Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | Farmers National Banc Corp. | ||
Entity Central Index Key | 0000709337 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | FMNB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 37,545,864 | ||
Entity Public Float | $ 445.5 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-35296 | ||
Entity Tax Identification Number | 34-1371693 | ||
Entity Address, Address Line One | 20 South Broad Street | ||
Entity Address, City or Town | Canfield | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44406 | ||
City Area Code | 330 | ||
Local Phone Number | 533-3341 | ||
Entity Incorporation, State or Country Code | OH | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Auditor Name | CliftonLarsonAllen LLP | ||
Auditor Firm ID | 173 | ||
Auditor Location | Maumee, Ohio | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Document Part of Form 10-K into which Portions of the registrant’s definitive proxy statement for the 2023 III Annual Meeting of Shareholders |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 28,896 | $ 21,395 |
Federal funds sold and other | 74,762 | 54,156 |
TOTAL CASH AND CASH EQUIVALENTS | 103,658 | 75,551 |
Debt securities available for sale, at fair value (amortized cost $1,516,841 in 2023 and $1,534,512 in 2022) | 1,299,701 | 1,268,025 |
Other investments | 35,311 | 33,444 |
Loans held for sale, at fair value | 3,711 | 858 |
Loans | 3,198,127 | 2,404,750 |
Less allowance for credit losses | 34,440 | 26,978 |
NET LOANS | 3,163,687 | 2,377,772 |
Premises and equipment, net | 44,364 | 30,764 |
Goodwill | 167,446 | 94,640 |
Other intangibles, net | 22,842 | 7,026 |
Bank owned life insurance | 99,482 | 74,972 |
Affordable housing investments | 17,893 | 13,559 |
Other assets | 120,255 | 105,589 |
TOTAL ASSETS | 5,078,350 | 4,082,200 |
Deposits: | ||
Noninterest-bearing | 1,026,630 | 896,957 |
Interest-bearing | 3,150,756 | 2,526,760 |
Brokered time deposits | 0 | 138,051 |
TOTAL DEPOSITS | 4,177,386 | 3,561,768 |
Short-term borrowings | 355,000 | 95,000 |
Long-term borrowings | 88,663 | 88,211 |
Other liabilities | 52,886 | 44,926 |
TOTAL LIABILITIES | 4,673,935 | 3,789,905 |
Commitments and contingent liabilities (Note 14) | ||
Stockholders' equity | ||
Common Stock, no par value; 50,000,000 shares authorized; 39,321,709 and 35,128,962 shares issued and 37,502,773 and 34,055,125 shares outstanding, respectively | 365,305 | 305,340 |
Retained earnings | 236,757 | 212,375 |
Accumulated other comprehensive income (loss) | (172,554) | (210,490) |
Treasury stock, at cost; 1,818,936 and 1,073,837 shares, respectively | (25,093) | (14,930) |
TOTAL STOCKHOLDERS' EQUITY | 404,415 | 292,295 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,078,350 | $ 4,082,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Debt securities available for sale, at fair value amortized cost | $ 1,516,841 | $ 1,534,512 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 39,321,709 | 35,128,962 |
Common Stock, Shares, Outstanding | 37,502,773 | 34,055,125 |
Treasury stock, shares | 1,818,936 | 1,073,837 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND DIVIDEND INCOME | |||
Loans, including fees | $ 171,808 | $ 107,790 | $ 94,820 |
Taxable securities | 26,231 | 20,843 | 11,399 |
Tax exempt securities | 10,834 | 11,898 | 9,542 |
Dividends | 1,986 | 871 | 498 |
Federal funds sold and other interest income | 2,476 | 684 | 200 |
TOTAL INTEREST AND DIVIDEND INCOME | 213,335 | 142,086 | 116,459 |
INTEREST EXPENSE | |||
Deposits | 63,106 | 13,085 | 6,775 |
Short-term borrowings | 8,357 | 1,408 | 7 |
Long-term borrowings | 4,086 | 3,427 | 1,687 |
TOTAL INTEREST EXPENSE | 75,549 | 17,920 | 8,469 |
NET INTEREST INCOME | 137,786 | 124,166 | 107,990 |
Provision for credit losses | 8,718 | 250 | 4,649 |
Provision for unfunded commitments | 435 | 872 | 244 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES AND UNFUNDED COMMITMENTS | 128,633 | 123,044 | 103,097 |
NONINTEREST INCOME | |||
Bank owned life insurance income, including death benefits | 2,442 | 1,810 | 1,338 |
Security gains (losses), including fair value changes for equity securities | (471) | (454) | 1,004 |
Net gains on sale of loans | 2,391 | 2,062 | 8,285 |
Other mortgage banking income (loss), net | 711 | 291 | (136) |
Legal settlement | 0 | 8,375 | 0 |
Other operating income | 4,471 | 3,976 | 2,307 |
TOTAL NONINTEREST INCOME | 41,861 | 44,202 | 38,193 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 57,374 | 45,013 | 39,393 |
Occupancy and equipment | 15,434 | 11,379 | 8,486 |
FDIC insurance and state and local taxes | 5,848 | 3,951 | 2,859 |
Professional fees | 4,351 | 6,114 | 4,191 |
Merger related costs | 5,475 | 4,070 | 7,109 |
Advertising | 1,793 | 1,947 | 1,859 |
Intangible amortization | 3,434 | 1,973 | 1,362 |
Core processing charges | 4,639 | 3,348 | 3,198 |
Charitable donation | 0 | 6,000 | 0 |
Other operating expenses | 13,448 | 10,616 | 10,719 |
TOTAL NONINTEREST EXPENSE | 111,796 | 94,411 | 79,176 |
Income before taxes | 58,698 | 72,835 | 62,114 |
INCOME TAXES | 8,766 | 12,238 | 10,270 |
Net Income | $ 49,932 | $ 60,597 | $ 51,844 |
EARNINGS PER SHARE: | |||
Basic | $ 1.34 | $ 1.79 | $ 1.78 |
Diluted | $ 1.33 | $ 1.79 | $ 1.77 |
Service Charges on Deposit Accounts | |||
NONINTEREST INCOME | |||
Noninterest income | $ 6,322 | $ 4,716 | $ 3,660 |
Trust Fees | |||
NONINTEREST INCOME | |||
Noninterest income | 10,108 | 9,638 | 9,438 |
Insurance Agency Commissions | |||
NONINTEREST INCOME | |||
Noninterest income | 5,444 | 4,402 | 3,456 |
Retirement Plan Consulting Fees | |||
NONINTEREST INCOME | |||
Noninterest income | 1,406 | 1,389 | 1,421 |
Investment Commissions | |||
NONINTEREST INCOME | |||
Noninterest income | 1,978 | 2,183 | 2,276 |
Debit Card and EFT Fees | |||
NONINTEREST INCOME | |||
Noninterest income | $ 7,059 | $ 5,814 | $ 5,144 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 49,932 | $ 60,597 | $ 51,844 |
Other comprehensive income(loss): | |||
Net unrealized holding gains (losses) on available for sale securities | 48,805 | (278,620) | (15,333) |
Reclassification adjustment for losses (gains) realized in income on sales | 498 | 415 | (838) |
Reclassification adjustment for (gains) losses realized in income on fair value hedge | (1,282) | 0 | 0 |
Net unrealized holding gains (losses) | 48,021 | (278,205) | (16,171) |
Income tax effect | (10,084) | 58,423 | 3,396 |
Unrealized holding gains (losses), net of reclassification and tax | 37,937 | (219,782) | (12,775) |
Change in funded status of post-retirement plan, net of tax | (1) | (3) | 38 |
Other comprehensive income (loss), net of tax | 37,936 | (219,785) | (12,737) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 87,868 | $ (159,188) | $ 39,107 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Impact of ASU 2016-13 Adoption (CECL) | Common Stock | Retained Earnings | Retained Earnings Cumulative Impact of ASU 2016-13 Adoption (CECL) | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Balance at Dec. 31, 2020 | $ 350,097 | $ 208,763 | $ 138,073 | $ 22,032 | $ (18,771) | ||
Net income | 51,844 | 51,844 | |||||
Other comprehensive income (loss), net of tax | (12,737) | (12,737) | |||||
Restricted share issuance | 0 | (412) | 412 | ||||
Restricted share forfeitures | 0 | 52 | (52) | ||||
Stock based compensation expense | 1,193 | 1,193 | |||||
Vesting of Long Term Incentive Plan | 0 | (2,136) | 2,136 | ||||
Share forfeitures for taxes | (443) | (443) | |||||
Share issuance as part of a business combination | 98,921 | 98,921 | |||||
Retirement of Cortland shares owned by Farmers | (258) | (258) | |||||
Dividends paid | (14,085) | (14,085) | |||||
Treasury share purchases | (164) | (164) | |||||
Balance at Dec. 31, 2021 | 472,432 | $ (1,936) | 306,123 | 173,896 | $ (1,936) | 9,295 | (16,882) |
Net income | 60,597 | 60,597 | |||||
Other comprehensive income (loss), net of tax | (219,785) | (219,785) | |||||
Restricted share issuance | 0 | (1,816) | 1,816 | ||||
Restricted share forfeitures | 0 | 42 | (42) | ||||
Stock based compensation expense | 1,817 | 1,817 | |||||
Vesting of Long Term Incentive Plan | (457) | (826) | 369 | ||||
Share forfeitures for taxes | (191) | (191) | |||||
Dividends paid | (22,118) | (22,118) | |||||
Balance at Dec. 31, 2022 | 292,295 | 305,340 | 212,375 | (210,490) | (14,930) | ||
Net income | 49,932 | 49,932 | |||||
Other comprehensive income (loss), net of tax | 37,936 | 37,936 | |||||
Restricted share issuance | 12 | (1,470) | 1,482 | ||||
Restricted share forfeitures | 3 | 49 | (46) | ||||
Stock based compensation expense | 2,612 | 2,612 | |||||
Vesting of Long Term Incentive Plan | 3 | (428) | 431 | ||||
Share forfeitures for taxes | (370) | (370) | |||||
Share issuance as part of a business combination | 59,202 | 59,202 | |||||
Dividends paid | (25,550) | (25,550) | |||||
Treasury share purchases | (11,660) | (11,660) | |||||
Balance at Dec. 31, 2023 | $ 404,415 | $ 365,305 | $ 236,757 | $ (172,554) | $ (25,093) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retained Earnings | |||
Cash dividend declared per share of common stock | $ 0.68 | $ 0.65 | $ 0.47 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 49,932 | $ 60,597 | $ 51,844 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for credit losses | 8,718 | 250 | 4,649 |
Provision for unfunded commitments | 435 | 872 | 244 |
Depreciation and amortization | 7,327 | 4,899 | 3,539 |
Net amortization of securities | 925 | 4,817 | 3,555 |
Available for sale security losses (gains) | 498 | 415 | (838) |
Realized (gains) losses on equity securities | (27) | 39 | (166) |
Losses (gains) on premises and equipment sales and disposals, net | 316 | (20) | 247 |
Stock compensation expense | 2,612 | 1,817 | 1,193 |
Earnings on bank owned life insurance | (2,337) | (1,626) | (1,298) |
Income recognized from death benefit on bank owned life insurance | (105) | (184) | (40) |
Origination of loans held for sale | (64,647) | (102,150) | (398,011) |
Proceeds from loans held for sale | 64,910 | 105,956 | 406,381 |
Net (gains) on sale of loans | (2,391) | (2,062) | (8,285) |
Net change in other assets and liabilities | (3,860) | 7,119 | (8,081) |
NET CASH FROM OPERATING ACTIVITIES | 62,306 | 80,739 | 54,933 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from maturities and repayments of securities available for sale | 58,562 | 78,265 | 74,376 |
Proceeds from sales of securities available for sale | 85,306 | 37,190 | 35,175 |
Purchases of securities available for sale | (650) | (239,240) | (849,941) |
Proceeds from sale of equity securities | 69 | 72 | 258 |
Purchases of equity securities | (70) | (78) | (68) |
Proceeds from maturities and repayments of SBIC funds | 2,030 | 2,740 | 1,261 |
Purchases of SBIC funds | (1,870) | (3,067) | (1,116) |
Purchase of regulatory stock | (30,288) | (5,833) | (22) |
Proceeds from redemption of regulatory stock | 36,084 | 3,142 | 2,198 |
Loan originations and payments, net | (61,919) | (77,198) | 231,479 |
Proceeds from loans held for sale previously classified as portfolio loans | 6,785 | 0 | 0 |
Proceeds from BOLI death benefits | 419 | 693 | 352 |
Proceeds from land and building sales | 533 | 1,399 | 37 |
Additions to premises and equipment | (3,880) | (2,559) | (1,375) |
Net cash received (paid) in business combinations | (13,175) | (1,033) | 83,773 |
NET CASH FROM INVESTING ACTIVITIES | 77,936 | (205,507) | (423,613) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net change in deposits | (260,195) | 14,533 | 241,083 |
Net change in short-term borrowings | 185,000 | 95,000 | (6,767) |
Repayments of long-term borrowings | 0 | 0 | (66,980) |
Proceeds from long term borrowings | 0 | 0 | 73,749 |
Cash dividends paid | (25,396) | (22,004) | (14,072) |
Repurchase of common shares | (11,544) | 0 | (164) |
NET CASH FROM FINANCING ACTIVITIES | (112,135) | 87,529 | 226,849 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 28,107 | (37,239) | (141,831) |
Beginning cash and cash equivalents | 75,551 | 112,790 | 254,621 |
Ending cash and cash equivalents | 103,658 | 75,551 | 112,790 |
Supplemental cash flow information: | |||
Interest paid | 78,520 | 16,461 | 8,482 |
Income taxes paid | 6,700 | 10,100 | 12,500 |
Supplemental noncash disclosures: | |||
Issuance of stock for business combinations | 59,202 | 0 | 98,921 |
Issuance of stock awards | 1,913 | 2,184 | 2,136 |
Transfer of loans to loans held for sale | 7,510 | 0 | 0 |
Lease liabilities assumed from obtaining right-of-use assets | $ 1,289 | $ 1,628 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 49,932 | $ 60,597 | $ 51,844 |
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 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements include the accounts of Farmers National Banc Corp. (“Company”) and its wholly-owned subsidiaries, The Farmers National Bank of Canfield (“Bank” or “Farmers Bank”), Farmers Trust Company (“Farmers Trust”) and Farmers National Captive, Inc. (“Captive”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Farmers Insurance”) and Farmers of Canfield Investment Co. (“Farmers Investments”). The Company completed its acquisition of Emclaire Financial Corp., (“Emclaire”) on January 1, 2023 and has since included its results of operations in the Consolidated Statements of Income. Together all entities are referred to as “the Company.” All significant intercompany balances and transactions have been eliminated in consolidation. Nature of Operations: The Company provides full banking services, including wealth management services and mortgage banking activity, through the Bank. As a national bank, the Bank is subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The primary area served by the Bank is the northeastern region of Ohio and the western region of Pennsylvania, through sixty-four ( 64 ) locations. The Company provides trust services and retirement consulting services through its Farmers Trust subsidiary and insurance services through the Bank’s Insurance subsidiary. Farmers Trust has a state-chartered bank license to conduct trust business from the Ohio Department of Commerce – Division of Financial Institutions. The primary purpose of Farmers Investments is to invest in municipal securities. On November 20, 2023 the Captive entity was dissolved. Before its dissolution the Captive provided property and casualty insurance coverage to the Company and its subsidiaries. Captive pooled resources with eleven similar insurance subsidiaries of financial institutions to spread a limited amount of risk among the pool members and to provide insurance where not available or economically feasible. Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Business Combinations: Business combinations are accounted for by applying the acquisition method. As of acquisition date, the identifiable assets acquired and liabilities assumed are measured at fair value and recognized separately from goodwill. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Cash Flows: Cash and cash equivalents include cash on hand, deposits with other financial institutions with maturities fewer than ninety (90) days, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Net cash flows are reported for loan and deposit transactions, short-term borrowings and other assets and liabilities. Securities: Debt securities classified as available for sale are those that could be sold for liquidity, investment management, or similar reasons, even though management has no present intentions to do so. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums are amortized to the earliest call date. Purchases and sales are recorded on the trade date, with resulting gains and losses determined using the specific identification method. A debt security is placed on non-accrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against income. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost 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 debt securities available-for-sale 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, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2023 the Company has not recorded an allowance for credit losses on available-for-sale securities. Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are sold with or without servicing rights. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for credit losses. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated loans. For all classes of loans, when interest accruals are discontinued, interest accrued but not received is reversed against interest income. Interest on such loans is thereafter recorded on a cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Purchased Credit Deteriorated Loans (PCD): The Company acquires loans individually and in groups or portfolios. At acquisition, the Company reviews each loan to determine whether there is evidence of more than insignificant deterioration of credit quality since origination. Loans having an aggregate commitment of $ 250 thousand or greater and exhibiting the following characteristics have evidence of more than insignificant deterioration. • The loan is 30 days past due or greater as of the acquisition date. • The loan originated as a pass rated credit and has since been downgraded to a criticized or classified credit as of the acquisition date. • The loan has a non-accrual status as of the acquisition date. PCD loans are recorded at fair value. An allowance for credit losses ("ACL") is determined using the same methodology as other loans held for investment. The sum of the purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and par value of the loan is a noncredit discount or premium which is amortized into interest income over the life of the loan. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the statements of income. Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The Company’s derivatives are interest-rate swaps and mortgage banking derivatives. These are used as part of the Company's asset and liability management strategy to aid in managing its interest rate risk position. The Company uses derivatives for balance sheet hedging purposes. Concentration of Credit Risk: There are no significant concentrations of loans to any one industry or customer. However, most of the Company’s business activity is with customers located within Northeastern Ohio. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of an eleven county area. Loans secured by real estate represent 68.2 % of the total portfolio and changes related to the real estate markets are monitored by management. Allowance for Credit Losses: On January 1, 2021, the Company adopted the current expected credit loss model (“CECL”). This methodology for calculating the allowance for credit losses considers the expected loss over the life of the loan. It also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL estimate under the current expected loss model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements. The Company uses the cohort (“cohort”) and the probability of default/loss given default (“PD/LGD”) methodologies as described in the Credit Quality Indicators section of the loan footnote. Under ASC 326, if a loan does not share similar risk characteristics with loans in that pool, expected credit losses for that loan are evaluated individually. The Company has established specific thresholds for the loan portfolio that trigger when loans need to be evaluated individually. Including but not limited to commercial loans with an aggregate book balance of $ 500 thousand or greater, or consumer loans with book balance of $ 250 thousand or greater in which their payment of contractual principal balance and or interest is in doubt (nonaccrual status). In addition, ASC 326 requires the Company to establish a separate liability for anticipated credit losses for unfunded commitments. Under CECL the credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods: Commercial Real Estate Owner-Occupied, nonfarm nonresidential properties – The Company originates mortgage loans to operating companies primarily in the northeastern region of Ohio and western region of Pennsylvania. Owner-occupied real estate properties primarily include retail buildings, medical buildings and industrial/warehouse space. Owner-occupied loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. Commercial Real Estate Non-Owner Occupied, nonfarm nonresidential properties – The Company originates mortgage loans for commercial real estate that is managed as an investment property primarily in the northeastern region of Ohio and western region of Pennsylvania. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Farmland (including farm residential and other improvements) – The Company originates loans secured by farmland and improvements thereon, secured by mortgages. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland also includes grazing or pasture land, whether tillable or not and whether wooded or not. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources. Commercial Real Estate Other – The Company originates mortgage loans for multifamily properties primarily in the northeastern region of Ohio and western region of Pennsylvania and construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or multi-family buildings. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions. Commercial and Industrial – The Company originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment. Commercial and Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Company to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Company will often require more frequent reporting requirements from the borrower in order to better monitor its business performance. The Company also originates various types of loans made directly to municipalities and nonprofit organizations. These loans are repaid through general cash flows or through specific revenue streams and charitable contributions. The primary risk characteristics associated with municipal loans are the municipality's or nonprofit’s ability to manage cash flow, balance the fiscal budget, fixed asset and infrastructure requirements. Additional risks include changes in demographics, as well as social and political conditions. Agricultural Production – The Company originates loans secured or unsecured to farm owners and operators for the purpose of financing agricultural production, including the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock, and for purchases of farm machinery, equipment, and implements. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources. 1-4 Family Residential Real Estate – The Company originates 1-4 family residential mortgage and construction loans primarily within the northeastern region of Ohio and western region of Pennsylvania. These loans are secured by first or second liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Company. Residential construction loans are exposed to uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, or related to changes in general economic conditions. Home Equity Lines of Credit – The primary risk characteristics associated with home equity lines of credit typically involve changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Company. Indirect Loans – The Company originates consumer loans extended for the purpose of purchasing new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, recreational vehicles, and motorcycles for personal use. The primary risk characteristics associated with automobile loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Consumer Direct – The Company originates loans to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other consumer loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Consumer Other – The Company originates lines of credit to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other revolving loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. The Company uses two methodologies, the cohort and the PD/LGD, to analyze loan pools. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but aren’t limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios. The probability of default (“PD”) portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or partially or wholly, charged-off. Typically, a one-year time period is used to asses PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default (“LGD”) is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios. A reassessment of the existing acquired loans occurred in the third quarter of 2021. This was to align with the calculation of the ACL being used under the CECL model. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the originated risk pools. The grade for each purchased loan without evidence of credit deterioration is reviewed subsequent to the date of acquisition any time a loan is renewed or extended or at any time information becomes available to the Company that provides material insight regarding the loan’s performance, the status of the borrower or the quality or value of the underlying collateral. To the extent that current information indicates it is probable that the Company will collect all amounts according to the contractual terms thereof, such loan is not individually considered in the determination of the required allowance for credit losses. To the extent that current information indicates it is probable that the Company will not be able to collect all amounts according to the contractual terms thereof, such loan is considered in the determination of the required level of allowance as a loan individually evaluated. The ACL represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL. Estimating the amount of the ACL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. While management uses the best information available to establish the allowance, future adjustments to the allowance may be necessary, which may be material, if economic conditions differ substantially from the assumptions used in estimating the allowance. If additions to the original estimate of the allowance for credit losses are deemed necessary, they will be reported in earnings in the period in which they become reasonably estimable and probable. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. T he Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows. Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model. Servicing Rights: When mortgage loans are sold and servicing rights are retained, the servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Company compares the valuation model inputs and results to published industry data to validate the model results and assumptions. The fair value of the mortgage servicing rights as of December 31, 2023 and 2022 was $ 5.39 million and $ 5.28 million, respectively. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non‑interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets compared to carrying amount. Any impairment is reported as a valuation allowance, to the extent that fair value is less than the capitalized amount for a grouping. At December 31, 2023 and 2022, there was a valuation allowance totaling $ 54 thousand and $ 17 thousand, respectively. Servicing fee income is recorded when earned for servicing loans based on a contractual percentage of the outstanding principal or a fixed amount per loan. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees, late fees and ancillary fees related to loan servicing are not considered significant for financial reporting. Foreclosed Assets: Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrow conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. These assets are recorded in other assets on the balance sheets as other real estate owned (“OREO”). Operating costs after acquisition are expensed. The Company had $ 92 thousand of OREO recorded at December 31, 2023. There was zero recorded in 2022. Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leases: Leases are classified as operating or finance leases at the lease commencement date. The Company leases certain locations and equipment. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. Restricted Stock: The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also a member of and owns stock in the Federal Reserve Bank. These stocks are carried at cost, classified as restricted securities included in other investments, and periodically evaluated for impairment based on ultimate recovery of par value. Restricted stock totaled $ 20.2 million at December 31, 2023 and $ 18.2 million in 2022. Cash and stock dividends are reported as income. Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Long-term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Goodwill and Other Intangible Assets: Goodwill resulting from a business combination is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired as of the acquisition date. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but tested for impairment at least annually. The Company has selected September 30 as the date to perform the annual goodwill impairment tests associated with the acquisitions of Farmers Trust, Farmers Insurance and the recen |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 2 – BUSINESS COMBINATIONS On January 1, 2023 , the Company completed its previously announced merger with Emclaire Financial Corp., a Pennsylvania corporation and registered financial holding company (“Emclaire”), pursuant to the Agreement and Plan of Merger dated as of March 23, 2022. The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) Emclaire merged with and into Merger Sub (the “Merger”), with Merger Sub as the surviving entity in the Merger. Promptly following the consummation of the Merger, Merger Sub was dissolved and liquidated and The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the merger, each common share, without par value, of Emclaire common shares issued and outstanding was converted into the right to receive, without interest, $ 40.00 in cash or 2.15 common shares, without par value, of the Company's common shares, subject to an overall limitation of 70 % of the Emclaire common shares being exchanged and the remaining 30 % of Emclaire common shares being exchanged for the cash. The transaction created expansion for the Company in Pennsylvania and into the Pittsburgh market. The Company issued 4.2 million shares of its common stock along with cash of $ 33.4 million, which represented a transaction value of approximately $ 92.6 million based on its closing stock price of $ 14.12 on December 31, 2022. In accordance with ASC 805, the Company expensed approximately $ 5.5 million of merger related costs, for the Emclaire acquisition, during 2023, in addition to $ 2.0 million expensed for the year of 2022. The Company recorded goodwill of $ 72.9 million as a result of the combination. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies, including the reduction of personnel and overlapping contracts, expected to be derived from the Company’s strategy to enhance and expand its presence in Pennsylvania. The merger offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded market area. The goodwill was determined not to be deductible for income tax purposes. The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition. Consideration Cash $ 33,440 Stock 59,202 Fair value of total consideration transferred $ 92,642 Fair value of assets acquired Cash and cash equivalents $ 20,265 Securities available for sale 126,970 Other investments 7,795 Loans, net 740,659 Premises and equipment 14,808 Bank owned life insurance 22,485 Core deposit intangible 19,249 Current and deferred taxes 17,708 Other assets 7,682 Total assets acquired 977,621 Fair value of liabilities assumed Deposits 875,813 Short-term borrowings 75,000 Accrued interest payable and other liabilities 7,104 Total liabilities 957,917 Net assets acquired $ 19,704 Goodwill created 72,938 Total net assets acquired $ 92,642 The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the acquisition date. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered purchase credit deteriorated ("PCD") at the acquisition date and were not subject to the guidance relating to PCD loans. Receivables acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $ 714.4 million and $ 764.8 million on the date of acquisition. The fair value of purchased financial assets that were classified as PCD loans are discussed in the loan footnote. The following table presents unaudited pro forma information as if the Emclaire acquisition that occurred on January 1, 2023 actually took place on January 1, 2022. The unaudited pro forma information for the period ended December 31, 2022 include adjustments of interest income on loans, amortization of core deposit intangibles arising from the transaction, interest expense on deposits and borrowings acquired. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effective on the assumed date. 2022 Net interest income $ 168,692 Provision for credit losses 17,246 Noninterest income 47,206 Noninterest expense 137,930 Income before income taxes 60,722 Income tax expense 10,007 Net income $ 50,715 Basic earnings per share $ 1.34 Diluted earnings per share $ 1.33 The above unaudited pro forma information excludes nonrecurring merger costs that totaled $ 4.4 million on an after-tax basis. On July 1, 2022 , Farmers National Insurance, LLC acquired substantially all of the assets of Randy L. Jones Agency, Inc., doing business as Champion Insurance for $ 900 thousand. Intangible assets of $ 633 thousand were recorded along with goodwill of $ 267 thousand. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | NOTE 3 – SECURITIES AVAILABLE FOR SALE The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2023, and 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at December 31, 2023 or 2022. Gross Gross Amortized Unrealized Unrealized 2023 Cost Gains Losses Fair Value U.S. Treasury and U.S. government sponsored $ 145,439 $ 113 $ ( 17,597 ) $ 127,955 State and political subdivisions 644,880 4,792 ( 93,503 ) 556,169 Corporate bonds 18,554 187 ( 466 ) 18,275 Mortgage-backed securities - residential 624,529 1 ( 104,144 ) 520,386 Collateralized mortgage obligations 80,227 331 ( 6,559 ) 73,999 Small Business Administration 3,212 0 ( 295 ) 2,917 Totals $ 1,516,841 $ 5,424 $ ( 222,564 ) $ 1,299,701 Gross Gross Amortized Unrealized Unrealized 2022 Cost Gains Losses Fair Value U.S. Treasury and U.S. government sponsored $ 149,712 $ 0 $ ( 21,616 ) $ 128,096 State and political subdivisions 651,705 266 ( 121,891 ) 530,080 Corporate bonds 4,181 0 ( 302 ) 3,879 Mortgage-backed securities - residential 672,784 12 ( 117,654 ) 555,142 Collateralized mortgage obligations 52,291 0 ( 4,937 ) 47,354 Small Business Administration 3,839 0 ( 365 ) 3,474 Totals $ 1,534,512 $ 278 $ ( 266,765 ) $ 1,268,025 The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows: 2023 2022 2021 Proceeds $ 85,306 $ 37,190 $ 35,175 Gross gains 441 6 863 Gross losses ( 939 ) ( 421 ) ( 25 ) The tax provision (benefit) related to these net realized gains (losses) was $( 105 ) thousand, $( 87 ) thousand, and $ 176 thousand, respectively. The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations, with or without a call, or prepayment penalties. Securities not due at a single maturity date are shown separately. Available for sale December 31, 2023 Amortized Maturity Cost Fair Value Within one year $ 600 $ 592 One to five years 32,288 30,039 Five to ten years 186,137 168,851 Beyond ten years 589,848 502,917 Mortgage-backed Securities, Collateralized Mortgage 707,968 597,302 Totals $ 1,516,841 $ 1,299,701 Securities with a carrying amount of $ 1.1 billion at December 31, 2023, were pledged to secure public deposits and term borrowings and securities with a carrying amount of $ 479 million at December 31, 2022, were pledged to secure public deposits. Farmers Trust had securities with a carrying amount of $ 117 thousand at year-end 2023 and $ 100 thousand at year-end 2022, pledged to qualify as a fiduciary in the State of Ohio. In each year, there were no holdings of any issuer that exceeded 10% of stockholders’ equity, except for the U.S. Government, its agencies and its sponsored entities. The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by major security type and length of time in a continuous unrealized loss position. 