 31, 2022 and for the period ending December 31, 2022 are presented in accordance with the accounting policies described in the following paragraphs. 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 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 term other than temporary is not intended to indicate that the decline is permanent but indicates that the prospects for a near-term recovery of value are not necessarily favorable or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Declines in the fair value of securities below their cost that are deemed to be other than temporary are separated into (a) the amount of the total other than temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other than temporary impairment related to all other factors. The amount of the total other than temporary impairment related to the credit loss is recognized in earnings. The amount of the total other than temporary impairment related to all other factors is recognized in other comprehensive income (loss). At December 31, 2022, 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. 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 that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of any deferred fees or costs and an allowance for credit losses. Interest income is accrued on the unpaid principal balance and is recognized using the level yield method. As of December 31, 2023 and 2022, accrued interest receivable on loans totaled $4.2 million and $3.5 million, respectively, which is reported in accrued interest income receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. 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. Generally, a non-accrual commercial or consumer loan is returned to accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are returned to accrual status upon becoming current. LOAN FEES: Loan origination and commitment fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) over the contractual life of the loan. 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 ASC 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. As of December 31, 2023, the Company had no short-term leases compared to one short-term lease for an office location as of December 31, 2022. ALLOWANCE FOR CREDIT LOSSES – LOANS: The allowance for credit losses (ACL) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged-off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has aligned our segmentation to the quarterly Call Report. This allowed the Company to use not only our data, but also peer institutions to supplement loss observations in determining our qualitative adjustments. Some further sub-segmenting was performed on the commercial and industrial (C&I) and commercial real estate (CRE) portfolios based on collateral type. The Company has identified the following portfolio segments: ● C&I and CRE Owner Occupied – Real Estate ● C&I and CRE Owner Occupied – Other ● CRE Non-Owner Occupied – Retail ● CRE Non-Owner Occupied – Multi-Family ● CRE Non-Owner Occupied – Other ● Residential Mortgages ● Consumer The Company is utilizing the static pool analysis (cohort) method for our CECL model. 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. Once historical cohorts are established, the loans in each individual cohort are tracked over their remaining lives for loss and recovery events. Each cohort is evaluated individually and as a result, a loss may be counted in several different quarterly cohort periods, as long as the specific loan existed in the population of each of those cohort periods. Historical credit loss experience is the basis for the estimation of expected credit losses. The Company applies historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already captured in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a blend of peer and Company data as well as management judgment. Including peer data addresses the Company’s lack of loss history in some pools of loans. For periods beyond our reasonable and supportable forecast period of two years, loss expectations revert to the long-run historical mean. The qualitative adjustments for current conditions are based upon the following factors: ● changes in lending policies and procedures; ● changes in economic conditions; ● changes in the nature and volume of the portfolio; ● staff experience; ● changes in volume and severity of delinquency, non-performing loans, and classified loans; ● changes in the quality of the Company’s loan review system; ● trends in underlying collateral value; ● concentration risk; and ● external factors: competition, legal, regulatory. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. Ultimately, 49% of the fourth quarter of 2023 general reserve represented qualitative adjustment with 51% representing quantitative reserve. In accordance with ASU 2016-13, the Company will evaluate individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. In contrast to legacy accounting standards, this criterion is broader than the impairment concept and management may evaluate loans individually even when no specific expectation of collectability is in place. Loans will not be included in both collective and individual analysis. The individual analysis will establish a specific reserve for loans in scope. It should be noted that there is a review threshold of $150,000 or more for loans being subject to individual evaluation within the consumer and residential mortgage segments. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. 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 is made on a quarterly basis. 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 credit 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 Chief Credit Officer 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 Chief Credit Officer determines 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 Chief Credit Officer and not the originating account officer. Allowance for Loan Losses – Prior to adopting ASU 2016-13 Prior to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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. 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 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, and (3) a general risk reserve which provides support for variance from our assessment of the 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 risk 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. Specifically, 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. Pass rated credits are segregated from criticized and classified credits for the application of qualitative factors. ● 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. The 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, the amount of non-performing loans, and past and anticipated loss experience. ALLOWANCE FOR CREDIT LOSSES – UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision for credit losses line on the Consolidated Statements of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of exp |
ADOPTION OF ACCOUNTING STANDARD
ADOPTION OF ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2023 | |
ADOPTION OF ACCOUNTING STANDARDS | |
ADOPTION OF ACCOUNTING STANDARDS | 2. ADOPTION OF ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASU 2016-13, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and held to maturity debt securities, as well as unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $1.2 million, net of tax, of which $951,000 related to loans, $90,000 related to held to maturity debt securities, and $140,000 related to unfunded commitments. In addition, the Company adopted the provisions of ASU 2016-13 related to presenting other-than-temporary impairment on available for sale debt securities on January 1, 2023, though no such charges were recorded on the securities held by the Company as of the date of adoption. It should be noted that the Company expanded the pooling utilized under the legacy incurred loss method to include additional segmentation based on risk within the loan portfolio. The following table presents the impact of the change from the incurred loss model to the current expected credit loss model. JANUARY 1, 2023 Pre-ASU 2016-13 Impact of ASU 2016-13 Adoption As Reported Under ASU 2016-13 (IN THOUSANDS) Assets Allowance for credit losses - held to maturity securities Municipal $ — $ 3 $ 3 Corporate bonds and other securities — 111 111 Allowance for credit losses - held to maturity securities $ — $ 114 $ 114 Loans, net of unearned income Commercial real estate (owner occupied) $ 75,158 $ 6,201 $ 81,359 Other commercial and industrial 153,420 (31) 153,389 Commercial real estate (non-owner occupied) - retail — 148,901 148,901 Commercial real estate (non-owner occupied) - multi-family — 106,423 106,423 Other commercial real estate (non-owner occupied) 450,744 (225,831) 224,913 Residential mortgages 297,971 (124,194) 173,777 Consumer 13,473 88,531 102,004 Loans, net of unearned income $ 990,766 $ — $ 990,766 Allowance for credit losses - loans Commercial real estate (owner occupied) $ — $ 1,380 $ 1,380 Other commercial and industrial — 2,908 2,908 Commercial real estate (non-owner occupied) - retail — 1,432 1,432 Commercial real estate (non-owner occupied) - multi-family — 1,226 1,226 Other commercial real estate (non-owner occupied) 5,972 (2,776) 3,196 Commercial (owner occupied real estate and other) 2,653 (2,653) — Residential mortgages 1,380 (355) 1,025 Consumer 85 695 780 Allocation for general risk 653 (653) — Allowance for credit losses - loans $ 10,743 $ 1,204 $ 11,947 Liabilities Allowance for credit losses - unfunded commitments $ 746 $ 177 $ 923 In summary, the adoption of ASU 2016-13 necessitated a day one increase of $1.2 million be made to the allowance for credit losses on our loan portfolio and a $177,000 increase to the allowance for credit losses on unfunded commitments. Furthermore, based on the credit quality of the Company’s HTM debt securities portfolio, the day one allowance for credit losses on our HTM securities portfolio totaled only $114,000. Additional disclosures regarding the allowance for credit losses are included within Note 1 – Summary of Significant Accounting Policies, Note 5 – Investment Securities, Note 7 – Allowance for Credit Losses – Loans, and Note 17 – Commitments and Contingent Liabilities. In January 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective homogenous loan pools. Additionally, the amendments of ASU 2022-02 require the Company to disclose current-period gross charge-offs by year of origination within the vintage disclosures. The vintage disclosures contain the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. This guidance was applied on a prospective basis. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | 3. REVENUE RECOGNITION ASU 2014-09, Revenue from Contracts with Customers Topic Non-interest income within the scope of Topic 606 is 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, 2023 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, 2023, 2022, and 2021 (in thousands). AT DECEMBER 31, 2023 2022 2021 Non-interest income: In-scope of Topic 606 Wealth management fees $ 11,266 $ 11,620 $ 11,986 Service charges on deposit accounts 1,163 1,108 965 Other 2,064 2,009 2,017 Non-interest income (in-scope of Topic 606) 14,493 14,737 14,968 Non-interest income (out-of-scope of Topic 606) 1,896 1,955 2,793 Total non-interest income $ 16,389 $ 16,692 $ 17,761 |
CASH AND DUE FROM DEPOSITORY IN
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | 12 Months Ended |
Dec. 31, 2023 | |
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 $9.7 million and $18.8 million as of December 31, 2023 and 2022, respectively. The Federal Reserve reduced reserve requirements to zero as of March 26, 2020. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 GROSS GROSS ALLOWANCE UNREALIZED UNREALIZED FOR CREDIT FAIR COST BASIS GAINS LOSSES LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 6,035 $ — $ (696) $ — $ 5,339 U.S. Agency mortgage-backed securities 104,820 179 (11,924) — 93,075 Municipal 11,159 1 (800) — 10,360 Corporate bonds 62,004 46 (4,187) (926) 56,937 Total $ 184,018 $ 226 $ (17,607) $ (926) $ 165,711 Investment securities held to maturity: DECEMBER 31, 2023 GROSS GROSS ALLOWANCE UNREALIZED UNREALIZED FAIR FOR CREDIT COST BASIS GAINS LOSSES VALUE LOSSES (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (379) $ 2,121 $ — U.S. Agency mortgage-backed securities 24,222 49 (2,058) 22,213 — Municipal 32,787 — (2,797) 29,990 (2) Corporate bonds and other securities 4,470 — (173) 4,297 (35) Total $ 63,979 $ 49 $ (5,407) $ 58,621 $ (37) 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 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, 2023. Management conducted a review of the investment securities portfolio in order to identify exposures to issuers within foreign countries experiencing significant economic, fiscal, and/or political strains. Given the instablity and continuing military conflict between Israel and Hamas, the nation of Israel has been identified by management as significantly strained. At December 31, 2023, the Company had State of Israel Jubilee bonds within the held to maturity portfolio with an amortized cost of $2.0 million and a fair value of $1.9 million. The 3 The Company realized $5,000 of gross investment security gains and $927,000 of gross investment security losses in 2023, realized $5,000 of gross investment security gains and $5,000 of gross investment security losses in 2022, and realized $84,000 of gross investment security gains in 2021. On a net basis, the realized loss for 2023 was $729,000 after factoring in an income tax benefit of $193,000, the realized gain for 2022 was zero, and the realized gain for 2021 was $66,000 after factoring in income tax expense of $18,000. Proceeds from sales of investment securities available for sale were $16.8 million for 2023, $1.5 million for 2022, and $960,000 for 2021. The carrying value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $135,624,000 at December 31, 2023 and $134,002,000 at December 31, 2022. The interest rate environment and market yields can 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, 2023, the Company had low premium risk as the book value of our mortgage-backed securities purchased at a premium was only 100.8% of the par value. The Company’s consolidated investment securities portfolio had an effective duration of approximately 4.12 years. The weighted average expected maturity for available for sale securities at December 31, 2023 for U.S. agency, U.S. agency mortgage-backed, corporate bond, and municipal securities was 6.92, 7.46, 3.72, and 3.05 years, respectively. The weighted average expected maturity for held to maturity securities at December 31, 2023 for U.S. agency, U.S. agency mortgage-backed, corporate bond/other securities, and municipal securities was 6.72, 8.85, 3.36, and 4.69 years, respectively. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The following table sets forth the contractual maturity distribution of the investment securities, cost basis and fair market values as of December 31, 2023. Investment securities available for sale: AT DECEMBER 31, 2023 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 $ 500 $ 2,112 $ 5,012 $ — $ 7,624 After 1 year but within 5 years 176 4,511 29,020 1,667 35,374 After 5 years but within 10 years 4,000 4,536 27,322 5,717 41,575 Over 10 years 1,359 — 650 97,436 99,445 Total $ 6,035 $ 11,159 $ 62,004 $ 104,820 $ 184,018 FAIR VALUE Within 1 year $ 499 $ 2,085 $ 4,940 $ — $ 7,524 After 1 year but within 5 years 169 4,336 27,762 1,615 33,882 After 5 years but within 10 years 3,434 3,939 23,759 5,429 36,561 Over 10 years 1,237 — 476 86,031 87,744 Total $ 5,339 $ 10,360 $ 56,937 $ 93,075 $ 165,711 Investment securities held to maturity: AT DECEMBER 31, 2023 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 $ — $ 1,211 $ 1,000 $ 971 $ 3,182 After 1 year but within 5 years — 13,108 2,002 — 15,110 After 5 years but within 10 years 2,500 17,174 488 1,322 21,484 Over 10 years — 1,294 980 21,929 24,203 Total $ 2,500 $ 32,787 $ 4,470 $ 24,222 $ 63,979 FAIR VALUE Within 1 year $ — $ 1,195 $ 969 $ 964 $ 3,128 After 1 year but within 5 years — 12,580 1,860 — 14,440 After 5 years but within 10 years 2,121 15,143 488 1,280 19,032 Over 10 years — 1,072 980 19,969 22,021 Total $ 2,121 $ 29,990 $ 4,297 $ 22,213 $ 58,621 The following table summarizes the available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2023, aggregated by security type and length of time in a continuous loss position (in thousands): DECEMBER 31, 2023 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ — $ — $ 5,339 $ (696) $ 5,339 $ (696) U.S. Agency mortgage-backed securities 4,120 (20) 73,511 (11,904) 77,631 (11,924) Municipal — — 10,109 (800) 10,109 (800) Corporate bonds 8,885 (103) 42,659 (4,084) 51,544 (4,187) Total $ 13,005 $ (123) $ 131,618 $ (17,484) $ 144,623 $ (17,607) At December 31, 2023, within the available for sale debt securities portfolio, the Company had two U.S. Agency mortgage-backed securities and ten corporate bonds that have been in a gross unrealized loss position for less than 12 months with depreciation of 0.9% from its amortized cost basis. Additionally, at December 31, 2023, within the available for sale debt securities portfolio, the Company had These 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 decrease, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, no provision for credit losses has been recorded for these securities. 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 Company recorded a $926,000 provision for credit losses on available for sale debt securities during 2023. The recognition of the loss resulted from a subordinated debt investment issued by Signature Bank which was closed by 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. Management reviewed the Form 10-K for the year ended December 31, 2022 filed by Signature Bank, which was filed on March 1, 2023, and determined that no circumstances existed to indicate that the debt security held by the Company was impaired as of December 31, 2022. Specifically, as of December 31, 2022, Signature Bank had total assets of $110.4 billion, net income of $1.3 billion for the year then ended, and demonstrated strong regulatory capital ratios. The corporate security has been placed in non-accrual status and approximately $17,000 of unpaid interest previously credited to income was reversed. The following table presents the activity in the allowance for credit losses on held to maturity debt securities by major security type for the year ended December 31, 2023 (in thousands). YEAR ENDED DECEMBER 31, 2023 Balance at Impact of Adopting Charge- Provision Balance at December 31, 2022 ASU 2016-13 Offs Recoveries (Credit) December 31, 2023 U.S. Agency $ — $ — $ — $ — $ — $ — U.S. Agency mortgage-backed securities — — — — — — Municipal — 3 — — (1) 2 Corporate bonds and other securities — 111 — — (76) 35 Total $ — $ 114 $ — $ — $ (77) $ 37 The Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no allowance for credit losses has been established for these securities. The allowance for credit losses on the taxable municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the PD/LGD method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. Additionally, based on management judgment, certain qualitative adjustments, such as the Company’s historical loss experience and/or the issuer’s credit quality, may be applied. 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. The Company monitors the credit ratings of its debt securities on a quarterly basis. At December 31, 2023, 55.9% of the portfolio was rated AAA as compared to 52.5% at December 31, 2022. Approximately 15.1% of the portfolio was rated below A or unrated at December 31, 2023 compared to 14.7% at December 31, 2022. Specifically, the following table summarizes the amortized cost of held to maturity debt securities at December 31, 2023, aggregated by credit quality indicator (in thousands). DECEMBER 31, 2023 CREDIT RATING AAA/AA/A BBB/BB/B UNRATED TOTAL U.S. Agency $ 2,500 $ — $ — $ 2,500 U.S. Agency mortgage-backed securities 24,222 — — 24,222 Municipal 32,787 — — 32,787 Corporate bonds and other securities 3,002 — 1,468 4,470 Total $ 62,511 $ — $ 1,468 $ 63,979 The Company had no held to maturity debt securities in non-accrual status or past due 90 days still accruing interest at December 31, 2023. The underlying issuers continue to make timely principal and interest payments on the securities. As of December 31, 2023, 2022, and 2021, the Company reported $499,000, $502,000, and $526,000, 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. No gain or loss on the equity securities (both realized and unrealized) was recorded during 2023. The realized loss on equity securities was $9,000 during 2022 while the realized gain on equity securities was $36,000 during 2021. The unrealized loss was $13,000 in 2022 compared to an unrealized gain of $7,000 in 2021. 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, 2023 | |
LOANS | |
LOANS | 6. LOANS 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 owner occupied commercial real estate loan and the other commercial and industrial loan classes. The commercial real estate loan segment includes the non-owner occupied commercial real estate loan classes of retail, multi-family, and other. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans while the consumer loan segment consists primarily of home equity loans secured by residential real estate, installment loans, and overdraft lines of credit associated with customer deposit accounts. The loan portfolio of the Company consists of the following: DECEMBER 31, 2023 (IN THOUSANDS) Commercial: Commercial real estate (owner occupied) (1) $ 89,147 Other commercial and industrial 159,424 Commercial real estate (non-owner occupied): Retail (1) 161,961 Multi-family (1) 110,008 Other (1) 240,286 Residential mortgages (1) 174,670 Consumer 102,775 Loans, net of unearned income $ 1,038,271 DECEMBER 31, 2022 (IN THOUSANDS) Commercial: Commercial and industrial $ 153,398 Paycheck Protection Program (PPP) 22 Commercial real estate (owner occupied) (1) 75,158 Commercial real estate (non-owner occupied) (1) 450,744 Residential mortgages (1) 297,971 Consumer 13,473 Loans, net of unearned income $ 990,766 (1) Real estate construction loans constituted 3.4% and 4.7% of the Company’s total loans, net of unearned income as of December 31, 2023 and 2022, respectively. Loan balances at December 31, 2023 and 2022 are net of unearned income of $483,000 and $343,000, respectively. The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct loan exposures to sovereign or non-sovereign (i.e. financial institutions and corporations) borrowers within foreign countries experiencing significant economic, fiscal, and/or political strains. The Company has no significant industry lending concentrations. Specifically, as of December 31, 2023 and 2022, 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 $615,000 and $587,000 at December 31, 2023 and 2022, respectively. The following tables summarize the loan activity with related parties for the years ended December 31, 2023 and 2022 (in thousands). YEAR ENDED DECEMBER 31, 2023 BALANCE AT DECEMBER 31, 2022 ADDITIONS REPAYMENTS BALANCE AT DECEMBER 31, 2023 Loans to related parties $ 587 $ 602 $ 574 $ 615 YEAR ENDED DECEMBER 31, 2022 BALANCE AT DECEMBER 31, 2021 ADDITIONS REPAYMENTS BALANCE AT DECEMBER 31, 2022 Loans to related parties $ 601 $ 206 $ 220 $ 587 |
ALLOWANCE FOR CREDIT LOSSES - L
ALLOWANCE FOR CREDIT LOSSES - LOANS | 12 Months Ended |
Dec. 31, 2023 | |
ALLOWANCE FOR CREDIT LOSSES - LOANS | |
ALLOWANCE FOR CREDIT LOSSES - LOANS | 7. ALLOWANCE FOR CREDIT LOSSES – LOANS The following tables summarize the rollforward of the allowance for credit losses by loan portfolio segment for the years ended December 31, 2023, 2022, and 2021 (in thousands). BALANCE AT IMPACT OF CHARGE- PROVISION BALANCE AT DECEMBER 31, 2022 ADOPTING ASU 2016-13 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2023 Commercial real estate (owner occupied) $ — $ 1,380 $ — $ 24 $ 125 $ 1,529 Other commercial and industrial — 2,908 (480) 3 599 3,030 Commercial real estate (non-owner occupied) - retail — 1,432 (2,028) — 4,084 3,488 Commercial real estate (non-owner occupied) - multi-family — 1,226 — 6 198 1,430 Other commercial real estate (non-owner occupied) 5,972 (2,776) (804) 14 1,022 3,428 Commercial (owner occupied real estate and other) 2,653 (2,653) — — — — Residential mortgages 1,380 (355) (54) 14 36 1,021 Consumer 85 695 (275) 123 499 1,127 Allocation for general risk 653 (653) — — — — Total $ 10,743 $ 1,204 $ (3,641) $ 184 $ 6,563 $ 15,053 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2021 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2022 Commercial $ 3,071 $ (97) $ 4 $ (325) $ 2,653 Commercial real estate (non-owner occupied) 6,392 (1,390) 54 916 5,972 Residential mortgages 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 real estate (non-owner occupied) 5,373 — 51 968 6,392 Residential mortgages 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 The Company recorded a $6.6 million provision for credit losses on the loan portfolio in 2023 compared to a provision of $50,000 and $1.1 million for the years ended December 31, 2022 and 2021, respectively. The increased provision for credit losses on the loan portfolio during 2023 was necessary due primarily to charge-off activity during the year. Specifically, the Company recognized net loan charge-offs of approximately $3.5 million, or 0.35% of total average loans, for 2023 compared to net loan charge-offs of $1.7 million, or 0.17% of total average loans, for the 2022 year. Rite Aid, a national tenant in several commercial real estate properties financed by the Company, declared bankruptcy in the fourth quarter of 2023. As a result of this action, the Company updated its comprehensive evaluation of its exposure to Rite Aid throughout its loan portfolio as it received information on leases that Rite Aid either rejected or modified. This evaluation required the recognition of on another non-owner occupied CRE loan for a mixed-use retail/office property that has Rite Aid as the major tenant. The remaining balance of this loan transferred into non-accrual status which lead to an increase in non-performing assets. Also contributing to the significant increase in the provision for credit losses in 2023 was an unfavorable adjustment to the historical loss factors used to calculate the allowance for credit losses in accordance with CECL requirements and growth within the loan portfolio. 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 pursued 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. The following tables summarize the loan portfolio and allowance for credit losses by the primary segments of the loan portfolio. AT DECEMBER 31, 2023 COMMERCIAL COMMERCIAL COMMERCIAL REAL ESTATE REAL ESTATE OTHER COMMERCIAL REAL ESTATE OTHER COMMERCIAL (NON-OWNER OCCUPIED) - (NON-OWNER OCCUPIED) - REAL ESTATE RESIDENTIAL Loans: (OWNER OCCUPIED) AND INDUSTRIAL RETAIL MULTI-FAMILY (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Individually evaluated $ 187 $ 1,694 $ — $ — $ 8,780 $ 173 $ — $ 10,834 Collectively evaluated 88,960 157,730 161,961 110,008 231,506 174,497 102,775 1,027,437 Total loans $ 89,147 $ 159,424 $ 161,961 $ 110,008 $ 240,286 $ 174,670 $ 102,775 $ 1,038,271 AT DECEMBER 31, 2023 COMMERCIAL COMMERCIAL COMMERCIAL REAL ESTATE REAL ESTATE OTHER COMMERCIAL Allowance for REAL ESTATE OTHER COMMERCIAL (NON-OWNER OCCUPIED) - (NON-OWNER OCCUPIED) - REAL ESTATE RESIDENTIAL credit losses: (OWNER OCCUPIED) AND INDUSTRIAL RETAIL MULTI-FAMILY (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Specific reserve allocation $ — $ 414 $ — $ — $ — $ — $ — $ 414 General reserve allocation 1,529 2,616 3,488 1,430 3,428 1,021 1,127 14,639 Total allowance for credit losses $ 1,529 $ 3,030 $ 3,488 $ 1,430 $ 3,428 $ 1,021 $ 1,127 $ 15,053 AT DECEMBER 31, 2022 COMMERCIAL REAL ESTATE RESIDENTIAL Loans: COMMERCIAL (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Individually evaluated $ 1,989 $ 1,586 $ — $ — $ 3,575 Collectively evaluated 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 Allowance for REAL ESTATE RESIDENTIAL ALLOCATION FOR credit losses: COMMERCIAL (NON-OWNER OCCUPIED) MORTGAGES CONSUMER GENERAL 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 credit losses $ 2,653 $ 5,972 $ 1,380 $ 85 $ 653 $ 10,743 The following table presents the amortized cost basis of collateral-dependent non-accrual loans by class of loans (in thousands). COLLATERAL TYPE DECEMBER 31, 2023 REAL ESTATE Commercial: Commercial real estate (owner occupied) $ 187 Commercial real estate (non-owner occupied): Other 8,780 Residential mortgages 173 Total $ 9,140 Non-Performing Assets 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, and (iii) other real estate owned (OREO – real estate acquired through foreclosure and in-substance foreclosures) and repossessed assets. Loans will be transferred to non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating the loan include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The following table presents non-accrual loans, loans past due over 90 days still accruing interest, and OREO and repossessed assets by portfolio class (in thousands). AT DECEMBER 31, 2023 NON-ACCRUAL WITH NO ACL NON-ACCRUAL WITH ACL TOTAL NON-ACCRUAL LOANS PAST DUE OVER 90 DAYS STILL ACCRUING OREO AND REPOSSESSED ASSETS TOTAL NON-PERFORMING ASSETS Commercial real estate (owner occupied) $ 187 $ — $ 187 $ — $ — $ 187 Other commercial and industrial — 1,694 1,694 211 — 1,905 Commercial real estate (non-owner occupied) - retail — — — — — — Commercial real estate (non-owner occupied) - multi-family — — — — — — Other commercial real estate (non-owner occupied) 8,780 — 8,780 — — 8,780 Residential mortgages 173 545 718 — 15 733 Consumer — 788 788 — — 788 Total $ 9,140 $ 3,027 $ 12,167 $ 211 $ 15 $ 12,393 AT DECEMBER 31, 2022 Non-accrual loans: Commercial and industrial $ 1,989 Commercial real estate (non-owner occupied) 1,586 Residential mortgages 1,577 Consumer 9 Total 5,161 Other real estate owned and repossessed assets: Residential mortgages 38 Consumer 1 Total 39 Total non-performing assets $ 5,200 It should be noted that the Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed in non-accrual status, any outstanding interest is reversed against interest income. Non-performing assets increased from $5.2 million at December 31, 2022 to $12.4 million at December 31, 2023 primarily due to the partial charge-down and transfer into non-accrual status of one commercial real estate loan for a mixed-use retail/office property that has Rite Aid as a major tenant. 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, 2023 and 2022, a total of $15,000 and $38,000, respectively, of residential real estate foreclosed assets were included in other assets. As of December 31, 2023, the Company had initiated formal foreclosure procedures on $332,000 of residential mortgages. Overall, the Company has built its allowance for credit losses and maintained solid coverage of both total loans and non-performing assets at December 31, 2023 as indicated by the allowance for credit losses coverage ratio of non-performing assets at 121% while the allowance for credit losses as a percentage of total loans increased to 1.45%. This compares to allowance coverage of non-performing assets of 207%, and total loans of 1.08% as of December 31, 2022. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. 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. Loans in the doubtful category have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for credit 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 the year ending December 31, 2023 requires review of approximately 25% 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 with aggregate balances greater 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, 2023 REVOLVING REVOLVING LOANS LOANS AMORTIZED CONVERTED TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR COST TO 2023 2022 2021 2020 2019 PRIOR BASIS TERM TOTAL (IN THOUSANDS) Commercial real estate (owner occupied) Pass $ 17,801 $ 6,750 $ 15,067 $ 8,415 $ 10,322 $ 26,538 $ 351 $ — $ 85,244 Special Mention — — 464 — 2,252 — 923 — 3,639 Substandard — — — — — 264 — — 264 Doubtful — — — — — — — — — Total $ 17,801 $ 6,750 $ 15,531 $ 8,415 $ 12,574 $ 26,802 $ 1,274 $ — $ 89,147 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial and industrial Pass $ 22,662 $ 34,816 $ 12,767 $ 5,831 $ 4,912 $ 19,587 $ 56,391 $ 70 $ 157,036 Special Mention — — 127 — — — — — 127 Substandard — 619 — — — 1,578 64 — 2,261 Doubtful — — — — — — — — — Total $ 22,662 $ 35,435 $ 12,894 $ 5,831 $ 4,912 $ 21,165 $ 56,455 $ 70 $ 159,424 Current period gross charge-offs $ — $ 75 $ — $ — $ — $ 405 $ — $ — $ 480 Commercial real estate (non-owner occupied) - retail Pass $ 35,545 $ 23,368 $ 33,110 $ 23,146 $ 9,226 $ 35,102 $ 983 $ — $ 160,480 Special Mention — 314 — — — 1,167 — — 1,481 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 35,545 $ 23,682 $ 33,110 $ 23,146 $ 9,226 $ 36,269 $ 983 $ — $ 161,961 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2,028 $ — $ — $ 2,028 Commercial real estate (non-owner occupied) - multi-family Pass $ 22,620 $ 16,767 $ 16,622 $ 12,041 $ 9,638 $ 28,632 $ 1,321 $ — $ 107,641 Special Mention — — — — — — — — — Substandard — — — 966 1,278 123 — — 2,367 Doubtful — — — — — — — — — Total $ 22,620 $ 16,767 $ 16,622 $ 13,007 $ 10,916 $ 28,755 $ 1,321 $ — $ 110,008 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate (non-owner occupied) Pass $ 29,591 $ 36,398 $ 48,267 $ 20,168 $ 23,025 $ 54,792 $ 5,670 $ — $ 217,911 Special Mention — — — — — 3,777 — — 3,777 Substandard — 1,043 — — 6,243 11,113 — 199 18,598 Doubtful — — — — — — — — — Total $ 29,591 $ 37,441 $ 48,267 $ 20,168 $ 29,268 $ 69,682 $ 5,670 $ 199 $ 240,286 Current period gross charge-offs $ — $ — $ — $ — $ 804 $ — $ — $ — $ 804 Total by risk rating Pass $ 128,219 $ 118,099 $ 125,833 $ 69,601 $ 57,123 $ 164,651 $ 64,716 $ 70 $ 728,312 Special Mention — 314 591 — 2,252 4,944 923 — 9,024 Substandard — 1,662 — 966 7,521 13,078 64 199 23,490 Doubtful — — — — — — — — — Total $ 128,219 $ 120,075 $ 126,424 $ 70,567 $ 66,896 $ 182,673 $ 65,703 $ 269 $ 760,826 Current period gross charge-offs $ — $ 75 $ — $ — $ 804 $ 2,433 $ — $ — $ 3,312 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 real estate (owner occupied) 74,187 — 971 — 75,158 Commercial real estate (non-owner occupied) 423,486 11,015 16,240 3 450,744 Total $ 646,056 $ 11,015 $ 22,248 $ 3 $ 679,322 It is generally the policy of the Bank that the outstanding balance of any residential mortgage or home equity 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. It is generally the policy of the Bank that the outstanding balance of any unsecured consumer loan that exceeds 90-days past due as to principal and/or interest is charged-off. Loans past due 90 days or more and loans in non-accrual status are considered non-performing. The following tables present the performing and non-performing outstanding balances of the residential mortgage and consumer loan portfolio classes. AT DECEMBER 31, 2023 REVOLVING REVOLVING LOANS LOANS AMORTIZED CONVERTED TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR COST TO 2023 2022 2021 2020 2019 PRIOR BASIS TERM TOTAL (IN THOUSANDS) Residential mortgages Performing $ 14,576 $ 11,620 $ 61,172 $ 44,049 $ 7,092 $ 35,443 $ — $ — $ 173,952 Non-performing — — — — — 718 — — 718 Total $ 14,576 $ 11,620 $ 61,172 $ 44,049 $ 7,092 $ 36,161 $ — $ — $ 174,670 Current period gross charge-offs $ — $ — $ — $ — $ — $ 54 $ — $ — $ 54 Consumer Performing $ 13,890 $ 20,430 $ 9,782 $ 3,190 $ 1,169 $ 4,515 $ 48,344 $ 667 $ 101,987 Non-performing 15 — — 73 42 280 157 221 788 Total $ 13,905 $ 20,430 $ 9,782 $ 3,263 $ 1,211 $ 4,795 $ 48,501 $ 888 $ 102,775 Current period gross charge-offs $ 9 $ 35 $ 43 $ 7 $ 8 $ 173 $ — $ — $ 275 Total by payment performance Performing $ 28,466 $ 32,050 $ 70,954 $ 47,239 $ 8,261 $ 39,958 $ 48,344 $ 667 $ 275,939 Non-performing 15 — — 73 42 998 157 221 1,506 Total $ 28,481 $ 32,050 $ 70,954 $ 47,312 $ 8,303 $ 40,956 $ 48,501 $ 888 $ 277,445 Current period gross charge-offs $ 9 $ 35 $ 43 $ 7 $ 8 $ 227 $ — $ — $ 329 AT DECEMBER 31, 2022 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Residential mortgages $ 296,401 $ 1,570 $ 297,971 Consumer 13,457 16 13,473 Total $ 309,858 $ 1,586 $ 311,444 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, 2023 30 – 59 60 – 89 DAYS DAYS 90 DAYS TOTAL TOTAL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS (IN THOUSANDS) Commercial real estate (owner occupied) $ 88,960 $ — $ — $ 187 $ 187 $ 89,147 Other commercial and industrial 158,290 526 22 586 1,134 159,424 Commercial real estate (non-owner occupied) - retail 161,961 — — — — 161,961 Commercial real estate (non-owner occupied) - multi-family 110,008 — — — — 110,008 Other commercial real estate (non-owner occupied) 239,243 — — 1,043 1,043 240,286 Residential mortgages 173,647 437 18 568 1,023 174,670 Consumer 101,664 741 23 347 1,111 102,775 Total $ 1,033,773 $ 1,704 $ 63 $ 2,731 $ 4,498 $ 1,038,271 AT DECEMBER 31, 2022 30 – 59 60 – 89 DAYS DAYS 90 DAYS TOTAL TOTAL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS (IN THOUSANDS) Commercial and industrial $ 152,314 $ 797 $ 287 $ — $ 1,084 $ 153,398 Paycheck Protection Program (PPP) 22 — — — — 22 Commercial real estate (owner occupied) 74,960 198 — — 198 75,158 Commercial real estate (non-owner occupied) 446,809 3,935 — — 3,935 450,744 Residential mortgages 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 Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company modifies loans to borrowers experiencing financial difficulty as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, or combinations thereof. ● Principal forgiveness includes principal and accrued interest forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. ● Interest rate reductions include modifications where the interest rate is reduced and interest is deferred. ● Term extensions extend the original contractual maturity date of the loan. ● Payment delays consist of modifications where we expect to collect the contractual amounts due, but result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less. The following table summarizes the amortized cost basis, as of December 31, 2023, of loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2023 (in thousands). TERM EXTENSION AMORTIZED COST BASIS % OF TOTAL CLASS OF LOANS Residential mortgages $ 37 0.02 % Total $ 37 COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION AMORTIZED COST BASIS % OF TOTAL CLASS OF LOANS Other commercial real estate (non-owner occupied) $ 6,243 2.60 % Total $ 6,243 At December 31, 2023, the Company had no unfunded loan commitments associated with the loan modifications to borrowers experiencing financial difficulty. The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the year ended December 31, 2023. TERM EXTENSION LOAN TYPE FINANCIAL EFFECT Residential mortgages During the fourth quarter, provided a maturity date extension of approximately 15 years. COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION LOAN TYPE FINANCIAL EFFECT Other commercial real estate (non-owner occupied) During the second quarter, provided seven months of interest only payments at a reduced rate with the remaining portion of interest, totaling approximately $303,000, being deferred until maturity. Additionally, provided three month maturity date extension. A partial charge-down of $804,000 was recorded on this loan in the fourth quarter. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. During 2023, there was an additional loan modification made to a borrower experiencing financial difficulty in the form of a term extension. This non-accrual, other commercial and industrial loan, in the amount of $405,000, was charged off in the fourth quarter. As of December 31, 2023, the modified loans described in the tables above were current as to payments. The following table details the loans modified as troubled debt restructurings (TDR) 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 real estate (non-owner occupied) 1 $ 1,583 Extension of maturity date with an interest only period at below market interest rate |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 8. PREMISES AND EQUIPMENT An analysis of premises and equipment follows: AT DECEMBER 31, 2023 2022 (IN THOUSANDS) Land $ 1,225 $ 1,225 Premises 30,624 30,079 Furniture and equipment 8,258 8,428 Leasehold improvements 1,196 1,202 Total at cost 41,303 40,934 Less: Accumulated depreciation and amortization 27,154 26,474 Premises and equipment, net $ 14,149 $ 14,460 The Company recorded depreciation and amortization expense of $1.7 million for the years ended December 31, 2023, 2022, and 2021. 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 $293,000, $200,000, and $241,000 for the years ended December 31, 2023, 2022, and 2021, respectively. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
LEASE COMMITMENTS | |
LEASE COMMITMENTS | 9. 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 ASC The following table presents the lease cost associated with both operating and financing leases for the years ended December 31, 2023, 2022, and 2021. YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) Lease cost Financing lease cost: Amortization of right-of-use asset $ 277 $ 271 $ 272 Interest expense 97 100 106 Operating lease cost 92 106 116 Total lease cost $ 466 $ 477 $ 494 The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at December 31, 2023 and 2022. AT DECEMBER 31, 2023 2022 OPERATING FINANCING OPERATING FINANCING Weighted-average remaining term (years) 8.4 13.9 10.0 15.1 Weighted-average discount rate 3.75 % 3.77 % 3.54 % 3.62 % The following table presents the undiscounted cash flows due related to operating and financing leases as of December 31, 2023 and 2022, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. DECEMBER 31, 2023 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2024 $ 116 $ 311 2025 105 311 2026 93 247 2027 69 232 2028 69 200 Thereafter 312 2,215 Total undiscounted cash flows 764 3,516 Discount on cash flows (106) (816) Total lease liabilities $ 658 $ 2,700 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 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, 2023 | |
DEPOSITS. | |
DEPOSITS | 10. DEPOSITS The following table sets forth the balance of the Company’s deposits: AT DECEMBER 31, 2023 2022 (IN THOUSANDS) Demand: Non-interest bearing $ 172,070 $ 195,123 Interest bearing 288,124 236,746 Savings 119,484 135,796 Money market 256,205 254,868 Time deposits 322,477 286,004 Total deposits $ 1,158,360 $ 1,108,537 (1) Time deposits include certificates of deposit (CDs) and individual retirement accounts (IRAs). The following table sets forth the balance of time deposits as of December 31, 2023 maturing in the periods presented: YEAR: TIME DEPOSITS (IN THOUSANDS) 2024 $ 259,657 2025 40,810 2026 5,395 2027 5,814 2028 3,754 2029 and after 7,047 Total $ 322,477 The aggregate amount of time deposits that exceed the FDIC insurance limit of $250,000 at December 31, 2023 and 2022 are $81.8 million and $74.0 million, respectively. The amount of related party deposits totaled $3,813,000 and $3,135,000 at December 31, 2023 and 2022, respectively. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | 11. SHORT-TERM BORROWINGS Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows: AT DECEMBER 31, 2023 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 40,951 Maximum balance at any month end — 75,442 Average balance during year 46 35,709 Average rate paid for the year 6.04 % 5.44 % Interest rate on year-end balance — 5.68 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 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, 2023 | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT | 12. ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT Advances from the Federal Home Loan Bank (FHLB) consist of the following: AT DECEMBER 31, 2023 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2024 3.23 % $ 7,947 2025 4.43 2,000 2026 4.29 12,920 2027 4.33 10,950 2028 4.50 10,745 Total advances from FHLB 4.17 $ 44,562 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 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, 2023, the Company had immediately available $294 million of overnight borrowing capability at the FHLB, $40 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, 2023 and 2022 was $26.7 million and $26.6 million, respectively. |
DISCLOSURES ABOUT FAIR VALUE ME
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 13. 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 Liabilities 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. It should be noted that available for sale securities are reported at fair value, net of any related allowance for credit losses. The fair values of the simultaneous interest rate swaps and the interest rate hedge used for interest rate risk management and the risk participation agreements associated with certain commercial real estate loans 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, 2023 and 2022 by level within the fair value hierarchy (in thousands). FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2023 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 499 $ 499 $ — $ — Available for sale securities: U.S. Agency 5,339 — 5,339 — U.S. Agency mortgage-backed securities 93,075 — 93,075 — Municipal 10,360 — 10,360 — Corporate bonds 56,937 — 56,937 — Interest rate swap asset (1) 4,582 — 4,582 — Interest rate hedge (2) (446) — (446) — Interest rate swap liability (2) (4,665) — (4,665) — Risk participation agreement (2) (410) — (410) — FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 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) — — — — (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 The Company evaluates individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. Individually evaluated 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, 2023, the Company had no individually evaluated loans using the collateral method which were carried at fair value. At December 31, 2022, individually evaluated loans 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. 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 costs 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, 2023 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Other real estate owned and repossessed assets 15 — — 15 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1,583 $ — $ — $ 1,583 Other real estate owned and repossessed assets 39 — — 39 Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable DECEMBER 31, 2023 Fair Value Techniques Input Range (Wgtd Avg) Other real estate owned and repossessed assets 15 Appraisal of Appraisal 63% ( 63% ) collateral (1) adjustments (2) Liquidation 33% ( 33% ) expenses 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 Appraisal 0% to 100% (0.2%) collateral (1) adjustments (2) Other real estate owned and repossessed assets 39 Appraisal Appraisal 52% (52%) collateral (1) adjustments (2) Liquidation 10% to 39% (11%) expenses (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, 2023 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 14. 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, 2023 and 2022, for the remaining financial instruments not required to be reported at fair value were as follows: AT DECEMBER 31, 2023 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 63,979 $ 58,621 $ — $ 56,769 $ 1,852 Loans held for sale 130 132 132 — — Loans, net of allowance for credit losses and unearned income 1,023,218 950,402 — — 950,402 FINANCIAL LIABILITIES: Deposits with stated maturities 322,477 321,660 — — 321,660 All other borrowings (1) 71,247 70,061 — — 70,061 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 credit losses 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 (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, 2023 | |
INCOME TAXES | |
INCOME TAXES | 15. INCOME TAXES The expense for income taxes is summarized below and includes both federal and applicable state corporate income taxes: YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) Current $ (477) $ 1,220 $ 973 Deferred (565) 533 729 Income tax expense (benefit) $ (1,042) $ 1,753 $ 1,702 The reconciliation between the federal statutory tax rate and the Company’s effective consolidated income tax rate is as follows: YEAR ENDED DECEMBER 31, 2023 2022 2021 AMOUNT RATE AMOUNT RATE AMOUNT RATE (IN THOUSANDS, EXCEPT PERCENTAGES) Income tax expense (benefit) based on federal statutory rate $ (921) 21.0 % $ 1,932 21.0 % $ 1,843 21.0 % Tax exempt income (237) 5.4 (244) (2.6) (253) (2.9) Other 116 (2.7) 65 0.7 112 1.3 Total expense (benefit) for income taxes $ (1,042) 23.7 % $ 1,753 19.1 % $ 1,702 19.4 % The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented: AT DECEMBER 31, 2023 2022 (IN THOUSANDS) DEFERRED TAX ASSETS: Allowance for credit losses - loans $ 3,161 $ 2,256 Allowance for credit losses - securities 202 — Allowance for credit losses - unfunded commitments 197 157 Unrealized investment security losses 3,650 3,971 Premises and equipment 678 955 Lease liabilities 705 698 Interest rate hedges 94 — Other 169 185 Total tax assets 8,856 8,222 DEFERRED TAX LIABILITIES: Investment accretion (95) (107) Lease right-of-use assets (636) (639) Accrued pension obligation (5,193) (4,494) Other (253) (193) Total tax liabilities (6,177) (5,433) Net deferred tax asset $ 2,679 $ 2,789 At December 31, 2023 and 2022, 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 2019 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, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 16. 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, 2023 2022 (IN THOUSANDS) CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 34,906 $ 50,287 Service cost 1,071 1,419 Interest cost 1,761 1,462 Actuarial loss (gain) 82 (9,787) Settlements — (7,541) Benefits paid (3,001) (934) Benefit obligation at end of year 34,819 34,906 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year 56,257 70,432 Actual return on plan assets 6,079 (9,700) Employer contributions — 4,000 Settlements — (7,541) Benefits paid (3,001) (934) Fair value of plan assets at end of year 59,335 56,257 Funded status of the plan $ 24,516 $ 21,351 YEAR ENDED DECEMBER 31, 2023 2022 (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 $ 7,626 $ 9,597 Total $ 7,626 $ 9,597 YEAR ENDED DECEMBER 31, 2023 2022 (IN THOUSANDS) ACCUMULATED BENEFIT OBLIGATION: Accumulated benefit obligation $ 32,137 $ 32,190 The weighted-average assumptions used to determine benefit obligations at December 31, 2023 and 2022 were as follows: YEAR ENDED DECEMBER 31, 2023 2022 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.12 % 5.45 % Salary scale Ages 25-34 5.00 5.00 Ages 35-44 4.00 4.00 Ages 45-54 3.00 3.00 Ages 55+ 2.50 2.50 YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 1,071 $ 1,419 $ 1,708 Interest cost 1,761 1,462 894 Expected return on plan assets (4,063) (4,193) (4,008) Amortization of net loss 37 1,330 2,421 Settlement charge — 2,498 1,736 Net periodic pension (benefit) cost $ (1,194) $ 2,516 $ 2,751 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 reduced pension expense in 2023 reflects the retirement of a larger than typical number of employees over the past two years who chose to take a lump sum payment instead of receiving future monthly annuity payments. These individuals are no longer included in the pension plan which therefore favorably impacts the Company’s basic pension expense. Additionally, 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, while no such charge was recognized this year. 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. 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 $24.7 million and $21.3 million, was reclassified to other assets on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. The balance of the accrued pension liability continues to be a positive value as a result of Company contributions to the plan and the revaluation of the obligation. YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS Net (gain) loss $ (1,934) $ 4,106 $ (7,153) Recognized loss (37) (3,828) (4,157) Total recognized in other comprehensive loss before tax effect $ (1,971) $ 278 $ (11,310) Total recognized in net benefit cost and other comprehensive loss before tax effect $ (3,165) $ 2,794 $ (8,559) For the year ended December 31, 2023, actuarial gains/losses in the projected benefit obligation were the result of the plan experience, updated census data, discount rate, lump sum interest rates and lump sum mortality tables. These sources generated a combined loss of about 0.49% of expected year end obligations. The weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 were as follows: YEAR ENDED DECEMBER 31, 2023 2022 2021 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.45 % 2.81 % 2.48 % Expected return on plan assets 7.00 7.00 7.00 Rate of compensation increase Ages 25-34 5.00 2.50 2.50 Ages 35-44 4.00 2.50 2.50 Ages 45-54 3.00 2.50 2.50 Ages 55+ 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, 2023. This plan’s asset allocation at December 31, 2023 and 2022, by asset category is as follows: YEAR ENDED DECEMBER 31, 2023 2022 ASSET CATEGORY: Cash and cash equivalents 2.4 % 89.9 % Domestic equities 3.4 7.1 Mutual funds/ETFs 94.2 — Corporate bonds — 3.0 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, 2023 2022 (IN THOUSANDS) Level 1: Cash and cash equivalents $ 1,419 $ 50,553 Domestic equities 2,007 4,026 Mutual funds/ETFs 55,909 — Level 2: Corporate bonds — 1,678 Total fair value of plan assets $ 59,335 $ 56,257 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 proprietary 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 10% of the market value of the plan assets (at December 31, 2023, 3.4% of the plan assets were invested in ASRV common stock). This asset mix is intended to ensure that there is a steady stream of cash from maturing investments to fund benefit payments. The plan’s investment manager temporarily shifted the majority of plan assets to cash in 2022 to protect the plan’s assets due to declines in both equities and bonds as a result of the higher interest rate environment. During 2023, cash was redeployed to both the fixed income and equity asset classes. CASH FLOWS: The Company presently expects to contribute $0 to the plan in 2024. 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) 2024 $ 4,874 2025 4,470 2026 4,651 2027 3,860 2028 3,220 Years 2029-2033 12,630 401(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 contributions 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 contributions 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 $900,000, $808,000 and $704,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The fair value of plan assets includes $409,000 pertaining to the value of the Company’s common stock that was held by the plan at December 31, 2023. 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, 2023 and 2022, the Company reported a deferred compensation liability of $499,000 and $502,000, respectively, within other liabilities on the Consolidated Balance Sheets. For the year ended December 31, 2023, the Company recognized deferred compensation plan expense of $23,000 compared to $15,000 of deferred compensation plan income for the year ended December 31, 2022 and $44,000 of deferred compensation plan expense for the year ended December 31, 2021. The deferred compensation plan income/expense is reported within other expense on the Consolidated Statements of Operations. See Note 5 (Investment Securities) for additional disclosures related to the nonqualified deferred compensation plan and assets held within the rabbi trust. 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, 2023 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 17. 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. Commitments to extend credit are issued both on an unsecured and secured 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, 2023, the Company had various outstanding commitments to extend credit approximating $236.6 million and standby letters of credit of $8.2 million, compared to commitments to extend credit of $227.6 million and standby letters of credit of $9.0 million at December 31, 2022. Standby letters of credit had terms ranging from one The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision for credit losses line on the Consolidated Statements of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company recorded a provision for credit losses on unfunded commitments for the year ended December 31, 2023 of $17,000. The carrying amount of the allowance for credit losses for the Company’s obligations related to unfunded commitments and standby letters of credit, which is reported in other liabilities on the Consolidated Balance Sheets, was $940,000 at December 31, 2023 and $746,000 at December 31, 2022. 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. Neither the resolution of these claims nor the funding of these credit commitments is expected to 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, 2023 | |
STOCK COMPENSATION PLANS | |
STOCK COMPENSATION PLANS | 18. STOCK COMPENSATION PLANS The Company uses the modified prospective method for accounting for stock-based compensation and recognized $45,000 of compensation expense for the year 2023, $50,000 in 2022 and $43,000 in 2021. 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, 2023, 2022, and 2021, and changes during the years then ended is presented in the table and narrative following: YEAR ENDED DECEMBER 31, 2023 2022 2021 WEIGHTED WEIGHTED WEIGHTED AVERAGE AVERAGE AVERAGE SHARES EXERCISE PRICE SHARES EXERCISE PRICE SHARES EXERCISE PRICE Outstanding at beginning of year 323,786 $ 3.52 369,047 $ 3.47 230,913 $ 3.14 Granted — — — — 160,000 3.84 Exercised (29,653) 3.19 (36,117) 2.96 (21,356) 2.68 Forfeited (49,133) 3.17 (9,144) 3.62 (510) 3.23 Outstanding at end of year 245,000 3.64 323,786 3.52 369,047 3.47 Exercisable at end of year 200,002 3.59 223,784 3.38 206,713 3.18 Weighted average fair value of options granted in current year $ — $ — $ 1.78 A total of 200,002 of the 245,000 options outstanding at December 31, 2023 are exercisable and have exercise prices between $2.96 and $4.22, with a weighted average exercise price of $3.59 and a weighted average remaining contractual life of 4.45 years. The remaining 44,998 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 7.14 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 or restricted 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 $24,000, $47,000, and $27,000 in 2023, 2022, and 2021, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 19. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the periods ended December 31, 2023, 2022, and 2021 (in thousands): YEAR ENDED DECEMBER 31, 2023 YEAR ENDED DECEMBER 31, 2022 YEAR ENDED DECEMBER 31, 2021 Net Net Net Unrealized Unrealized Unrealized Gains and Gains and Gains and Losses on Defined Losses on Defined Losses on Defined Investment Interest Benefit Investment Benefit Investment Benefit Securities Rate Pension Securities Pension Securities Pension AFS (1) Hedge (1) Items (1) Total (1) AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ (14,938) $ — $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) Other comprehensive income (loss) before reclassifications 479 11 1,659 2,149 (16,324) (2,708) (19,032) (2,087) 5,555 3,468 Amounts reclassified from accumulated other comprehensive loss 729 (363) 29 395 — 3,024 3,024 (66) 3,284 3,218 Net current period other comprehensive income (loss) 1,208 (352) 1,688 2,544 (16,324) 316 (16,008) (2,153) 8,839 6,686 Ending balance $ (13,730) $ (352) $ (5,894) $ (19,976) $ (14,938) $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) (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 ended December 31, 2023, 2022, and 2021 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) Details about accumulated other YEAR ENDED YEAR ENDED YEAR ENDED Affected line item in the comprehensive loss components DECEMBER 31, 2023 DECEMBER 31, 2022 DECEMBER 31, 2021 statement of operations Realized (gains) losses on sale of securities $ 922 $ — $ (84) Net realized gains (losses) on investment securities (193) — 18 Provision (benefit) for income taxes $ 729 $ — $ (66) Interest rate hedge $ (460) $ — $ — Interest expense - Deposits 97 — — Provision (benefit) for income taxes $ (363) $ — $ — Amortization of estimated defined benefit pension plan loss (2) $ 37 $ 3,828 $ 4,157 Other expense (8) (804) (873) Provision (benefit) for income taxes $ 29 $ 3,024 $ 3,284 Total reclassifications for the period $ 395 $ 3,024 $ 3,218 (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 16 for additional details) . |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 20. 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 2023 or 2022. 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, 2023 and 2022 was $13.6 million. 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, 2023 and 2022, 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, 2023 and 2022, accumulated amortization on the core deposit intangible totaled $76,000 and $49,000, respectively. YEAR ENDED DECEMBER 31, 2023 2022 (IN THOUSANDS) CORE DEPOSIT INTANGIBLE Balance at beginning of year $ 128 $ 158 Amortization (27) (30) Balance at end of year $ 101 $ 128 As of December 31, 2023, the estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2024 $ 24 2025 21 2026 17 2027 14 2028 11 After five years 14 $ 101 |
DERIVATIVE HEDGING INSTRUMENTS
DERIVATIVE HEDGING INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE HEDGING INSTRUMENTS | |