2023 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Loss Value Loss Value Loss U.S. Treasury and U.S. government sponsored entities $ 399 $ ( 1 ) $ 122,361 $ ( 17,596 ) $ 122,760 $ ( 17,597 ) State and political subdivisions 15,852 ( 1,684 ) 428,416 ( 91,819 ) 444,268 ( 93,503 ) Corporate bonds 8,463 ( 284 ) 3,881 ( 182 ) 12,344 ( 466 ) Mortgage-backed securities - residential 5,113 ( 76 ) 515,259 ( 104,068 ) 520,372 ( 104,144 ) Collateralized mortgage obligations 20,019 ( 980 ) 43,808 ( 5,579 ) 63,827 ( 6,559 ) Small Business Administration 0 0 2,917 ( 295 ) 2,917 ( 295 ) Total temporarily impaired $ 49,846 $ ( 3,025 ) $ 1,116,642 $ ( 219,539 ) $ 1,166,488 $ ( 222,564 ) 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Loss Value Loss Value Loss U.S. Treasury and U.S. government sponsored entities $ 52,311 $ ( 5,835 ) $ 75,685 $ ( 15,781 ) $ 127,996 $ ( 21,616 ) State and political subdivisions 306,709 ( 56,650 ) 191,584 ( 65,241 ) 498,293 ( 121,891 ) Corporate bonds 2,893 ( 122 ) 986 ( 180 ) 3,879 ( 302 ) Mortgage-backed securities - residential 101,476 ( 13,545 ) 453,233 ( 104,109 ) 554,709 ( 117,654 ) Collateralized mortgage obligations 42,140 ( 4,137 ) 5,214 ( 800 ) 47,354 ( 4,937 ) Small Business Administration 1,295 ( 122 ) 2,179 ( 243 ) 3,474 ( 365 ) Total temporarily impaired $ 506,824 $ ( 80,411 ) $ 728,881 $ ( 186,354 ) $ 1,235,705 $ ( 266,765 ) As of December 31, 2023, the Company’s security portfolio consisted of 978 securities, 743 of which were in an unrealized loss position. The majority of unrealized losses on the Company’s securities are related to its holdings of mortgage-backed securities and state and political subdivisions. Furthermore, the treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities. The Company does not consider any of its available for sale ("AFS") securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of December 31, 2023, the Company has no t recorded an allowance for credit losses on AFS securities. Equity Securities The Company also holds equity securities which include $ 14.9 million in Small Business Investment Company (“SBIC”) partnership investments as well as $ 226 thousand in local and regional bank holdings and other miscellaneous equity funds at December 31, 2023. At December 31, 2022 the Company held $ 15.0 million in SBIC investments and $ 196 thousand in local and regional bank holdings and other miscellaneous equity funds. Gains were recognized in income in 2023 and 2022 in compliance with ASU 2016-01, which requires all equity securities to be measured at their fair value with changes in fair value being recognized through the statements of income. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Loan balances at year end were as follows: 2023 2022 (In Thousands of Dollars) Commercial real estate Owner occupied $ 399,273 $ 330,768 Non-owner occupied 712,315 563,652 Farmland 202,950 188,850 Other 224,218 133,630 Commercial Commercial and industrial 346,354 293,643 Agricultural 58,338 58,087 Residential real estate 1-4 family residential 843,697 475,791 Home equity lines of credit 142,441 132,179 Consumer Indirect 226,815 197,125 Direct 23,805 16,421 Other 9,164 7,714 Total originated loans $ 3,189,370 $ 2,397,860 Net deferred loan costs 8,757 6,890 Allowance for credit losses ( 34,440 ) ( 26,978 ) Net loans $ 3,163,687 $ 2,377,772 Allowance for credit loss activity The following tables present the activity in the allowance for credit losses by portfolio segment for years ended December 31, 2023, 2022 and 2021: December 31, 2023 Commercial Commercial Residential Consumer Total (In Thousands of Dollars) Allowance for credit losses Beginning balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 PCD ACL on loans acquired 850 138 11 0 999 Provision for credit losses 2,808 1,931 2,834 1,145 8,718 Loans charged off ( 349 ) ( 1,272 ) ( 384 ) ( 932 ) ( 2,937 ) Recoveries 1 104 81 496 682 Total ending allowance balance $ 18,150 $ 5,087 $ 6,916 $ 4,287 $ 34,440 December 31, 2022 Commercial Commercial Residential Consumer Total (In Thousands of Dollars) Allowance for credit losses Beginning balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 Provision for credit losses ( 742 ) 1,204 ( 493 ) 281 250 Loans charged off ( 300 ) ( 2,042 ) ( 92 ) ( 870 ) ( 3,304 ) Recoveries 3 75 89 479 646 Total ending allowance balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 December 31, 2021 Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 10,746 $ 5,018 $ 3,687 $ 2,693 $ 22,144 Impact of CECL adoption ( 2,137 ) 259 193 3,845 2,160 Provision for credit losses 6,226 ( 349 ) 1,121 ( 2,349 ) 4,649 PCD ACL on loans acquired 1,081 210 4 0 1,295 Loans charged off ( 70 ) ( 388 ) ( 297 ) ( 912 ) ( 1,667 ) Recoveries 33 199 162 411 805 Total ending allowance balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to December 31, 2023. As of December 31, 2023, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, with a stable trend in unemployment, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from December 31, 2022 to December 31, 2023 is largely attributed to the Emclaire merger. The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2023: (In Thousands of Dollars) Nonaccrual with no allowance for credit loss Nonaccrual with an allowance for credit loss Loans past due over 89 days still accruing December 31, 2023 Commercial real estate Owner occupied $ 1,804 $ 830 $ 0 Non-owner occupied 19 1,491 0 Farmland 1,957 9 0 Other 0 80 0 Commercial Commercial and industrial 394 1,408 0 Agricultural 203 317 0 Residential real estate 1-4 family residential 348 3,009 460 Home equity lines of credit 240 210 69 Consumer Indirect 22 300 125 Direct 65 69 1 Other 0 5 0 Total loans $ 5,052 $ 7,728 $ 655 The above table for the period ending December 31, 2023 does not include a $ 1.63 million non-owner occupied commercial real estate loan that is held-for-sale and in nonaccrual status. There were no nonaccrual or past due loans related to loans held-for-sale at December 31, 2022. The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022: 2022 Nonaccrual Loans Past Due Days or More (In Thousands of Dollars) Commercial real estate Owner occupied $ 993 $ 0 Non-owner occupied 3,031 0 Farmland 2,183 0 Other 33 Commercial Commercial and industrial 3,840 50 Agricultural 299 0 Residential real estate 1-4 family residential 2,703 310 Home equity lines of credit 735 58 Consumer Indirect 313 62 Direct 179 12 Other 2 0 Total loans $ 14,311 $ 492 The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2023: (In Thousands of Dollars) Real Estate Business Assets Vehicles Cash December 31, 2023 Commercial real estate Owner occupied $ 1,804 $ 0 $ 0 $ 0 Non-owner occupied 1,335 0 0 0 Farmland 1,957 0 0 0 Other 0 0 0 0 Commercial Commercial and industrial 94 867 0 0 Agricultural 0 203 0 0 Residential real estate 1-4 family residential 3,352 0 0 0 Home equity lines of credit 294 0 0 0 Consumer Indirect 0 0 53 0 Direct 0 0 19 66 Other 0 0 0 0 Total loans $ 8,836 $ 1,070 $ 72 $ 66 The following tables present the aging of the amortized cost basis in past due loans as of December 31, 2023 and 2022 by class of loans: December 31, 2023 30-59 60-89 90 Days or More Past Due Total Past Loans Not Total (In Thousands of Dollars) Commercial real estate Owner occupied $ 302 $ 293 $ 2,634 $ 3,229 $ 395,799 $ 399,028 Non-owner occupied 90 0 1,510 1,600 710,195 711,795 Farmland 365 0 1,966 2,331 200,395 202,726 Other 0 0 80 80 223,697 223,777 Commercial Commercial and industrial 540 199 1,802 2,541 345,278 347,819 Agricultural 292 40 520 852 58,223 59,075 Residential real estate 1-4 family residential 6,819 4,488 3,817 15,124 828,437 843,561 Home equity lines of credit 729 34 519 1,282 141,189 142,471 Consumer Indirect 2,045 289 447 2,781 232,105 234,886 Direct 153 23 135 311 23,514 23,825 Other 4 0 5 9 9,155 9,164 Total loans $ 11,339 $ 5,366 $ 13,435 $ 30,140 $ 3,167,987 $ 3,198,127 December 31, 2022 30-59 60-89 90 Days or More Past Due Total Past Loans Not Total Commercial real estate Owner occupied $ 159 $ 0 $ 993 $ 1,152 $ 329,305 $ 330,457 Non-owner occupied 0 0 3,031 3,031 560,013 563,044 Farmland 0 0 2,183 2,183 186,399 188,582 Other 0 0 33 33 133,288 133,321 Commercial Commercial and industrial 1,034 185 3,890 5,109 289,297 294,406 Agricultural 104 20 299 423 58,166 58,589 Residential real estate 1-4 family residential 4,247 1,775 3,013 9,035 466,313 475,348 Home equity lines of credit 115 92 793 1,000 131,209 132,209 Consumer Indirect 1,267 298 375 1,940 202,683 204,623 Direct 234 70 191 495 15,962 16,457 Other 0 5 2 7 7,707 7,714 Total loans: $ 7,160 $ 2,445 $ 14,803 $ 24,408 $ 2,380,342 $ 2,404,750 Loan Restructurings: The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023 , which eliminates the recognition and measurement of troubled debt restructurings ("TDRs"). Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows. Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model. The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: December 31, 2023 Amortized Cost (In Thousands of Dollars) Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Total % of Total Class of Financing Receivable Residential real estate 1-4 family residential $ 48 $ 30 $ 132 $ 210 0.03 % Total modifications to borrowers experiencing financial difficulty $ 48 $ 30 $ 132 $ 210 0.01 % As of December 31, 2023, the Company had no commitments to lend any additional funds to the borrowers included in the previous table. 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. The following table presents the performance of such loans that have been modified in the twelve months ended December 31, 2023: December 31, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Accrual restructured loans Residential real estate 1-4 family residential $ 132 $ 30 $ 0 Total accruing restructured loans $ 132 $ 30 $ 0 Nonaccrual restructured loans Residential real estate 1-4 family residential $ 48 $ 0 $ 0 Total nonaccrual restructured loans $ 48 $ 0 $ 0 Total restructured loans $ 180 $ 30 $ 0 The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023: Payment Deferral Interest Rate Reduction Term Extension Weighted-Average Years Added to the Life Weighted-Average Contractual Interest Rate Weighted-Average Years Added to the Life December 31, 2023 From To Residential real estate 1-4 family residential 4.77 % 3.38 % 6.3 The following table presents the amortized cost basis of loans that had a payment default during the year ended December 31, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms: December 31, 2023 Amortized Cost (In Thousands of Dollars) Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Residential real estate 1-4 family residential $ 0 $ 30 $ 0 Total modifications to borrowers experiencing financial difficulty $ 0 $ 30 $ 0 Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of credit losses is adjusted by the same amount. 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 establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $ 1 million management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans and leases in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful 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. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2023 Pass Special Sub Total (In Thousands of Dollars) Commercial real estate Owner occupied $ 386,015 $ 9,628 $ 3,385 $ 399,028 Non-owner occupied 648,063 27,938 35,794 711,795 Farmland 200,240 0 2,486 202,726 Other 215,459 0 8,318 223,777 Commercial Commercial and industrial 334,764 646 12,409 347,819 Agricultural 58,506 17 552 59,075 Total loans $ 1,843,047 $ 38,229 $ 62,944 $ 1,944,220 December 31, 2022 Pass Special Sub Total Commercial real estate Owner occupied $ 324,979 $ 1,193 $ 4,285 $ 330,457 Non-owner occupied 527,267 25,541 10,236 563,044 Farmland 186,057 0 2,525 188,582 Other 133,218 0 103 133,321 Commercial Commercial and industrial 282,412 777 11,217 294,406 Agricultural 58,002 250 337 58,589 Total loans $ 1,511,935 $ 27,761 $ 28,703 $ 1,568,399 The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer and indirect loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The above table for the period ending December 31, 2023 does not include a $ 1.63 million non-owner occupied commercial real estate loan that is held-for-sale and risk-rated substandard. There were no special mention or substandard loans related to loans held-for-sale at December 31, 2022. In the 1-4 family residential real estate portfolio at December 31, 2023, other real estate owned and foreclosure properties were $ 92 thousand and $ 207 thousand, respectively. At December 31, 2022, other real estate owned and foreclosure properties were $ 0 and $ 129 thousand, respectively. The following table presents the amortized cost in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans. Residential Real Estate Consumer December 31, 2023 1-4 Family Residential Home Equity Lines of Credit Indirect Direct Other (In Thousands of Dollars) Performing $ 839,744 $ 141,952 $ 234,439 $ 23,690 $ 9,159 Nonperforming 3,817 519 447 135 5 Total loans $ 843,561 $ 142,471 $ 234,886 $ 23,825 $ 9,164 Residential Real Estate Consumer December 31, 2022 1-4 Family Residential Home Equity Lines of Credit Indirect Direct Other Performing $ 472,335 $ 131,416 $ 204,248 $ 16,266 $ 7,712 Nonperforming 3,013 793 375 191 2 Total loans $ 475,348 $ 132,209 $ 204,623 $ 16,457 $ 7,714 The following table presents total loans by risk categories and year of origination. Term Loans Amortized Cost Basis by Origination Year As of December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 176,071 $ 250,364 $ 202,288 $ 128,800 $ 138,444 $ 338,829 $ 14,741 $ 1,249,537 Special mention 0 293 12,156 8,779 6,565 9,773 0 37,566 Substandard 0 0 3,972 18,232 3,982 20,627 684 47,497 Total commercial real estate loans $ 176,071 $ 250,657 $ 218,416 $ 155,811 $ 148,991 $ 369,229 $ 15,425 $ 1,334,600 Commercial real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 145 $ 204 $ 0 $ 349 Commercial and industrial Risk Rating Pass $ 90,807 $ 85,255 $ 40,444 $ 21,794 $ 9,736 $ 23,030 $ 63,698 $ 334,764 Special mention 0 141 355 21 0 0 129 646 Substandard 195 3,551 980 404 1,077 699 5,503 12,409 Total commercial loans $ 91,002 $ 88,947 $ 41,779 $ 22,219 $ 10,813 $ 23,729 $ 69,330 $ 347,819 Commercial and industrial current period gross write-offs $ 0 $ 178 $ 579 $ 11 $ 16 $ 394 $ 0 $ 1,178 Agricultural Risk Rating Pass $ 36,314 $ 57,469 $ 29,807 $ 37,620 $ 20,020 $ 61,033 $ 16,483 $ 258,746 Special mention 0 0 0 0 0 0 17 17 Substandard 0 33 448 225 50 2,282 0 3,038 Total agricultural loans $ 36,314 $ 57,502 $ 30,255 $ 37,845 $ 20,070 $ 63,315 $ 16,500 $ 261,801 Agricultural current period gross write-offs $ 0 $ 15 $ 70 $ 3 $ 0 $ 6 $ 0 $ 94 Residential real estate Risk Rating Pass $ 63,365 $ 171,587 $ 164,271 $ 132,022 $ 49,035 $ 245,980 $ 3,652 $ 829,912 Special mention 0 229 0 66 107 1,655 0 2,057 Substandard 37 104 510 2,546 353 8,042 0 11,592 Total residential real estate loans $ 63,402 $ 171,920 $ 164,781 $ 134,634 $ 49,495 $ 255,677 $ 3,652 $ 843,561 Residential real estate current period gross write-offs $ 52 $ 0 $ 49 $ 130 $ 0 $ 129 $ 0 $ 360 Home equity lines of credit Risk Rating Pass $ 0 $ 19 $ 14 $ 44 $ 7 $ 1,911 $ 138,356 $ 140,351 Special mention 0 0 0 0 0 0 0 0 Substandard 0 26 13 82 44 1,856 99 2,120 Total home equity lines of credit $ 0 $ 45 $ 27 $ 126 $ 51 $ 3,767 $ 138,455 $ 142,471 Home equity lines of credit current period gross write-offs $ 0 $ 0 $ 0 $ 8 $ 0 $ 16 $ 0 $ 24 Consumer Risk Rating Pass $ 77,977 $ 75,517 $ 34,754 $ 22,580 $ 12,344 $ 34,840 $ 9,002 $ 267,014 Substandard 54 125 175 188 133 186 0 861 Total consumer loans $ 78,031 $ 75,642 $ 34,929 $ 22,768 $ 12,477 $ 35,026 $ 9,002 $ 267,875 Consumer current period gross write-offs $ 44 $ 176 $ 93 $ 86 $ 32 $ 352 $ 149 $ 932 Term Loans Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 188,240 $ 174,841 $ 120,883 $ 138,342 $ 89,769 $ 256,103 $ 17,286 $ 985,464 Special mention 0 711 1,861 5,286 624 18,252 0 26,734 Substandard 0 18 256 1,968 267 10,952 1,163 14,624 Total commercial real estate loans $ 188,240 $ 175,570 $ 123,000 $ 145,596 $ 90,660 $ 285,307 $ 18,449 $ 1,026,822 Commercial Risk Rating Pass $ 100,368 $ 45,872 $ 34,110 $ 16,854 $ 13,574 $ 14,664 $ 56,970 $ 282,412 Special mention 0 197 0 0 0 0 580 777 Substandard 3,642 1,331 356 152 110 1,761 3,865 11,217 Total commercial loans $ 104,010 $ 47,400 $ 34,466 $ 17,006 $ 13,684 $ 16,425 $ 61,415 $ 294,406 Agricultural Risk Rating Pass $ 51,096 $ 36,376 $ 44,133 $ 23,661 $ 24,003 $ 45,490 $ 19,300 $ 244,059 Special mention 0 0 0 0 0 0 250 250 Substandard 0 379 235 72 0 2,146 30 2,862 Total agricultural loans $ 51,096 $ 36,755 $ 44,368 $ 23,733 $ 24,003 $ 47,636 $ 19,580 $ 247,171 Residential real estate Risk Rating Pass $ 83,951 $ 112,463 $ 76,095 $ 31,404 $ 22,918 $ 135,757 $ 3,956 $ 466,544 Special mention 0 0 70 118 76 93 0 357 Substandard 0 136 249 121 9 7,932 0 8,447 Total residential real estate loans $ 83,951 $ 112,599 $ 76,414 $ 31,643 $ 23,003 $ 143,782 $ 3,956 $ 475,348 Home equity lines of credit Risk Rating Pass $ 0 $ 10 $ 0 $ 0 $ 16 $ 1,394 $ 128,622 $ 130,042 Special mention 0 0 0 0 0 0 49 49 Substandard 0 13 137 20 0 1,848 100 2,118 Total home equity lines of credit $ 0 $ 23 $ 137 $ 20 $ 16 $ 3,242 $ 128,771 $ 132,209 Consumer Risk Rating Pass $ 98,530 $ 46,945 $ 32,284 $ 20,849 $ 10,918 $ 10,942 $ 7,302 $ 227,770 Special mention 0 0 0 0 0 0 0 0 Substandard 102 113 267 230 109 202 1 1,024 Total consumer loans $ 98,632 $ 47,058 $ 32,551 $ 21,079 $ 11,027 $ 11,144 $ 7,303 $ 228,794 The Company follows ASU 2016-13 to calculate the allowance for credit losses which requires estimating credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral. The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions. The Company uses two methodologies to analyze loan pools. The cohort method and the PD/LGD. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios. The probability of default portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or is partially or wholly, charged-off. Typically, a one-year time period is used to asses PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios. The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2023. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family Residential Real Estate - 1st Liens Cohort Credit Loss History 1-4 Family Residential Real Estate - 2nd Liens Cohort Credit Loss History Home Equity Lines of Credit Home Equity Lines of Credit Cohort Credit Loss History Consumer Finance Cash Reserves Cohort Credit Loss History Direct Cohort Credit Loss History Indirect Cohort Credit Loss History Commercial Commercial and Industrial PD/LGD Credit Loss History Agricultural PD/LGD Credit Loss History Municipal PD/LGD Credit Loss History Commercial real estate Owner Occupied PD/LGD Credit Loss History Non-Owner Occupied PD/LGD Credit Loss History Multifamily PD/LGD Credit Loss History Farmland PD/LGD Credit Loss History Construction PD/LGD Credit Loss History According to accounting standards, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral. In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At December 31, 2023, the Company had $ 753 million in unfunded commitments and set aside $ 1.84 million in anticipated credit losses. At December 31, 2022, the Company had $ 603 million in unfunded commitments and set aside $ 1.4 million in anticipated credit losses. The $ 150 million increase in unfunded commitments and $ 435 thousand provision for anticipated credit losses is attributed to the Emclaire merger. This reserve is recorded in other liabilities as opposed to the ACL. The determination of ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. The ACL was $ 34.4 million at December 31, 2023 and $ 27.0 million at December 31, 2022. The $ 7.4 million increase is attributed to the Emclaire merger that was partially offset by improvements in the Company's maximum loss rates that anchor the qualitative factors, reclassification of construction loans balances that were placed into their permanent loan pool, adjustments made to the Commercial Staffing qualitative factor and release of reserves related to loans transferred to held for sale. Purchased Loans As a result of the Emclaire merger, the Company acquired $ 740.7 million in loans. 2023 Par value of acquired loans at acquisition $ 797,616 Net purchase discount ( 55,958 ) Allowance for credit losses of PCD loans ( 999 ) Purchase price of loans at acquisition $ 740,659 Under ASC Topic 326 , when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as purchase credit deteriorated ("PCD"). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During 2023, the Company acquired PCD loans with a fair value of $ 25.9 million, credit discount of $ 999 thousand and a noncredit discount of $ 5.5 million. The remaining discounts for all acquired PCD loans as of December 31, 2023 are $ 4.4 million. The outstanding balance at December 31, 2023 and related allowance on PCD loans is as follows (in thousands): Loan Balance ACL Balance Commercial real estate Owner Occupied $ 430 $ 19 Non-owner Occupied 30,653 914 Farmland 9 0 Commercial Commercial and industrial 2,229 158 Agricultural 149 9 Residential real estate 1-4 family residential 1,211 7 Home equity lines of credit 3 0 Total $ 34,684 $ 1,107 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 5 – Revenue from Contracts with Customers All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. ASC 606 rules govern the disclosure of revenue tied to contracts. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the years ended December 31, 2023, 2022 and 2021. Items outside the scope of ASC 606 are noted as such. (In Thousands of Dollars) Trust Bank Totals December 31, 2023 Service charges on deposit accounts $ 0 $ 6,322 $ 6,322 Debit card and EFT fees 0 7,059 7,059 Trust fees 10,108 0 10,108 Insurance agency commissions 0 5,444 5,444 Retirement plan consulting fees 1,406 0 1,406 Investment commissions 0 1,978 1,978 Other (outside the scope of ASC 606) 0 9,544 9,544 Total noninterest income $ 11,514 $ 30,347 $ 41,861 (In Thousands of Dollars) Trust Bank Totals December 31, 2022 Service charges on deposit accounts $ 0 $ 4,716 $ 4,716 Debit card and EFT fees 0 5,814 5,814 Trust fees 9,638 0 9,638 Insurance agency commissions 0 4,402 4,402 Retirement plan consulting fees 1,389 0 1,389 Investment commissions 0 2,183 2,183 Other (outside the scope of ASC 606) 8,375 7,685 16,060 Total noninterest income $ 19,402 $ 24,800 $ 44,202 (In Thousands of Dollars) Trust Bank Totals December 31, 2021 Service charges on deposit accounts $ 0 $ 3,660 $ 3,660 Debit card and EFT fees 0 5,144 5,144 Trust fees 9,438 0 9,438 Insurance agency commissions 0 3,456 3,456 Retirement plan consulting fees 1,421 0 1,421 Investment commissions 0 2,276 2,276 Other 0 12,798 12,798 Total noninterest income $ 10,859 $ 27,334 $ 38,193 A description of the Company’s revenue streams under ASC 606 follows: Service Charges on Deposit Accounts – The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Bank or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Bank’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts, included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Debit Card and EFT Fees – Customers and the Bank have an account agreement and maintain deposit balances with the Bank. Customers use a bank issued debit card to purchase goods and services, and the Bank earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Bank records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit card or EFT fees recorded by the Company that could be subject to a clawback in future periods. Trust Fees – Services provided to Farmers Trust customers are a series of distinct services that have the same pattern of transfer each month. Fees for trust accounts are billed and drafted from trust accounts monthly. The Company records these fees on the income statement on a monthly basis. Fees are assessed based on the total investable assets of the customer’s trust account. A signed contract between the Company and the customer is maintained for all customer trust accounts with payment terms identified. It is probable that the fees will be collectible as funds being managed are accessible by the asset manager. Past history of trust fee income recorded by the Company indicates that it is highly unlikely that a significant reversal could occur. There are no contingent incentive fees recorded by the Company that could be subject to a clawback in future periods. Insurance Agency Commissions – Insurance agency commissions are received from insurance carriers for the agency’s share of commissions from customer premium payments. These commissions are recorded into income when checks are received from the insurance carriers, and there is no contingent portion associated with these commission checks. There may be a short time-lag in recording revenue when cash is received instead of recording the revenue when the policy is signed by the customer, but the time lag is insignificant and does not impact the revenue recognition process. Insurance also receives incentive checks from the insurance carriers for achieving specified levels of production with particular carriers. These amounts are recorded into income when a check is received, and there are no contingent amounts associated with these payments that may be clawed back by the carrier in the future. Similar to the monthly commissions explained in the preceding paragraph, there may be a short time-lag in recording incentive revenue on a cash basis as opposed to estimating the amount of incentive revenue expected to be earned, this does not materially impact the recognition of Insurance revenue. If there were any amounts that would need to be refunded for one specific Insurance customer, management believes the reversal would not be significant. Other potential situations surrounding the recognition of Farmers Insurance revenue include estimating potential refunds due to the likely cancellation of a percentage of customers cancelling their policies and recording revenue at the time of policy renewals. Retirement Plan Consulting Fees – The fees earned from retirement plan consulting are generated by Farmers Trust. Revenue is recognized based on the level of work performed for the client. Any payments that are received for work to be performed in the future are recorded in a deferred revenue account, and recorded into income when the fees are earned. Investment Commissions – Investment commissions are earned through the sales of non-deposit investment products to customers of the Company. The sales are conducted through a third-party broker-dealer. When the commissions are received and recorded into income on the Bank’s income statement, there is no contingent portion that may need to be refunded back to the broker dealer. Other – Income items included in “Other” are Bank owned life insurance income, security gains, net gains on the sale of loans and other operating income. There was a one-time legal settlement of $ 8.4 million in 2022. Any amounts within the scope of ASC 606 are deemed immaterial. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | NOTE 6 – LOAN SERVICING The Company has retained servicing rights to mortgage loans sold to both the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB) of Pittsburgh. Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year-end are as follows: 2023 2022 Mortgage loan portfolios serviced for: FHLMC $ 544,140 $ 532,868 FHLB Pittsburgh 28,405 0 Ending balance $ 572,545 $ 532,868 Custodial escrow balances maintained in connection with serviced loans were $ 4.8 million at December 31, 2023 and $ 4.4 million at December 31, 2022. Mortgage servicing rights are recorded on the balance sheets as other assets. Activity for mortgage servicing rights for years ended December 31, 2023, 2022 and 2021 are as follows: 2023 2022 2021 Servicing rights: Beginning balance $ 3,331 $ 3,403 $ 3,198 Additions 588 960 1,556 Acquired in merger 305 0 0 Amortization to expense ( 735 ) ( 1,015 ) ( 1,351 ) Total servicing rights before valuation allowance $ 3,489 $ 3,348 $ 3,403 Change in valuation allowance ( 37 ) ( 17 ) 0 Ending balance $ 3,452 $ 3,331 $ 3,403 Fair value at year end 2023 was determined using discount rates ranging from 9 % to 11 % and prepayment speeds ranging from 100 PSA to 418 PSA (Public Securities Association Standard Prepayment Model), depending on the stratification of the specific mortgage servicing right. Fair value at year end 2022 was determined using discount rates ranging from 9 % to 11 % and prepayment speeds ranging from 105 PSA to 326 PSA, depending on the stratification of the specific mortgage servicing right. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 7 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities The Company uses a third party service to estimate fair value on available for sale securities on a monthly basis. The Company’s service provider uses a leading evaluation pricing service for U.S. domestic fixed income securities and values securities using exit pricing requirements. The Company independently corroborates the fair value received through this pricing service by obtaining the pricing through a second source. The fair values for investment securities, which consist of equity securities that are recorded at fair value to comply with exit pricing, are determined by quoted market prices in active markets, if available (Level 1). The equity securities change in fair value is recorded in the income statement. For securities where quoted prices are not available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are not active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs may include interest rates and yield curves, prepayment speeds, credit risks and default rates. The inputs used are principally derived from observable market data (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of Level 3 investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any, market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort. At December 31, 2023, the Company determined that no securities had a fair value less than amortized cost that was as a result of credit deterioration as outlined in ASU 2016-13. Loans Held For Sale, at Fair Value The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors (Level 2). Mortgage Banking Derivatives The fair value of mortgage banking derivatives are calculated using derivative valuation models that utilize quoted prices for similar assets adjusted for the specific attributes of the commitments and other observable market data at the valuation date. (Level 2). Loan Servicing Rights Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount at the end of each quarter. If the carrying amount of an individual tranche exceeds the fair value then an impairment is recorded on that tranche so that the servicing asset is carried at fair value. The calculation of the fair value is performed by an independent third party and the model uses factors such as the interest rate, prepayment speeds and other default rate assumptions that market participants would use in estimating the future net servicing income that can be validated against available market data (Level 2). Interest Rate Swaps The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate extended to the customer. The fair value of these interest rate swap derivative instruments is calculated by an independent third party and are based upon valuation models that use observable market data as of the measurement date. (Level 2). The Company also entered into a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The Company uses an independent third party to perform a market valuation analysis for this derivative (Level 2). Collateral Dependent Loans Fair value estimates of collateral dependent loans that are individually reviewed are based on the fair value of the collateral, less estimated costs to sell. Loans carried at fair value generally receive individual allocations of the allowance for credit losses in 2022 and 2023. For collateral dependent loans, fair value is commonly based on recent real estate appraisals or in quoted sales price in certain instances. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Adjustments to a quoted price are routinely made to factor in data that affect the marketability of the collateral. Such adjustments, in both instances, are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. These loans are evaluated on a quarterly basis and adjusted accordingly. Other Real Estate Owned Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value. Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at December 31, 2023 Using: Carrying Quoted Prices Significant Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 127,955 $ 0 127,955 $ 0 State and political subdivisions 556,169 0 556,169 0 Corporate bonds 18,275 0 16,935 1,340 Mortgage-backed securities-residential 520,386 0 520,386 0 Collateralized mortgage obligations 73,999 0 73,999 0 Small Business Administration 2,917 0 2,917 0 Total investment securities $ 1,299,701 $ 0 $ 1,298,361 $ 1,340 Equity securities $ 226 $ 226 $ 0 $ 0 Loans held for sale 3,711 0 3,711 0 Interest rate swaps 4,191 0 4,191 0 Interest rate lock commitments 109 0 109 0 Financial Liabilities Interest rate swaps $ 4,191 $ 0 $ 4,191 $ 0 Fair value hedge derivative 836 0 836 0 Mortgage banking derivative 14 0 14 0 Fair Value Measurements at December 31, 2022 Using: Carrying Quoted Prices Significant Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 128,096 $ 0 $ 128,096 $ 0 State and political subdivisions 530,080 0 530,080 0 Corporate bonds 3,879 0 3,879 0 Mortgage-backed securities-residential 555,142 0 555,141 1 Collateralized mortgage obligations 47,354 0 47,354 0 Small Business Administration 3,474 0 3,474 0 Equity securities Equity securities at fair value 196 196 0 0 Other equity investments measured at net asset value 15,048 n/a n/a n/a Total investment securities $ 1,283,269 $ 196 $ 1,268,024 $ 1 Loans held for sale $ 858 $ 0 $ 858 $ 0 Interest rate swaps 5,503 0 5,503 0 Mortgage banking derivative 31 0 31 0 Financial Liabilities Interest rate swaps $ 5,503 $ 0 $ 5,503 $ 0 There were no significant transfers between Level 1 and Level 2 during 2023 or 2022. The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31: Investment Securities Available-for-sale (Level 3) 2023 2022 2021 Beginning Balance $ 1 $ 3 $ 4 Transfers between levels 0 0 0 Acquired and/or purchased 1,600 0 0 Discount accretion (premium amortization) 48 0 0 Repayments, calls and maturities ( 401 ) ( 2 ) ( 1 ) Changes to unrealized gains (losses) 92 0 0 Ending Balance $ 1,340 $ 1 $ 3 Assets Measured on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2023 Using: Carrying Quoted Prices Significant Significant Financial Assets Individually Evaluated loans Commercial real estate Non-Owner occupied $ 838 $ 0 $ 0 $ 838 Commercial 267 0 0 267 1–4 family residential 1,547 0 0 1,547 Mortgage servicing rights 210 0 0 210 Fair Value Measurements at December 31, 2022 Using: Carrying Quoted Prices Significant Significant Financial Assets Individually Evaluated loans Commercial real estate Non-Owner occupied $ 746 $ 0 $ 0 $ 746 Commercial 395 0 0 395 1–4 family residential 74 0 0 74 The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at year ended 2023 and 2022: December 31, 2023 Fair value Valuation Unobservable Range Individually Evaluated Commercial real estate $ 838 Income approach Adjustment for difference between cap rates of comparable sales ( 49.65 %) - 46.77 % 16.63 %) Commercial 267 Quoted price for collateral Offer price 64.38 % Residential 1,547 Sales comparison Adjustment for differences between comparable sales ( 5.39 %) - ( 2.11 %) 2.67 %) December 31, 2022 Fair value Valuation Unobservable Range Individually Evaluated Commercial real estate $ 746 Quoted price for collateral Offer price 7.45 % Commercial 395 Quoted price for collateral Offer price 43.00 % Residential 74 Sales comparison Adjustment for differences between comparable sales ( 13.77 %) - ( 5.68 %) 13.77 %) Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments not previously presented, at December 31, 2023 and December 31, 2022 are as follows: Fair Value Measurements at December 31, 2023 Using: Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 103,658 $ 28,896 $ 74,762 $ 0 $ 