DERIVATIVE HEDGING INSTRUMENTS | 21. 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. Interest Rate Swap Agreements 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. 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, 2023, 2022, and 2021, the Company received $295,000, $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 13. The following table summarizes the interest rate swap transactions that impacted the Company’s 2023 and 2022 performance (in thousands, except percentages). DECEMBER 31, 2023 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 76,502 7.45 % Monthly $ 2,099 Swap liabilities N/A (76,502) (7.45) Monthly (2,099) Net exposure $ — — % $ — 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 $ — — % $ — Risk Participation Agreement The Company entered into risk participation agreements (RPAs) with the lead bank of certain commercial real estate loan arrangements. As a participating bank, the Company guarantees the performance on a borrower-related interest rate swap contract. The Company has no obligations under the RPAs 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 receives an upfront fee from the lead bank. For the year ended December 31, 2023, the Company received $52,000 in fees on a RPA transaction, which was recognized as revenue when received. 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 RPAs can be found in Note 13. The notional amount of the risk participation agreements outstanding at December 31, 2023 and 2022 was $6.8 million and $2.1 million, respectively. Interest Rate Hedge The Company has entered into three interest rate swaps with a total notional value of $70 million in order to hedge the interest rate risk associated with certain floating-rate time deposit accounts. The hedge transactions allow the Company to add stability to interest expense and manage its exposure to interest rate movements. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is reported in accumulated other comprehensive loss (within Shareholders’ Equity), net of tax, with a corresponding offset within other liabilities. Disclosures related to the fair value of the interest rate hedge can be found in Note 13. Amounts recorded in accumulated other comprehensive loss for the effective portion of changes in the fair value are subsequently reclassified to earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of the hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The Company did not recognize any hedge ineffectiveness in earnings during 2023. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on certain of the Company’s variable rate time deposit accounts. During the year ended December 31, 2023, the Company had $460,000 of gains which resulted in a decrease to interest expense. In the twelve months that follow December 31, 2023, the Company estimates that approximately $785,000 will be reclassified as a decrease to interest expense. This reclassified amount could differ from amounts actually recognized due to changes in interest rates. As of December 31, 2023, the maximum length of time over which forecasted transactions are hedged is three years with all hedge transactions terminating in 2026. The following table summarizes the effect of the effective portion of the Company’s cash flow hedge accounting on accumulated other comprehensive loss for the year ended December 31, 2023 (in thousands). YEAR ENDED DECEMBER 31, 2023 Derivatives in Cash Flow Hedging Relationships Amount Recognized in Other Comprehensive Loss on Derivative Location on Consolidated Statements of Operations of Reclassification from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Compreshensive Loss Interest rate hedge $ (446) Interest expense - Deposits $ (460) Total $ (446) $ (460) 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, 2023 and 2022. |
SEGMENT RESULTS
SEGMENT RESULTS | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT RESULTS | |
SEGMENT RESULTS | 22. 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, 2023 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 50,843 $ 11 $ (14,834) $ 36,020 Provision for credit losses 6,580 — 849 7,429 Non-interest income 4,409 11,270 710 16,389 Non-interest expense 34,749 9,506 5,113 49,368 Income (loss) before income taxes 13,923 1,775 (20,086) (4,388) Income tax expense (benefit) 2,389 452 (3,883) (1,042) Net income (loss) $ 11,534 $ 1,323 $ (16,203) $ (3,346) Total assets $ 1,151,720 $ 11,173 $ 226,745 $ 1,389,638 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 credit losses 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 credit losses 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 |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | 23. 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, 2023 and 2022, 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, 2023 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) $ 149,596 13.03 % $ 135,196 11.82 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 108,541 9.46 120,874 10.57 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 108,541 9.46 120,874 10.57 6.00 8.00 Tier 1 Capital (To Average Assets) 108,541 7.80 120,874 8.78 4.00 5.00 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 * Applies to the Bank only. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | 24. 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 audit, 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, 2023 2022 (IN THOUSANDS) ASSETS Cash $ 100 $ 100 Short-term investments 3,553 3,178 Cash and cash equivalents 3,653 3,278 Investment securities available for sale 4,532 6,334 Equity investment in banking subsidiary 115,322 117,432 Equity investment in non-banking subsidiaries 6,084 6,533 Other assets 1,163 1,008 TOTAL ASSETS $ 130,754 $ 134,585 LIABILITIES Subordinated debt $ 26,685 $ 26,644 Other liabilities 1,792 1,763 TOTAL LIABILITIES 28,477 28,407 SHAREHOLDERS’ EQUITY Total shareholders’ equity 102,277 106,178 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 130,754 $ 134,585 STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) INCOME Inter-entity management and other fees $ 2,702 $ 2,566 $ 2,520 Dividends from banking subsidiary 3,000 4,000 2,000 Dividends from non-banking subsidiary 1,650 1,055 1,550 Interest, dividend and other income 221 146 115 TOTAL INCOME 7,573 7,767 6,185 EXPENSE Interest expense 1,054 1,054 1,798 Salaries and employee benefits 2,816 2,811 2,871 Other expense 4,362 1,948 1,783 TOTAL EXPENSE 8,232 5,813 6,452 INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES (659) 1,954 (267) Benefit for income taxes (1,115) (652) (802) Equity in undistributed earnings of subsidiaries (3,802) 4,842 6,537 NET INCOME (LOSS) $ (3,346) $ 7,448 $ 7,072 COMPREHENSIVE INCOME (LOSS) $ (802) $ (8,560) $ 13,758 STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) OPERATING ACTIVITIES Net income (loss) $ (3,346) $ 7,448 $ 7,072 Adjustment to reconcile net income (loss) to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries 3,802 (4,842) (6,537) Stock compensation expense 45 50 43 Other – net (53) 189 1,204 NET CASH PROVIDED BY OPERATING ACTIVITIES 448 2,845 1,782 INVESTING ACTIVITIES Purchase of investment securities – available for sale — (3,994) (1,008) Proceeds from maturity and sales of investment securities – available for sale 1,891 655 991 Capital contribution to banking subsidiary — — (3,500) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,891 (3,339) (3,517) 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 94 106 57 Purchases of treasury stock — — — Common stock dividends paid (2,058) (1,967) (1,708) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,964) (1,861) 5,270 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 375 (2,355) 3,535 CASH AND CASH EQUIVALENTS AT JANUARY 1 3,278 5,633 2,098 CASH AND CASH EQUIVALENTS AT DECEMBER 31 $ 3,653 $ 3,278 $ 5,633 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 $124,585,000 of restricted surplus and retained earnings at December 31, 2023. 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, 2023 | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | 25. SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) The following table sets forth certain unaudited quarterly consolidated financial data regarding the Company: 2023 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 15,968 $ 15,439 $ 14,879 $ 14,574 Interest expense 7,379 6,640 5,769 5,052 Net interest income 8,589 8,799 9,110 9,522 Provision for credit losses 6,018 189 43 1,179 Net interest income after provision for credit losses 2,571 8,610 9,067 8,343 Non-interest income 2,764 4,256 3,862 5,507 Non-interest expense 12,133 12,095 13,177 11,963 Income (loss) before income taxes (6,798) 771 (248) 1,887 Provision (benefit) for income taxes (1,477) 124 (61) 372 Net income (loss) $ (5,321) $ 647 $ (187) $ 1,515 Basic earnings per common share $ (0.31) $ 0.04 $ (0.01) $ 0.09 Diluted earnings per common share (0.31) 0.04 (0.01) 0.09 Cash dividends declared per common share 0.030 0.030 0.030 0.030 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 credit losses 275 500 (325) (400) Net interest income after provision (credit) for credit 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 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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. AmeriServ Trust and Financial Services Company (the Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $2.5 billion and $2.3 billion that are not recognized on the Company’s Consolidated Balance Sheets at December 31, 2023 and 2022, respectively. |
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) and the Trust Company. The Bank is a Pennsylvania state-chartered full service bank with 16 locations in Pennsylvania and 1 location in Maryland. 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 credit losses (related to investment securities, loans, and unfunded commitments), pension, and derivatives (interest rate swaps/hedges). |
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. Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. 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. 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. Allowance for Credit Losses – Held to Maturity Securities The Company measures expected credit losses on held to maturity debt securities, which are comprised of U.S. government agency and mortgage-backed securities as well as taxable municipal, corporate, and other bonds. The Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no allowance for credit losses has been established for these securities. The allowance for credit losses on the taxable municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the probability of default/loss given default (PD/LGD) method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. Additionally, based on management judgment, certain qualitative adjustments, such as the Company’s historical loss experience and/or the issuer’s credit quality, may be applied. At December 31, 2023, the allowance for credit losses on the held to maturity securities portfolio totaled $37,000. The allowance for credit losses on held to maturity debt securities is included within investment securities held to maturity on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Operations. Accrued interest receivable on held to maturity debt securities totaled $388,000 at December 31, 2023 and is included within accrued interest income receivable on the Consolidated Balance Sheets. This amount is excluded from the estimate of expected credit losses. Held to maturity debt securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held to maturity debt securities are placed on non-accrual status, unpaid interest credited to income is reversed. The Company had no held to maturity debt securities in non-accrual status at December 31, 2023. Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available for sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. At December 31, 2023, the allowance for credit losses on the available for sale securities portfolio totaled $926,000. The allowance for credit losses on available for sale debt securities is included within investment securities available for sale on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Operations. Losses are charged against the allowance when the Company believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities totaled $988,000 at December Credit Losses on Investment Securities – Prior to adopting ASU 2016-13 The Company adopted ASU 2016-13 effective January 1, 2023. Financial statement amounts related to investment securities recorded as of December 31, 2022 and for the period ending December 31, 2022 are presented in accordance with the accounting policies described in the following paragraphs. 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 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 term other than temporary is not intended to indicate that the decline is permanent but indicates that the prospects for a near-term recovery of value are not necessarily favorable or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Declines in the fair value of securities below their cost that are deemed to be other than temporary are separated into (a) the amount of the total other than temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other than temporary impairment related to all other factors. The amount of the total other than temporary impairment related to the credit loss is recognized in earnings. The amount of the total other than temporary impairment related to all other factors is recognized in other comprehensive income (loss). At December 31, 2022, 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. |
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: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of any deferred fees or costs and an allowance for credit losses. Interest income is accrued on the unpaid principal balance and is recognized using the level yield method. As of December 31, 2023 and 2022, accrued interest receivable on loans totaled $4.2 million and $3.5 million, respectively, which is reported in accrued interest income receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. 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. Generally, a non-accrual commercial or consumer loan is returned to accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are returned to accrual status upon becoming current. |
LOAN FEES: | LOAN FEES: Loan origination and commitment fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) over the contractual life of the loan. |
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 ASC 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. As of December 31, 2023, the Company had no short-term leases compared to one short-term lease for an office location as of December 31, 2022. |
ALLOWANCE FOR CREDIT LOSSES - LOANS: | ALLOWANCE FOR CREDIT LOSSES – LOANS: The allowance for credit losses (ACL) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged-off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has aligned our segmentation to the quarterly Call Report. This allowed the Company to use not only our data, but also peer institutions to supplement loss observations in determining our qualitative adjustments. Some further sub-segmenting was performed on the commercial and industrial (C&I) and commercial real estate (CRE) portfolios based on collateral type. The Company has identified the following portfolio segments: ● C&I and CRE Owner Occupied – Real Estate ● C&I and CRE Owner Occupied – Other ● CRE Non-Owner Occupied – Retail ● CRE Non-Owner Occupied – Multi-Family ● CRE Non-Owner Occupied – Other ● Residential Mortgages ● Consumer The Company is utilizing the static pool analysis (cohort) method for our CECL model. 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. Once historical cohorts are established, the loans in each individual cohort are tracked over their remaining lives for loss and recovery events. Each cohort is evaluated individually and as a result, a loss may be counted in several different quarterly cohort periods, as long as the specific loan existed in the population of each of those cohort periods. Historical credit loss experience is the basis for the estimation of expected credit losses. The Company applies historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already captured in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a blend of peer and Company data as well as management judgment. Including peer data addresses the Company’s lack of loss history in some pools of loans. For periods beyond our reasonable and supportable forecast period of two years, loss expectations revert to the long-run historical mean. The qualitative adjustments for current conditions are based upon the following factors: ● changes in lending policies and procedures; ● changes in economic conditions; ● changes in the nature and volume of the portfolio; ● staff experience; ● changes in volume and severity of delinquency, non-performing loans, and classified loans; ● changes in the quality of the Company’s loan review system; ● trends in underlying collateral value; ● concentration risk; and ● external factors: competition, legal, regulatory. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. Ultimately, 49% of the fourth quarter of 2023 general reserve represented qualitative adjustment with 51% representing quantitative reserve. In accordance with ASU 2016-13, the Company will evaluate individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. In contrast to legacy accounting standards, this criterion is broader than the impairment concept and management may evaluate loans individually even when no specific expectation of collectability is in place. Loans will not be included in both collective and individual analysis. The individual analysis will establish a specific reserve for loans in scope. It should be noted that there is a review threshold of $150,000 or more for loans being subject to individual evaluation within the consumer and residential mortgage segments. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. 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 is made on a quarterly basis. 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 credit 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 Chief Credit Officer 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 Chief Credit Officer determines 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 Chief Credit Officer and not the originating account officer. Allowance for Loan Losses – Prior to adopting ASU 2016-13 Prior to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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. 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 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, and (3) a general risk reserve which provides support for variance from our assessment of the 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 risk 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. Specifically, 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. Pass rated credits are segregated from criticized and classified credits for the application of qualitative factors. ● 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. The 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, the amount of non-performing loans, and past and anticipated loss experience. |
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: | ALLOWANCE FOR CREDIT LOSSES – UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision for credit losses line on the Consolidated Statements of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The carrying amount of the allowance for credit losses for the Company’s obligations related to unfunded commitments and standby letters of credit, is reported in other liabilities on 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 218,000, 22,000, and 22,000 shares of common stock were outstanding during 2023, 2022 and 2021, 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 $3.18-$4.22, $4.00-$4.22, and $4.00-$4.22 during 2023, 2022 and 2021, respectively. YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS, EXCEPT PER SHARE DATA) Numerator: Net income (loss) $ (3,346) $ 7,448 $ 7,072 Denominator: Weighted average common shares outstanding (basic) 17,143 17,107 17,073 Effect of stock options 1 39 41 Weighted average common shares outstanding (diluted) 17,144 17,146 17,114 Earnings per common share: Basic $ (0.20) $ 0.44 $ 0.41 Diluted (0.20) 0.43 0.41 |
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 18 for details on the assumptions used. |
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ACCUMULATED OTHER COMPREHENSIVE LOSS: The Company presents the components of other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss). These components are comprised of the change in the defined benefit pension obligation, the unrealized holding gains (losses) on available for sale securities, net of any reclassification adjustments for realized gains and losses, and fair value change for the interest rate hedges. |
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 $625,000 in income tax payments in 2023; $1.1 million in 2022; and $200,000 in 2021. The Company had non-cash transfers to other real estate owned (OREO) and repossessed assets in the amounts of $15,000 in 2023; $53,000 in 2022; and $8,000 in 2021. During 2023, the Company entered into a new operating lease related to an office location and recorded a right-of-use asset 2022 As a result of the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 (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 selecting 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 16 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, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Earnings Per Common Share | YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS, EXCEPT PER SHARE DATA) Numerator: Net income (loss) $ (3,346) $ 7,448 $ 7,072 Denominator: Weighted average common shares outstanding (basic) 17,143 17,107 17,073 Effect of stock options 1 39 41 Weighted average common shares outstanding (diluted) 17,144 17,146 17,114 Earnings per common share: Basic $ (0.20) $ 0.44 $ 0.41 Diluted (0.20) 0.43 0.41 |
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 (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) |
ADOPTION OF ACCOUNTING STANDA_2
ADOPTION OF ACCOUNTING STANDARDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ADOPTION OF ACCOUNTING STANDARDS | |
Schedule of current expected credit loss model | JANUARY 1, 2023 Pre-ASU 2016-13 Impact of ASU 2016-13 Adoption As Reported Under ASU 2016-13 (IN THOUSANDS) Assets Allowance for credit losses - held to maturity securities Municipal $ — $ 3 $ 3 Corporate bonds and other securities — 111 111 Allowance for credit losses - held to maturity securities $ — $ 114 $ 114 Loans, net of unearned income Commercial real estate (owner occupied) $ 75,158 $ 6,201 $ 81,359 Other commercial and industrial 153,420 (31) 153,389 Commercial real estate (non-owner occupied) - retail — 148,901 148,901 Commercial real estate (non-owner occupied) - multi-family — 106,423 106,423 Other commercial real estate (non-owner occupied) 450,744 (225,831) 224,913 Residential mortgages 297,971 (124,194) 173,777 Consumer 13,473 88,531 102,004 Loans, net of unearned income $ 990,766 $ — $ 990,766 Allowance for credit losses - loans Commercial real estate (owner occupied) $ — $ 1,380 $ 1,380 Other commercial and industrial — 2,908 2,908 Commercial real estate (non-owner occupied) - retail — 1,432 1,432 Commercial real estate (non-owner occupied) - multi-family — 1,226 1,226 Other commercial real estate (non-owner occupied) 5,972 (2,776) 3,196 Commercial (owner occupied real estate and other) 2,653 (2,653) — Residential mortgages 1,380 (355) 1,025 Consumer 85 695 780 Allocation for general risk 653 (653) — Allowance for credit losses - loans $ 10,743 $ 1,204 $ 11,947 Liabilities Allowance for credit losses - unfunded commitments $ 746 $ 177 $ 923 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022, and 2021 (in thousands). AT DECEMBER 31, 2023 2022 2021 Non-interest income: In-scope of Topic 606 Wealth management fees $ 11,266 $ 11,620 $ 11,986 Service charges on deposit accounts 1,163 1,108 965 Other 2,064 2,009 2,017 Non-interest income (in-scope of Topic 606) 14,493 14,737 14,968 Non-interest income (out-of-scope of Topic 606) 1,896 1,955 2,793 Total non-interest income $ 16,389 $ 16,692 $ 17,761 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT SECURITIES | |
Summary of amortized cost and fair value of securities available-for-sale | Investment securities available for sale: DECEMBER 31, 2023 GROSS GROSS ALLOWANCE UNREALIZED UNREALIZED FOR CREDIT FAIR COST BASIS GAINS LOSSES LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 6,035 $ — $ (696) $ — $ 5,339 U.S. Agency mortgage-backed securities 104,820 179 (11,924) — 93,075 Municipal 11,159 1 (800) — 10,360 Corporate bonds 62,004 46 (4,187) (926) 56,937 Total $ 184,018 $ 226 $ (17,607) $ (926) $ 165,711 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 |
Summary of amortized cost and fair value of securities held-to-maturity | Investment securities held to maturity: DECEMBER 31, 2023 GROSS GROSS ALLOWANCE UNREALIZED UNREALIZED FAIR FOR CREDIT COST BASIS GAINS LOSSES VALUE LOSSES (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ (379) $ 2,121 $ — U.S. Agency mortgage-backed securities 24,222 49 (2,058) 22,213 — Municipal 32,787 — (2,797) 29,990 (2) Corporate bonds and other securities 4,470 — (173) 4,297 (35) Total $ 63,979 $ 49 $ (5,407) $ 58,621 $ (37) 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 |
Schedule of investment securities | Investment securities available for sale: AT DECEMBER 31, 2023 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 $ 500 $ 2,112 $ 5,012 $ — $ 7,624 After 1 year but within 5 years 176 4,511 29,020 1,667 35,374 After 5 years but within 10 years 4,000 4,536 27,322 5,717 41,575 Over 10 years 1,359 — 650 97,436 99,445 Total $ 6,035 $ 11,159 $ 62,004 $ 104,820 $ 184,018 FAIR VALUE Within 1 year $ 499 $ 2,085 $ 4,940 $ — $ 7,524 After 1 year but within 5 years 169 4,336 27,762 1,615 33,882 After 5 years but within 10 years 3,434 3,939 23,759 5,429 36,561 Over 10 years 1,237 — 476 86,031 87,744 Total $ 5,339 $ 10,360 $ 56,937 $ 93,075 $ 165,711 Investment securities held to maturity: AT DECEMBER 31, 2023 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 $ — $ 1,211 $ 1,000 $ 971 $ 3,182 After 1 year but within 5 years — 13,108 2,002 — 15,110 After 5 years but within 10 years 2,500 17,174 488 1,322 21,484 Over 10 years — 1,294 980 21,929 24,203 Total $ 2,500 $ 32,787 $ 4,470 $ 24,222 $ 63,979 FAIR VALUE Within 1 year $ — $ 1,195 $ 969 $ 964 $ 3,128 After 1 year but within 5 years — 12,580 1,860 — 14,440 After 5 years but within 10 years 2,121 15,143 488 1,280 19,032 Over 10 years — 1,072 980 19,969 22,021 Total $ 2,121 $ 29,990 $ 4,297 $ 22,213 $ 58,621 |
Schedule of investments with unrealized losses | The following table summarizes the available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2023, aggregated by security type and length of time in a continuous loss position (in thousands): DECEMBER 31, 2023 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ — $ — $ 5,339 $ (696) $ 5,339 $ (696) U.S. Agency mortgage-backed securities 4,120 (20) 73,511 (11,904) 77,631 (11,924) Municipal — — 10,109 (800) 10,109 (800) Corporate bonds 8,885 (103) 42,659 (4,084) 51,544 (4,187) Total $ 13,005 $ (123) $ 131,618 $ (17,484) $ 144,623 $ (17,607) |
Schedule of allowance for credit losses on held to maturity debt securities | YEAR ENDED DECEMBER 31, 2023 Balance at Impact of Adopting Charge- Provision Balance at December 31, 2022 ASU 2016-13 Offs Recoveries (Credit) December 31, 2023 U.S. Agency $ — $ — $ — $ — $ — $ — U.S. Agency mortgage-backed securities — — — — — — Municipal — 3 — — (1) 2 Corporate bonds and other securities — 111 — — (76) 35 Total $ — $ 114 $ — $ — $ (77) $ 37 |
Schedule of amortized cost of held to maturity debt securities aggregated by credit quality indicator | DECEMBER 31, 2023 CREDIT RATING AAA/AA/A BBB/BB/B UNRATED TOTAL U.S. Agency $ 2,500 $ — $ — $ 2,500 U.S. Agency mortgage-backed securities 24,222 — — 24,222 Municipal 32,787 — — 32,787 Corporate bonds and other securities 3,002 — 1,468 4,470 Total $ 62,511 $ — $ 1,468 $ 63,979 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS | |
Schedule of loan portfolio | The loan portfolio of the Company consists of the following: DECEMBER 31, 2023 (IN THOUSANDS) Commercial: Commercial real estate (owner occupied) (1) $ 89,147 Other commercial and industrial 159,424 Commercial real estate (non-owner occupied): Retail (1) 161,961 Multi-family (1) 110,008 Other (1) 240,286 Residential mortgages (1) 174,670 Consumer 102,775 Loans, net of unearned income $ 1,038,271 DECEMBER 31, 2022 (IN THOUSANDS) Commercial: Commercial and industrial $ 153,398 Paycheck Protection Program (PPP) 22 Commercial real estate (owner occupied) (1) 75,158 Commercial real estate (non-owner occupied) (1) 450,744 Residential mortgages (1) 297,971 Consumer 13,473 Loans, net of unearned income $ 990,766 (1) Real estate construction loans constituted 3.4% and 4.7% of the Company’s total loans, net of unearned income as of December 31, 2023 and 2022, respectively. |
Schedule of loan activity with related parties | The following tables summarize the loan activity with related parties for the years ended December 31, 2023 and 2022 (in thousands). YEAR ENDED DECEMBER 31, 2023 BALANCE AT DECEMBER 31, 2022 ADDITIONS REPAYMENTS BALANCE AT DECEMBER 31, 2023 Loans to related parties $ 587 $ 602 $ 574 $ 615 YEAR ENDED DECEMBER 31, 2022 BALANCE AT DECEMBER 31, 2021 ADDITIONS REPAYMENTS BALANCE AT DECEMBER 31, 2022 Loans to related parties $ 601 $ 206 $ 220 $ 587 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - LOANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ALLOWANCE FOR CREDIT LOSSES - LOANS | |
Schedule of Loan losses by portfolio segment | The following tables summarize the rollforward of the allowance for credit losses by loan portfolio segment for the years ended December 31, 2023, 2022, and 2021 (in thousands). BALANCE AT IMPACT OF CHARGE- PROVISION BALANCE AT DECEMBER 31, 2022 ADOPTING ASU 2016-13 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2023 Commercial real estate (owner occupied) $ — $ 1,380 $ — $ 24 $ 125 $ 1,529 Other commercial and industrial — 2,908 (480) 3 599 3,030 Commercial real estate (non-owner occupied) - retail — 1,432 (2,028) — 4,084 3,488 Commercial real estate (non-owner occupied) - multi-family — 1,226 — 6 198 1,430 Other commercial real estate (non-owner occupied) 5,972 (2,776) (804) 14 1,022 3,428 Commercial (owner occupied real estate and other) 2,653 (2,653) — — — — Residential mortgages 1,380 (355) (54) 14 36 1,021 Consumer 85 695 (275) 123 499 1,127 Allocation for general risk 653 (653) — — — — Total $ 10,743 $ 1,204 $ (3,641) $ 184 $ 6,563 $ 15,053 BALANCE AT CHARGE- PROVISION BALANCE AT DECEMBER 31, 2021 OFFS RECOVERIES (CREDIT) DECEMBER 31, 2022 Commercial $ 3,071 $ (97) $ 4 $ (325) $ 2,653 Commercial real estate (non-owner occupied) 6,392 (1,390) 54 916 5,972 Residential mortgages 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 real estate (non-owner occupied) 5,373 — 51 968 6,392 Residential mortgages 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 |
Schedule of loan portfolio and allowance for credit losses | AT DECEMBER 31, 2023 COMMERCIAL COMMERCIAL COMMERCIAL REAL ESTATE REAL ESTATE OTHER COMMERCIAL REAL ESTATE OTHER COMMERCIAL (NON-OWNER OCCUPIED) - (NON-OWNER OCCUPIED) - REAL ESTATE RESIDENTIAL Loans: (OWNER OCCUPIED) AND INDUSTRIAL RETAIL MULTI-FAMILY (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Individually evaluated $ 187 $ 1,694 $ — $ — $ 8,780 $ 173 $ — $ 10,834 Collectively evaluated 88,960 157,730 161,961 110,008 231,506 174,497 102,775 1,027,437 Total loans $ 89,147 $ 159,424 $ 161,961 $ 110,008 $ 240,286 $ 174,670 $ 102,775 $ 1,038,271 AT DECEMBER 31, 2023 COMMERCIAL COMMERCIAL COMMERCIAL REAL ESTATE REAL ESTATE OTHER COMMERCIAL Allowance for REAL ESTATE OTHER COMMERCIAL (NON-OWNER OCCUPIED) - (NON-OWNER OCCUPIED) - REAL ESTATE RESIDENTIAL credit losses: (OWNER OCCUPIED) AND INDUSTRIAL RETAIL MULTI-FAMILY (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Specific reserve allocation $ — $ 414 $ — $ — $ — $ — $ — $ 414 General reserve allocation 1,529 2,616 3,488 1,430 3,428 1,021 1,127 14,639 Total allowance for credit losses $ 1,529 $ 3,030 $ 3,488 $ 1,430 $ 3,428 $ 1,021 $ 1,127 $ 15,053 AT DECEMBER 31, 2022 COMMERCIAL REAL ESTATE RESIDENTIAL Loans: COMMERCIAL (NON-OWNER OCCUPIED) MORTGAGES CONSUMER TOTAL (IN THOUSANDS) Individually evaluated $ 1,989 $ 1,586 $ — $ — $ 3,575 Collectively evaluated 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 Allowance for REAL ESTATE RESIDENTIAL ALLOCATION FOR credit losses: COMMERCIAL (NON-OWNER OCCUPIED) MORTGAGES CONSUMER GENERAL 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 credit losses $ 2,653 $ 5,972 $ 1,380 $ 85 $ 653 $ 10,743 |
Schedule of amortized cost basis of collateral-dependent non-accrual loans | The following table presents the amortized cost basis of collateral-dependent non-accrual loans by class of loans (in thousands). COLLATERAL TYPE DECEMBER 31, 2023 REAL ESTATE Commercial: Commercial real estate (owner occupied) $ 187 Commercial real estate (non-owner occupied): Other 8,780 Residential mortgages 173 Total $ 9,140 |
Schedule of non performing assets | AT DECEMBER 31, 2023 NON-ACCRUAL WITH NO ACL NON-ACCRUAL WITH ACL TOTAL NON-ACCRUAL LOANS PAST DUE OVER 90 DAYS STILL ACCRUING OREO AND REPOSSESSED ASSETS TOTAL NON-PERFORMING ASSETS Commercial real estate (owner occupied) $ 187 $ — $ 187 $ — $ — $ 187 Other commercial and industrial — 1,694 1,694 211 — 1,905 Commercial real estate (non-owner occupied) - retail — — — — — — Commercial real estate (non-owner occupied) - multi-family — — — — — — Other commercial real estate (non-owner occupied) 8,780 — 8,780 — — 8,780 Residential mortgages 173 545 718 — 15 733 Consumer — 788 788 — — 788 Total $ 9,140 $ 3,027 $ 12,167 $ 211 $ 15 $ 12,393 AT DECEMBER 31, 2022 Non-accrual loans: Commercial and industrial $ 1,989 Commercial real estate (non-owner occupied) 1,586 Residential mortgages 1,577 Consumer 9 Total 5,161 Other real estate owned and repossessed assets: Residential mortgages 38 Consumer 1 Total 39 Total non-performing assets $ 5,200 |
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, 2023 REVOLVING REVOLVING LOANS LOANS AMORTIZED CONVERTED TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR COST TO 2023 2022 2021 2020 2019 PRIOR BASIS TERM TOTAL (IN THOUSANDS) Commercial real estate (owner occupied) Pass $ 17,801 $ 6,750 $ 15,067 $ 8,415 $ 10,322 $ 26,538 $ 351 $ — $ 85,244 Special Mention — — 464 — 2,252 — 923 — 3,639 Substandard — — — — — 264 — — 264 Doubtful — — — — — — — — — Total $ 17,801 $ 6,750 $ 15,531 $ 8,415 $ 12,574 $ 26,802 $ 1,274 $ — $ 89,147 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial and industrial Pass $ 22,662 $ 34,816 $ 12,767 $ 5,831 $ 4,912 $ 19,587 $ 56,391 $ 70 $ 157,036 Special Mention — — 127 — — — — — 127 Substandard — 619 — — — 1,578 64 — 2,261 Doubtful — — — — — — — — — Total $ 22,662 $ 35,435 $ 12,894 $ 5,831 $ 4,912 $ 21,165 $ 56,455 $ 70 $ 159,424 Current period gross charge-offs $ — $ 75 $ — $ — $ — $ 405 $ — $ — $ 480 Commercial real estate (non-owner occupied) - retail Pass $ 35,545 $ 23,368 $ 33,110 $ 23,146 $ 9,226 $ 35,102 $ 983 $ — $ 160,480 Special Mention — 314 — — — 1,167 — — 1,481 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 35,545 $ 23,682 $ 33,110 $ 23,146 $ 9,226 $ 36,269 $ 983 $ — $ 161,961 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2,028 $ — $ — $ 2,028 Commercial real estate (non-owner occupied) - multi-family Pass $ 22,620 $ 16,767 $ 16,622 $ 12,041 $ 9,638 $ 28,632 $ 1,321 $ — $ 107,641 Special Mention — — — — — — — — — Substandard — — — 966 1,278 123 — — 2,367 Doubtful — — — — — — — — — Total $ 22,620 $ 16,767 $ 16,622 $ 13,007 $ 10,916 $ 28,755 $ 1,321 $ — $ 110,008 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate (non-owner occupied) Pass $ 29,591 $ 36,398 $ 48,267 $ 20,168 $ 23,025 $ 54,792 $ 5,670 $ — $ 217,911 Special Mention — — — — — 3,777 — — 3,777 Substandard — 1,043 — — 6,243 11,113 — 199 18,598 Doubtful — — — — — — — — — Total $ 29,591 $ 37,441 $ 48,267 $ 20,168 $ 29,268 $ 69,682 $ 5,670 $ 199 $ 240,286 Current period gross charge-offs $ — $ — $ — $ — $ 804 $ — $ — $ — $ 804 Total by risk rating Pass $ 128,219 $ 118,099 $ 125,833 $ 69,601 $ 57,123 $ 164,651 $ 64,716 $ 70 $ 728,312 Special Mention — 314 591 — 2,252 4,944 923 — 9,024 Substandard — 1,662 — 966 7,521 13,078 64 199 23,490 Doubtful — — — — — — — — — Total $ 128,219 $ 120,075 $ 126,424 $ 70,567 $ 66,896 $ 182,673 $ 65,703 $ 269 $ 760,826 Current period gross charge-offs $ — $ 75 $ — $ — $ 804 $ 2,433 $ — $ — $ 3,312 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 real estate (owner occupied) 74,187 — 971 — 75,158 Commercial real estate (non-owner occupied) 423,486 11,015 16,240 3 450,744 Total $ 646,056 $ 11,015 $ 22,248 $ 3 $ 679,322 |
Schedule of Residential and consumer portfolio | AT DECEMBER 31, 2023 REVOLVING REVOLVING LOANS LOANS AMORTIZED CONVERTED TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR COST TO 2023 2022 2021 2020 2019 PRIOR BASIS TERM TOTAL (IN THOUSANDS) Residential mortgages Performing $ 14,576 $ 11,620 $ 61,172 $ 44,049 $ 7,092 $ 35,443 $ — $ — $ 173,952 Non-performing — — — — — 718 — — 718 Total $ 14,576 $ 11,620 $ 61,172 $ 44,049 $ 7,092 $ 36,161 $ — $ — $ 174,670 Current period gross charge-offs $ — $ — $ — $ — $ — $ 54 $ — $ — $ 54 Consumer Performing $ 13,890 $ 20,430 $ 9,782 $ 3,190 $ 1,169 $ 4,515 $ 48,344 $ 667 $ 101,987 Non-performing 15 — — 73 42 280 157 221 788 Total $ 13,905 $ 20,430 $ 9,782 $ 3,263 $ 1,211 $ 4,795 $ 48,501 $ 888 $ 102,775 Current period gross charge-offs $ 9 $ 35 $ 43 $ 7 $ 8 $ 173 $ — $ — $ 275 Total by payment performance Performing $ 28,466 $ 32,050 $ 70,954 $ 47,239 $ 8,261 $ 39,958 $ 48,344 $ 667 $ 275,939 Non-performing 15 — — 73 42 998 157 221 1,506 Total $ 28,481 $ 32,050 $ 70,954 $ 47,312 $ 8,303 $ 40,956 $ 48,501 $ 888 $ 277,445 Current period gross charge-offs $ 9 $ 35 $ 43 $ 7 $ 8 $ 227 $ — $ — $ 329 AT DECEMBER 31, 2022 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Residential mortgages $ 296,401 $ 1,570 $ 297,971 Consumer 13,457 16 13,473 Total $ 309,858 $ 1,586 $ 311,444 |
Schedule of Credit quality of the loan portfolio | AT DECEMBER 31, 2023 30 – 59 60 – 89 DAYS DAYS 90 DAYS TOTAL TOTAL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS (IN THOUSANDS) Commercial real estate (owner occupied) $ 88,960 $ — $ — $ 187 $ 187 $ 89,147 Other commercial and industrial 158,290 526 22 586 1,134 159,424 Commercial real estate (non-owner occupied) - retail 161,961 — — — — 161,961 Commercial real estate (non-owner occupied) - multi-family 110,008 — — — — 110,008 Other commercial real estate (non-owner occupied) 239,243 — — 1,043 1,043 240,286 Residential mortgages 173,647 437 18 568 1,023 174,670 Consumer 101,664 741 23 347 1,111 102,775 Total $ 1,033,773 $ 1,704 $ 63 $ 2,731 $ 4,498 $ 1,038,271 AT DECEMBER 31, 2022 30 – 59 60 – 89 DAYS DAYS 90 DAYS TOTAL TOTAL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS (IN THOUSANDS) Commercial and industrial $ 152,314 $ 797 $ 287 $ — $ 1,084 $ 153,398 Paycheck Protection Program (PPP) 22 — — — — 22 Commercial real estate (owner occupied) 74,960 198 — — 198 75,158 Commercial real estate (non-owner occupied) 446,809 3,935 — — 3,935 450,744 Residential mortgages 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 |
Schedule of modifications made to borrowers experiencing financial difficulty | The following table summarizes the amortized cost basis, as of December 31, 2023, of loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2023 (in thousands). TERM EXTENSION AMORTIZED COST BASIS % OF TOTAL CLASS OF LOANS Residential mortgages $ 37 0.02 % Total $ 37 COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION AMORTIZED COST BASIS % OF TOTAL CLASS OF LOANS Other commercial real estate (non-owner occupied) $ 6,243 2.60 % Total $ 6,243 TERM EXTENSION LOAN TYPE FINANCIAL EFFECT Residential mortgages During the fourth quarter, provided a maturity date extension of approximately 15 years. COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION LOAN TYPE FINANCIAL EFFECT Other commercial real estate (non-owner occupied) During the second quarter, provided seven months of interest only payments at a reduced rate with the remaining portion of interest, totaling approximately $303,000, being deferred until maturity. Additionally, provided three month maturity date extension. A partial charge-down of $804,000 was recorded on this loan in the fourth quarter. |
Schedule of loan modified as a TDR | The following table details the loans modified as troubled debt restructurings (TDR) 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 real estate (non-owner occupied) 1 $ 1,583 Extension of maturity date with an interest only period at below market interest rate |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | An analysis of premises and equipment follows: AT DECEMBER 31, 2023 2022 (IN THOUSANDS) Land $ 1,225 $ 1,225 Premises 30,624 30,079 Furniture and equipment 8,258 8,428 Leasehold improvements 1,196 1,202 Total at cost 41,303 40,934 Less: Accumulated depreciation and amortization 27,154 26,474 Premises and equipment, net $ 14,149 $ 14,460 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASE COMMITMENTS | |
Schedule of lease cost associated with both operating and financing leases | YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) Lease cost Financing lease cost: Amortization of right-of-use asset $ 277 $ 271 $ 272 Interest expense 97 100 106 Operating lease cost 92 106 116 Total lease cost $ 466 $ 477 $ 494 |
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, 2023 and 2022. AT DECEMBER 31, 2023 2022 OPERATING FINANCING OPERATING FINANCING Weighted-average remaining term (years) 8.4 13.9 10.0 15.1 Weighted-average discount rate 3.75 % 3.77 % 3.54 % 3.62 % |
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, 2023 and 2022, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. DECEMBER 31, 2023 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due in: 2024 $ 116 $ 311 2025 105 311 2026 93 247 2027 69 232 2028 69 200 Thereafter 312 2,215 Total undiscounted cash flows 764 3,516 Discount on cash flows (106) (816) Total lease liabilities $ 658 $ 2,700 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 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS. | |
Schedule of company's deposits | The following table sets forth the balance of the Company’s deposits: AT DECEMBER 31, 2023 2022 (IN THOUSANDS) Demand: Non-interest bearing $ 172,070 $ 195,123 Interest bearing 288,124 236,746 Savings 119,484 135,796 Money market 256,205 254,868 Time deposits 322,477 286,004 Total deposits $ 1,158,360 $ 1,108,537 (1) Time deposits include certificates of deposit (CDs) and individual retirement accounts (IRAs). |
Schedule of time deposit maturities | The following table sets forth the balance of time deposits as of December 31, 2023 maturing in the periods presented: YEAR: TIME DEPOSITS (IN THOUSANDS) 2024 $ 259,657 2025 40,810 2026 5,395 2027 5,814 2028 3,754 2029 and after 7,047 Total $ 322,477 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 FEDERAL FUNDS SHORT-TERM PURCHASED BORROWINGS (IN THOUSANDS, EXCEPT RATES) Balance $ — $ 40,951 Maximum balance at any month end — 75,442 Average balance during year 46 35,709 Average rate paid for the year 6.04 % 5.44 % Interest rate on year-end balance — 5.68 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 |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 WEIGHTED AVERAGE YIELD BALANCE MATURING (IN THOUSANDS, EXCEPT RATES) 2024 3.23 % $ 7,947 2025 4.43 2,000 2026 4.29 12,920 2027 4.33 10,950 2028 4.50 10,745 Total advances from FHLB 4.17 $ 44,562 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 |
DISCLOSURES ABOUT FAIR VALUE _2
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 by level within the fair value hierarchy (in thousands). FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2023 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities (1) $ 499 $ 499 $ — $ — Available for sale securities: U.S. Agency 5,339 — 5,339 — U.S. Agency mortgage-backed securities 93,075 — 93,075 — Municipal 10,360 — 10,360 — Corporate bonds 56,937 — 56,937 — Interest rate swap asset (1) 4,582 — 4,582 — Interest rate hedge (2) (446) — (446) — Interest rate swap liability (2) (4,665) — (4,665) — Risk participation agreement (2) (410) — (410) — FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 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) — — — — (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, 2023 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Other real estate owned and repossessed assets 15 — — 15 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1,583 $ — $ — $ 1,583 Other real estate owned and repossessed assets 39 — — 39 Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable DECEMBER 31, 2023 Fair Value Techniques Input Range (Wgtd Avg) Other real estate owned and repossessed assets 15 Appraisal of Appraisal 63% ( 63% ) collateral (1) adjustments (2) Liquidation 33% ( 33% ) expenses 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 Appraisal 0% to 100% (0.2%) collateral (1) adjustments (2) Other real estate owned and repossessed assets 39 Appraisal Appraisal 52% (52%) collateral (1) adjustments (2) Liquidation 10% to 39% (11%) expenses (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, 2023 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of estimated fair value and recorded carrying value | AT DECEMBER 31, 2023 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 63,979 $ 58,621 $ — $ 56,769 $ 1,852 Loans held for sale 130 132 132 — — Loans, net of allowance for credit losses and unearned income 1,023,218 950,402 — — 950,402 FINANCIAL LIABILITIES: Deposits with stated maturities 322,477 321,660 — — 321,660 All other borrowings (1) 71,247 70,061 — — 70,061 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 credit losses 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 (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, 2023 | |
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, 2023 2022 2021 (IN THOUSANDS) Current $ (477) $ 1,220 $ 973 Deferred (565) 533 729 Income tax expense (benefit) $ (1,042) $ 1,753 $ 1,702 |
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, 2023 2022 2021 AMOUNT RATE AMOUNT RATE AMOUNT RATE (IN THOUSANDS, EXCEPT PERCENTAGES) Income tax expense (benefit) based on federal statutory rate $ (921) 21.0 % $ 1,932 21.0 % $ 1,843 21.0 % Tax exempt income (237) 5.4 (244) (2.6) (253) (2.9) Other 116 (2.7) 65 0.7 112 1.3 Total expense (benefit) for income taxes $ (1,042) 23.7 % $ 1,753 19.1 % $ 1,702 19.4 % |
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, 2023 2022 (IN THOUSANDS) DEFERRED TAX ASSETS: Allowance for credit losses - loans $ 3,161 $ 2,256 Allowance for credit losses - securities 202 — Allowance for credit losses - unfunded commitments 197 157 Unrealized investment security losses 3,650 3,971 Premises and equipment 678 955 Lease liabilities 705 698 Interest rate hedges 94 — Other 169 185 Total tax assets 8,856 8,222 DEFERRED TAX LIABILITIES: Investment accretion (95) (107) Lease right-of-use assets (636) (639) Accrued pension obligation (5,193) (4,494) Other (253) (193) Total tax liabilities (6,177) (5,433) Net deferred tax asset $ 2,679 $ 2,789 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of pension benefits | PENSION BENEFITS: YEAR ENDED DECEMBER 31, 2023 2022 (IN THOUSANDS) CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 34,906 $ 50,287 Service cost 1,071 1,419 Interest cost 1,761 1,462 Actuarial loss (gain) 82 (9,787) Settlements — (7,541) Benefits paid (3,001) (934) Benefit obligation at end of year 34,819 34,906 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year 56,257 70,432 Actual return on plan assets 6,079 (9,700) Employer contributions — 4,000 Settlements — (7,541) Benefits paid (3,001) (934) Fair value of plan assets at end of year 59,335 56,257 Funded status of the plan $ 24,516 $ 21,351 |
Schedule of amounts not yet recognized as a component of periodic pension cost | YEAR ENDED DECEMBER 31, 2023 2022 (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 $ 7,626 $ 9,597 Total $ 7,626 $ 9,597 |
Schedule of accumulated benefit obligation | YEAR ENDED DECEMBER 31, 2023 2022 (IN THOUSANDS) ACCUMULATED BENEFIT OBLIGATION: Accumulated benefit obligation $ 32,137 $ 32,190 |
Schedule of weighted-average assumptions used to determine benefit obligations | The weighted-average assumptions used to determine benefit obligations at December 31, 2023 and 2022 were as follows: YEAR ENDED DECEMBER 31, 2023 2022 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.12 % 5.45 % Salary scale Ages 25-34 5.00 5.00 Ages 35-44 4.00 4.00 Ages 45-54 3.00 3.00 Ages 55+ 2.50 2.50 |
Schedule of net periodic pension cost | YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 1,071 $ 1,419 $ 1,708 Interest cost 1,761 1,462 894 Expected return on plan assets (4,063) (4,193) (4,008) Amortization of net loss 37 1,330 2,421 Settlement charge — 2,498 1,736 Net periodic pension (benefit) cost $ (1,194) $ 2,516 $ 2,751 |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive loss | YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS Net (gain) loss $ (1,934) $ 4,106 $ (7,153) Recognized loss (37) (3,828) (4,157) Total recognized in other comprehensive loss before tax effect $ (1,971) $ 278 $ (11,310) Total recognized in net benefit cost and other comprehensive loss before tax effect $ (3,165) $ 2,794 $ (8,559) |
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, 2023, 2022 and 2021 were as follows: YEAR ENDED DECEMBER 31, 2023 2022 2021 WEIGHTED AVERAGE ASSUMPTIONS: Discount rate 5.45 % 2.81 % 2.48 % Expected return on plan assets 7.00 7.00 7.00 Rate of compensation increase Ages 25-34 5.00 2.50 2.50 Ages 35-44 4.00 2.50 2.50 Ages 45-54 3.00 2.50 2.50 Ages 55+ 2.50 2.50 2.50 |
Schedule of plan's asset allocations | The plan’s measurement date is December 31, 2023. This plan’s asset allocation at December 31, 2023 and 2022, by asset category is as follows: YEAR ENDED DECEMBER 31, 2023 2022 ASSET CATEGORY: Cash and cash equivalents 2.4 % 89.9 % Domestic equities 3.4 7.1 Mutual funds/ETFs 94.2 — Corporate bonds — 3.0 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, 2023 2022 (IN THOUSANDS) Level 1: Cash and cash equivalents $ 1,419 $ 50,553 Domestic equities 2,007 4,026 Mutual funds/ETFs 55,909 — Level 2: Corporate bonds — 1,678 Total fair value of plan assets $ 59,335 $ 56,257 |
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) 2024 $ 4,874 2025 4,470 2026 4,651 2027 3,860 2028 3,220 Years 2029-2033 12,630 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCK COMPENSATION PLANS | |
Schedule of company's stock incentive plan | YEAR ENDED DECEMBER 31, 2023 2022 2021 WEIGHTED WEIGHTED WEIGHTED AVERAGE AVERAGE AVERAGE SHARES EXERCISE PRICE SHARES EXERCISE PRICE SHARES EXERCISE PRICE Outstanding at beginning of year 323,786 $ 3.52 369,047 $ 3.47 230,913 $ 3.14 Granted — — — — 160,000 3.84 Exercised (29,653) 3.19 (36,117) 2.96 (21,356) 2.68 Forfeited (49,133) 3.17 (9,144) 3.62 (510) 3.23 Outstanding at end of year 245,000 3.64 323,786 3.52 369,047 3.47 Exercisable at end of year 200,002 3.59 223,784 3.38 206,713 3.18 Weighted average fair value of options granted in current year $ — $ — $ 1.78 |
Schedule of fair value assumptions of each option grant | 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, 2023 | |
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 ended December 31, 2023, 2022, and 2021 (in thousands): YEAR ENDED DECEMBER 31, 2023 YEAR ENDED DECEMBER 31, 2022 YEAR ENDED DECEMBER 31, 2021 Net Net Net Unrealized Unrealized Unrealized Gains and Gains and Gains and Losses on Defined Losses on Defined Losses on Defined Investment Interest Benefit Investment Benefit Investment Benefit Securities Rate Pension Securities Pension Securities Pension AFS (1) Hedge (1) Items (1) Total (1) AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ (14,938) $ — $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) $ 3,539 $ (16,737) $ (13,198) Other comprehensive income (loss) before reclassifications 479 11 1,659 2,149 (16,324) (2,708) (19,032) (2,087) 5,555 3,468 Amounts reclassified from accumulated other comprehensive loss 729 (363) 29 395 — 3,024 3,024 (66) 3,284 3,218 Net current period other comprehensive income (loss) 1,208 (352) 1,688 2,544 (16,324) 316 (16,008) (2,153) 8,839 6,686 Ending balance $ (13,730) $ (352) $ (5,894) $ (19,976) $ (14,938) $ (7,582) $ (22,520) $ 1,386 $ (7,898) $ (6,512) (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 ended December 31, 2023, 2022, and 2021 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) Details about accumulated other YEAR ENDED YEAR ENDED YEAR ENDED Affected line item in the comprehensive loss components DECEMBER 31, 2023 DECEMBER 31, 2022 DECEMBER 31, 2021 statement of operations Realized (gains) losses on sale of securities $ 922 $ — $ (84) Net realized gains (losses) on investment securities (193) — 18 Provision (benefit) for income taxes $ 729 $ — $ (66) Interest rate hedge $ (460) $ — $ — Interest expense - Deposits 97 — — Provision (benefit) for income taxes $ (363) $ — $ — Amortization of estimated defined benefit pension plan loss (2) $ 37 $ 3,828 $ 4,157 Other expense (8) (804) (873) Provision (benefit) for income taxes $ 29 $ 3,024 $ 3,284 Total reclassifications for the period $ 395 $ 3,024 $ 3,218 (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 16 for additional details) . |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS | |
Schedule of Finite-Lived Intangible Assets | YEAR ENDED DECEMBER 31, 2023 2022 (IN THOUSANDS) CORE DEPOSIT INTANGIBLE Balance at beginning of year $ 128 $ 158 Amortization (27) (30) Balance at end of year $ 101 $ 128 |
Schedule of future amortization expense | As of December 31, 2023, the estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2024 $ 24 2025 21 2026 17 2027 14 2028 11 After five years 14 $ 101 |
DERIVATIVE HEDGING INSTRUMENTS
DERIVATIVE HEDGING INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE HEDGING INSTRUMENTS | |
Schedule of interest rate swap transactions | The following table summarizes the interest rate swap transactions that impacted the Company’s 2023 and 2022 performance (in thousands, except percentages). DECEMBER 31, 2023 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 76,502 7.45 % Monthly $ 2,099 Swap liabilities N/A (76,502) (7.45) Monthly (2,099) Net exposure $ — — % $ — 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 $ — — % $ — |
Schedule of cash flow hedges accumulated other comprehensive loss | The following table summarizes the effect of the effective portion of the Company’s cash flow hedge accounting on accumulated other comprehensive loss for the year ended December 31, 2023 (in thousands). YEAR ENDED DECEMBER 31, 2023 Derivatives in Cash Flow Hedging Relationships Amount Recognized in Other Comprehensive Loss on Derivative Location on Consolidated Statements of Operations of Reclassification from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Compreshensive Loss Interest rate hedge $ (446) Interest expense - Deposits $ (460) Total $ (446) $ (460) |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT RESULTS | |
Schedule of business segments | YEAR ENDED DECEMBER 31, 2023 COMMUNITY WEALTH INVESTMENT/ BANKING MANAGEMENT PARENT TOTAL (IN THOUSANDS) Net interest income (expense) $ 50,843 $ 11 $ (14,834) $ 36,020 Provision for credit losses 6,580 — 849 7,429 Non-interest income 4,409 11,270 710 16,389 Non-interest expense 34,749 9,506 5,113 49,368 Income (loss) before income taxes 13,923 1,775 (20,086) (4,388) Income tax expense (benefit) 2,389 452 (3,883) (1,042) Net income (loss) $ 11,534 $ 1,323 $ (16,203) $ (3,346) Total assets $ 1,151,720 $ 11,173 $ 226,745 $ 1,389,638 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 credit losses 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 credit losses 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 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY CAPITAL | |
Schedule of compliance with regulatory capital requirements under banking regulations | AT DECEMBER 31, 2023 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) $ 149,596 13.03 % $ 135,196 11.82 % 8.00 % 10.00 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 108,541 9.46 120,874 10.57 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 108,541 9.46 120,874 10.57 6.00 8.00 Tier 1 Capital (To Average Assets) 108,541 7.80 120,874 8.78 4.00 5.00 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 * Applies to the Bank only. |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of parent company information of balance sheets | BALANCE SHEETS AT DECEMBER 31, 2023 2022 (IN THOUSANDS) ASSETS Cash $ 100 $ 100 Short-term investments 3,553 3,178 Cash and cash equivalents 3,653 3,278 Investment securities available for sale 4,532 6,334 Equity investment in banking subsidiary 115,322 117,432 Equity investment in non-banking subsidiaries 6,084 6,533 Other assets 1,163 1,008 TOTAL ASSETS $ 130,754 $ 134,585 LIABILITIES Subordinated debt $ 26,685 $ 26,644 Other liabilities 1,792 1,763 TOTAL LIABILITIES 28,477 28,407 SHAREHOLDERS’ EQUITY Total shareholders’ equity 102,277 106,178 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 130,754 $ 134,585 |
Schedule of parent company information of statements of operations | STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) INCOME Inter-entity management and other fees $ 2,702 $ 2,566 $ 2,520 Dividends from banking subsidiary 3,000 4,000 2,000 Dividends from non-banking subsidiary 1,650 1,055 1,550 Interest, dividend and other income 221 146 115 TOTAL INCOME 7,573 7,767 6,185 EXPENSE Interest expense 1,054 1,054 1,798 Salaries and employee benefits 2,816 2,811 2,871 Other expense 4,362 1,948 1,783 TOTAL EXPENSE 8,232 5,813 6,452 INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES (659) 1,954 (267) Benefit for income taxes (1,115) (652) (802) Equity in undistributed earnings of subsidiaries (3,802) 4,842 6,537 NET INCOME (LOSS) $ (3,346) $ 7,448 $ 7,072 COMPREHENSIVE INCOME (LOSS) $ (802) $ (8,560) $ 13,758 |
Schedule of parent company information of statements of cash flows | STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023 2022 2021 (IN THOUSANDS) OPERATING ACTIVITIES Net income (loss) $ (3,346) $ 7,448 $ 7,072 Adjustment to reconcile net income (loss) to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries 3,802 (4,842) (6,537) Stock compensation expense 45 50 43 Other – net (53) 189 1,204 NET CASH PROVIDED BY OPERATING ACTIVITIES 448 2,845 1,782 INVESTING ACTIVITIES Purchase of investment securities – available for sale — (3,994) (1,008) Proceeds from maturity and sales of investment securities – available for sale 1,891 655 991 Capital contribution to banking subsidiary — — (3,500) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,891 (3,339) (3,517) 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 94 106 57 Purchases of treasury stock — — — Common stock dividends paid (2,058) (1,967) (1,708) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,964) (1,861) 5,270 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 375 (2,355) 3,535 CASH AND CASH EQUIVALENTS AT JANUARY 1 3,278 5,633 2,098 CASH AND CASH EQUIVALENTS AT DECEMBER 31 $ 3,653 $ 3,278 $ 5,633 |
SELECTED QUARTERLY CONSOLIDAT_2
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: 2023 QUARTER ENDED DEC. 31 SEPT. 30 JUNE 30 MARCH 31 (IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income $ 15,968 $ 15,439 $ 14,879 $ 14,574 Interest expense 7,379 6,640 5,769 5,052 Net interest income 8,589 8,799 9,110 9,522 Provision for credit losses 6,018 189 43 1,179 Net interest income after provision for credit losses 2,571 8,610 9,067 8,343 Non-interest income 2,764 4,256 3,862 5,507 Non-interest expense 12,133 12,095 13,177 11,963 Income (loss) before income taxes (6,798) 771 (248) 1,887 Provision (benefit) for income taxes (1,477) 124 (61) 372 Net income (loss) $ (5,321) $ 647 $ (187) $ 1,515 Basic earnings per common share $ (0.31) $ 0.04 $ (0.01) $ 0.09 Diluted earnings per common share (0.31) 0.04 (0.01) 0.09 Cash dividends declared per common share 0.030 0.030 0.030 0.030 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 credit losses 275 500 (325) (400) Net interest income after provision (credit) for credit 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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) security $ / shares | Dec. 31, 2023 USD ($) location lease item security $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jan. 01, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Number of Stores | 17 | 17 | ||||
Number of locations in Southwestern Pennsylvania Counties | item | 5 | |||||
Assets under Management, Carrying Amount | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,300,000,000 | |||
Number of locations in Pennsylvania | location | 16 | |||||
Number of locations in state Maryland | location | 1 | |||||
Held to maturity, allowance for credit losses | 37,000 | $ 37,000 | $ 114,000 | |||
Accrued interest receivable on held to maturity debt securities | 388,000 | 388,000 | ||||
Held to maturity debt securities in non-accrual | 0 | 0 | ||||
Allowance for credit losses | 926,000 | 926,000 | ||||
Accrued interest receivable on available for sale debt securities | $ 988,000 | $ 988,000 | ||||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest income receivable | Accrued interest income receivable | ||||
Number of available for sale debt securities in non accrual status | security | 1 | 1 | ||||
Available-for-Sale debt securities in non-accrual | $ 926,000 | $ 926,000 | ||||
Federal Home Loan Bank Stock Par Value | $ / shares | $ 100 | $ 100 | ||||
Accrued interest receivable | $ 4,200,000 | $ 4,200,000 | $ 3,500,000 | |||
Threshold Period Past Due for Write-off of Financing Receivable | 90 days | 90 days | ||||
Description Of Accounting Treatment For Short Term Operating Lease | As of December 31, 2023, the Company had no short-term leases compared to one short-term lease for an office location as of December 31, 2022. | |||||
Percentage of general reserve | 49% | |||||
Percentage of quantitative reserve | 51% | |||||
Evaluated for impairment | $ 150,000 | $ 150,000 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 218,000 | 22,000 | 22,000 | |||
Income Taxes Paid | $ 625,000,000,000 | $ 1,100,000 | $ 200,000 | |||
Real Estate Owned, Transfer from Real Estate Owned | 15,000 | 53,000 | 8,000 | |||
Operating lease liabilities | 658,000 | 658,000 | 643,000 | |||
Operating lease right-of-use asset | 646,000 | 646,000 | 630,000 | |||