103,658 Regulatory stock 20,197 n/a n/a n/a n/a Loans, net 3,163,687 0 0 3,015,732 3,015,732 Financial liabilities Deposits 4,177,386 3,452,104 719,497 0 4,171,601 Short-term borrowings 355,000 0 355,000 0 355,000 Long-term borrowings 88,663 0 70,893 0 70,893 Fair Value Measurements at December 31, 2022 Using: Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 75,551 $ 21,395 $ 54,156 $ 0 $ 75,551 Regulatory stock 18,200 n/a n/a n/a n/a Loans, net 2,377,772 0 0 2,330,164 2,330,164 Financial liabilities Deposits 3,561,768 2,999,188 561,292 0 3,560,480 Short-term borrowings 95,000 0 95,000 0 95,000 Long-term borrowings 88,211 0 73,566 0 73,566 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | NOTE 8 – PREMISES AND EQUIPMENT Year-end premises and equipment owned and utilized in the operations of the Company were as follows: 2023 2022 Land $ 10,134 $ 6,200 Buildings 40,291 30,296 Furniture, fixtures and equipment 20,281 18,474 Leasehold Improvements 3,440 1,347 74,146 56,317 Less accumulated depreciation ( 29,782 ) ( 25,553 ) Net book value $ 44,364 $ 30,764 Depreciation expense was $ 3.4 million for year ended December 31, 2023, $ 2.5 million for the year ended December 31, 2022 and $ 1.8 million for the year ended December 31, 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE 9 – LEASES The Company has operating leases for branch office locations, vehicles and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 17.6 years, some of which include options to extend the lease for up to 15 years and some of which include options to terminate the lease in June of 2024 . The lease on office equipment, which includes leased printers and copiers, expired in December, 2023. A new lease agreement for office equipment was entered into in November of 2023, effective January 2024, with a new supplier. The initial right of use asset and lease liability recorded for this new lease was $ 557 thousand. The right of use asset and lease liability were $ 8.8 million and $ 9.0 million as of December 31, 2023, respectively, and $ 8.4 million and $ 8.8 million as of December 31, 2022, respectively. The right of use asset is included in other assets and the lease liability is included in other liabilities on the balance sheet. Lease expense for the year ended December 31, 2023 and 2022 was $ 1.2 million and $ 985 thousand, respectively. The weighted-average remaining lease term for all leases was 10.97 years as of December 31, 2023. The weighted-average discount rate was 2.99 % for all leases as of December 31, 2023. On January 1, 2023, the Company performed a valuation of Emclaire’s leases to determine an initial right of use asset (ROU asset) and lease liability in connection with the Merger. The Company recorded and initial ROU asset and lease liability of $ 1.3 million for these leases. Maturities of lease liabilities are as follows as of December 31, 2023: 2024 $ 1,175 2025 1,092 2026 975 2027 898 2028 917 Thereafter 5,659 Total Payments 10,716 Less: Imputed Interest ( 1,738 ) Total $ 8,978 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 10 – GOODWILL AND INTANGIBLE ASSETS Goodwill associated with the Company’s purchases of Emlenton in January 2023, Champion Insurance in July 2022 and other past acquisitions totaled $ 167.4 million at December 31, 2023 and $ 94.6 million at December 31, 2022. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through an impairment test. Management performs goodwill impairment testing on an annual basis as of September 30. The fair value of the reporting units is determined using a combination of a discounted cash flow method and a market approach method. Results of the assessment as of September 30, 2023, indicated no goodwill impairment. The Company will continue to monitor its goodwill for possible impairment. Acquired Intangible Assets Acquired intangible assets were as follows: 2023 2022 Gross Accumulated Gross Accumulated Other intangible: Customer relationship intangibles $ 7,210 $ ( 6,953 ) $ 7,210 $ ( 6,793 ) Non-compete contracts 457 ( 413 ) 457 ( 401 ) Trade Name 1,126 ( 440 ) 1,126 ( 409 ) Core deposit intangible 32,115 ( 10,260 ) 12,866 ( 7,030 ) Total $ 40,908 $ ( 18,066 ) $ 21,659 $ ( 14,633 ) Aggregate intangible amortization expense was $ 3.4 million for 2023, $ 2.0 million for 2022 and $ 1.4 million for 2021. Estimated amortization expense for each of the next five years and thereafter: 2024 $ 2,872 2025 2,806 2026 2,710 2027 2,596 2028 2,586 Thereafter 9,272 Total $ 22,842 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Deposits | NOTE 11 - DEPOSITS Following is a summary of year-end deposits: 2023 2022 Noninterest-bearing demand $ 1,026,630 $ 896,957 Interest-bearing demand 1,362,609 1,224,884 Money market 593,975 435,369 Savings 468,890 441,978 Brokered time deposits 0 138,051 Certificates of deposit 725,282 424,529 Total $ 4,177,386 $ 3,561,768 Time deposits of $ 250 thousand or more were $ 258.2 million and $ 135.7 million at year-end 2023 and 2022, respectively. Following is a summary of scheduled maturities of brokered deposits and certificates of deposit during the years following December 31, 2023: 2024 $ 656,154 2025 32,302 2026 20,007 2027 5,569 2028 4,302 Thereafter 6,948 Total $ 725,282 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | NOTE 12 – SHORT-TERM BORROWINGS The Bank had short-term advances from the Federal Home Loan Bank ("FHLB") of $ 70.0 million at December 31, 2023 and $ 95.0 million at December 31, 2022. The interest rate on these borrowings was 5.41 % at December 31, 2023 and 4.37 % at December 31, 2022. Both of these short-term borrowings were borrowed using the FHLB's overnight repurchase advance program, as this product allows the most flexibility to meet the Bank's varying liquidity needs. These FHLB advances are secured by pledged assets which are described in the following Long-Term Borrowings footnote. The Bank also had $ 285.0 million in short-term borrowings at December 31, 2023, which mature in December 2024 . The interest rate on this borrowing is fixed at 4.83 %. The borrowings are secured by securities with a par value of $ 298.1 million. The Bank did not have any of these borrowings at December 31, 2022. The Bank has access to a line of credit for $ 25.0 million at a major domestic bank that is below prime rate. The line and terms are periodically reviewed by the lending bank and is generally subject to withdrawal at their discretion. There were no borrowings under this line at December 31, 2023 and 2022. Farmers has one unsecured revolving line of credit for $ 5.0 million. This line can be renewed annually and has an interest rate of prime with a floor of 3.5 %. There was no outstanding balance on this line at both December 31, 2023 and 2022. |
Long-Term Borrowings
Long-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | NOTE 13 – LONG-TERM BORROWINGS There were no long-term advances from the FHLB at either December 31, 2023 or December 31, 2022. Long-term and short-term FHLB advances are secured by a blanket pledge of residential mortgage, commercial real estate, and multi-family loans totaling $ 1.6 billion at year-end 2023 and $ 1.2 billion at year-end 2022. Based on this collateral, the Bank is eligible to borrow an additional $ 819.5 million at December 31, 2023. In November 2021, the Company completed the issuance of $ 75.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due December 15, 2031 , in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 3.125 % for five years at which time they will convert to a floating rate based on the three-month term secured overnight funding rate, plus a spread of 220 basis points. The Company may, at its option, beginning December 15, 2026, redeem the notes, in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $ 73.8 million, after deducting the offering expenses. The Company’s intent was to use the proceeds from the sale for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through acquisitions, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations. On November 1, 2021 , the Company completed its acquisition of Cortland, which included the assumption of Floating Rate Junior Subordinated Debt Securities due in September 15, 2037 (the "junior subordinated debt securities") at an acquisition-date fair value of $ 4.3 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Cortland. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.45 % over the 3-month LIBOR rate. The rate at December 31, 2023 was 7.10 % and the rate at December 31, 2022 was 6.22 %. On January 7, 2020 , the Company completed its acquisition of Maple Leaf, which included the assumption of Floating Rate Junior Subordinated Debt Securities due December 15, 2036 (the "junior subordinated debt securities") held in a wholly-owned statutory trust whose common securities were wholly-owned by Maple Leaf. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.70 % over the 3-month LIBOR rate. The rate at December 31, 2023 and 2022, was 7.45 % and 6.57 %, respectively. In 2015, the Company completed its acquisition of National Bancshares Corporation, which included the assumption of Floating Rate Junior Subordinated Debt Securities due June 15, 2035 (the "junior subordinated debt securities") held in a wholly-owned statutory trust, TSEO Statutory Trust I. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.80 % over the 3-month LIBOR rate. The rate at December 31, 2023 and 2022, was 7.35 % and 6.47 %, respectively. In all three instances, the Company may redeem the junior subordinated debentures at any quarter-end, in whole, or in part, at par. This type of subordinated debenture qualifies as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy. A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company’s equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value of $ 75 million less the remaining deferred offering expense associated with the issuance of the debentures. Balances were as follows at December 31, 2023 and 2022: 2023 2022 Amount Amount TSEO Statutory Trust I $ 2,521 $ 2,472 Maple Leaf Financial Statutory Trust II 7,740 7,517 Cortland Statutory Trust I 4,382 4,327 Total junior subordinated debentures owed to unconsolidated subsidiary trusts $ 14,643 $ 14,316 Subordinated debentures 74,020 73,895 Total long-term borrowings $ 88,663 $ 88,211 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 14 – COMMITMENTS AND CONTINGENT LIABILITIES Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at year-end were as follows: 2023 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments and unused lines of credit $ 150,697 $ 647,843 $ 111,889 $ 513,614 Commitments to make loans are generally made for periods of 30 days or less. Commitments and fixed rate unused lines of credit have interest rates ranging from 2.5 % to 21.90 % at December 31, 2023 and 2.375 % to 21.90 % at December 31, 2022. Standby letters of credit are considered financial guarantees. The standby letters of credit have a contractual value of $ 6.8 million at December 31, 2023 and $ 8.8 million at December 31, 2022. The carrying amount of these items is not material to the balance sheet. Additionally, the Company has committed up to a $ 20.2 million subscription in SBIC investment funds. At December 31, 2023, the Company had invested $ 16.4 million in these funds. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | NOTE 15 – STOCK BASED COMPENSATION In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan has replaced the 2017 Plan. There were 105,891 service time based share awards and 102,750 performance based share awards granted under the 2022 Plan during the year ended December 31, 2023, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on equity compared to a group of peer companies over a three year vesting period, ending December 31, 2025. As of December 31, 2023, 734,859 shares are still available to be awarded from the 2022 Plan. The 2017 Plan has been sunset. The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $ 2.6 million for 2023, $ 1.8 million for 2022 and $ 1.2 million for 2021, respectively. As of December 31, 2023, there was $ 3.2 million of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over 2.2 years. The following is the activity under the Plan during 2023: Maximum Weighted Maximum Weighted Beginning balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 Granted 105,891 10.63 102,750 14.16 Vested ( 41,401 ) 12.78 ( 30,635 ) 14.35 Forfeited ( 3,729 ) 14.65 0 0.00 Ending balance - non-vested shares 253,776 $ 14.97 209,484 $ 15.01 The following is the activity under the Plan during 2022: Maximum Weighted Maximum Weighted Beginning balance - non-vested shares 99,564 $ 16.13 158,988 $ 14.40 Granted 132,268 16.63 56,724 17.25 Vested ( 35,817 ) 15.79 ( 65,481 ) 17.48 Forfeited ( 3,000 ) 13.68 ( 12,862 ) 14.74 Ending balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 The 72,036 shares that vested in 2023 had a weighted average fair value of $ 13.45 per share. The total fair value of shares vested during the years ended December 31, 2023, 2022 and 2021 was $ 969 thousand, $ 1.7 million and $ 1.2 million, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | NOTE 16 – REGULATORY MATTERS Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes that as of December 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. The FDIC and other federal banking regulators revised the risk-based capital requirements applicable to financial holding companies and insured depository institutions, including the Company and the Bank, to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision (“Basel III”). The common equity tier 1 capital, tier 1 capital and total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. The leverage ratio is calculated by dividing tier 1 capital by adjusted average total assets. Basel III limits capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5 % of common equity tier 1 capital, tier 1 capital and total capital to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. The capital conservation buffer is 2.5 % for the years of 2023 and 2022. The buffer requires an additional capital amount of $ 92.4 million at year-end 2023 and an additional $ 73.5 million at year-end 2022. Excluding the additional buffer, Basel III requires the Company and the Bank to maintain (i) a minimum ratio of common equity tier 1 capital to risk-weighted assets of at least 4.5 %, (ii) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0 %, (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0 % and (iv) a minimum leverage ratio of at least 4.0 %. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2023 and 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Dividend Restrictions: The Company’s principal source of funds for dividend payments is dividends received from the Bank and Farmers Trust. The Bank and Farmers Trust are subject to the dividend restrictions set forth by the Comptroller of the Currency and Ohio Department of Commerce – Division of Financial Institutions, respectively. The respective regulatory agency must approve declaration of any dividends in excess of the sum of profits for the current year and retained net profits for the preceding two years. At the conclusion of 2023, the Bank could, without prior approval, declare dividends of approximately $ 61.2 million plus any 2024 net profits retained to the date of the dividend declaration. In order to practice trust powers, Farmers Trust must maintain minimum capital of $ 3 million. Farmers Trust would also be able to, without prior approval, declare dividends of $ 753 thousand plus any 2024 net profits retained to the date of the dividend declaration. Actual and required capital amounts (not including the capital conservation buffer) and ratios are presented below at year-end : Actual Requirement For Capital To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio 2023 Common equity tier 1 capital ratio Consolidated $ 392,244 10.61 % $ 166,303 4.5 % N/A N/A Bank 411,304 11.15 % 165,996 4.5 % 239,772 6.5 % Total risk based capital ratio Consolidated 519,684 14.06 % 295,650 8.0 % N/A N/A Bank 447,584 12.13 % 295,104 8.0 % 368,881 10.0 % Tier I risk based capital ratio Consolidated 410,244 11.10 % 221,737 6.0 % N/A N/A Bank 411,304 11.15 % 221,328 6.0 % 295,104 8.0 % Tier I leverage ratio Consolidated 410,244 8.02 % 204,598 4.0 % N/A N/A Bank 411,304 8.07 % 203,989 4.0 % 254,986 5.0 % 2022 Common equity tier 1 capital ratio Consolidated $ 403,307 13.71 % $ 132,349 4.5 % N/A N/A Bank 372,679 12.71 % 131,968 4.5 % 190,620 6.5 % Total risk based capital ratio Consolidated 523,285 17.79 % 235,288 8.0 % N/A N/A Bank 399,657 13.62 % 234,609 8.0 % 293,262 10.0 % Tier I risk based capital ratio Consolidated 421,307 14.32 % 176,466 6.0 % N/A N/A Bank 372,679 12.71 % 175,957 6.0 % 234,609 8.0 % Tier I leverage ratio Consolidated 421,307 9.84 % 171,233 4.0 % N/A N/A Bank 372,679 8.76 % 170,245 4.0 % 212,807 5.0 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 17 – EMPLOYEE BENEFIT PLANS The Company has a qualified 401(k) deferred compensation Retirement Savings Plan (the “Savings Plan”). All employees of the Company who have completed at least 90 days of service and meet certain other eligibility requirements are eligible to participate in the Savings Plan. Under the terms of the Savings Plan, employees may voluntarily defer a portion of their annual compensation pursuant to section 401(k) of the Internal Revenue Code. The Company matches 50 % of the participants’ voluntary contributions up to 6 % of gross wages. In addition, at the discretion of the Board of Directors, the Company may make an additional profit sharing contribution to the Savings Plan. Total expense was $ 1.0 million, $ 870 thousand and $ 814 thousand for the years ended December 31, 2023, 2022 and 2021, respectively. The Company has a profit sharing plan to provide associates not participating in a current incentive plan a vehicle for sharing in the success of the Company outside of existing wages and non-monetary benefits. Under the terms of the plan, no profit sharing was earned for 2023. During 2022 and 2021, a 2 % award of annual compensation was approved for associates. The expense was $ 