Finance Lease, Right-of-Use Asset | 2,384,000 | 2,384,000 | 2,413,000 | |||
Finance Lease, Liability | 2,700,000 | 2,700,000 | 2,680,000 | |||
Total interest payments | 21,771,000 | 8,450,000 | 8,049,000 | |||
Allowance for credit losses - Loans | 15,053,000 | 15,053,000 | 10,743,000 | $ 12,398,000 | 11,947,000 | $ 11,345,000 |
Allowance for credit losses | 940,000 | 940,000 | $ 746,000 | 923,000 | ||
Consumer and residential mortgage loans | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process. | $ 250,000 | $ 250,000 | ||||
Core Deposits Intangibles | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Finite-lived intangible asset useful life | 10 years | 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 | $ 3.18 | $ 3.18 | $ 4 | $ 4 | ||
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 | $ 4.22 | ||
Impact of adopting ASU 2016-13 | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | $ 114,000 | |||||
ASU 2016-13 | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | $ 114,000 | $ 114,000 | ||||
Allowance for credit losses - Loans | 1,200,000 | 1,200,000 | 1,200,000 | |||
Allowance for credit losses | 177,000 | |||||
ASU 2016-13 | Unfunded Loan Commitment | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | 114,000 | |||||
Allowance for credit losses | 177,000 | 177,000 | ||||
ASU 2016-13 | Revision of Prior Period, Adjustment | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | 114,000 | |||||
Allowance for credit losses - Loans | 1,204,000 | |||||
Allowance for credit losses | $ 177,000 | |||||
ASU 2016-13 | Impact of adopting ASU 2016-13 | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Allowance for credit losses - Loans | (1,204,000) | (1,204,000) | ||||
U.S. Agency | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | 0 | 0 | ||||
U.S. Agency mortgage-backed securities | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Held to maturity, allowance for credit losses | 0 | 0 | ||||
Commercial | Commercial | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process. | $ 1,000,000 | $ 1,000,000 | ||||
Premises | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Property, Plant and Equipment, Useful Life | 30 years | 30 years | ||||
Equipment | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | ||||
New Finance Leased Assets | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Number of financing leases | lease | 2 | |||||
Finance Lease, Right-of-Use Asset | 45,000 | |||||
Finance Lease, Liability | $ 248,000 | $ 248,000 | $ 45,000 | |||
Operating lease relating to office location | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Operating lease liabilities | 85,000 | 85,000 | ||||
Operating lease right-of-use asset | $ 85,000 | $ 85,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Computation of diluted earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||||||||||
Net income | $ (5,321) | $ 647 | $ (187) | $ 1,515 | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ (3,346) | $ 7,448 | $ 7,072 |
Denominator: | |||||||||||
Weighted average common shares outstanding (basic) (in shares) | 17,143 | 17,107 | 17,073 | ||||||||
Effect of stock options (in shares) | 1 | 39 | 41 | ||||||||
Weighted average common shares outstanding (diluted) (in shares) | 17,144 | 17,146 | 17,114 | ||||||||
Earnings per common share: | |||||||||||
Basic (in dollars per share) | $ (0.31) | $ 0.04 | $ (0.01) | $ 0.09 | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ (0.20) | $ 0.44 | $ 0.41 |
Diluted (in dollars per share) | $ (0.31) | $ 0.04 | $ (0.01) | $ 0.09 | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ (0.20) | $ 0.43 | $ 0.41 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-cash assets acquired and Liabilities Assumed (Details) - Riverview Bank $ in Thousands | 12 Months Ended |
Dec. 31, 2021 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) |
ADOPTION OF ACCOUNTING STANDA_3
ADOPTION OF ACCOUNTING STANDARDS (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 58,901,000 | $ 65,486,000 | |||
Allowance for credit losses - Loans | 15,053,000 | $ 11,947,000 | 10,743,000 | $ 12,398,000 | $ 11,345,000 |
Held to maturity, allowance for credit losses | 37,000 | 114,000 | |||
Off-Balance-Sheet, credit loss liabilities | 940,000 | 923,000 | $ 746,000 | ||
ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | 1,200,000 | ||||
Amount of retained earnings related to loans | 951,000 | ||||
Amount of retained earnings related to held to maturity debt securities | 90,000 | ||||
Allowance for credit losses - Loans | 1,200,000 | 1,200,000 | |||
Held to maturity, allowance for credit losses | $ 114,000 | ||||
Off-Balance-Sheet, credit loss liabilities | 177,000 | ||||
ASU 2016-13 | Unfunded Loan Commitment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amount of retained earnings related to unfunded commitments | 140,000 | ||||
Held to maturity, allowance for credit losses | $ 114,000 |
ADOPTION OF ACCOUNTING STANDA_4
ADOPTION OF ACCOUNTING STANDARDS - Current Expected Credit Loss Model (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | $ 37,000 | $ 114,000 | |||
Loans, net of unearned income | 990,766,000 | ||||
Less: Allowance for credit losses | 15,053,000 | 11,947,000 | $ 10,743,000 | $ 12,398,000 | $ 11,345,000 |
Off-Balance-Sheet, credit loss liabilities | 940,000 | 923,000 | 746,000 | ||
ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | 114,000 | ||||
Less: Allowance for credit losses | 1,200,000 | 1,200,000 | |||
Off-Balance-Sheet, credit loss liabilities | 177,000 | ||||
Other commercial and industrial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 153,389,000 | ||||
Less: Allowance for credit losses | 3,030,000 | 2,908,000 | |||
Other commercial real estate (non-owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 224,913,000 | ||||
Less: Allowance for credit losses | 3,428,000 | 3,196,000 | |||
Residential mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 173,777,000 | ||||
Less: Allowance for credit losses | 1,021,000 | 1,025,000 | 1,380,000 | 1,590,000 | |
Allocation for general risk | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 653,000 | 1,232,000 | 1,093,000 | ||
Unfunded Loan Commitment | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | 114,000 | ||||
Commercial | Commercial real estate (owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 81,359,000 | ||||
Less: Allowance for credit losses | 1,529,000 | 1,380,000 | |||
Commercial | Other commercial and industrial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 3,030,000 | ||||
Commercial | Commercial real estate (non-owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 5,972,000 | 6,392,000 | 5,373,000 | ||
Commercial | Commercial real estate (non-owner occupied) - retail | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 148,901,000 | ||||
Less: Allowance for credit losses | 3,488,000 | 1,432,000 | |||
Commercial | Commercial real estate (non-owner occupied) - multi-family | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 106,423,000 | ||||
Less: Allowance for credit losses | 1,430,000 | 1,226,000 | |||
Commercial | Other commercial real estate (non-owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 3,428,000 | 5,972,000 | |||
Commercial | Commercial (owner occupied real estate and other) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 2,653,000 | ||||
Consumer. | Commercial real estate (non-owner occupied) - retail | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 3,488,000 | ||||
Consumer. | Commercial real estate (non-owner occupied) - multi-family | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 1,430,000 | ||||
Consumer. | Residential mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 1,380,000 | 1,590,000 | 1,292,000 | ||
Consumer. | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 102,004,000 | ||||
Less: Allowance for credit losses | 1,127,000 | 780,000 | 85,000 | $ 113,000 | $ 115,000 |
Municipal | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | $ 2,000 | 3,000 | |||
Corporate bonds. | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | 111,000 | ||||
Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 990,766,000 | ||||
Less: Allowance for credit losses | 10,743,000 | ||||
Off-Balance-Sheet, credit loss liabilities | 746,000 | ||||
Previously Reported [Member] | Other commercial and industrial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 153,420,000 | ||||
Previously Reported [Member] | Other commercial real estate (non-owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 450,744,000 | ||||
Less: Allowance for credit losses | 5,972,000 | ||||
Previously Reported [Member] | Residential mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 297,971,000 | ||||
Less: Allowance for credit losses | 1,380,000 | ||||
Previously Reported [Member] | Allocation for general risk | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 653,000 | ||||
Previously Reported [Member] | Commercial | Commercial real estate (owner occupied) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 75,158,000 | ||||
Previously Reported [Member] | Commercial | Commercial (owner occupied real estate and other) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | 2,653,000 | ||||
Previously Reported [Member] | Consumer. | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 13,473,000 | ||||
Less: Allowance for credit losses | $ 85,000 | ||||
Revision of Prior Period, Adjustment | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | 114,000 | ||||
Less: Allowance for credit losses | 1,204,000 | ||||
Off-Balance-Sheet, credit loss liabilities | 177,000 | ||||
Revision of Prior Period, Adjustment | Other commercial and industrial | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | (31,000) | ||||
Less: Allowance for credit losses | 2,908,000 | ||||
Revision of Prior Period, Adjustment | Other commercial real estate (non-owner occupied) | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | (225,831,000) | ||||
Less: Allowance for credit losses | (2,776,000) | ||||
Revision of Prior Period, Adjustment | Residential mortgage | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | (124,194,000) | ||||
Less: Allowance for credit losses | (355,000) | ||||
Revision of Prior Period, Adjustment | Allocation for general risk | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | (653,000) | ||||
Revision of Prior Period, Adjustment | Commercial | Commercial real estate (owner occupied) | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 6,201,000 | ||||
Less: Allowance for credit losses | 1,380,000 | ||||
Revision of Prior Period, Adjustment | Commercial | Commercial real estate (non-owner occupied) - retail | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 148,901,000 | ||||
Less: Allowance for credit losses | 1,432,000 | ||||
Revision of Prior Period, Adjustment | Commercial | Commercial real estate (non-owner occupied) - multi-family | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 106,423,000 | ||||
Less: Allowance for credit losses | 1,226,000 | ||||
Revision of Prior Period, Adjustment | Commercial | Commercial (owner occupied real estate and other) | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Less: Allowance for credit losses | (2,653,000) | ||||
Revision of Prior Period, Adjustment | Consumer. | Consumer | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans, net of unearned income | 88,531,000 | ||||
Less: Allowance for credit losses | 695,000 | ||||
Revision of Prior Period, Adjustment | Municipal | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | 3,000 | ||||
Revision of Prior Period, Adjustment | Corporate bonds. | ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Held to maturity, allowance for credit losses | $ 111,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-interest income (in-scope of Topic 606) | $ 14,493 | $ 14,737 | $ 14,968 | ||||||||
Non-interest income (out-of-scope of Topic 606) | 1,896 | 1,955 | 2,793 | ||||||||
Total Non-Interest Income | $ 2,764 | $ 4,256 | $ 3,862 | $ 5,507 | $ 3,893 | $ 4,326 | $ 4,138 | $ 4,335 | 16,389 | 16,692 | 17,761 |
Wealth management fees | |||||||||||
Non-interest income (in-scope of Topic 606) | 11,266 | 11,620 | 11,986 | ||||||||
Service charges on deposit accounts | |||||||||||
Non-interest income (in-scope of Topic 606) | 1,163 | 1,108 | 965 | ||||||||
Other | |||||||||||
Non-interest income (in-scope of Topic 606) | $ 2,064 | $ 2,009 | $ 2,017 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Percentage of entity revenue | 81.20% |
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, 2023 | Dec. 31, 2022 | Mar. 26, 2020 |
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | |||
Restricted cash and cash equivalents | $ 0 | ||
Cash and due from depository institutions | $ 9,678 | $ 18,830 |
INVESTMENT SECURITIES - Cost ba
INVESTMENT SECURITIES - Cost basis and fair values of investment securities (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Information concerning investments with unrealized gains and losses | |||
Investment securities available for sale, Cost Basis | $ 184,018,000 | $ 198,417,000 | |
Investment securities available for sale, Gross Unrealized Gains | 226,000 | 95,000 | |
Investment securities available for sale, Gross Unrealized Losses | (17,607,000) | (19,004,000) | |
Investment securities available for sale, Allowance for credit losses | (926,000) | ||
Available for Sale, Fair Value | 165,711,000 | 179,508,000 | |
Investment securities held to maturity, Cost Basis | 63,979,000 | 61,878,000 | |
Investment securities held to maturity, Gross Unrealized Gains | 49,000 | 10,000 | |
Investment securities held to maturity, Gross Unrealized Losses | (5,407,000) | (6,696,000) | |
Investment securities held to maturity, Allowance for credit losses | (37,000) | $ (114,000) | |
Investment securities held to maturity, Fair value | 58,621,000 | 55,192,000 | |
U.S. Agency | |||
Information concerning investments with unrealized gains and losses | |||
Investment securities available for sale, Cost Basis | 6,035,000 | 11,797,000 | |
Investment securities available for sale, Gross Unrealized Gains | 1,000 | ||
Investment securities available for sale, Gross Unrealized Losses | (696,000) | (1,265,000) | |
Available for Sale, Fair Value | 5,339,000 | 10,533,000 | |
Investment securities held to maturity, Cost Basis | 2,500,000 | 2,500,000 | |
Investment securities held to maturity, Gross Unrealized Losses | (379,000) | (432,000) | |
Investment securities held to maturity, Allowance for credit losses | 0 | ||
Investment securities held to maturity, Fair value | 2,121,000 | 2,068,000 | |
U.S. Agency mortgage-backed securities | |||
Information concerning investments with unrealized gains and losses | |||
Investment securities available for sale, Cost Basis | 104,820,000 | 102,631,000 | |
Investment securities available for sale, Gross Unrealized Gains | 179,000 | 64,000 | |
Investment securities available for sale, Gross Unrealized Losses | (11,924,000) | (12,710,000) | |
Available for Sale, Fair Value | 93,075,000 | 89,985,000 | |
Investment securities held to maturity, Cost Basis | 24,222,000 | 18,877,000 | |
Investment securities held to maturity, Gross Unrealized Gains | 49,000 | 8,000 | |
Investment securities held to maturity, Gross Unrealized Losses | (2,058,000) | (2,212,000) | |
Investment securities held to maturity, Allowance for credit losses | 0 | ||
Investment securities held to maturity, Fair value | 22,213,000 | 16,673,000 | |
Municipal | |||
Information concerning investments with unrealized gains and losses | |||
Investment securities available for sale, Cost Basis | 11,159,000 | 20,837,000 | |
Investment securities available for sale, Gross Unrealized Gains | 1,000 | ||
Investment securities available for sale, Gross Unrealized Losses | (800,000) | (1,799,000) | |
Available for Sale, Fair Value | 10,360,000 | 19,038,000 | |
Investment securities held to maturity, Cost Basis | 32,787,000 | 33,993,000 | |
Investment securities held to maturity, Gross Unrealized Gains | 2,000 | ||
Investment securities held to maturity, Gross Unrealized Losses | (2,797,000) | (3,880,000) | |
Investment securities held to maturity, Allowance for credit losses | (2,000) | (3,000) | |
Investment securities held to maturity, Fair value | 29,990,000 | 30,115,000 | |
Corporate bonds. | |||
Information concerning investments with unrealized gains and losses | |||
Investment securities available for sale, Cost Basis | 62,004,000 | 63,152,000 | |
Investment securities available for sale, Gross Unrealized Gains | 46,000 | 30,000 | |
Investment securities available for sale, Gross Unrealized Losses | (4,187,000) | (3,230,000) | |
Investment securities available for sale, Allowance for credit losses | (926,000) | ||
Available for Sale, Fair Value | 56,937,000 | 59,952,000 | |
Investment securities held to maturity, Allowance for credit losses | $ (111,000) | ||
Corporate bonds and other securities | |||
Information concerning investments with unrealized gains and losses | |||
Investment securities held to maturity, Cost Basis | 4,470,000 | 6,508,000 | |
Investment securities held to maturity, Gross Unrealized Losses | (173,000) | (172,000) | |
Investment securities held to maturity, Allowance for credit losses | (35,000) | ||
Investment securities held to maturity, Fair value | $ 4,297,000 | $ 6,336,000 |
INVESTMENT SECURITIES - Total i
INVESTMENT SECURITIES - Total investment securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $ 7,624 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 35,374 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 41,575 | |
Available for Sale, Cost Basis, Over 10 years | 99,445 | |
Investment securities available for sale, Cost Basis | 184,018 | $ 198,417 |
Available for Sale, Fair Value, Within 1 year | 7,524 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 33,882 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 36,561 | |
Available for Sale, Fair Value, Over 10 years | 87,744 | |
Available for Sale, Fair Value, Total | 165,711 | 179,508 |
Held to Maturity, Cost Basis, Within 1 year | 3,182 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 15,110 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 21,484 | |
Held to Maturity, Cost Basis, Over 10 years | 24,203 | |
Investment securities held to maturity, Cost Basis | 63,979 | 61,878 |
Held to Maturity, Fair Value, Within 1 year | 3,128 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 14,440 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 19,032 | |
Held to Maturity, Fair Value, Over 10 years | 22,021 | |
Held to Maturity, Fair Value, Total | 58,621 | 55,192 |
U.S. Agency | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 500 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 176 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 4,000 | |
Available for Sale, Cost Basis, Over 10 years | 1,359 | |
Investment securities available for sale, Cost Basis | 6,035 | 11,797 |
Available for Sale, Fair Value, Within 1 year | 499 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 169 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 3,434 | |
Available for Sale, Fair Value, Over 10 years | 1,237 | |
Available for Sale, Fair Value, Total | 5,339 | 10,533 |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 2,500 | |
Investment securities held to maturity, Cost Basis | 2,500 | 2,500 |
Held to Maturity, Fair Value, After 5 years but within 10 years | 2,121 | |
Held to Maturity, Fair Value, Total | 2,121 | 2,068 |
Municipal | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 2,112 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 4,511 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 4,536 | |
Investment securities available for sale, Cost Basis | 11,159 | 20,837 |
Available for Sale, Fair Value, Within 1 year | 2,085 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 4,336 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 3,939 | |
Available for Sale, Fair Value, Total | 10,360 | 19,038 |
Held to Maturity, Cost Basis, Within 1 year | 1,211 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 13,108 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 17,174 | |
Held to Maturity, Cost Basis, Over 10 years | 1,294 | |
Investment securities held to maturity, Cost Basis | 32,787 | 33,993 |
Held to Maturity, Fair Value, Within 1 year | 1,195 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 12,580 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 15,143 | |
Held to Maturity, Fair Value, Over 10 years | 1,072 | |
Held to Maturity, Fair Value, Total | 29,990 | 30,115 |
Corporate bonds and other securities | ||
Contractual maturities of securities | ||
Held to Maturity, Cost Basis, Within 1 year | 1,000 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 2,002 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 488 | |
Held to Maturity, Cost Basis, Over 10 years | 980 | |
Investment securities held to maturity, Cost Basis | 4,470 | 6,508 |
Held to Maturity, Fair Value, Within 1 year | 969 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 1,860 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 488 | |
Held to Maturity, Fair Value, Over 10 years | 980 | |
Held to Maturity, Fair Value, Total | 4,297 | 6,336 |
U.S. Agency mortgage-backed securities | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, After 1 year but within 5 years | 1,667 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 5,717 | |
Available for Sale, Cost Basis, Over 10 years | 97,436 | |
Investment securities available for sale, Cost Basis | 104,820 | 102,631 |
Available for Sale, Fair Value, After 1 year but within 5 years | 1,615 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 5,429 | |
Available for Sale, Fair Value, Over 10 years | 86,031 | |
Available for Sale, Fair Value, Total | 93,075 | 89,985 |
Held to Maturity, Cost Basis, Within 1 year | 971 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 1,322 | |
Held to Maturity, Cost Basis, Over 10 years | 21,929 | |
Investment securities held to maturity, Cost Basis | 24,222 | 18,877 |
Held to Maturity, Fair Value, Within 1 year | 964 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 1,280 | |
Held to Maturity, Fair Value, Over 10 years | 19,969 | |
Held to Maturity, Fair Value, Total | 22,213 | 16,673 |
Corporate bonds. | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 5,012 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 29,020 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 27,322 | |
Available for Sale, Cost Basis, Over 10 years | 650 | |
Investment securities available for sale, Cost Basis | 62,004 | 63,152 |
Available for Sale, Fair Value, Within 1 year | 4,940 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 27,762 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 23,759 | |
Available for Sale, Fair Value, Over 10 years | 476 | |
Available for Sale, Fair Value, Total | $ 56,937 | $ 59,952 |
INVESTMENT SECURITIES - Informa
INVESTMENT SECURITIES - Information concerning investments with unrealized losses (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | |
Less than 12 months, Fair Value | $ 13,005 |
Less than 12 months, Unrealized Losses | (123) |
12 months or longer, Fair Value | 131,618 |
12 months or longer, Unrealized Losses | (17,484) |
Total, Fair Value | 144,623 |
Total, Unrealized Losses | (17,607) |
U.S. Agency | |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | |
12 months or longer, Fair Value | 5,339 |
12 months or longer, Unrealized Losses | (696) |
Total, Fair Value | 5,339 |
Total, Unrealized Losses | (696) |
U.S. Agency mortgage-backed securities | |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | |
Less than 12 months, Fair Value | 4,120 |
Less than 12 months, Unrealized Losses | (20) |
12 months or longer, Fair Value | 73,511 |
12 months or longer, Unrealized Losses | (11,904) |
Total, Fair Value | 77,631 |
Total, Unrealized Losses | (11,924) |
Municipal | |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | |
12 months or longer, Fair Value | 10,109 |
12 months or longer, Unrealized Losses | (800) |
Total, Fair Value | 10,109 |
Total, Unrealized Losses | (800) |
Corporate bonds and other securities | |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | |
Less than 12 months, Fair Value | 8,885 |
Less than 12 months, Unrealized Losses | (103) |
12 months or longer, Fair Value | 42,659 |
12 months or longer, Unrealized Losses | (4,084) |
Total, Fair Value | 51,544 |
Total, Unrealized Losses | $ (4,187) |
INVESTMENT SECURITIES - Allowan
INVESTMENT SECURITIES - Allowance for credit losses on held to maturity debt securities by major security type (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Provision (Credit) | $ (77,000) |
Ending Balance | 37,000 |
Impact of adopting ASU 2016-13 | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Beginning Balance | 114,000 |
U.S. Agency | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Ending Balance | 0 |
U.S. Agency mortgage-backed securities | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Ending Balance | 0 |
Municipal | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Provision (Credit) | (1,000) |
Ending Balance | 2,000 |
Municipal | Impact of adopting ASU 2016-13 | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Beginning Balance | 3,000 |
Corporate bonds and other securities | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Provision (Credit) | (76,000) |
Ending Balance | 35,000 |
Corporate bonds and other securities | Impact of adopting ASU 2016-13 | |
Schedule of Held-to-Maturity Securities [Line Items] | |
Beginning Balance | $ 111,000 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost of held to maturity debt securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | $ 63,979 | $ 61,878 |
AAA/AA/A | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 62,511 | |
Unrated | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 1,468 | |
U.S. Agency | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 2,500 | 2,500 |
U.S. Agency | AAA/AA/A | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 2,500 | |
U.S. Agency mortgage-backed securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 24,222 | 18,877 |
U.S. Agency mortgage-backed securities | AAA/AA/A | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 24,222 | |
Municipal | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 32,787 | 33,993 |
Municipal | AAA/AA/A | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 32,787 | |
Corporate bonds and other securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 4,470 | $ 6,508 |
Corporate bonds and other securities | AAA/AA/A | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | 3,002 | |
Corporate bonds and other securities | Unrated | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investment securities - HTM, Carrying Value | $ 1,468 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional information (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2023 USD ($) item security | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) item security | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2023 USD ($) | |
INVESTMENT SECURITIES | ||||||||||||
Gross investment losses | $ 927,000 | $ 5,000 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 729,000 | $ (66,000) | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (193,000) | 18,000 | ||||||||||
Investment Securities: | ||||||||||||
Held to maturity securities, fair value | $ 58,621,000 | $ 55,192,000 | 58,621,000 | 55,192,000 | ||||||||
Equity securities | 499,000 | 502,000 | 499,000 | 502,000 | ||||||||
Proceeds from sales of investment securities - available for sale | 16,772,000 | 1,519,000 | 960,000 | |||||||||
Book value of securities available for sale and held to maturity | 135,624,000 | 134,002,000 | 135,624,000 | 134,002,000 | ||||||||
Gross investment gains | 5,000 | 5,000 | 84,000 | |||||||||
Gross investment losses | $ 927,000 | 5,000 | ||||||||||
Premium percentage on mortgage backed securities purchased | 100.80% | |||||||||||
Consolidated investment securities portfolio modified, years | 4 years 1 month 13 days | |||||||||||
Realized gain on equity securities | 36,000 | |||||||||||
Unrealized gain on equity securities | 7,000 | |||||||||||
FV-Ni Realized gain loss | $ 0 | |||||||||||
Realized loss on equity securities | 9,000 | |||||||||||
Unrealized loss on equity securities | 0 | 13,000 | ||||||||||
Held to maturity, allowance for credit losses | 37,000 | 37,000 | $ 114,000 | |||||||||
Accrued interest receivable on held to maturity debt securities | 388,000 | 388,000 | ||||||||||
Held to maturity debt securities in non-accrual | 0 | 0 | ||||||||||
Available for Sale Securities, allowance for credit losses | $ 926,000 | $ 926,000 | ||||||||||
Number of available for sale debt securities in non accrual status | security | 1 | 1 | ||||||||||
Available-for-Sale debt securities in non-accrual | $ 926,000 | $ 926,000 | ||||||||||
Percentage of unrealized loss position for less than 12 months | 0.90% | |||||||||||
Percentage of unrealized loss position for greater than 12 months | 11.70% | |||||||||||
Assets | 1,389,638,000 | 1,363,874,000 | $ 1,389,638,000 | 1,363,874,000 | 1,335,560,000 | |||||||
Net income | (5,321,000) | $ 647,000 | $ (187,000) | $ 1,515,000 | 947,000 | $ 2,102,000 | $ 1,981,000 | $ 2,418,000 | (3,346,000) | 7,448,000 | 7,072,000 | |
Unpaid interest | 17,000 | |||||||||||
Signature Bank | ||||||||||||
Investment Securities: | ||||||||||||
Assets | 110,400,000,000 | 110,400,000,000 | ||||||||||
Net income | 1,300,000,000 | |||||||||||
U.S. Agency | ||||||||||||
Investment Securities: | ||||||||||||
Held to maturity securities, fair value | 2,121,000 | 2,068,000 | $ 2,121,000 | 2,068,000 | ||||||||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 6 years 11 months 1 day | |||||||||||
Weighted Average Expected Maturity For Held To Maturity Securities | 6 years 8 months 19 days | |||||||||||
Held to maturity, allowance for credit losses | $ 0 | $ 0 | ||||||||||
Unrealized loss position for greater than 12 months, Number of positions | item | 7 | 7 | ||||||||||
U.S. Agency mortgage-backed securities | ||||||||||||
Investment Securities: | ||||||||||||
Held to maturity securities, fair value | $ 22,213,000 | 16,673,000 | $ 22,213,000 | 16,673,000 | ||||||||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 7 years 5 months 15 days | |||||||||||
Weighted Average Expected Maturity For Held To Maturity Securities | 8 years 10 months 6 days | |||||||||||
Held to maturity, allowance for credit losses | $ 0 | $ 0 | ||||||||||
Unrealized loss position for less than 12 months, Number of positions | item | 2 | 2 | ||||||||||
Unrealized loss position for greater than 12 months, Number of positions | item | 137 | 137 | ||||||||||
Municipal | ||||||||||||
Investment Securities: | ||||||||||||
Held to maturity securities, fair value | $ 29,990,000 | $ 30,115,000 | $ 29,990,000 | $ 30,115,000 | ||||||||
Held to maturity, allowance for credit losses | $ 2,000 | $ 2,000 | 3,000 | |||||||||
Unrealized loss position for greater than 12 months, Number of positions | item | 32 | 32 | ||||||||||
Corporate bonds. | ||||||||||||
Investment Securities: | ||||||||||||
Held to maturity, allowance for credit losses | $ 111,000 | |||||||||||