207 thousand for the year ended December 31, 2022, $ 268 thousand for the year ended December 31, 2021. The Company maintains a deferred compensation plan for certain retirees. Expense under this plan was $ 5 thousand for year ended December 31, 2023 and 2022. The expense was $ 6 thousand for the year ended December 31, 2021. The liability under the deferred compensation plan at December 31, 2023 was $ 71 thousand and $ 83 thousand at December 31, 2022. The Company has a nonqualified deferred compensation plan for a select group of management or highly compensated, eligible individuals. Under the terms of the plan, eligible individuals may elect to defer receipt of their compensation to a later taxable year. The Company has recorded both an asset and liability of equal amount that represents the amount of contributions and the payable due to the participants in the plan. The recorded asset and liability was $ 3.4 million and $ 2.5 million at years ended December 31, 2023 and 2022, respectively. As part of the NBOH acquisition the Company has a director retirement and death benefit plan for the benefit of prior members of the Board of Directors of NBOH. The plan is designed to provide an annual retirement benefit to be paid to each director upon retirement from the Board and attaining age 70 . There are no additional benefits or participants being added to the plan and the liability recorded at December 31, 2023 and 2022 was $ 751 thousand and $ 799 thousand, respectively. The benefit payment upon satisfying the plan’s requirements is a benefit to the qualifying director until death or a maximum of 15 years. An expense under the plan of $ 36 thousand was recorded in 2023 and a benefit was recognized under this plan of $ 105 thousand in 2022 and $ 11 thousand in 2021. As part of the Cortland acquisition, the Company has supplemental retirement benefit plans for the benefit of certain officers and non-officer directors. The plan for officers is designed to provide post-retirement benefits to supplement other sources of retirement income such as social security and 401(k) benefits. The benefits will be paid for a period of 15 years after retirement. Director Retirement Agreements provide for a benefit of $ 10 thousand annually on, or after, the director reaches normal retirement age, which is based on a combination of age and years of service. Director retirement benefits are paid over a period of 10 years following retirement. The Company accrued the cost of these post-retirement benefits during the working careers of the officers and directors. At December 31, 2023, the accumulated liability for these benefits totaled $ 1.0 million, with $ 870 thousand accrued for the officers’ plan and $ 148 thousand for the directors’ plan. At December 31, 2022, the accumulated liability for these benefits totaled $ 1.1 million, with $ 919 thousand accrued for the officers’ plan and $ 143 thousand for the directors’ plan. Expense recognized for these plans was $ 37 thousand in 2023, $ 87 thousand in 2022 and $ 11 thousand in 2021. Benefits expected to be paid in 2024 are $ 81 thousand. To fund the above obligations, the Company has insurance contracts on the lives of the participants and directors in the supplemental retirement benefit plans with the Company as the beneficiary. In the case of directors and a small group of employee participants, postretirement split dollar life insurance coverage was accrued for during the service years. The liability at December 31, 2023 is $ 231 thousand and the benefit recorded was $ 7 thousand in 2023, $ 5 thousand in 2022 and $ 31 thousand in 2021. As part of the Emclaire acquisition, the Company maintains a SERP to provide certain additional retirement benefits to participating officers. The SERP is subject to certain vesting provisions and provides that the officers shall receive a supplemental retirement benefit if the officer’s employment is terminated after reaching the normal retirement age of 65, with benefits also payable upon death, disability, a change of control or a termination of employment prior to normal retirement age. At December 31, 2023, the accumulated liability for these plans totaled $ 846 thousand. Benefit recognized for these plans was $ 37 thousand in 2023. Benefits expected to be paid in 2024 are $ 62 thousand. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 18 – INCOME TAXES The provision for income taxes (credit) consists of the following: 2023 2022 2021 Current expense $ 9,230 $ 10,885 $ 10,794 Deferred expense (benefit) ( 464 ) 1,353 ( 524 ) Totals $ 8,766 $ 12,238 $ 10,270 Effective tax rates differ from the federal statutory rate of 21 % that were applied to income before income taxes due to the following: 2023 2022 2021 Statutory tax $ 12,327 $ 15,295 $ 13,026 Effect of nontaxable interest ( 2,040 ) ( 2,591 ) ( 2,274 ) Bank owned life insurance, net ( 513 ) ( 380 ) ( 273 ) Tax credit investments ( 366 ) ( 194 ) ( 200 ) Effect of nontaxable insurance premiums ( 404 ) ( 318 ) ( 322 ) Stock compensation 41 ( 63 ) ( 9 ) Other ( 279 ) 489 322 Actual tax $ 8,766 $ 12,238 $ 10,270 Deferred tax assets (liabilities) are comprised of the following: 2023 2022 Deferred tax assets: Allowance for credit losses $ 7,235 $ 5,665 Net unrealized loss on securities available for sale 45,599 55,962 Net unrealized loss on swap derivative 269 0 Basis in investment securities 6,976 0 Purchase accounting adjustments 4,147 0 Deferred and accrued compensation 2,060 1,748 Deferred loan fees and costs 0 275 Nonaccrual loan interest income 659 648 Restricted stock 795 501 Lease liabilities 2,164 1,841 Other 198 0 Gross deferred tax assets $ 70,102 $ 66,640 Deferred tax liabilities: Depreciation and amortization $ ( 1,701 ) $ ( 1,485 ) Federal Home Loan Bank dividends 0 ( 904 ) Purchase accounting adjustments 0 ( 1,862 ) Mortgage servicing rights ( 725 ) ( 700 ) Prepaid expenses ( 41 ) ( 365 ) Lease right of use asset ( 2,116 ) ( 1,766 ) Other 0 ( 234 ) Gross deferred tax liabilities ( 4,583 ) ( 7,316 ) Net deferred tax asset $ 65,519 $ 59,324 No valuation allowance for deferred tax assets was recorded at December 31, 2023 and 2022. At December 31, 2023 and December 31, 2022, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months. The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2020. The tax years 2020 — 2022 remain open to examination by the U.S. taxing authority. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 19 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table represents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2023 and 2022. Net unrealized holding gains (losses) on available for sale securities Reclassification adjustment for (gains) losses realized in income on fair value hedge Change in funded status of post-retirement plan Total December 31, 2023 Beginning balance $ ( 210,489 ) $ 0 $ ( 1 ) $ ( 210,490 ) Other comprehensive income (loss) before reclassification 38,557 0 ( 1 ) 38,556 Amounts reclassified from accumulated other comprehensive income (loss) 393 ( 1,013 ) 0 ( 620 ) Net current period other comprehensive income (loss) 38,950 ( 1,013 ) ( 1 ) 37,936 Ending balance $ ( 171,539 ) $ ( 1,013 ) $ ( 2 ) $ ( 172,554 ) December 31, 2022 Beginning balance $ 9,293 $ 0 $ 2 $ 9,295 Other comprehensive (loss) before reclassification ( 220,110 ) 0 ( 3 ) ( 220,113 ) Amounts reclassified from accumulated other comprehensive income 328 0 0 328 Net current period other comprehensive (loss) ( 219,782 ) 0 ( 3 ) ( 219,785 ) Ending balance $ ( 210,489 ) $ 0 $ ( 1 ) $ ( 210,490 ) Amounts reclassified out of each component of accumulated other comprehensive income (loss) were not material for the years ended December 31, 2023, 2022, and 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 20 – RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates during 2023 and 2022 were as follows: 2023 2022 Beginning balance $ 10,491 $ 11,074 New loans 4,404 983 Repayments ( 1,941 ) ( 1,566 ) Ending balance $ 12,954 $ 10,491 Deposits from principal officers, directors, and their affiliates at year-end 2023 and 2022 were $ 13.4 million and $ 18.3 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 21 – EARNINGS PER SHARE The factors used in the earnings per share computation follow: 2023 2022 2021 Basic EPS Net income $ 49,932 $ 60,597 $ 51,844 Weighted average shares outstanding 37,384,122 33,844,945 29,167,357 Basic earnings per share $ 1.34 $ 1.79 $ 1.78 Diluted EPS Net income $ 49,932 $ 60,597 $ 51,844 Weighted average shares for basic earnings per share 37,384,122 33,844,945 29,167,357 Average unvested restricted stock awards 114,147 83,994 112,430 Weighted average shares for diluted earnings per share 37,498,269 33,928,939 29,279,787 Diluted earnings per share $ 1.33 $ 1.79 $ 1.77 There were 194,599 , 201,080 and 55,128 restricted stock awards that were considered anti-dilutive at year-end 2023, 2022 and 2021, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 22 – DERIVATIVE FINANCIAL INSTRUMENTS Interest Rate Swaps The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $ 63.9 million and fair value of $ 4.2 million in other assets and $ 4.2 million in other liabilities at December 31, 2023. At December 31, 2022 the Company had interest rate swaps associated with commercial loans with a notional value of $ 71.9 million and fair value of $ 5.5 million in other assets and $ 5.5 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There were no net gains or losses for interest rate swaps for the years ended December 31, 2023 and 2022. Interest Rate Swap Designated as a Fair Value Hedge The Company has one interest rate swap with a notional amount of $ 100.0 million as of December 31, 2023 and it is designated as a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The gross aggregate fair value of the swap of $( 836 ) thousand is recorded as a $ 1.3 million mark to market adjustment in other liabilities, and $ 425 thousand recorded to other assets for the accrued interest receivable in the Consolidated Balance Sheets at December 31, 2023. The Company expects the hedge to remain in effect for the remaining term of the swap, which matures August 2026. A summary of the interest rate swap designated as a fair value hedge is presented below: December 31, 2023 Notional amount fair value hedge $ 100,000 Fixed pay rates 4.35 % Variable SOFR receive rates 5.38 % Remaining maturity (in years) 2.6 Fair value $ ( 836 ) Mortgage Banking Derivatives Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. Effective May 2022, the Company began the practice of entering into forward commitments for the future delivery of residential mortgage loans when the interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the years ended December 31: 2023 2022 2021 Forward sales contracts $ ( 45 ) $ 362 $ 0 Interest rate lock commitments 87 21 423 The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as on December 31: 2023 2022 Notional Fair Notional Fair Amount Value Amount Value Included in other assets: Forward sales contracts $ 0 $ 0 $ 4,300 $ 30 Interest rate lock commitments 7,400 109 4,900 21 Total included in other assets $ 7,400 $ 109 $ 9,200 $ 51 Included in other liabilities: Forward sales contracts $ 3,300 $ ( 14 ) $ 0 $ 0 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 23 – SEGMENT INFORMATION The reportable segments are determined by the products and services offered, primarily distinguished between banking and trust operations. The segments are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments and deposits provide the revenues in the banking operation, trust service fees and consulting fees provide the revenue in trust operations. All operations are domestic. Accounting policies for segments are the same as those described in Note 1. Segment performance is evaluated using operating income. Income taxes are calculated on operating income. Transactions among segments are made at fair value. Significant segment totals are reconciled to the financial statements as follows: December 31, 2023 Trust Bank Eliminations Consolidated Assets Goodwill and other intangibles $ 5,680 $ 188,871 $ ( 4,263 ) $ 190,288 Total assets $ 15,845 $ 5,065,150 $ ( 2,645 ) $ 5,078,350 December 31, 2022 Trust Bank Eliminations Consolidated Goodwill and other intangibles $ 5,739 $ 100,190 $ ( 4,263 ) $ 101,666 Total assets $ 14,383 $ 4,064,112 $ 3,705 $ 4,082,200 For year ended 2023 Trust Bank Eliminations Consolidated Net interest income $ 257 $ 141,444 $ ( 3,915 ) $ 137,786 Provision for credit losses and unfunded loans 0 9,153 0 9,153 Service fees, security gains and other 11,615 31,434 ( 1,188 ) 41,861 Noninterest expense 7,122 96,705 642 104,469 Amortization and depreciation expense 90 6,786 451 7,327 Income before taxes 4,660 60,234 ( 6,196 ) 58,698 Income tax 980 9,386 ( 1,600 ) 8,766 Net Income $ 3,680 $ 50,848 $ ( 4,596 ) $ 49,932 For year ended 2022 Trust Bank Eliminations Consolidated Net interest income $ 172 $ 127,353 $ ( 3,359 ) $ 124,166 Provision for loan losses and unfunded loans 0 1,122 0 1,122 Service fees, security gains and other 19,535 25,304 ( 637 ) 44,202 Noninterest expense 8,635 79,987 890 89,512 Amortization and depreciation expense 110 4,336 453 4,899 Income before taxes 10,962 67,212 ( 5,339 ) 72,835 Income tax 2,301 11,277 ( 1,340 ) 12,238 Net Income $ 8,661 $ 55,935 $ ( 3,999 ) $ 60,597 For year ended 2021 Trust Bank Eliminations Consolidated Net interest income $ 134 $ 108,726 $ ( 870 ) $ 107,990 Provision for loan losses and unfunded loans 0 4,893 0 4,893 Service fees, security gains and other 11,045 27,347 ( 199 ) 38,193 Noninterest expense 6,854 68,194 589 75,637 Amortization and depreciation expense 262 2,931 346 3,539 Income before taxes 4,063 60,055 ( 2,004 ) 62,114 Income tax 852 10,023 ( 605 ) 10,270 Net Income $ 3,211 $ 50,032 $ ( 1,399 ) $ 51,844 Bank segment includes Farmers Insurance and Investment. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | NOTE 24 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Below is condensed financial information of Farmers National Banc Corp. (parent company only). This information should be read in conjunction with the consolidated financial statements and related notes. December 31, 2023 2022 BALANCE SHEETS Assets: Cash $ 57,071 $ 104,497 Investment in subsidiaries Bank 424,393 261,631 Farmers Trust 13,431 13,598 Captive 0 2,722 Other investments 424 600 Total assets $ 495,319 $ 383,048 Liabilities: Other liabilities $ 2,241 $ 2,542 Subordinated debt 88,663 88,211 Total liabilities 90,904 90,753 Total stockholders' equity 404,415 292,295 Total liabilities and stockholders' equity $ 495,319 $ 383,048 STATEMENTS OF INCOME Years ended December 31, 2023 2022 2021 Income: Dividends from subsidiaries Bank $ 20,000 $ 30,000 $ 45,620 Farmers Trust 4,000 8,000 2,800 Captive Insurance 0 1,400 1,135 Interest and dividends on securities 44 0 11 Security gains/(losses) 0 0 130 Total Income 24,044 39,400 49,696 Interest on borrowings 4,086 3,428 918 Other expenses 4,109 3,451 2,792 Income before income tax benefit and undistributed 15,849 32,521 45,986 Income tax benefit 1,624 1,345 611 Equity in undistributed net income of subsidiaries Bank 30,848 25,935 4,412 Farmers Trust ( 320 ) 662 412 Captive 1,931 134 423 Net Income $ 49,932 $ 60,597 $ 51,844 Comprehensive Income $ 87,868 $ ( 159,188 ) $ 39,107 STATEMENTS OF CASH FLOWS Years ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 49,932 $ 60,597 $ 51,844 Adjustments to reconcile net income to net cash from Dividends in excess of net income (Equity in ( 32,459 ) ( 26,731 ) ( 5,247 ) Other 5,481 559 6,846 Net cash from operating activities 22,954 34,425 53,443 Cash flows from investing activities: Net cash paid in business combinations ( 33,440 ) 0 ( 29,618 ) Net cash from investing activities ( 33,440 ) 0 ( 29,618 ) Cash flows from financing activities: Proceeds from long term borrowings 0 0 73,749 Repurchase of common shares ( 11,544 ) 0 ( 164 ) Cash dividends paid ( 25,396 ) ( 22,004 ) ( 14,072 ) Net cash from financing activities ( 36,940 ) ( 22,004 ) 59,513 Net change in cash and cash equivalents ( 47,426 ) 12,421 83,338 Beginning cash and cash equivalents 104,497 92,076 8,738 Ending cash and cash equivalents $ 57,071 $ 104,497 $ 92,076 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Qualified Affordable Housing Project Investments | NOTE 25 – QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS The Company invests in qualified affordable housing projects. At December 31, 2023 and 2022, the balance of the investment for qualified affordable housing projects was $ 17.9 million and $ 13.6 million. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $ 12.6 million and $ 9.1 million at December 31, 2023 and 2022. The Company expects to fulfill these commitments during the year ending 2037. During the years ended December 31, 2023 and 2022, the Company recognized amortization of expense of $ 1.7 million and $ 1.3 million, respectively, which was included within income tax expense on the consolidated statements of income. Additionally, during the years ended December 31, 2023 and 2022, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $ 2.2 million and $ 1.1 million, respectively. During the years ended December 31, 2023 and 2022, the Company did no t incur impairment losses related to its investment in affordable housing tax credits. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of Farmers National Banc Corp. (“Company”) and its wholly-owned subsidiaries, The Farmers National Bank of Canfield (“Bank” or “Farmers Bank”), Farmers Trust Company (“Farmers Trust”) and Farmers National Captive, Inc. (“Captive”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Farmers Insurance”) and Farmers of Canfield Investment Co. (“Farmers Investments”). The Company completed its acquisition of Emclaire Financial Corp., (“Emclaire”) on January 1, 2023 and has since included its results of operations in the Consolidated Statements of Income. Together all entities are referred to as “the Company.” All significant intercompany balances and transactions have been eliminated in consolidation. |
Nature of Operations | Nature of Operations: The Company provides full banking services, including wealth management services and mortgage banking activity, through the Bank. As a national bank, the Bank is subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The primary area served by the Bank is the northeastern region of Ohio and the western region of Pennsylvania, through sixty-four ( 64 ) locations. The Company provides trust services and retirement consulting services through its Farmers Trust subsidiary and insurance services through the Bank’s Insurance subsidiary. Farmers Trust has a state-chartered bank license to conduct trust business from the Ohio Department of Commerce – Division of Financial Institutions. The primary purpose of Farmers Investments is to invest in municipal securities. On November 20, 2023 the Captive entity was dissolved. Before its dissolution the Captive provided property and casualty insurance coverage to the Company and its subsidiaries. Captive pooled resources with eleven similar insurance subsidiaries of financial institutions to spread a limited amount of risk among the pool members and to provide insurance where not available or economically feasible. |
Estimates | Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Business Combinations | Business Combinations: Business combinations are accounted for by applying the acquisition method. As of acquisition date, the identifiable assets acquired and liabilities assumed are measured at fair value and recognized separately from goodwill. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash on hand, deposits with other financial institutions with maturities fewer than ninety (90) days, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Net cash flows are reported for loan and deposit transactions, short-term borrowings and other assets and liabilities. |
Securities | Securities: Debt securities classified as available for sale are those that could be sold for liquidity, investment management, or similar reasons, even though management has no present intentions to do so. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums are amortized to the earliest call date. Purchases and sales are recorded on the trade date, with resulting gains and losses determined using the specific identification method. A debt security is placed on non-accrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against income. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost 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 debt securities available-for-sale 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, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2023 the Company has not recorded an allowance for credit losses on available-for-sale securities. |
Loans Held for Sale | Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are sold with or without servicing rights. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for credit losses. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated loans. For all classes of loans, when interest accruals are discontinued, interest accrued but not received is reversed against interest income. Interest on such loans is thereafter recorded on a cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Purchased Credit Dependent Loans | Purchased Credit Deteriorated Loans (PCD): The Company acquires loans individually and in groups or portfolios. At acquisition, the Company reviews each loan to determine whether there is evidence of more than insignificant deterioration of credit quality since origination. Loans having an aggregate commitment of $ 250 thousand or greater and exhibiting the following characteristics have evidence of more than insignificant deterioration. • The loan is 30 days past due or greater as of the acquisition date. • The loan originated as a pass rated credit and has since been downgraded to a criticized or classified credit as of the acquisition date. • The loan has a non-accrual status as of the acquisition date. PCD loans are recorded at fair value. An allowance for credit losses ("ACL") is determined using the same methodology as other loans held for investment. The sum of the purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and par value of the loan is a noncredit discount or premium which is amortized into interest income over the life of the loan. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the statements of income. |
Derivatives | Derivatives: Derivative financial instruments are recognized as assets or liabilities at fair value. The Company’s derivatives are interest-rate swaps and mortgage banking derivatives. These are used as part of the Company's asset and liability management strategy to aid in managing its interest rate risk position. The Company uses derivatives for balance sheet hedging purposes. |
Concentration of Credit Risk | Concentration of Credit Risk: There are no significant concentrations of loans to any one industry or customer. However, most of the Company’s business activity is with customers located within Northeastern Ohio. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of an eleven county area. Loans secured by real estate represent 68.2 % of the total portfolio and changes related to the real estate markets are monitored by management. |
Allowance for Loan Losses | Allowance for Credit Losses: On January 1, 2021, the Company adopted the current expected credit loss model (“CECL”). This methodology for calculating the allowance for credit losses considers the expected loss over the life of the loan. It also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL estimate under the current expected loss model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements. The Company uses the cohort (“cohort”) and the probability of default/loss given default (“PD/LGD”) methodologies as described in the Credit Quality Indicators section of the loan footnote. Under ASC 326, if a loan does not share similar risk characteristics with loans in that pool, expected credit losses for that loan are evaluated individually. The Company has established specific thresholds for the loan portfolio that trigger when loans need to be evaluated individually. Including but not limited to commercial loans with an aggregate book balance of $ 500 thousand or greater, or consumer loans with book balance of $ 250 thousand or greater in which their payment of contractual principal balance and or interest is in doubt (nonaccrual status). In addition, ASC 326 requires the Company to establish a separate liability for anticipated credit losses for unfunded commitments. Under CECL the credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods: Commercial Real Estate Owner-Occupied, nonfarm nonresidential properties – The Company originates mortgage loans to operating companies primarily in the northeastern region of Ohio and western region of Pennsylvania. Owner-occupied real estate properties primarily include retail buildings, medical buildings and industrial/warehouse space. Owner-occupied loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. Commercial Real Estate Non-Owner Occupied, nonfarm nonresidential properties – The Company originates mortgage loans for commercial real estate that is managed as an investment property primarily in the northeastern region of Ohio and western region of Pennsylvania. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Farmland (including farm residential and other improvements) – The Company originates loans secured by farmland and improvements thereon, secured by mortgages. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland also includes grazing or pasture land, whether tillable or not and whether wooded or not. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources. Commercial Real Estate Other – The Company originates mortgage loans for multifamily properties primarily in the northeastern region of Ohio and western region of Pennsylvania and construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or multi-family buildings. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions. Commercial and Industrial – The Company originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment. Commercial and Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Company to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Company will often require more frequent reporting requirements from the borrower in order to better monitor its business performance. The Company also originates various types of loans made directly to municipalities and nonprofit organizations. These loans are repaid through general cash flows or through specific revenue streams and charitable contributions. The primary risk characteristics associated with municipal loans are the municipality's or nonprofit’s ability to manage cash flow, balance the fiscal budget, fixed asset and infrastructure requirements. Additional risks include changes in demographics, as well as social and political conditions. Agricultural Production – The Company originates loans secured or unsecured to farm owners and operators for the purpose of financing agricultural production, including the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock, and for purchases of farm machinery, equipment, and implements. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources. 1-4 Family Residential Real Estate – The Company originates 1-4 family residential mortgage and construction loans primarily within the northeastern region of Ohio and western region of Pennsylvania. These loans are secured by first or second liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Company. Residential construction loans are exposed to uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, or related to changes in general economic conditions. Home Equity Lines of Credit – The primary risk characteristics associated with home equity lines of credit typically involve changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Company. Indirect Loans – The Company originates consumer loans extended for the purpose of purchasing new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, recreational vehicles, and motorcycles for personal use. The primary risk characteristics associated with automobile loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Consumer Direct – The Company originates loans to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other consumer loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Consumer Other – The Company originates lines of credit to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other revolving loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. The Company uses two methodologies, the cohort and the PD/LGD, to analyze loan pools. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but aren’t limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios. The probability of default (“PD”) portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or partially or wholly, charged-off. Typically, a one-year time period is used to asses PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default (“LGD”) is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios. A reassessment of the existing acquired loans occurred in the third quarter of 2021. This was to align with the calculation of the ACL being used under the CECL model. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the originated risk pools. The grade for each purchased loan without evidence of credit deterioration is reviewed subsequent to the date of acquisition any time a loan is renewed or extended or at any time information becomes available to the Company that provides material insight regarding the loan’s performance, the status of the borrower or the quality or value of the underlying collateral. To the extent that current information indicates it is probable that the Company will collect all amounts according to the contractual terms thereof, such loan is not individually considered in the determination of the required allowance for credit losses. To the extent that current information indicates it is probable that the Company will not be able to collect all amounts according to the contractual terms thereof, such loan is considered in the determination of the required level of allowance as a loan individually evaluated. The ACL represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL. Estimating the amount of the ACL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. While management uses the best information available to establish the allowance, future adjustments to the allowance may be necessary, which may be material, if economic conditions differ substantially from the assumptions used in estimating the allowance. If additions to the original estimate of the allowance for credit losses are deemed necessary, they will be reported in earnings in the period in which they become reasonably estimable and probable. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. T he Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows. Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model. |
Servicing Rights | Servicing Rights: When mortgage loans are sold and servicing rights are retained, the servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Company compares the valuation model inputs and results to published industry data to validate the model results and assumptions. The fair value of the mortgage servicing rights as of December 31, 2023 and 2022 was $ 5.39 million and $ 5.28 million, respectively. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non‑interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets compared to carrying amount. Any impairment is reported as a valuation allowance, to the extent that fair value is less than the capitalized amount for a grouping. At December 31, 2023 and 2022, there was a valuation allowance totaling $ 54 thousand and $ 17 thousand, respectively. Servicing fee income is recorded when earned for servicing loans based on a contractual percentage of the outstanding principal or a fixed amount per loan. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees, late fees and ancillary fees related to loan servicing are not considered significant for financial reporting. |
Foreclosed Assets | Foreclosed Assets: Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrow conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. These assets are recorded in other assets on the balance sheets as other real estate owned (“OREO”). Operating costs after acquisition are expensed. The Company had $ 92 thousand of OREO recorded at December 31, 2023. There was zero recorded in 2022. |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. |
Leases | Leases: Leases are classified as operating or finance leases at the lease commencement date. The Company leases certain locations and equipment. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. |
Restricted Stock | Restricted Stock: The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also a member of and owns stock in the Federal Reserve Bank. These stocks are carried at cost, classified as restricted securities included in other investments, and periodically evaluated for impairment based on ultimate recovery of par value. Restricted stock totaled $ 20.2 million at December 31, 2023 and $ 18.2 million in 2022. Cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Long-term Assets | Long-term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill resulting from a business combination is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired as of the acquisition date. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but tested for impairment at least annually. The Company has selected September 30 as the date to perform the annual goodwill impairment tests associated with the acquisitions of Farmers Trust, Farmers Insurance and the recent Banking acquisitions. Intangible assets with finite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Core deposit intangible assets arising from bank acquisitions are amortized over their estimated useful lives of 7 to 8 years. Non-compete contracts are amortized on a straight-line basis, over the term of the agreements. Customer relationship and trade name intangibles are amortized over a range of 13 to 15 years on an accelerated method. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. The market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Income Taxes | Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 % likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Retirement Plans | Retirement Plans: Employee 401(k) and profit sharing plan expense is the amount of matching and discretionary contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Earnings Per Common Share | Earnings per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock equity awards. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as separate components of equity, net of tax effects. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any matters currently that would have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank (“FRB”) was required to meet regulatory reserve and clearing requirements. |
Equity | Equity: Treasury stock is carried at cost. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank and Farmers Trust to the holding company or by the holding company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions as more fully disclosed in Note 7. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments: Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and Farmers Trust segment. The Company discloses segment information in Note 23. |
Reclassification | Reclassification: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or stockholders' equity. |
Newly Issued, Not Yet Effective Accounting Standards | Newly Issued, Not Yet Effective Accounting Standards: On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform , which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 give entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 will not apply to any contract modifications made after December 31, 2022. The amendments in this update are elective and can be applied during the period of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Pro Forma Information | The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effective on the assumed date. 2022 Net interest income $ 168,692 Provision for credit losses 17,246 Noninterest income 47,206 Noninterest expense 137,930 Income before income taxes 60,722 Income tax expense 10,007 Net income $ 50,715 Basic earnings per share $ 1.34 Diluted earnings per share $ 1.33 |