Available for Sale Securities, allowance for credit losses | $ 926,000 | $ 926,000 | ||||||||||
Unrealized loss position for less than 12 months, Number of positions | item | 10 | 10 | ||||||||||
Unrealized loss position for greater than 12 months, Number of positions | item | 82 | 82 | ||||||||||
Israel Jubilee Bonds | ||||||||||||
Investment Securities: | ||||||||||||
Investment securities - HTM, Carrying Value | $ 2,000,000 | $ 2,000,000 | ||||||||||
Held to maturity securities, fair value | 1,900,000 | 1,900,000 | ||||||||||
Held to maturity securities | $ 2,000,000 | $ 2,000,000 | ||||||||||
Held to maturity securities term | 3 years | |||||||||||
Corporate bonds. | ||||||||||||
Investment Securities: | ||||||||||||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 3 years 8 months 19 days | |||||||||||
Weighted Average Expected Maturity For Held To Maturity Securities | 3 years 4 months 9 days | |||||||||||
Municipal | ||||||||||||
Investment Securities: | ||||||||||||
Available For Sale Securities Debt Maturities Weighted Average Maturity Term | 3 years 18 days | |||||||||||
Weighted Average Expected Maturity For Held To Maturity Securities | 4 years 8 months 8 days | |||||||||||
AAA/AA/A. | ||||||||||||
INVESTMENT SECURITIES | ||||||||||||
Portfolio rated | 55.90% | 52.50% | 55.90% | 52.50% | ||||||||
Securities rated below A | ||||||||||||
INVESTMENT SECURITIES | ||||||||||||
Portfolio rated | 15.10% | 14.70% | 15.10% | 14.70% | ||||||||
Deferred Compensation, Share-based Payments | Assets Held With Rabbi Trust | ||||||||||||
Investment Securities: | ||||||||||||
Equity securities | $ 499,000 | $ 502,000 | $ 499,000 | $ 502,000 | $ 526,000 |
LOANS - Loan Portfolio (Details
LOANS - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | $ 1,038,271 | $ 990,766 |
Loans, net of unearned income | 1,038,271 | |
Loans, net of unearned income | 990,766 | |
Other commercial and industrial | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 159,424 | |
Commercial real estate (non-owner occupied) - multi-family | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 110,008 | |
Other commercial real estate (non-owner occupied) | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 240,286 | |
Loans, net of unearned income | 240,286 | |
Residential mortgage | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 174,670 | 297,971 |
Loans, net of unearned income | 174,670 | |
Loans, net of unearned income | 297,971 | |
Commercial | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 760,826 | |
Loans, net of unearned income | 679,322 | |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 22 | |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 22 | |
Commercial | Other commercial and industrial | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 159,424 | |
Loans, net of unearned income | 159,424 | |
Commercial | Commercial real estate (non-owner occupied) | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 450,744 | |
Loans, net of unearned income | 450,744 | |
Commercial | Commercial real estate (non-owner occupied) - retail | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 161,961 | |
Commercial | Commercial real estate (non-owner occupied) - multi-family | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 110,008 | |
Commercial | Other commercial real estate (non-owner occupied) | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 240,286 | |
Commercial | Commercial real estate (owner occupied) | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 89,147 | 75,158 |
Loans, net of unearned income | 89,147 | |
Loans, net of unearned income | 75,158 | |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 153,398 | |
Loans, net of unearned income | 153,398 | |
Consumer. | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 277,445 | |
Loans, net of unearned income | 311,444 | |
Consumer. | Commercial real estate (non-owner occupied) - retail | ||
LOANS | ||
Loans, net of unearned income | 161,961 | |
Consumer. | Commercial real estate (non-owner occupied) - multi-family | ||
LOANS | ||
Loans, net of unearned income | 110,008 | |
Consumer. | Residential mortgage | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 174,670 | |
Loans, net of unearned income | 297,971 | |
Consumer. | Consumer | ||
LOANS | ||
Loans (net of unearned income $483 on December 31, 2023 and $343 on December 31, 2022) | 102,775 | 13,473 |
Loans, net of unearned income | $ 102,775 | |
Loans, net of unearned income | $ 13,473 |
LOANS - Additional information
LOANS - Additional information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS | ||
Accrued interest receivable | $ 4,200,000 | $ 3,500,000 |
Real estate-construction loans, percentage | 3.40% | 4.70% |
Loan balances net of unearned income | $ 483,000 | $ 343,000 |
Loans, net of allowance for credit losses and unearned income, Carrying Value | $ 1,023,218,000 | $ 980,023,000 |
LOANS - Summary of loan activit
LOANS - Summary of loan activity with related parties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loan activity with related parties | ||
BALANCE | $ 587,000 | $ 601,000 |
ADDITIONS | 602,000 | 206,000 |
REPAYMENTS | 574,000 | 220,000 |
BALANCE | $ 615,000 | $ 587,000 |
ALLOWANCE FOR CREDIT LOSSES -_3
ALLOWANCE FOR CREDIT LOSSES - LOANS - Allowance for credit losses by loan portfolio segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2023 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | $ 15,053,000 | $ 15,053,000 | $ 10,743,000 | $ 12,398,000 | $ 11,947,000 | $ 11,345,000 |
Charge-Offs | (3,641,000) | (1,849,000) | (294,000) | |||
Recoveries | 184,000 | 144,000 | 247,000 | |||
Provision (Credit) | 6,563,000 | 50,000 | 1,100,000 | |||
ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,200,000 | 1,200,000 | 1,200,000 | |||
Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | (1,204,000) | (1,204,000) | ||||
Other commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,030,000 | 3,030,000 | 2,908,000 | |||
Charge-Offs | (480,000) | |||||
Recoveries | 3,000 | |||||
Provision (Credit) | 599,000 | |||||
Other commercial and industrial | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | (2,908,000) | (2,908,000) | ||||
Other commercial real estate (non-owner occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,428,000 | 3,428,000 | 3,196,000 | |||
Charge-Offs | (804,000) | |||||
Residential mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,021,000 | 1,021,000 | 1,380,000 | 1,590,000 | 1,025,000 | |
Charge-Offs | (54,000) | (28,000) | ||||
Recoveries | 14,000 | 19,000 | ||||
Provision (Credit) | 36,000 | (201,000) | ||||
Residential mortgage | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 355,000 | 355,000 | ||||
Allocation for general risk | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 653,000 | 1,232,000 | 1,093,000 | |||
Charge-Offs | 0 | |||||
Provision (Credit) | (579,000) | 139,000 | ||||
Allocation for general risk | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 653,000 | 653,000 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Charge-Offs | (3,312,000) | |||||
Commercial | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 2,653,000 | 3,071,000 | 3,472,000 | |||
Charge-Offs | (97,000) | (146,000) | ||||
Recoveries | 4,000 | 89,000 | ||||
Provision (Credit) | (325,000) | (344,000) | ||||
Commercial | Commercial real estate (owner occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,529,000 | 1,529,000 | 1,380,000 | |||
Charge-Offs | 0 | |||||
Recoveries | 24,000 | |||||
Provision (Credit) | 125,000 | |||||
Commercial | Commercial real estate (owner occupied) | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | (1,380,000) | (1,380,000) | ||||
Commercial | Other commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,030,000 | 3,030,000 | ||||
Charge-Offs | (405,000) | (480,000) | ||||
Commercial | Commercial real estate (non-owner occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 5,972,000 | 6,392,000 | 5,373,000 | |||
Charge-Offs | (1,390,000) | |||||
Recoveries | 54,000 | 51,000 | ||||
Provision (Credit) | 916,000 | 968,000 | ||||
Commercial | Commercial real estate (non-owner occupied) - retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,488,000 | 3,488,000 | 1,432,000 | |||
Charge-Offs | (2,028,000) | |||||
Provision (Credit) | 4,084,000 | |||||
Commercial | Commercial real estate (non-owner occupied) - retail | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | (1,432,000) | (1,432,000) | ||||
Commercial | Commercial real estate (non-owner occupied) - multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,430,000 | 1,430,000 | 1,226,000 | |||
Charge-Offs | 0 | |||||
Recoveries | 6,000 | |||||
Provision (Credit) | 198,000 | |||||
Commercial | Commercial real estate (non-owner occupied) - multi-family | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | (1,226,000) | (1,226,000) | ||||
Commercial | Other commercial real estate (non-owner occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,428,000 | 3,428,000 | 5,972,000 | |||
Charge-Offs | (804,000) | |||||
Recoveries | 14,000 | |||||
Provision (Credit) | 1,022,000 | |||||
Commercial | Other commercial real estate (non-owner occupied) | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 2,776,000 | 2,776,000 | ||||
Commercial | Commercial (owner occupied real estate and other) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 2,653,000 | |||||
Charge-Offs | 0 | |||||
Commercial | Commercial (owner occupied real estate and other) | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 2,653,000 | 2,653,000 | ||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Charge-Offs | (329,000) | |||||
Consumer | Commercial real estate (non-owner occupied) - retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 3,488,000 | 3,488,000 | ||||
Consumer | Commercial real estate (non-owner occupied) - multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,430,000 | 1,430,000 | ||||
Consumer | Residential mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,380,000 | 1,590,000 | 1,292,000 | |||
Charge-Offs | (54,000) | (17,000) | ||||
Recoveries | 49,000 | |||||
Provision (Credit) | 266,000 | |||||
Consumer | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | 1,127,000 | 1,127,000 | 85,000 | 113,000 | $ 780,000 | $ 115,000 |
Charge-Offs | (275,000) | (334,000) | (131,000) | |||
Recoveries | 123,000 | 67,000 | 58,000 | |||
Provision (Credit) | 499,000 | $ 239,000 | $ 71,000 | |||
Consumer | Consumer | Impact of adopting ASU 2016-13 | ASU 2016-13 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses - Loans | $ (695,000) | $ (695,000) |
ALLOWANCE FOR CREDIT LOSSES -_4
ALLOWANCE FOR CREDIT LOSSES - LOANS - Loan portfolio and allowance for credit losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans: | |||||
Individually evaluated for impairment | $ 10,834 | $ 3,575 | |||
Collectively evaluated for impairment | 1,027,437 | 987,191 | |||
Total loans | 1,038,271 | ||||
Total loans | 990,766 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 414 | 523 | |||
General reserve allocation | 14,639 | 10,220 | |||
Total allowance for loan losses | 15,053 | $ 11,947 | 10,743 | $ 12,398 | $ 11,345 |
Other commercial and industrial | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 3,030 | 2,908 | |||
Other commercial real estate (non-owner occupied) | |||||
Loans: | |||||
Individually evaluated for impairment | 8,780 | ||||
Collectively evaluated for impairment | 231,506 | ||||
Total loans | 240,286 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 3,428 | ||||
Total allowance for loan losses | 3,428 | 3,196 | |||
Residential mortgage | |||||
Loans: | |||||
Individually evaluated for impairment | 173 | 0 | |||
Collectively evaluated for impairment | 174,497 | 297,971 | |||
Total loans | 174,670 | ||||
Total loans | 297,971 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 1,021 | ||||
Total allowance for loan losses | 1,021 | 1,025 | 1,380 | 1,590 | |
Allocation for general risk | |||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 653 | ||||
Total allowance for loan losses | 653 | 1,232 | 1,093 | ||
Commercial | |||||
Loans: | |||||
Total loans | 679,322 | ||||
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 | ||||
General reserve allocation | 2,133 | ||||
Total allowance for loan losses | 2,653 | 3,071 | 3,472 | ||
Commercial | Commercial real estate (owner occupied) | |||||
Loans: | |||||
Individually evaluated for impairment | 187 | ||||
Collectively evaluated for impairment | 88,960 | ||||
Total loans | 89,147 | ||||
Total loans | 75,158 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 1,529 | ||||
Total allowance for loan losses | 1,529 | 1,380 | |||
Commercial | Other commercial and industrial | |||||
Loans: | |||||
Individually evaluated for impairment | 1,694 | ||||
Collectively evaluated for impairment | 157,730 | ||||
Total loans | 159,424 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 414 | ||||
General reserve allocation | 2,616 | ||||
Total allowance for loan losses | 3,030 | ||||
Commercial | Commercial real estate (non-owner occupied) | |||||
Loans: | |||||
Individually evaluated for impairment | 1,586 | ||||
Collectively evaluated for impairment | 449,158 | ||||
Total loans | 450,744 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 3 | ||||
General reserve allocation | 5,969 | ||||
Total allowance for loan losses | 5,972 | 6,392 | 5,373 | ||
Commercial | Commercial real estate (non-owner occupied) - retail | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 3,488 | 1,432 | |||
Commercial | Commercial real estate (non-owner occupied) - multi-family | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 1,430 | 1,226 | |||
Commercial | Other commercial real estate (non-owner occupied) | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 3,428 | 5,972 | |||
Consumer | |||||
Loans: | |||||
Total loans | 311,444 | ||||
Consumer | Commercial real estate (non-owner occupied) - retail | |||||
Loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 161,961 | ||||
Total loans | 161,961 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 3,488 | ||||
Total allowance for loan losses | 3,488 | ||||
Consumer | Commercial real estate (non-owner occupied) - multi-family | |||||
Loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 110,008 | ||||
Total loans | 110,008 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 1,430 | ||||
Total allowance for loan losses | 1,430 | ||||
Consumer | Residential mortgage | |||||
Loans: | |||||
Total loans | 297,971 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | ||||
General reserve allocation | 1,380 | ||||
Total allowance for loan losses | 1,380 | 1,590 | 1,292 | ||
Consumer | Consumer | |||||
Loans: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 102,775 | 13,473 | |||
Total loans | 102,775 | ||||
Total loans | 13,473 | ||||
Allowance for loan losses: | |||||
Specific reserve allocation | 0 | 0 | |||
General reserve allocation | 1,127 | 85 | |||
Total allowance for loan losses | $ 1,127 | $ 780 | $ 85 | $ 113 | $ 115 |
ALLOWANCE FOR CREDIT LOSSES -_5
ALLOWANCE FOR CREDIT LOSSES - LOANS - Amortized cost basis of collateral-dependent loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 1,038,271 | $ 990,766 |
Collateral Pledged [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 9,140 | |
Other commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 159,424 | |
Commercial real estate (non-owner occupied) - multi-family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 110,008 | |
Other commercial real estate (non-owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 240,286 | |
Other commercial real estate (non-owner occupied) | Collateral Pledged [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 8,780 | |
Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 174,670 | 297,971 |
Residential mortgage | Collateral Pledged [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 173 | |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 760,826 | |
Commercial | Collateral Pledged [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 187 | |
Commercial | Commercial real estate (owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 89,147 | 75,158 |
Commercial | Other commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 159,424 | |
Commercial | Commercial real estate (non-owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 450,744 | |
Commercial | Commercial real estate (non-owner occupied) - retail | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 161,961 | |
Commercial | Commercial real estate (non-owner occupied) - multi-family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 110,008 | |
Commercial | Other commercial real estate (non-owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 240,286 | |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 277,445 | |
Consumer | Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 174,670 | |
Consumer | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 102,775 | $ 13,473 |
ALLOWANCE FOR CREDIT LOSSES -_6
ALLOWANCE FOR CREDIT LOSSES - LOANS - Non-Performing Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with no ACL | $ 9,140 | |
Non-accrual with ACL | 3,027 | |
Total non-accrual | 12,167 | |
Loans past due over 90 days still accruing | 211 | |
OREO and repossessed assets | 15 | |
Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
OREO and repossessed assets | $ 5,200 | |
Total non-performing assets | 12,393 | 5,200 |
Other commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with ACL | 1,694 | |
Total non-accrual | 1,694 | 1,989 |
Loans past due over 90 days still accruing | 211 | |
Other commercial and industrial | Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-performing assets | 1,905 | |
Commercial real estate (non-owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-accrual | 1,586 | |
Other commercial real estate (non-owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with no ACL | 8,780 | |
Total non-accrual | 8,780 | |
Other commercial real estate (non-owner occupied) | Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-performing assets | 8,780 | |
Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with no ACL | 173 | |
Non-accrual with ACL | 545 | |
Total non-accrual | 718 | 1,577 |
OREO and repossessed assets | 15 | |
Residential mortgage | Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-performing assets | 733 | |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-accrual | 9 | |
Loans excluding Other real estate owned and repossessed assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-accrual | 5,161 | |
Other real estate owned and repossessed assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
OREO and repossessed assets | 39 | |
Other real estate owned and repossessed assets Residential Mortgages | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
OREO and repossessed assets | 38 | |
Other real estate owned and repossessed assets Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
OREO and repossessed assets | $ 1 | |
Commercial | Commercial real estate (owner occupied) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with no ACL | 187 | |
Total non-accrual | 187 | |
Commercial | Commercial real estate (owner occupied) | Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-performing assets | 187 | |
Consumer | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Non-accrual with ACL | 788 | |
Total non-accrual | 788 | |
Consumer | Consumer | Non-performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total non-performing assets | $ 788 |
ALLOWANCE FOR CREDIT LOSSES -_7
ALLOWANCE FOR CREDIT LOSSES - LOANS - Commercial and commercial real estate loan portfolios (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | $ 1,038,271,000 | $ 1,038,271,000 | $ 990,766,000 | |
Current period gross charge-offs, Total | 3,641,000 | 1,849,000 | $ 294,000 | |
Loan portfolio | 990,766,000 | |||
Other commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 159,424,000 | 159,424,000 | ||
Current period gross charge-offs, Total | 480,000 | |||
Commercial real estate (non-owner occupied) - multi-family | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 110,008,000 | 110,008,000 | ||
Other commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 240,286,000 | 240,286,000 | ||
Current period gross charge-offs, Total | 804,000 | |||
Residential mortgage | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 174,670,000 | 174,670,000 | 297,971,000 | |
Current period gross charge-offs, Total | 54,000 | 28,000 | ||
Loan portfolio | 297,971,000 | |||
Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 128,219,000 | 128,219,000 | ||
2022 | 120,075,000 | 120,075,000 | ||
2021 | 126,424,000 | 126,424,000 | ||
2020 | 70,567,000 | 70,567,000 | ||
2019 | 66,896,000 | 66,896,000 | ||
PRIOR | 182,673,000 | 182,673,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 65,703,000 | 65,703,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 269,000 | 269,000 | ||
Total | 760,826,000 | 760,826,000 | ||
Current period gross charge-offs, 2022 | 75,000 | |||
Current period gross charge-offs, 2019 | 804,000 | |||
Current period gross charge-offs, Prior | 2,433,000 | |||
Current period gross charge-offs, Total | 3,312,000 | |||
Loan portfolio | 679,322,000 | |||
Commercial | Commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 153,398,000 | |||
Loan portfolio | 153,398,000 | |||
Commercial | Commercial and industrial. | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 153,398,000 | |||
Commercial | Paycheck Protection Program (PPP) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 22,000 | |||
Commercial | Commercial real estate (owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 17,801,000 | 17,801,000 | ||
2022 | 6,750,000 | 6,750,000 | ||
2021 | 15,531,000 | 15,531,000 | ||
2020 | 8,415,000 | 8,415,000 | ||
2019 | 12,574,000 | 12,574,000 | ||
PRIOR | 26,802,000 | 26,802,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 1,274,000 | 1,274,000 | ||
Total | 89,147,000 | 89,147,000 | 75,158,000 | |
Current period gross charge-offs, Total | 0 | |||
Loan portfolio | 75,158,000 | |||
Commercial | Other commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 22,662,000 | 22,662,000 | ||
2022 | 35,435,000 | 35,435,000 | ||
2021 | 12,894,000 | 12,894,000 | ||
2020 | 5,831,000 | 5,831,000 | ||
2019 | 4,912,000 | 4,912,000 | ||
PRIOR | 21,165,000 | 21,165,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 56,455,000 | 56,455,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 70,000 | 70,000 | ||
Total | 159,424,000 | 159,424,000 | ||
Current period gross charge-offs, 2022 | 75,000 | |||
Current period gross charge-offs, Prior | 405,000 | |||
Current period gross charge-offs, Total | 405,000 | 480,000 | ||
Commercial | Commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total | 450,744,000 | |||
Current period gross charge-offs, Total | 1,390,000 | |||
Loan portfolio | 450,744,000 | |||
Commercial | Commercial real estate (non-owner occupied) - retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 35,545,000 | 35,545,000 | ||
2022 | 23,682,000 | 23,682,000 | ||
2021 | 33,110,000 | 33,110,000 | ||
2020 | 23,146,000 | 23,146,000 | ||
2019 | 9,226,000 | 9,226,000 | ||
PRIOR | 36,269,000 | 36,269,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 983,000 | 983,000 | ||
Total | 161,961,000 | 161,961,000 | ||
Current period gross charge-offs, Prior | 2,028,000 | |||
Current period gross charge-offs, Total | 2,028,000 | |||
Commercial | Commercial real estate (non-owner occupied) - multi-family | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 22,620,000 | 22,620,000 | ||
2022 | 16,767,000 | 16,767,000 | ||
2021 | 16,622,000 | 16,622,000 | ||
2020 | 13,007,000 | 13,007,000 | ||
2019 | 10,916,000 | 10,916,000 | ||
PRIOR | 28,755,000 | 28,755,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 1,321,000 | 1,321,000 | ||
Total | 110,008,000 | 110,008,000 | ||
Current period gross charge-offs, Total | 0 | |||
Commercial | Other commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 29,591,000 | 29,591,000 | ||
2022 | 37,441,000 | 37,441,000 | ||
2021 | 48,267,000 | 48,267,000 | ||
2020 | 20,168,000 | 20,168,000 | ||
2019 | 29,268,000 | 29,268,000 | ||
PRIOR | 69,682,000 | 69,682,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 5,670,000 | 5,670,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 199,000 | 199,000 | ||
Total | 240,286,000 | 240,286,000 | ||
Current period gross charge-offs, 2019 | 804,000 | |||
Current period gross charge-offs, Total | 804,000 | |||
Consumer. | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 28,481,000 | 28,481,000 | ||
2022 | 32,050,000 | 32,050,000 | ||
2021 | 70,954,000 | 70,954,000 | ||
2020 | 47,312,000 | 47,312,000 | ||
2019 | 8,303,000 | 8,303,000 | ||
PRIOR | 40,956,000 | 40,956,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,501,000 | 48,501,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 888,000 | 888,000 | ||
Total | 277,445,000 | 277,445,000 | ||
Current period gross charge-offs, 2023 | 9,000 | |||
Current period gross charge-offs, 2022 | 35,000 | |||
Current period gross charge-offs, 2021 | 43,000 | |||
Current period gross charge-offs, 2020 | 7,000 | |||
Current period gross charge-offs, 2019 | 8,000 | |||
Current period gross charge-offs, Prior | 227,000 | |||
Current period gross charge-offs, Total | 329,000 | |||
Loan portfolio | 311,444,000 | |||
Consumer. | Residential mortgage | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 14,576,000 | 14,576,000 | ||
2022 | 11,620,000 | 11,620,000 | ||
2021 | 61,172,000 | 61,172,000 | ||
2020 | 44,049,000 | 44,049,000 | ||
2019 | 7,092,000 | 7,092,000 | ||
PRIOR | 36,161,000 | 36,161,000 | ||
Total | 174,670,000 | 174,670,000 | ||
Current period gross charge-offs, Prior | 54,000 | |||
Current period gross charge-offs, Total | 54,000 | 17,000 | ||
Loan portfolio | 297,971,000 | |||
Consumer. | Consumer | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 13,905,000 | 13,905,000 | ||
2022 | 20,430,000 | 20,430,000 | ||
2021 | 9,782,000 | 9,782,000 | ||
2020 | 3,263,000 | 3,263,000 | ||
2019 | 1,211,000 | 1,211,000 | ||
PRIOR | 4,795,000 | 4,795,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,501,000 | 48,501,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 888,000 | 888,000 | ||
Total | 102,775,000 | 102,775,000 | 13,473,000 | |
Current period gross charge-offs, 2023 | 9,000 | |||
Current period gross charge-offs, 2022 | 35,000 | |||
Current period gross charge-offs, 2021 | 43,000 | |||
Current period gross charge-offs, 2020 | 7,000 | |||
Current period gross charge-offs, 2019 | 8,000 | |||
Current period gross charge-offs, Prior | 173,000 | |||
Current period gross charge-offs, Total | 275,000 | 334,000 | $ 131,000 | |
Loan portfolio | 13,473,000 | |||
Pass | Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 128,219,000 | 128,219,000 | ||
2022 | 118,099,000 | 118,099,000 | ||
2021 | 125,833,000 | 125,833,000 | ||
2020 | 69,601,000 | 69,601,000 | ||
2019 | 57,123,000 | 57,123,000 | ||
PRIOR | 164,651,000 | 164,651,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 64,716,000 | 64,716,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 70,000 | 70,000 | ||
Total | 728,312,000 | 728,312,000 | ||
Loan portfolio | 646,056,000 | |||
Pass | Commercial | Commercial and industrial. | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 148,361,000 | |||
Pass | Commercial | Commercial real estate (owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 17,801,000 | 17,801,000 | ||
2022 | 6,750,000 | 6,750,000 | ||
2021 | 15,067,000 | 15,067,000 | ||
2020 | 8,415,000 | 8,415,000 | ||
2019 | 10,322,000 | 10,322,000 | ||
PRIOR | 26,538,000 | 26,538,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 351,000 | 351,000 | ||
Total | 85,244,000 | 85,244,000 | ||
Loan portfolio | 74,187,000 | |||
Pass | Commercial | Other commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 22,662,000 | 22,662,000 | ||
2022 | 34,816,000 | 34,816,000 | ||
2021 | 12,767,000 | 12,767,000 | ||
2020 | 5,831,000 | 5,831,000 | ||
2019 | 4,912,000 | 4,912,000 | ||
PRIOR | 19,587,000 | 19,587,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 56,391,000 | 56,391,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 70,000 | 70,000 | ||
Total | 157,036,000 | 157,036,000 | ||
Pass | Commercial | Commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 423,486,000 | |||
Pass | Commercial | Commercial real estate (non-owner occupied) - retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 35,545,000 | 35,545,000 | ||
2022 | 23,368,000 | 23,368,000 | ||
2021 | 33,110,000 | 33,110,000 | ||
2020 | 23,146,000 | 23,146,000 | ||
2019 | 9,226,000 | 9,226,000 | ||
PRIOR | 35,102,000 | 35,102,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 983,000 | 983,000 | ||
Total | 160,480,000 | 160,480,000 | ||
Pass | Commercial | Commercial real estate (non-owner occupied) - multi-family | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 22,620,000 | 22,620,000 | ||
2022 | 16,767,000 | 16,767,000 | ||
2021 | 16,622,000 | 16,622,000 | ||
2020 | 12,041,000 | 12,041,000 | ||
2019 | 9,638,000 | 9,638,000 | ||
PRIOR | 28,632,000 | 28,632,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 1,321,000 | 1,321,000 | ||
Total | 107,641,000 | 107,641,000 | ||
Pass | Commercial | Other commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 29,591,000 | 29,591,000 | ||
2022 | 36,398,000 | 36,398,000 | ||
2021 | 48,267,000 | 48,267,000 | ||
2020 | 20,168,000 | 20,168,000 | ||
2019 | 23,025,000 | 23,025,000 | ||
PRIOR | 54,792,000 | 54,792,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 5,670,000 | 5,670,000 | ||
Total | 217,911,000 | 217,911,000 | ||
Special Mention | Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2022 | 314,000 | 314,000 | ||
2021 | 591,000 | 591,000 | ||
2019 | 2,252,000 | 2,252,000 | ||
PRIOR | 4,944,000 | 4,944,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 923,000 | 923,000 | ||
Total | 9,024,000 | 9,024,000 | ||
Loan portfolio | 11,015,000 | |||
Special Mention | Commercial | Commercial real estate (owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2021 | 464,000 | 464,000 | ||
2019 | 2,252,000 | 2,252,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 923,000 | 923,000 | ||
Total | 3,639,000 | 3,639,000 | ||
Special Mention | Commercial | Other commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2021 | 127,000 | 127,000 | ||
Total | 127,000 | 127,000 | ||
Special Mention | Commercial | Commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 11,015,000 | |||
Special Mention | Commercial | Commercial real estate (non-owner occupied) - retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2022 | 314,000 | 314,000 | ||
PRIOR | 1,167,000 | 1,167,000 | ||
Total | 1,481,000 | 1,481,000 | ||
Special Mention | Commercial | Other commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
PRIOR | 3,777,000 | 3,777,000 | ||
Total | 3,777,000 | 3,777,000 | ||
Substandard | Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2022 | 1,662,000 | 1,662,000 | ||
2020 | 966,000 | 966,000 | ||
2019 | 7,521,000 | 7,521,000 | ||
PRIOR | 13,078,000 | 13,078,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 64,000 | 64,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 199,000 | 199,000 | ||
Total | 23,490,000 | 23,490,000 | ||
Loan portfolio | 22,248,000 | |||
Substandard | Commercial | Commercial and industrial. | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 5,037,000 | |||
Substandard | Commercial | Commercial real estate (owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
PRIOR | 264,000 | 264,000 | ||
Total | 264,000 | 264,000 | ||
Loan portfolio | 971,000 | |||
Substandard | Commercial | Other commercial and industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2022 | 619,000 | 619,000 | ||
PRIOR | 1,578,000 | 1,578,000 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 64,000 | 64,000 | ||
Total | 2,261,000 | 2,261,000 | ||
Substandard | Commercial | Commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 16,240,000 | |||
Substandard | Commercial | Commercial real estate (non-owner occupied) - multi-family | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2020 | 966,000 | 966,000 | ||
2019 | 1,278,000 | 1,278,000 | ||
PRIOR | 123,000 | 123,000 | ||
Total | 2,367,000 | 2,367,000 | ||
Substandard | Commercial | Other commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2022 | 1,043,000 | 1,043,000 | ||
2019 | 6,243,000 | 6,243,000 | ||
PRIOR | 11,113,000 | 11,113,000 | ||
REVOLVING LOANS CONVERTED TO TERM | 199,000 | 199,000 | ||
Total | $ 18,598,000 | $ 18,598,000 | ||
Doubtful | Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | 3,000 | |||
Doubtful | Commercial | Commercial real estate (non-owner occupied) | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loan portfolio | $ 3,000 |
ALLOWANCE FOR CREDIT LOSSES -_8
ALLOWANCE FOR CREDIT LOSSES - LOANS - Residential and consumer portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
Total | $ 1,038,271 | $ 990,766 | |
Current period gross charge-offs, Total | 3,641 | 1,849 | $ 294 |
Loan portfolio | 990,766 | ||
Residential mortgage | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
Total | 174,670 | 297,971 | |
Current period gross charge-offs, Total | 54 | 28 | |
Loan portfolio | 297,971 | ||
Residential and Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 28,481 | ||
2022 | 32,050 | ||
2021 | 70,954 | ||
2020 | 47,312 | ||
2019 | 8,303 | ||
PRIOR | 40,956 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,501 | ||
REVOLVING LOANS CONVERTED TO TERM | 888 | ||
Total | 277,445 | ||
Current period gross charge-offs, 2023 | 9 | ||
Current period gross charge-offs, 2022 | 35 | ||
Current period gross charge-offs, 2021 | 43 | ||
Current period gross charge-offs, 2020 | 7 | ||
Current period gross charge-offs, 2019 | 8 | ||
Current period gross charge-offs, Prior | 227 | ||
Current period gross charge-offs, Total | 329 | ||
Loan portfolio | 311,444 | ||
Residential and Consumer | Residential mortgage | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 14,576 | ||
2022 | 11,620 | ||
2021 | 61,172 | ||
2020 | 44,049 | ||
2019 | 7,092 | ||
PRIOR | 36,161 | ||
Total | 174,670 | ||
Current period gross charge-offs, Prior | 54 | ||
Current period gross charge-offs, Total | 54 | 17 | |
Loan portfolio | 297,971 | ||
Residential and Consumer | Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 13,905 | ||
2022 | 20,430 | ||
2021 | 9,782 | ||
2020 | 3,263 | ||
2019 | 1,211 | ||
PRIOR | 4,795 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,501 | ||
REVOLVING LOANS CONVERTED TO TERM | 888 | ||
Total | 102,775 | 13,473 | |
Current period gross charge-offs, 2023 | 9 | ||
Current period gross charge-offs, 2022 | 35 | ||
Current period gross charge-offs, 2021 | 43 | ||
Current period gross charge-offs, 2020 | 7 | ||
Current period gross charge-offs, 2019 | 8 | ||
Current period gross charge-offs, Prior | 173 | ||
Current period gross charge-offs, Total | 275 | 334 | $ 131 |
Loan portfolio | 13,473 | ||
Commercial | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 128,219 | ||
2022 | 120,075 | ||
2021 | 126,424 | ||
2020 | 70,567 | ||
2019 | 66,896 | ||
PRIOR | 182,673 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 65,703 | ||
REVOLVING LOANS CONVERTED TO TERM | 269 | ||
Total | 760,826 | ||
Current period gross charge-offs, 2022 | 75 | ||
Current period gross charge-offs, 2019 | 804 | ||
Current period gross charge-offs, Prior | 2,433 | ||
Current period gross charge-offs, Total | 3,312 | ||
Loan portfolio | 679,322 | ||
Performing | Residential and Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 28,466 | ||
2022 | 32,050 | ||
2021 | 70,954 | ||
2020 | 47,239 | ||
2019 | 8,261 | ||
PRIOR | 39,958 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,344 | ||
REVOLVING LOANS CONVERTED TO TERM | 667 | ||
Total | 275,939 | ||
Loan portfolio | 309,858 | ||
Performing | Residential and Consumer | Residential mortgage | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 14,576 | ||
2022 | 11,620 | ||
2021 | 61,172 | ||
2020 | 44,049 | ||
2019 | 7,092 | ||
PRIOR | 35,443 | ||
Total | 173,952 | ||
Loan portfolio | 296,401 | ||
Performing | Residential and Consumer | Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 13,890 | ||
2022 | 20,430 | ||
2021 | 9,782 | ||
2020 | 3,190 | ||
2019 | 1,169 | ||
PRIOR | 4,515 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 48,344 | ||
REVOLVING LOANS CONVERTED TO TERM | 667 | ||
Total | 101,987 | ||
Loan portfolio | 13,457 | ||
Non-performing | Residential and Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 15 | ||
2020 | 73 | ||
2019 | 42 | ||
PRIOR | 998 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 157 | ||
REVOLVING LOANS CONVERTED TO TERM | 221 | ||
Total | 1,506 | ||
Loan portfolio | 1,586 | ||
Non-performing | Residential and Consumer | Residential mortgage | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
PRIOR | 718 | ||
Total | 718 | ||
Loan portfolio | 1,570 | ||
Non-performing | Residential and Consumer | Consumer | |||
Performing and non-performing outstanding balances of the residential and consumer portfolios | |||
2023 | 15 | ||
2020 | 73 | ||
2019 | 42 | ||
PRIOR | 280 | ||
REVOLVING LOANS AMORTIZED COST BASIS | 157 | ||
REVOLVING LOANS CONVERTED TO TERM | 221 | ||
Total | $ 788 | ||
Loan portfolio | $ 16 |
ALLOWANCE FOR CREDIT LOSSES -_9
ALLOWANCE FOR CREDIT LOSSES - LOANS - Aging categories of performing loans and non-accrual loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | $ 1,038,271 | |
Total | 1,038,271 | $ 990,766 |
Total loans | 990,766 | |
Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 159,424 | |
Commercial real estate (non-owner occupied) - multi-family | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 110,008 | |
Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 240,286 | |
Total | 240,286 | |
Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 174,670 | |
Total | 174,670 | 297,971 |
Total loans | 297,971 | |
Financial Asset, Not Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,033,773 | |
Total loans | 983,185 | |
Financial Asset, Not Past Due | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 158,290 | |
Financial Asset, Not Past Due | Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 239,243 | |
Financial Asset, Not Past Due | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 173,647 | |
Total loans | 295,790 | |
Financial Asset, Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 4,498 | |
Total loans | 7,581 | |
Financial Asset, Past Due | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,134 | |
Financial Asset, Past Due | Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,043 | |
Financial Asset, Past Due | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,023 | |
Total loans | 2,181 | |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,704 | |
Total loans | 5,479 | |
30-59 Days Past Due | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 526 | |
30-59 Days Past Due | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 437 | |
Total loans | 489 | |
Financing Receivables 60To 89Days Past Due Member | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 63 | |
Total loans | 823 | |
Financing Receivables 60To 89Days Past Due Member | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 22 | |
Financing Receivables 60To 89Days Past Due Member | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 18 | |
Total loans | 422 | |
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 | ||
Total | 2,731 | |
Total loans | 1,279 | |
Financing Receivables Equal To Greater Than 90Days Past Due Member | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 586 | |
Financing Receivables Equal To Greater Than 90Days Past Due Member | Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,043 | |
Financing Receivables Equal To Greater Than 90Days Past Due Member | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 568 | |
Total loans | 1,270 | |
Commercial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 760,826 | |
Total loans | 679,322 | |
Commercial | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 153,398 | |
Total loans | 153,398 | |
Commercial | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 89,147 | |
Total | 89,147 | 75,158 |
Total loans | 75,158 | |
Commercial | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 159,424 | |
Total | 159,424 | |
Commercial | Commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 450,744 | |
Total loans | 450,744 | |
Commercial | Commercial real estate (non-owner occupied) - retail | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 161,961 | |
Commercial | Commercial real estate (non-owner occupied) - multi-family | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 110,008 | |
Commercial | Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 240,286 | |
Commercial | Financial Asset, Not Past Due | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 152,314 | |
Commercial | Financial Asset, Not Past Due | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 88,960 | |
Total loans | 74,960 | |
Commercial | Financial Asset, Not Past Due | Commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 446,809 | |
Commercial | Financial Asset, Not Past Due | Commercial real estate (non-owner occupied) - retail | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 161,961 | |
Commercial | Financial Asset, Not Past Due | Commercial real estate (non-owner occupied) - multi-family | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 110,008 | |
Commercial | Financial Asset, Past Due | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 1,084 | |
Commercial | Financial Asset, Past Due | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 187 | |
Total loans | 198 | |
Commercial | Financial Asset, Past Due | Commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,935 | |
Commercial | 30-59 Days Past Due | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 797 | |
Commercial | 30-59 Days Past Due | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 198 | |
Commercial | 30-59 Days Past Due | Commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 3,935 | |
Commercial | Financing Receivables 60To 89Days Past Due Member | Commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 287 | |
Commercial | Financing Receivables Equal To Greater Than 90Days Past Due Member | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 187 | |
Commercial | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | |
Commercial | Paycheck Protection Program (PPP) | Financial Asset, Not Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | |
Commercial | Pass | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 728,312 | |
Total loans | 646,056 | |
Commercial | Pass | Commercial real estate (owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 85,244 | |
Total loans | 74,187 | |
Commercial | Pass | Other commercial and industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 157,036 | |
Commercial | Pass | Commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 423,486 | |
Commercial | Pass | Commercial real estate (non-owner occupied) - retail | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 160,480 | |
Commercial | Pass | Commercial real estate (non-owner occupied) - multi-family | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 107,641 | |
Commercial | Pass | Other commercial real estate (non-owner occupied) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 217,911 | |
Commercial | Pass | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 22 | |
Consumer. | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 277,445 | |
Total loans | 311,444 | |
Consumer. | Commercial real estate (non-owner occupied) - retail | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 161,961 | |
Consumer. | Commercial real estate (non-owner occupied) - multi-family | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 110,008 | |
Consumer. | Residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 174,670 | |
Total loans | 297,971 | |
Consumer. | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Loans, net of unearned income | 102,775 | |
Total | 102,775 | 13,473 |
Total loans | 13,473 | |
Consumer. | Financial Asset, Not Past Due | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 101,664 | |
Total loans | 13,290 | |
Consumer. | Financial Asset, Past Due | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 1,111 | |
Total loans | 183 | |
Consumer. | 30-59 Days Past Due | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 741 | |
Total loans | 60 | |
Consumer. | Financing Receivables 60To 89Days Past Due Member | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | 23 | |
Total loans | 114 | |
Consumer. | Financing Receivables Equal To Greater Than 90Days Past Due Member | Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total | $ 347 | |
Total loans | $ 9 |
ALLOWANCE FOR CREDIT LOSSES _10
ALLOWANCE FOR CREDIT LOSSES - LOANS - Loan modifications to borrowers experiencing financial difficulty (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | $ 1,038,271,000 | $ 1,038,271,000 | $ 990,766,000 | ||
Loans, net of unearned income | 1,038,271,000 | 1,038,271,000 | |||
Current period gross charge-offs, Total | 3,641,000 | 1,849,000 | $ 294,000 | ||
Maturity date extensions | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized Cost Basis | 37,000 | 37,000 | |||
Extended Maturity and Interest Rate Reduction | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized Cost Basis | 6,243,000 | 6,243,000 | |||
Other commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | $ 159,424,000 | 159,424,000 | |||
Current period gross charge-offs, Total | 480,000 | ||||
Residential mortgage | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Term extension date | 15 years | ||||
Total | $ 174,670,000 | 174,670,000 | 297,971,000 | ||
Loans, net of unearned income | 174,670,000 | 174,670,000 | |||
Current period gross charge-offs, Total | 54,000 | $ 28,000 | |||
Residential mortgage | Maturity date extensions | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized Cost Basis | $ 37,000 | $ 37,000 | |||
Percentage of Total Class of Loans | 0.02% | ||||
Other commercial real estate (non-owner occupied) | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Term extension date | 3 months | ||||
Deferred interest income, period | 7 months | ||||
Deferred interest income | $ 303,000 | ||||
Total | $ 240,286,000 | $ 240,286,000 | |||
Loans, net of unearned income | 240,286,000 | 240,286,000 | |||
Current period gross charge-offs, Total | 804,000 | ||||
Other commercial real estate (non-owner occupied) | Maturity date extensions | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized Cost Basis | $ 6,243,000 | $ 6,243,000 | |||
Percentage of Total Class of Loans | 2.60% |
ALLOWANCE FOR CREDIT LOSSES _11
ALLOWANCE FOR CREDIT LOSSES - LOANS - Loan modified as a TDR (Details) - Loans in non-accrual status - Subsequent modification of a TDR $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) loan | |
Commercial and industrial | |
Schedule of TDRs | |
Number of loans | loan | 1 |
Current Balance | $ | $ 452 |
Concession Granted | Subsequent modification of a TDR - Extension of maturity date with a below market interest rate |
Commercial real estate (non-owner occupied) | |
Schedule of TDRs | |
Number of loans | loan | 1 |
Current Balance | $ | $ 1,583 |
Concession Granted | Extension of maturity date with an interest only period at below market interest rate |
ALLOWANCE FOR CREDIT LOSSES _12
ALLOWANCE FOR CREDIT LOSSES - LOANS - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | $ 6,563,000 | $ 50,000 | $ 1,100,000 | ||||||||
Provision for credit losses | $ 6,018,000 | $ 189,000 | $ 43,000 | $ 1,179,000 | $ 275,000 | $ 500,000 | $ (325,000) | $ (400,000) | 7,429,000 | 50,000 | 1,100,000 |
Net loan charge-offs | $ 3,500,000 | $ 1,700,000 | |||||||||
Percentage of charge-offs | 0.35% | 0.17% | |||||||||
Percentage Of Allowance For Total Loans | 1.45% | 1.08% | 1.45% | 1.08% | |||||||
Evaluated for impairment | $ 150,000 | $ 150,000 | |||||||||
Percentage of coverage on non-performing assets | 121% | 207% | 121% | 207% | |||||||
Percentage of general reserve | 49% | ||||||||||
Percentage of quantitative reserve | 51% | ||||||||||
Non-performing assets | $ 12,167,000 | $ 12,167,000 | |||||||||
Current period gross charge-offs, Total | 3,641,000 | $ 1,849,000 | 294,000 | ||||||||
Residential Real Estate | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Other assets | 15,000 | $ 38,000 | 15,000 | 38,000 | |||||||
Residential Mortgages | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Mortgage loans in process of foreclosure, amount | 332,000 | 332,000 | |||||||||
Non-performing | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total non-performing assets | 12,393,000 | 5,200,000 | 12,393,000 | 5,200,000 | |||||||
Other commercial real estate (non-owner occupied) | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Non-performing assets | 8,780,000 | 8,780,000 | |||||||||
Current period gross charge-offs, Total | 804,000 | ||||||||||
Other commercial real estate (non-owner occupied) | Non-performing | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total non-performing assets | 8,780,000 | 8,780,000 | |||||||||
Commercial real estate (non-owner occupied) | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Non-performing assets | 1,586,000 | 1,586,000 | |||||||||
Commercial real estate (non-owner occupied) | COVID 19 | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance for loan losses | 916,000 | 968,000 | |||||||||
Consumer | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Non-performing assets | 9,000 | 9,000 | |||||||||
Consumer and Residential Mortgage Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process. | 250,000 | 250,000 | |||||||||
Other commercial and industrial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | 599,000 | ||||||||||
Non-performing assets | 1,694,000 | $ 1,989,000 | 1,694,000 | 1,989,000 | |||||||
Current period gross charge-offs, Total | 480,000 | ||||||||||
Other commercial and industrial | Non-performing | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total non-performing assets | 1,905,000 | 1,905,000 | |||||||||
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] | |||||||||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | |||||||||
Substandard | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | |||||||||
Doubtful | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum individual loan balance requiring quarterly review | 100,000 | 100,000 | |||||||||
Commercial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Current period gross charge-offs, Total | 3,312,000 | ||||||||||
Commercial | COVID 19 | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance for loan losses | 325,000 | (344,000) | |||||||||
Commercial | Commercial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | (325,000) | (344,000) | |||||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | 1,000,000 | 1,000,000 | |||||||||
Current period gross charge-offs, Total | 97,000 | 146,000 | |||||||||
Commercial | Commercial real estate (non-owner occupied) - retail | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | 4,084,000 | ||||||||||
Net loan charge-offs | 2,000,000 | ||||||||||
Current period gross charge-offs, Total | 2,028,000 | ||||||||||
Commercial | Other commercial real estate (non-owner occupied) | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | 1,022,000 | ||||||||||
Net loan charge-offs | 804,000 | ||||||||||
Current period gross charge-offs, Total | $ 804,000 | ||||||||||
Commercial | Commercial real estate (non-owner occupied) | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | 916,000 | 968,000 | |||||||||
Current period gross charge-offs, Total | 1,390,000 | ||||||||||
Commercial | Commercial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum percent of portfolio to be reviewed | 25% | ||||||||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process. | 1,000,000 | $ 1,000,000 | |||||||||
Commercial | Other commercial and industrial | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Current period gross charge-offs, Total | 405,000 | 480,000 | |||||||||
Consumer. | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Current period gross charge-offs, Total | 329,000 | ||||||||||
Consumer. | Consumer | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (Credit) | 499,000 | 239,000 | 71,000 | ||||||||
Non-performing assets | 788,000 | 788,000 | |||||||||
Current period gross charge-offs, Total | 275,000 | $ 334,000 | $ 131,000 | ||||||||
Consumer. | Consumer | Non-performing | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total non-performing assets | $ 788,000 | $ 788,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Premises and Equipment | ||
Total at cost | $ 41,303 | $ 40,934 |
Less: Accumulated depreciation and amortization | 27,154 | 26,474 |
Premises and equipment, net | 14,149 | 14,460 |
Land | ||
Premises and Equipment | ||
Total at cost | 1,225 | 1,225 |
Premises | ||
Premises and Equipment | ||
Total at cost | 30,624 | 30,079 |
Furniture and equipment | ||
Premises and Equipment | ||
Total at cost | 8,258 | 8,428 |
Leasehold Improvements | ||
Premises and Equipment | ||
Total at cost | $ 1,196 | $ 1,202 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment | |||
Depreciation and amortization expense | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 |
Director | Director | |||
Premises and Equipment | |||
Expense paid to related party | $ 293,000 | $ 200,000 | $ 241,000 |
LEASE COMMITMENTS - Lease Cost
LEASE COMMITMENTS - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
LEASE COMMITMENTS | |||
Amortization of right-of-use asset | $ 277 | $ 271 | $ 272 |
Interest expense | 97 | 100 | 106 |
Operating lease cost | 92 | 106 | 116 |
Total lease cost | $ 466 | $ 477 | $ 494 |
LEASE COMMITMENTS - Leases outs
LEASE COMMITMENTS - Leases outstanding (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
LEASE COMMITMENTS | ||
Operating Lease, Weighted-average remaining term (years) | 8 years 4 months 24 days | 10 years |
Financing Lease, Weighted-average remaining term (years) | 13 years 10 months 24 days | 15 years 1 month 6 days |
Operating Lease, Weighted-average discount rate | 3.75% | 3.54% |
Financing Lease, Weighted-average discount rate | 3.77% | 3.62% |
LEASE COMMITMENTS - Operating a
LEASE COMMITMENTS - Operating and financing leases - (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LEASE COMMITMENTS | ||
2024 | $ 116 | $ 85 |
2025 | 105 | 85 |
2026 | 93 | 75 |
2027 | 69 | 69 |
2028 | 69 | 69 |
Thereafter | 312 | 382 |
Total undiscounted cash flows | 764 | 765 |
Discount on cash flows | (106) | (122) |
Total lease liabilities | 658 | 643 |
2024 | 311 | 309 |
2025 | 311 | 249 |
2026 | 247 | 248 |
2027 | 232 | 181 |
2028 | 200 | 181 |
Thereafter | 2,215 | 2,397 |
Total undiscounted cash flows | 3,516 | 3,565 |
Discount on cash flows | (816) | (885) |
Total lease liabilities | $ 2,700 | $ 2,680 |
LEASE COMMITMENTS - Additional
LEASE COMMITMENTS - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) ft² | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Description Of Accounting Treatment For Short Term Operating Lease | As of December 31, 2023, the Company had no short-term leases compared to one short-term lease for an office location as of December 31, 2022. | ||
Net occupancy expense | $ 2,917,000 | $ 2,883,000 | $ 2,620,000 |
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, 2023 | Dec. 31, 2022 |
Demand: | ||
Non-interest bearing deposits | $ 172,070 | $ 195,123 |
Interest bearing | 288,124 | 236,746 |
Savings | 119,484 | 135,796 |
Money market | 256,205 | 254,868 |
Time deposits | 322,477 | 286,004 |
Total deposits | $ 1,158,360 | $ 1,108,537 |
DEPOSITS - Maturity of time dep
DEPOSITS - Maturity of time deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
TIME DEPOSITS OF $100,000 OR MORE | ||
2024 | $ 259,657 | |
2025 | 40,810 | |
2026 | 5,395 | |
2027 | 5,814 | |
2028 | 3,754 | |
2029 and after | 7,047 | |
Total | $ 322,477 | $ 286,004 |
DEPOSITS - Additional informati
DEPOSITS - Additional information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS. | ||
Time deposits meet or exceed the FDIC insurance limit | $ 81,800,000 | $ 74,000,000 |
Related party deposits | $ 3,813,000 | $ 3,135,000 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | ||
Balance | $ 40,951 | $ 88,641 |
Short-Term Borrowings | ||
SHORT-TERM BORROWINGS | ||
Balance | 0 | |
Average balance during year | $ 46 | $ 113 |
Average rate paid for the year | 6.04% | 3.11% |
Short-Term Borrowings | ||
SHORT-TERM BORROWINGS | ||
Balance | $ 40,951 | $ 88,641 |
Maximum balance at any month end | 75,442 | 88,641 |
Average balance during year | $ 35,709 | $ 9,155 |
Average rate paid for the year | 5.44% | 3.93% |
Interest rate on year-end balance | 5.68% | 4.45% |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
WEIGHTED AVERAGE YIELD | ||
2023/2024 | 3.23% | 1.59% |
2024/2025 | 4.43% | 1.19% |
2025/2026 | 4.29% | |
2026/2027 | 4.33% | |
2027/2028 | 4.50% | |
Total advances from FHLB | 4.17% | 1.50% |
BALANCE | ||
2023/2024 | $ 7,947 | $ 15,568 |
2024/2025 | 2,000 | 4,197 |
2025/2026 | 12,920 | |
2026/2027 | 10,950 | |
2027/2028 | 10,745 | |
Total advances from FHLB | $ 44,562 | $ 19,765 |
ADVANCES FROM FEDERAL HOME LO_4
ADVANCES FROM FEDERAL HOME LOAN BANK AND SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 26, 2021 | Dec. 29, 2015 | Apr. 28, 1998 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | $ 294,000 | |||||||
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 | 26,685 | $ 26,644 | ||||||
Federal Reserve Bank [Member] | ||||||||
Availability Of Short term Borrowings Federal Reserve | 40,000 | |||||||
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 | $ 26,700 | $ 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, 2023 | Dec. 31, 2022 |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | $ 499 | $ 502 |
Available for Sale, Fair Value, Total | 165,711 | 179,508 |
Interest rate swap asset | $ 4,582 | $ 6,992 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Interest rate hedge | $ (446) | |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |
Interest rate swap liability | $ (4,665) | $ (6,872) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Risk participation agreement | $ (410) | |
U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 5,339 | $ 10,533 |
U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 93,075 | 89,985 |
Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 10,360 | 19,038 |
Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 56,937 | 59,952 |
Level 1 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | 499 | 502 |
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, Fair Value, Total | 0 | |
Level 1 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 0 | |
Level 1 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 0 | |
Level 2 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Interest rate swap asset | 4,582 | 6,992 |
Interest rate hedge | (446) | |
Interest rate swap liability | (4,665) | (6,872) |
Risk participation agreement | (410) | |
Level 2 | U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 5,339 | 10,533 |
Level 2 | U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 93,075 | 89,985 |
Level 2 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 10,360 | 19,038 |
Level 2 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 56,937 | $ 59,952 |
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, Fair Value, Total | 0 | |
Level 3 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | 0 | |
Level 3 | Corporate bonds. | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for Sale, Fair Value, Total | $ 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) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Individually evaluated loans with carrying value | $ 0 | $ 1,600 |
Specific valuation allowance | 3 | |
Individually evaluated loans | $ 1,600 | |
Other real estate owned and repossessed assets | 15 | |
Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Loan Held-for-Sale, Valuation Technique [Extensible Enumeration] | asrv:AppraisalOfCollateralMember | |
Loan Held-for-Sale, Measurement Input [Extensible Enumeration] | us-gaap:MeasurementInputAppraisedValueMember | |
Other real estate owned and repossessed assets | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other Real Estate Owned, Valuation Technique [Extensible Enumeration] | asrv:AppraisalOfCollateralMember | |
Other Real Estate Owned, Measurement Input [Extensible Enumeration] | us-gaap:MeasurementInputAppraisedValueMember, Measurement Input, Liquidation expenses [Member] | |
Fair Value Measurements, Nonrecurring Basis | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | $ 1,583 | |
Other real estate owned and repossessed assets | 15 | 39 |
Fair Value Measurements, Nonrecurring Basis | Level 1 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 0 | |
Other real estate owned and repossessed assets | 0 | 0 |
Fair Value Measurements, Nonrecurring Basis | Level 2 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 0 | |
Other real estate owned and repossessed assets | 0 | 0 |
Fair Value Measurements, Nonrecurring Basis | Level 3 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 1,583 | |
Other real estate owned and repossessed assets | 15 | 39 |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 1,583 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Other real estate owned and repossessed assets | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | $ 15 | $ 39 |