Cortland Bank | |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition. Consideration Cash $ 33,440 Stock 59,202 Fair value of total consideration transferred $ 92,642 Fair value of assets acquired Cash and cash equivalents $ 20,265 Securities available for sale 126,970 Other investments 7,795 Loans, net 740,659 Premises and equipment 14,808 Bank owned life insurance 22,485 Core deposit intangible 19,249 Current and deferred taxes 17,708 Other assets 7,682 Total assets acquired 977,621 Fair value of liabilities assumed Deposits 875,813 Short-term borrowings 75,000 Accrued interest payable and other liabilities 7,104 Total liabilities 957,917 Net assets acquired $ 19,704 Goodwill created 72,938 Total net assets acquired $ 92,642 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the Amortized Cost and Fair Value of Available-for-Sale Investment Securities Corresponding Amounts of Unrealized Gains and Losses | The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2023, and 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at December 31, 2023 or 2022. Gross Gross Amortized Unrealized Unrealized 2023 Cost Gains Losses Fair Value U.S. Treasury and U.S. government sponsored $ 145,439 $ 113 $ ( 17,597 ) $ 127,955 State and political subdivisions 644,880 4,792 ( 93,503 ) 556,169 Corporate bonds 18,554 187 ( 466 ) 18,275 Mortgage-backed securities - residential 624,529 1 ( 104,144 ) 520,386 Collateralized mortgage obligations 80,227 331 ( 6,559 ) 73,999 Small Business Administration 3,212 0 ( 295 ) 2,917 Totals $ 1,516,841 $ 5,424 $ ( 222,564 ) $ 1,299,701 Gross Gross Amortized Unrealized Unrealized 2022 Cost Gains Losses Fair Value U.S. Treasury and U.S. government sponsored $ 149,712 $ 0 $ ( 21,616 ) $ 128,096 State and political subdivisions 651,705 266 ( 121,891 ) 530,080 Corporate bonds 4,181 0 ( 302 ) 3,879 Mortgage-backed securities - residential 672,784 12 ( 117,654 ) 555,142 Collateralized mortgage obligations 52,291 0 ( 4,937 ) 47,354 Small Business Administration 3,839 0 ( 365 ) 3,474 Totals $ 1,534,512 $ 278 $ ( 266,765 ) $ 1,268,025 |
Proceeds from Sales of Available-for-Sale Securities and the Associated Gains and Losses | The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows: 2023 2022 2021 Proceeds $ 85,306 $ 37,190 $ 35,175 Gross gains 441 6 863 Gross losses ( 939 ) ( 421 ) ( 25 ) |
Amortized Cost and Fair Value of the Debt Securities Maturity | The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations, with or without a call, or prepayment penalties. Securities not due at a single maturity date are shown separately. Available for sale December 31, 2023 Amortized Maturity Cost Fair Value Within one year $ 600 $ 592 One to five years 32,288 30,039 Five to ten years 186,137 168,851 Beyond ten years 589,848 502,917 Mortgage-backed Securities, Collateralized Mortgage 707,968 597,302 Totals $ 1,516,841 $ 1,299,701 |
Available for Sale Investment Securities with Unrealized Losses | The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by major security type and length of time in a continuous unrealized loss position. 2023 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Loss Value Loss Value Loss U.S. Treasury and U.S. government sponsored entities $ 399 $ ( 1 ) $ 122,361 $ ( 17,596 ) $ 122,760 $ ( 17,597 ) State and political subdivisions 15,852 ( 1,684 ) 428,416 ( 91,819 ) 444,268 ( 93,503 ) Corporate bonds 8,463 ( 284 ) 3,881 ( 182 ) 12,344 ( 466 ) Mortgage-backed securities - residential 5,113 ( 76 ) 515,259 ( 104,068 ) 520,372 ( 104,144 ) Collateralized mortgage obligations 20,019 ( 980 ) 43,808 ( 5,579 ) 63,827 ( 6,559 ) Small Business Administration 0 0 2,917 ( 295 ) 2,917 ( 295 ) Total temporarily impaired $ 49,846 $ ( 3,025 ) $ 1,116,642 $ ( 219,539 ) $ 1,166,488 $ ( 222,564 ) 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Loss Value Loss Value Loss U.S. Treasury and U.S. government sponsored entities $ 52,311 $ ( 5,835 ) $ 75,685 $ ( 15,781 ) $ 127,996 $ ( 21,616 ) State and political subdivisions 306,709 ( 56,650 ) 191,584 ( 65,241 ) 498,293 ( 121,891 ) Corporate bonds 2,893 ( 122 ) 986 ( 180 ) 3,879 ( 302 ) Mortgage-backed securities - residential 101,476 ( 13,545 ) 453,233 ( 104,109 ) 554,709 ( 117,654 ) Collateralized mortgage obligations 42,140 ( 4,137 ) 5,214 ( 800 ) 47,354 ( 4,937 ) Small Business Administration 1,295 ( 122 ) 2,179 ( 243 ) 3,474 ( 365 ) Total temporarily impaired $ 506,824 $ ( 80,411 ) $ 728,881 $ ( 186,354 ) $ 1,235,705 $ ( 266,765 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loan Balances | Loan balances at year end were as follows: 2023 2022 (In Thousands of Dollars) Commercial real estate Owner occupied $ 399,273 $ 330,768 Non-owner occupied 712,315 563,652 Farmland 202,950 188,850 Other 224,218 133,630 Commercial Commercial and industrial 346,354 293,643 Agricultural 58,338 58,087 Residential real estate 1-4 family residential 843,697 475,791 Home equity lines of credit 142,441 132,179 Consumer Indirect 226,815 197,125 Direct 23,805 16,421 Other 9,164 7,714 Total originated loans $ 3,189,370 $ 2,397,860 Net deferred loan costs 8,757 6,890 Allowance for credit losses ( 34,440 ) ( 26,978 ) Net loans $ 3,163,687 $ 2,377,772 |
Activity in the Allowance for Loan Losses by Portfolio Segment | The following tables present the activity in the allowance for credit losses by portfolio segment for years ended December 31, 2023, 2022 and 2021: December 31, 2023 Commercial Commercial Residential Consumer Total (In Thousands of Dollars) Allowance for credit losses Beginning balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 PCD ACL on loans acquired 850 138 11 0 999 Provision for credit losses 2,808 1,931 2,834 1,145 8,718 Loans charged off ( 349 ) ( 1,272 ) ( 384 ) ( 932 ) ( 2,937 ) Recoveries 1 104 81 496 682 Total ending allowance balance $ 18,150 $ 5,087 $ 6,916 $ 4,287 $ 34,440 December 31, 2022 Commercial Commercial Residential Consumer Total (In Thousands of Dollars) Allowance for credit losses Beginning balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 Provision for credit losses ( 742 ) 1,204 ( 493 ) 281 250 Loans charged off ( 300 ) ( 2,042 ) ( 92 ) ( 870 ) ( 3,304 ) Recoveries 3 75 89 479 646 Total ending allowance balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 December 31, 2021 Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 10,746 $ 5,018 $ 3,687 $ 2,693 $ 22,144 Impact of CECL adoption ( 2,137 ) 259 193 3,845 2,160 Provision for credit losses 6,226 ( 349 ) 1,121 ( 2,349 ) 4,649 PCD ACL on loans acquired 1,081 210 4 0 1,295 Loans charged off ( 70 ) ( 388 ) ( 297 ) ( 912 ) ( 1,667 ) Recoveries 33 199 162 411 805 Total ending allowance balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 |
Schedule of Amortized Cost Basis in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2023: (In Thousands of Dollars) Nonaccrual with no allowance for credit loss Nonaccrual with an allowance for credit loss Loans past due over 89 days still accruing December 31, 2023 Commercial real estate Owner occupied $ 1,804 $ 830 $ 0 Non-owner occupied 19 1,491 0 Farmland 1,957 9 0 Other 0 80 0 Commercial Commercial and industrial 394 1,408 0 Agricultural 203 317 0 Residential real estate 1-4 family residential 348 3,009 460 Home equity lines of credit 240 210 69 Consumer Indirect 22 300 125 Direct 65 69 1 Other 0 5 0 Total loans $ 5,052 $ 7,728 $ 655 The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022: 2022 Nonaccrual Loans Past Due Days or More (In Thousands of Dollars) Commercial real estate Owner occupied $ 993 $ 0 Non-owner occupied 3,031 0 Farmland 2,183 0 Other 33 Commercial Commercial and industrial 3,840 50 Agricultural 299 0 Residential real estate 1-4 family residential 2,703 310 Home equity lines of credit 735 58 Consumer Indirect 313 62 Direct 179 12 Other 2 0 Total loans $ 14,311 $ 492 |
Schedule of Amortized Cost Basis in Past Due Loans | The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2023: (In Thousands of Dollars) Real Estate Business Assets Vehicles Cash December 31, 2023 Commercial real estate Owner occupied $ 1,804 $ 0 $ 0 $ 0 Non-owner occupied 1,335 0 0 0 Farmland 1,957 0 0 0 Other 0 0 0 0 Commercial Commercial and industrial 94 867 0 0 Agricultural 0 203 0 0 Residential real estate 1-4 family residential 3,352 0 0 0 Home equity lines of credit 294 0 0 0 Consumer Indirect 0 0 53 0 Direct 0 0 19 66 Other 0 0 0 0 Total loans $ 8,836 $ 1,070 $ 72 $ 66 The following tables present the aging of the amortized cost basis in past due loans as of December 31, 2023 and 2022 by class of loans: December 31, 2023 30-59 60-89 90 Days or More Past Due Total Past Loans Not Total (In Thousands of Dollars) Commercial real estate Owner occupied $ 302 $ 293 $ 2,634 $ 3,229 $ 395,799 $ 399,028 Non-owner occupied 90 0 1,510 1,600 710,195 711,795 Farmland 365 0 1,966 2,331 200,395 202,726 Other 0 0 80 80 223,697 223,777 Commercial Commercial and industrial 540 199 1,802 2,541 345,278 347,819 Agricultural 292 40 520 852 58,223 59,075 Residential real estate 1-4 family residential 6,819 4,488 3,817 15,124 828,437 843,561 Home equity lines of credit 729 34 519 1,282 141,189 142,471 Consumer Indirect 2,045 289 447 2,781 232,105 234,886 Direct 153 23 135 311 23,514 23,825 Other 4 0 5 9 9,155 9,164 Total loans $ 11,339 $ 5,366 $ 13,435 $ 30,140 $ 3,167,987 $ 3,198,127 December 31, 2022 30-59 60-89 90 Days or More Past Due Total Past Loans Not Total Commercial real estate Owner occupied $ 159 $ 0 $ 993 $ 1,152 $ 329,305 $ 330,457 Non-owner occupied 0 0 3,031 3,031 560,013 563,044 Farmland 0 0 2,183 2,183 186,399 188,582 Other 0 0 33 33 133,288 133,321 Commercial Commercial and industrial 1,034 185 3,890 5,109 289,297 294,406 Agricultural 104 20 299 423 58,166 58,589 Residential real estate 1-4 family residential 4,247 1,775 3,013 9,035 466,313 475,348 Home equity lines of credit 115 92 793 1,000 131,209 132,209 Consumer Indirect 1,267 298 375 1,940 202,683 204,623 Direct 234 70 191 495 15,962 16,457 Other 0 5 2 7 7,707 7,714 Total loans: $ 7,160 $ 2,445 $ 14,803 $ 24,408 $ 2,380,342 $ 2,404,750 |
Schedule of Amortized Cost Basis for Loans Restructured | December 31, 2023 Amortized Cost (In Thousands of Dollars) Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Total % of Total Class of Financing Receivable Residential real estate 1-4 family residential $ 48 $ 30 $ 132 $ 210 0.03 % Total modifications to borrowers experiencing financial difficulty $ 48 $ 30 $ 132 $ 210 0.01 % The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023: For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms: December 31, 2023 Amortized Cost (In Thousands of Dollars) Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Residential real estate 1-4 family residential $ 0 $ 30 $ 0 Total modifications to borrowers experiencing financial difficulty $ 0 $ 30 $ 0 |
Schedule of Performance of Loans that Modified | The following table presents the performance of such loans that have been modified in the twelve months ended December 31, 2023: December 31, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Accrual restructured loans Residential real estate 1-4 family residential $ 132 $ 30 $ 0 Total accruing restructured loans $ 132 $ 30 $ 0 Nonaccrual restructured loans Residential real estate 1-4 family residential $ 48 $ 0 $ 0 Total nonaccrual restructured loans $ 48 $ 0 $ 0 Total restructured loans $ 180 $ 30 $ 0 |
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2023 Pass Special Sub Total (In Thousands of Dollars) Commercial real estate Owner occupied $ 386,015 $ 9,628 $ 3,385 $ 399,028 Non-owner occupied 648,063 27,938 35,794 711,795 Farmland 200,240 0 2,486 202,726 Other 215,459 0 8,318 223,777 Commercial Commercial and industrial 334,764 646 12,409 347,819 Agricultural 58,506 17 552 59,075 Total loans $ 1,843,047 $ 38,229 $ 62,944 $ 1,944,220 December 31, 2022 Pass Special Sub Total Commercial real estate Owner occupied $ 324,979 $ 1,193 $ 4,285 $ 330,457 Non-owner occupied 527,267 25,541 10,236 563,044 Farmland 186,057 0 2,525 188,582 Other 133,218 0 103 133,321 Commercial Commercial and industrial 282,412 777 11,217 294,406 Agricultural 58,002 250 337 58,589 Total loans $ 1,511,935 $ 27,761 $ 28,703 $ 1,568,399 |
Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity | The following table presents the amortized cost in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans. Residential Real Estate Consumer December 31, 2023 1-4 Family Residential Home Equity Lines of Credit Indirect Direct Other (In Thousands of Dollars) Performing $ 839,744 $ 141,952 $ 234,439 $ 23,690 $ 9,159 Nonperforming 3,817 519 447 135 5 Total loans $ 843,561 $ 142,471 $ 234,886 $ 23,825 $ 9,164 Residential Real Estate Consumer December 31, 2022 1-4 Family Residential Home Equity Lines of Credit Indirect Direct Other Performing $ 472,335 $ 131,416 $ 204,248 $ 16,266 $ 7,712 Nonperforming 3,013 793 375 191 2 Total loans $ 475,348 $ 132,209 $ 204,623 $ 16,457 $ 7,714 |
Risk Categories and Year of Origination | The following table presents total loans by risk categories and year of origination. Term Loans Amortized Cost Basis by Origination Year As of December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 176,071 $ 250,364 $ 202,288 $ 128,800 $ 138,444 $ 338,829 $ 14,741 $ 1,249,537 Special mention 0 293 12,156 8,779 6,565 9,773 0 37,566 Substandard 0 0 3,972 18,232 3,982 20,627 684 47,497 Total commercial real estate loans $ 176,071 $ 250,657 $ 218,416 $ 155,811 $ 148,991 $ 369,229 $ 15,425 $ 1,334,600 Commercial real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 145 $ 204 $ 0 $ 349 Commercial and industrial Risk Rating Pass $ 90,807 $ 85,255 $ 40,444 $ 21,794 $ 9,736 $ 23,030 $ 63,698 $ 334,764 Special mention 0 141 355 21 0 0 129 646 Substandard 195 3,551 980 404 1,077 699 5,503 12,409 Total commercial loans $ 91,002 $ 88,947 $ 41,779 $ 22,219 $ 10,813 $ 23,729 $ 69,330 $ 347,819 Commercial and industrial current period gross write-offs $ 0 $ 178 $ 579 $ 11 $ 16 $ 394 $ 0 $ 1,178 Agricultural Risk Rating Pass $ 36,314 $ 57,469 $ 29,807 $ 37,620 $ 20,020 $ 61,033 $ 16,483 $ 258,746 Special mention 0 0 0 0 0 0 17 17 Substandard 0 33 448 225 50 2,282 0 3,038 Total agricultural loans $ 36,314 $ 57,502 $ 30,255 $ 37,845 $ 20,070 $ 63,315 $ 16,500 $ 261,801 Agricultural current period gross write-offs $ 0 $ 15 $ 70 $ 3 $ 0 $ 6 $ 0 $ 94 Residential real estate Risk Rating Pass $ 63,365 $ 171,587 $ 164,271 $ 132,022 $ 49,035 $ 245,980 $ 3,652 $ 829,912 Special mention 0 229 0 66 107 1,655 0 2,057 Substandard 37 104 510 2,546 353 8,042 0 11,592 Total residential real estate loans $ 63,402 $ 171,920 $ 164,781 $ 134,634 $ 49,495 $ 255,677 $ 3,652 $ 843,561 Residential real estate current period gross write-offs $ 52 $ 0 $ 49 $ 130 $ 0 $ 129 $ 0 $ 360 Home equity lines of credit Risk Rating Pass $ 0 $ 19 $ 14 $ 44 $ 7 $ 1,911 $ 138,356 $ 140,351 Special mention 0 0 0 0 0 0 0 0 Substandard 0 26 13 82 44 1,856 99 2,120 Total home equity lines of credit $ 0 $ 45 $ 27 $ 126 $ 51 $ 3,767 $ 138,455 $ 142,471 Home equity lines of credit current period gross write-offs $ 0 $ 0 $ 0 $ 8 $ 0 $ 16 $ 0 $ 24 Consumer Risk Rating Pass $ 77,977 $ 75,517 $ 34,754 $ 22,580 $ 12,344 $ 34,840 $ 9,002 $ 267,014 Substandard 54 125 175 188 133 186 0 861 Total consumer loans $ 78,031 $ 75,642 $ 34,929 $ 22,768 $ 12,477 $ 35,026 $ 9,002 $ 267,875 Consumer current period gross write-offs $ 44 $ 176 $ 93 $ 86 $ 32 $ 352 $ 149 $ 932 Term Loans Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 188,240 $ 174,841 $ 120,883 $ 138,342 $ 89,769 $ 256,103 $ 17,286 $ 985,464 Special mention 0 711 1,861 5,286 624 18,252 0 26,734 Substandard 0 18 256 1,968 267 10,952 1,163 14,624 Total commercial real estate loans $ 188,240 $ 175,570 $ 123,000 $ 145,596 $ 90,660 $ 285,307 $ 18,449 $ 1,026,822 Commercial Risk Rating Pass $ 100,368 $ 45,872 $ 34,110 $ 16,854 $ 13,574 $ 14,664 $ 56,970 $ 282,412 Special mention 0 197 0 0 0 0 580 777 Substandard 3,642 1,331 356 152 110 1,761 3,865 11,217 Total commercial loans $ 104,010 $ 47,400 $ 34,466 $ 17,006 $ 13,684 $ 16,425 $ 61,415 $ 294,406 Agricultural Risk Rating Pass $ 51,096 $ 36,376 $ 44,133 $ 23,661 $ 24,003 $ 45,490 $ 19,300 $ 244,059 Special mention 0 0 0 0 0 0 250 250 Substandard 0 379 235 72 0 2,146 30 2,862 Total agricultural loans $ 51,096 $ 36,755 $ 44,368 $ 23,733 $ 24,003 $ 47,636 $ 19,580 $ 247,171 Residential real estate Risk Rating Pass $ 83,951 $ 112,463 $ 76,095 $ 31,404 $ 22,918 $ 135,757 $ 3,956 $ 466,544 Special mention 0 0 70 118 76 93 0 357 Substandard 0 136 249 121 9 7,932 0 8,447 Total residential real estate loans $ 83,951 $ 112,599 $ 76,414 $ 31,643 $ 23,003 $ 143,782 $ 3,956 $ 475,348 Home equity lines of credit Risk Rating Pass $ 0 $ 10 $ 0 $ 0 $ 16 $ 1,394 $ 128,622 $ 130,042 Special mention 0 0 0 0 0 0 49 49 Substandard 0 13 137 20 0 1,848 100 2,118 Total home equity lines of credit $ 0 $ 23 $ 137 $ 20 $ 16 $ 3,242 $ 128,771 $ 132,209 Consumer Risk Rating Pass $ 98,530 $ 46,945 $ 32,284 $ 20,849 $ 10,918 $ 10,942 $ 7,302 $ 227,770 Special mention 0 0 0 0 0 0 0 0 Substandard 102 113 267 230 109 202 1 1,024 Total consumer loans $ 98,632 $ 47,058 $ 32,551 $ 21,079 $ 11,027 $ 11,144 $ 7,303 $ 228,794 |
Summary of Loan Pools and Methodology Used in Calculation of Allowance for Credit Losses | The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2023. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family Residential Real Estate - 1st Liens Cohort Credit Loss History 1-4 Family Residential Real Estate - 2nd Liens Cohort Credit Loss History Home Equity Lines of Credit Home Equity Lines of Credit Cohort Credit Loss History Consumer Finance Cash Reserves Cohort Credit Loss History Direct Cohort Credit Loss History Indirect Cohort Credit Loss History Commercial Commercial and Industrial PD/LGD Credit Loss History Agricultural PD/LGD Credit Loss