Other real estate owned and repossessed assets, Measurement Input | 0.63 | 0.52 |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Other real estate owned and repossessed assets | Measurement Input, Liquidation expenses [Member] | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.33 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Minimum | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Loan, Measurement Input | 0 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Minimum | Other real estate owned and repossessed assets | Measurement Input, Liquidation expenses [Member] | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.10 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Maximum | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Loan, Measurement Input | 1 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Maximum | Other real estate owned and repossessed assets | Measurement Input, Liquidation expenses [Member] | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.39 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Loan, Measurement Input | 0.002 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Other real estate owned and repossessed assets | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.63 | 0.52 |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Other real estate owned and repossessed assets | Measurement Input, Liquidation expenses [Member] | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.11 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Other real estate owned and repossessed assets | Measurement Input, Liquidation expenses [Member] | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets, Measurement Input | 0.33 |
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, 2023 | Dec. 31, 2022 | |
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Carrying Value | $ 63,979 | $ 61,878 |
Loans held for sale, Carrying Value | 130 | 59 |
Loans, net of allowance for credit losses and unearned income, Carrying Value | 1,023,218 | 980,023 |
Investment securities - HTM, Fair Value | 58,621 | 55,192 |
Loans held for sale, Fair Value | 132 | 57 |
Loans, net of allowance for credit losses and unearned income, Fair Value | 950,402 | 938,188 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Carrying Value | 322,477 | 286,004 |
All other borrowings, Carrying Value | 71,247 | 46,409 |
Deposits with stated maturities, Fair Value | 321,660 | 281,297 |
All other borrowings, Fair Value | $ 70,061 | 44,759 |
Assets and liabilities considered financial instruments, percentage | 90% | |
Level 1 | ||
FINANCIAL ASSETS: Carrying Value | ||
Loans held for sale, Fair Value | $ 132 | 57 |
Level 2 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 56,769 | 52,323 |
Level 3 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 1,852 | 2,869 |
Loans, net of allowance for credit losses and unearned income, Fair Value | 950,402 | 938,188 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Fair Value | 321,660 | 281,297 |
All other borrowings, Fair Value | $ 70,061 | $ 44,759 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||||||||||
Current | $ (477) | $ 1,220 | $ 973 | ||||||||
Deferred | (565) | 533 | 729 | ||||||||
Income tax expense (benefit) | $ (1,477) | $ 124 | $ (61) | $ 372 | $ 126 | $ 526 | $ 496 | $ 605 | $ (1,042) | $ 1,753 | $ 1,702 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AMOUNT | |||||||||||
Income tax expense (benefit) based on federal statutory rate | $ (921) | $ 1,932 | $ 1,843 | ||||||||
Tax exempt income | (237) | (244) | (253) | ||||||||
Other | 116 | 65 | 112 | ||||||||
Income tax expense (benefit) | $ (1,477) | $ 124 | $ (61) | $ 372 | $ 126 | $ 526 | $ 496 | $ 605 | $ (1,042) | $ 1,753 | $ 1,702 |
RATE | |||||||||||
Income tax expense (benefit) based on federal statutory rate | 21% | 21% | 21% | ||||||||
Tax exempt income | (5.40%) | 2.60% | 2.90% | ||||||||
Other | (2.70%) | 0.70% | 1.30% | ||||||||
Total expense for income taxes | 23.70% | 19.10% | 19.40% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
DEFERRED TAX ASSETS: | ||
Allowance for credit losses - loans | $ 3,161,000 | $ 2,256,000 |
Allowance for credit losses -securities | 202,000 | |
Allowance for credit losses - unfunded commitments | 197,000 | 157,000 |
Unrealized investment security losses | 3,650,000 | 3,971,000 |
Premises and equipment | 678,000 | 955,000 |
Lease liabilities | 705,000 | 698,000 |
Interest rate hedges | 94,000 | |
Other | 169,000 | 185,000 |
Total tax assets | 8,856,000 | 8,222,000 |
DEFERRED TAX LIABILITIES: | ||
Investment accretion | (95,000) | (107,000) |
Lease right-of-use assets | (636,000) | (639,000) |
Accrued pension obligation | (5,193,000) | (4,494,000) |
Other | (253,000) | (193,000) |
Total tax liabilities | (6,177,000) | (5,433,000) |
Net deferred tax asset | 2,679,000 | 2,789,000 |
Valuation Allowance | 0 | $ 0 |
Unrecognized tax benefits | $ 0 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CHANGE IN BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 34,906 | $ 50,287 | |
Service cost | 1,071 | 1,419 | $ 1,708 |
Interest cost | 1,761 | 1,462 | 894 |
Actuarial loss (gain) | 82 | (9,787) | |
Settlements | (7,541) | ||
Benefits paid | (3,001) | (934) | |
Benefit obligation at end of year | 34,819 | 34,906 | 50,287 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 56,257 | 70,432 | |
Actual return on plan assets | 6,079 | (9,700) | |
Employer contributions | 4,000 | ||
Settlements | (7,541) | ||
Benefits paid | (3,001) | (934) | |
Fair value of plan assets at end of year | 59,335 | 56,257 | $ 70,432 |
Funded status of the plan | $ 24,516 | $ 21,351 |
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, 2023 | Dec. 31, 2022 |
Amounts recognized in accumulated other comprehensive loss consists of: | ||
Net actuarial loss | $ 7,626 | $ 9,597 |
Total | $ 7,626 | $ 9,597 |
EMPLOYEE BENEFIT PLANS - Accumu
EMPLOYEE BENEFIT PLANS - Accumulated benefit obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Items | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 32,137 | $ 32,190 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted-average assumptions used to determine benefit obligations (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Discount rate | 5.12% | 5.45% |
Ages 25-34 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 5% | 5% |
Ages 35-44 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 4% | 4% |
Ages 45-54 | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 3% | 3% |
Ages 55+ | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Salary scale | 2.50% | 2.50% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of net periodic benefit cost | |||
Service cost | $ 1,071 | $ 1,419 | $ 1,708 |
Interest cost | 1,761 | 1,462 | 894 |
Expected return on plan assets | (4,063) | (4,193) | (4,008) |
Amortization of net loss | 37 | 1,330 | 2,421 |
Settlement charge | 0 | 2,498 | 1,736 |
Net periodic pension (benefit) cost | $ (1,194) | $ 2,516 | $ 2,751 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS | |||
Net (gain) loss | $ (1,934) | $ 4,106 | $ (7,153) |
Recognized loss | (37) | (3,828) | (4,157) |
Total recognized in other comprehensive loss before tax effect | (1,971) | 278 | (11,310) |
Total recognized in net benefit cost and other comprehensive loss before tax effect | $ (3,165) | $ 2,794 | $ (8,559) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Discount rate | 5.45% | 2.81% | 2.48% |
Expected return on plan assets | 7% | 7% | 7% |
Ages 25-34 | |||
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Rate of compensation increase | 5% | 2.50% | 2.50% |
Ages 35-44 | |||
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Rate of compensation increase | 4% | 2.50% | 2.50% |
Ages 45-54 | |||
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Rate of compensation increase | 3% | 2.50% | 2.50% |
Ages 55+ | |||
WEIGHTED AVERAGE ASSUMPTIONS: | |||
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, 2023 | Dec. 31, 2022 |
ASSET CATEGORY: | ||
Asset allocations | 100% | 100% |
Cash and Cash Equivalents | ||
ASSET CATEGORY: | ||
Asset allocations | 2.40% | 89.90% |
Domestic securities | ||
ASSET CATEGORY: | ||
Asset allocations | 3.40% | 7.10% |
Mutual funds/ETFs | ||
ASSET CATEGORY: | ||
Asset allocations | 94.20% | 0% |
Corporate bonds | ||
ASSET CATEGORY: | ||
Asset allocations | 0% | 3% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 59,335 | $ 56,257 | $ 70,432 |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,419 | 50,553 | |
Domestic equities. | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | 2,007 | 4,026 | |
Mutual funds/ETFs | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 55,909 | ||
Corporate bonds | Level 2 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 1,678 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional information (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) Y | Dec. 31, 2022 USD ($) | Dec. 31, 2021 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 | 0.49% | ||||
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 | $ 900,000 | $ 808,000 | $ 704,000 | ||
Defined Contribution Plan assets in common stocks | $ 409,000 | ||||
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 | $ 23,000 | 15,000 | $ 44,000 | ||
Other liabilities. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation liability | $ 499,000 | 502,000 | |||
Domestic securities | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, target allocation, percentage | 0% | ||||
Domestic 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 | $ 2,000,000 | ||||
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% | ||||
Employer contributions | $ 4,000,000 | ||||
Expected return on plan assets | 7% | 7% | 7% | ||
Defined benefit plan percent of assets comprised of entity common stock | 3.40% | ||||
Defined Benefit Pension Items | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 0 | ||||
Defined Benefit Pension Items | Other assets. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets for pension benefits | 24,700,000 | $ 21,300,000 | |||
401(k) PLAN | Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets of the company's common stock | $ 409,000 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated future benefit payments (Details) - Defined Benefit Pension Items $ in Thousands | Dec. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2024 | $ 4,874 |
2025 | 4,470 |
2026 | 4,651 |
2027 | 3,860 |
2028 | 3,220 |
Years 2029-2033 | $ 12,630 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |||
Off-Balance-Sheet, credit loss liabilities | $ 940,000 | $ 923,000 | $ 746,000 |
Provision for credit losses on unfunded commitments | 17,000 | ||
Commitments to extend credit | |||
Loss Contingencies [Line Items] | |||
Amount of commitment | 236,600,000 | 227,600,000 | |
Standby letters of Credit | |||
Loss Contingencies [Line Items] | |||
Amount of commitment | 8,200,000 | 9,000,000 | |
Standby letters of credit | $ 5,700,000 | $ 5,600,000 | |
Standby letters of Credit | Minimum | |||
Loss Contingencies [Line Items] | |||
Term of commitment | 1 year | ||
Standby letters of Credit | Maximum | |||
Loss Contingencies [Line Items] | |||
Term of commitment | 5 years |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARES | |||
Outstanding at beginning of year | 323,786 | 369,047 | 230,913 |
Granted | 0 | 0 | 160,000 |
Exercised | (29,653) | (36,117) | (21,356) |
Forfeited | (49,133) | (9,144) | (510) |
Outstanding at end of year | 245,000 | 323,786 | 369,047 |
Exercisable at end of year | 200,002 | 223,784 | 206,713 |
WEIGHTED AVERAGE EXERCISE PRICE | |||
Outstanding at beginning of year | $ 3.52 | $ 3.47 | $ 3.14 |
Granted | 3.84 | ||
Exercised | 3.19 | 2.96 | 2.68 |
Forfeited | 3.17 | 3.62 | 3.23 |
Outstanding at end of year | 3.64 | 3.52 | 3.47 |
Exercisable at end of year | $ 3.59 | $ 3.38 | 3.18 |
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 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Expected lives in years | 10 years |
Minimum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Risk-free interest rate | 1.27% |
Expected volatility | 40.38% |
Expected dividend rate | 2.60% |
Maximum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Risk-free interest rate | 1.42% |
Expected volatility | 45.03% |
Expected dividend rate | 2.61% |
STOCK COMPENSATION PLANS - Addi
STOCK COMPENSATION PLANS - Additional information (Details) - USD ($) | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2020 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Stock based compensation | $ 45,000 | $ 50,000 | $ 43,000 | ||
Number of Shares Authorized | 600,000 | ||||
Purchase Price of Common Stock, Percent | 100% | ||||
Expiration Period | 10 years | ||||
Award Vesting Period | 3 years | ||||
Options Outstanding | 245,000 | 323,786 | 369,047 | 245,000 | 230,913 |
Grants in Period | 0 | 0 | 160,000 | ||
Intrinsic Value | $ 24,000 | $ 47,000 | $ 27,000 | ||
Restricted stock | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Restricted stocks granted | 0 | ||||
Range One | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Number of Exercisable Options | 200,002 | 200,002 | |||
Exercise Price Range, Lower Range Limit | $ 2.96 | ||||
Exercise Price Range, Upper Range Limit | 4.22 | ||||
Weighted Average Exercise Price | $ 3.59 | $ 3.59 | |||
Weighted Average Remaining Contractual Term | 4 years 5 months 12 days | ||||
Range Two | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Number of not yet exercisable options | 44,998 | 44,998 | |||
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 | 7 years 1 month 20 days |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (22,520) | $ (6,512) | $ (13,198) |
Other comprehensive income (loss) before reclassifications | 2,149 | (19,032) | 3,468 |
Amounts reclassified from accumulated other comprehensive loss | 395 | 3,024 | 3,218 |
Net current period other comprehensive income (loss) | 2,544 | (16,008) | 6,686 |
Ending balance | (19,976) | (22,520) | (6,512) |
Net Unrealized Gains and Losses on Investment Securities AFS | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (14,938) | 1,386 | 3,539 |
Other comprehensive income (loss) before reclassifications | 479 | (16,324) | (2,087) |
Amounts reclassified from accumulated other comprehensive loss | 729 | (66) | |
Net current period other comprehensive income (loss) | 1,208 | (16,324) | (2,153) |
Ending balance | (13,730) | (14,938) | 1,386 |
Interest Rate Hedge | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 11 | ||
Amounts reclassified from accumulated other comprehensive loss | (363) | ||
Net current period other comprehensive income (loss) | (352) | ||
Ending balance | (352) | ||
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (7,582) | (7,898) | (16,737) |
Other comprehensive income (loss) before reclassifications | 1,659 | (2,708) | 5,555 |
Amounts reclassified from accumulated other comprehensive loss | 29 | 3,024 | 3,284 |
Net current period other comprehensive income (loss) | 1,688 | 316 | 8,839 |
Ending balance | $ (5,894) | $ (7,582) | $ (7,898) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification of component (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Realized (gains) losses on sale of securities | |||||||||||
Net realized gains (losses) on investment securities | $ 922,000 | $ (84,000) | |||||||||
Provision (benefit) for income taxes | (193,000) | 18,000 | |||||||||
Interest expense | $ 7,379,000 | $ 6,640,000 | $ 5,769,000 | $ 5,052,000 | $ 3,660,000 | $ 2,171,000 | $ 1,403,000 | $ 1,261,000 | 24,840,000 | $ 8,495,000 | 7,586,000 |
Other expense | 2,769,000 | 5,299,000 | 5,435,000 | ||||||||
Provision (benefit) for income taxes | (1,477,000) | 124,000 | (61,000) | 372,000 | 126,000 | 526,000 | 496,000 | 605,000 | (1,042,000) | 1,753,000 | 1,702,000 |
Net Income (Loss) | $ (5,321,000) | $ 647,000 | $ (187,000) | $ 1,515,000 | $ 947,000 | $ 2,102,000 | $ 1,981,000 | $ 2,418,000 | (3,346,000) | 7,448,000 | 7,072,000 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Realized (gains) losses on sale of securities | |||||||||||
Net realized gains (losses) on investment securities | 922,000 | (84,000) | |||||||||
Provision (benefit) for income taxes | (193,000) | 18,000 | |||||||||
Net of tax | 729,000 | (66,000) | |||||||||
Net Income (Loss) | 395,000 | 3,024,000 | 3,218,000 | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Realized (gains) losses on sale of securities | |||||||||||
Interest expense | (460,000) | ||||||||||
Provision (benefit) for income taxes | 97,000 | ||||||||||
Net Income (Loss) | (363,000) | ||||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Realized (gains) losses on sale of securities | |||||||||||
Other expense | (37,000) | (3,828,000) | (4,157,000) | ||||||||
Provision (benefit) for income taxes | (8,000) | (804,000) | (873,000) | ||||||||
Net Income (Loss) | $ 29,000 | $ 3,024,000 | $ 3,284,000 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Goodwill | 13,611,000 | 13,611,000 | |
West Chester Capital Advisors | |||
Goodwill | |||
Goodwill | 2,400,000 | ||
Riverview Bank | |||
Goodwill | |||
Core deposit intangible | $ 177,000 | ||
Accumulated amortization on core deposit intangible | 76,000 | $ 49,000 | |
Retail Banking | |||
Goodwill | |||
Goodwill | 13,600,000 | ||
Community Banking | |||
Goodwill | |||
Goodwill | $ 11,200,000 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization of intangible (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Finite-Lived Intangible Assets, Net, Beginning Balance | $ 128 | ||
Amortization | 27 | $ 30 | $ 19 |
Finite-Lived Intangible Assets, Net, Ending Balance | 101 | 128 | |
Riverview Bank | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Finite-Lived Intangible Assets, Net, Beginning Balance | 128 | 158 | |
Amortization | (27) | (30) | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 101 | $ 128 | $ 158 |
INTANGIBLE ASSETS - Future Amor
INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
Finite-Lived Intangible Assets, Net, Total | $ 101 | $ 128 | |
Riverview Bank | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2024 | 24 | ||
2025 | 21 | ||
2026 | 17 | ||
2027 | 14 | ||
2028 | 11 | ||
After five years | 14 | ||
Finite-Lived Intangible Assets, Net, Total | $ 101 | $ 128 | $ 158 |
DERIVATIVE HEDGING INSTRUMENT_2
DERIVATIVE HEDGING INSTRUMENTS (Details) - Swap - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Financial Instruments, Liabilities | ||
Derivative, Swap Type | N/A | N/A |
Derivative Liability, Notional Amount | $ (76,502) | $ (65,431) |
Weighted Average Rate Received (Paid) | (7.45%) | (4.23%) |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ (2,099,000) | $ (21,000) |
Derivative Financial Instruments, Assets | ||
Derivative, Swap Type | N/A | N/A |
Derivative Asset, Notional Amount | $ 76,502 | $ 65,431 |
Weighted Average Rate Received (Paid) | 7.45% | 4.23% |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ 2,099,000 | $ 21,000 |
DERIVATIVE HEDGING INSTRUMENT_3
DERIVATIVE HEDGING INSTRUMENTS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Proceeds from Fees Received | $ 295,000 | $ 8,000 | $ 191,000 |
Maximum amount outstanding | 500,000,000 | ||
Interest Rate Swap | Risk Participation Agreement | |||
Proceeds from Fees Received | 52,000 | ||
Notional amount | $ 6,800,000 | $ 2,100,000 | |
Interest Rate Hedge | |||
Number of interest rate swaps | item | 3 | ||
Notional amount | $ 70,000,000 | ||
Amount reclassified as decrease to interest expense | $ 785,000 | ||
Derivative term | 3 years |
DERIVATIVE HEDGING INSTRUMENT_4
DERIVATIVE HEDGING INSTRUMENTS - Cash Flow Hedge (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Interest rate hedge | |
Derivative Instruments, Gain (Loss) | |
Amount Reclassified from Accumulated Other Comprehensive Loss | $ 460,000 |
Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) | |
Amount Recognized in Other Comprehensive Loss on Derivative | (446,000) |
Amount Reclassified from Accumulated Other Comprehensive Loss | (460,000) |
Designated as Hedging Instrument | Interest rate hedge | |
Derivative Instruments, Gain (Loss) | |
Amount Recognized in Other Comprehensive Loss on Derivative | $ (446,000) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense, Deposits |
Amount Reclassified from Accumulated Other Comprehensive Loss | $ (460,000) |
SEGMENT RESULTS (Details)
SEGMENT RESULTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | $ 8,589 | $ 8,799 | $ 9,110 | $ 9,522 | $ 10,143 | $ 10,529 | $ 10,124 | $ 9,767 | $ 36,020 | $ 40,563 | $ 39,083 |
Provision for credit losses | 6,018 | 189 | 43 | 1,179 | 275 | 500 | (325) | (400) | 7,429 | 50 | 1,100 |
Non-interest income | 2,764 | 4,256 | 3,862 | 5,507 | 3,893 | 4,326 | 4,138 | 4,335 | 16,389 | 16,692 | 17,761 |
Non-interest expense | 12,133 | 12,095 | 13,177 | 11,963 | 12,688 | 11,727 | 12,110 | 11,479 | 49,368 | 48,004 | 46,970 |
Income (loss) before income taxes | (6,798) | 771 | (248) | 1,887 | 1,073 | 2,628 | 2,477 | 3,023 | (4,388) | 9,201 | 8,774 |
Income tax expense (benefit) | (1,477) | 124 | (61) | 372 | 126 | 526 | 496 | 605 | (1,042) | 1,753 | 1,702 |
Net income (loss) | (5,321) | $ 647 | $ (187) | $ 1,515 | 947 | $ 2,102 | $ 1,981 | $ 2,418 | (3,346) | 7,448 | 7,072 |
Total assets | 1,389,638 | 1,363,874 | 1,389,638 | 1,363,874 | 1,335,560 | ||||||
Community Banking | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | 50,843 | 46,135 | 45,934 | ||||||||
Provision for credit losses | 6,580 | 50 | 1,100 | ||||||||
Non-interest income | 4,409 | 5,174 | 5,649 | ||||||||
Non-interest expense | 34,749 | 36,216 | 35,636 | ||||||||
Income (loss) before income taxes | 13,923 | 15,043 | 14,847 | ||||||||
Income tax expense (benefit) | 2,389 | 2,638 | 2,797 | ||||||||
Net income (loss) | 11,534 | 12,405 | 12,050 | ||||||||
Total assets | 1,151,720 | 1,114,923 | 1,151,720 | 1,114,923 | 1,111,856 | ||||||
Wealth Management | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | 11 | 65 | 72 | ||||||||
Provision for credit losses | 0 | ||||||||||
Non-interest income | 11,270 | 11,620 | 11,986 | ||||||||
Non-interest expense | 9,506 | 8,834 | 8,349 | ||||||||
Income (loss) before income taxes | 1,775 | 2,851 | 3,709 | ||||||||
Income tax expense (benefit) | 452 | 688 | 841 | ||||||||
Net income (loss) | 1,323 | 2,163 | 2,868 | ||||||||
Total assets | 11,173 | 10,867 | 11,173 | 10,867 | 10,822 | ||||||
Investment/Parent | |||||||||||
Contribution of segments to the consolidated results of operations | |||||||||||
Net interest income (expense) | (14,834) | (5,637) | (6,923) | ||||||||
Provision for credit losses | 849 | 0 | |||||||||
Non-interest income | 710 | (102) | 126 | ||||||||
Non-interest expense | 5,113 | 2,954 | 2,985 | ||||||||
Income (loss) before income taxes | (20,086) | (8,693) | (9,782) | ||||||||
Income tax expense (benefit) | (3,883) | (1,573) | (1,936) | ||||||||
Net income (loss) | (16,203) | (7,120) | (7,846) | ||||||||
Total assets | $ 226,745 | $ 238,084 | $ 226,745 | $ 238,084 | $ 212,882 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 135,196 | $ 136,767 |
Tier 1 Common Equity (To RWA), Actual Amount | 120,874 | 125,278 |
Tier 1 Capital (To RWA), Actual Amount | 120,874 | 125,278 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 120,874 | $ 125,278 |
Total Capital (To RWA), Actual Ratio | 0.1182 | 0.1244 |
Tier 1 Common Equity (To RWA), Actual Ratio | 0.1057 | 0.1139 |
Tier 1 Capital (To RWA), Actual Ratio | 0.1057 | 0.1139 |
Tier 1 Capital (To Average Assets), Actual Ratio | 0.0878 | 0.0939 |
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 | 4.50% | 4.50% |
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 | 6.50% | 6.50% |
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 | $ 149,596 | $ 153,092 |
Tier 1 Common Equity (To RWA), Actual Amount | 108,541 | 114,959 |
Tier 1 Capital (To RWA), Actual Amount | 108,541 | 114,959 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 108,541 | $ 114,959 |
Total Capital (To RWA), Actual Ratio | 0.1303 | 0.1387 |
Tier 1 Common Equity (To RWA), Actual Ratio | 0.0946 | 0.1041 |
Tier 1 Capital (To RWA), Actual Ratio | 0.0946 | 0.1041 |
Tier 1 Capital (To Average Assets), Actual Ratio | 0.0780 | 0.0852 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | |||
Cash | $ 9,678 | $ 18,830 | |
Cash and cash equivalents | 14,027 | 22,962 | |
Investment securities available for sale | 165,711 | 179,508 | |
Other assets | 36,579 | 33,835 | |
TOTAL ASSETS | 1,389,638 | 1,363,874 | $ 1,335,560 |
LIABILITIES | |||
Subordinated debt | 26,685 | 26,644 | |
Other liabilities | 13,445 | 10,786 | |
TOTAL LIABILITIES | 1,287,361 | 1,257,696 | |
SHAREHOLDERS' EQUITY | |||
Total shareholders' equity | 102,277 | 106,178 | $ 116,549 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,389,638 | 1,363,874 | |
Parent Company | |||
ASSETS | |||
Cash | 100 | 100 | |
Short-term investments | 3,553 | 3,178 | |
Cash and cash equivalents | 3,653 | 3,278 | |
Investment securities available for sale | 4,532 | 6,334 | |
Other assets | 1,163 | 1,008 | |
TOTAL ASSETS | 130,754 | 134,585 | |
LIABILITIES | |||
Subordinated debt | 26,685 | 26,644 | |
Other liabilities | 1,792 | 1,763 | |
TOTAL LIABILITIES | 28,477 | 28,407 | |
SHAREHOLDERS' EQUITY | |||
Total shareholders' equity | 102,277 | 106,178 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 130,754 | 134,585 | |
Parent Company | Banking subsidiary | |||
ASSETS | |||
Equity investment | 115,322 | 117,432 | |
Parent Company | Non banking subsidiaries | |||
ASSETS | |||
Equity investment | $ 6,084 | $ 6,533 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME | |||||||||||
Interest, dividend and other income | $ 15,968 | $ 15,439 | $ 14,879 | $ 14,574 | $ 13,803 | $ 12,700 | $ 11,527 | $ 11,028 | $ 60,860 | $ 49,058 | $ 46,669 |
EXPENSE | |||||||||||
Interest expense | 7,379 | 6,640 | 5,769 | 5,052 | 3,660 | 2,171 | 1,403 | 1,261 | 24,840 | 8,495 | 7,586 |
Salaries and employee benefits | 29,628 | 28,492 | 27,847 | ||||||||
Other expense | 2,769 | 5,299 | 5,435 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | (6,798) | 771 | (248) | 1,887 | 1,073 | 2,628 | 2,477 | 3,023 | (4,388) | 9,201 | 8,774 |
Benefit for income taxes | (1,477) | 124 | (61) | 372 | 126 | 526 | 496 | 605 | (1,042) | 1,753 | 1,702 |
NET INCOME (LOSS) | $ (5,321) | $ 647 | $ (187) | $ 1,515 | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | (3,346) | 7,448 | 7,072 |
COMPREHENSIVE INCOME (LOSS) | (802) | (8,560) | 13,758 | ||||||||
Parent Company | |||||||||||
INCOME | |||||||||||
Interest, dividend and other income | 221 | 146 | 115 | ||||||||
TOTAL INCOME | 7,573 | 7,767 | 6,185 | ||||||||
EXPENSE | |||||||||||
Interest expense | 1,054 | 1,054 | 1,798 | ||||||||
Salaries and employee benefits | 2,816 | 2,811 | 2,871 | ||||||||
Other expense | 4,362 | 1,948 | 1,783 | ||||||||
TOTAL EXPENSE | 8,232 | 5,813 | 6,452 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | (659) | 1,954 | (267) | ||||||||
Benefit for income taxes | (1,115) | (652) | (802) | ||||||||
Equity in undistributed earnings of subsidiaries | (3,802) | 4,842 | 6,537 | ||||||||
NET INCOME (LOSS) | (3,346) | 7,448 | 7,072 | ||||||||
COMPREHENSIVE INCOME (LOSS) | (802) | (8,560) | 13,758 | ||||||||
Parent Company | Affiliated Entity | |||||||||||
INCOME | |||||||||||
TOTAL INCOME | 2,702 | 2,566 | 2,520 | ||||||||
Parent Company | Banking subsidiary | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | 3,000 | 4,000 | 2,000 | ||||||||
Parent Company | Non banking subsidiaries | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | $ 1,650 | $ 1,055 | $ 1,550 |
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, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $ (5,321) | $ 647 | $ (187) | $ 1,515 | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ (3,346) | $ 7,448 | $ 7,072 | |
Adjustment to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Stock compensation expense | 45 | 50 | 43 | |||||||||
Other - net | (1,339) | (3,398) | (4,379) | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of investment securities - available for sale | (21,255) | (58,207) | (61,578) | |||||||||
Proceeds from maturity and sales of investment securities - available for sale | 17,973 | 19,638 | 38,826 | |||||||||
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 | 94 | 106 | 57 | |||||||||
Common stock dividends paid | (2,058) | (1,967) | (1,708) | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (8,935) | (18,139) | 9,597 | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 22,962 | 41,101 | 22,962 | 41,101 | 31,504 | |||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | 14,027 | 22,962 | 14,027 | 22,962 | 41,101 | |||||||
Parent Company | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | (3,346) | 7,448 | 7,072 | |||||||||
Adjustment to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | 3,802 | (4,842) | (6,537) | |||||||||
Stock compensation expense | 45 | 50 | 43 | |||||||||
Other - net | (53) | 189 | 1,204 | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 448 | 2,845 | 1,782 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of investment securities - available for sale | (3,994) | (1,008) | ||||||||||
Proceeds from maturity and sales of investment securities - available for sale | 1,891 | 655 | 991 | |||||||||
Capital contribution to banking subsidiary | (3,500) | |||||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 1,891 | (3,339) | (3,517) | |||||||||
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 | 94 | 106 | 57 | |||||||||
Purchases of treasury stock | 0 | 0 | 0 | |||||||||
Common stock dividends paid | (2,058) | (1,967) | (1,708) | |||||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (1,964) | (1,861) | 5,270 | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 375 | (2,355) | 3,535 | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | $ 3,278 | $ 5,633 | 3,278 | 5,633 | 2,098 | |||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ 3,653 | $ 3,278 | $ 3,653 | $ 3,278 | $ 5,633 |
PARENT COMPANY FINANCIAL INFO_6
PARENT COMPANY FINANCIAL INFORMATION - Additional information (Details) | Dec. 31, 2023 USD ($) |
PARENT COMPANY FINANCIAL INFORMATION | |
Dividend Payments Restrictions Schedule, Statutory Capital and Surplus | $ 124,585,000 |
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, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |||||||||||
Interest income | $ 15,968 | $ 15,439 | $ 14,879 | $ 14,574 | $ 13,803 | $ 12,700 | $ 11,527 | $ 11,028 | $ 60,860 | $ 49,058 | $ 46,669 |
Interest expense | 7,379 | 6,640 | 5,769 | 5,052 | 3,660 | 2,171 | 1,403 | 1,261 | 24,840 | 8,495 | 7,586 |
Net interest income | 8,589 | 8,799 | 9,110 | 9,522 | 10,143 | 10,529 | 10,124 | 9,767 | 36,020 | 40,563 | 39,083 |
Provision for credit losses | 6,018 | 189 | 43 | 1,179 | 275 | 500 | (325) | (400) | 7,429 | 50 | 1,100 |
Net interest income after provision (credit) for loan losses | 2,571 | 8,610 | 9,067 | 8,343 | 9,868 | 10,029 | 10,449 | 10,167 | 28,591 | 40,513 | 37,983 |
Non-interest income (loss) | 2,764 | 4,256 | 3,862 | 5,507 | 3,893 | 4,326 | 4,138 | 4,335 | 16,389 | 16,692 | 17,761 |
Non-interest expense | 12,133 | 12,095 | 13,177 | 11,963 | 12,688 | 11,727 | 12,110 | 11,479 | 49,368 | 48,004 | 46,970 |
Income before income taxes | (6,798) | 771 | (248) | 1,887 | 1,073 | 2,628 | 2,477 | 3,023 | (4,388) | 9,201 | 8,774 |
Provision (benefit) for income taxes | (1,477) | 124 | (61) | 372 | 126 | 526 | 496 | 605 | (1,042) | 1,753 | 1,702 |
Net income (loss) | $ (5,321) | $ 647 | $ (187) | $ 1,515 | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ (3,346) | $ 7,448 | $ 7,072 |
Basic earnings per common share | $ (0.31) | $ 0.04 | $ (0.01) | $ 0.09 | $ 0.06 | $ 0.12 | $ 0.12 | $ 0.14 | $ (0.20) | $ 0.44 | $ 0.41 |
Diluted earnings per common share | (0.31) | 0.04 | (0.01) | 0.09 | 0.06 | 0.12 | 0.12 | 0.14 | (0.20) | 0.43 | 0.41 |
Cash dividends declared per common share | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.030 | $ 0.025 | $ 0.120 | $ 0.115 | $ 0.100 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ (5,321) | $ 647 | $ (187) | $ 1,515 | $ 947 | $ 2,102 | $ 1,981 | $ 2,418 | $ (3,346) | $ 7,448 | $ 7,072 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |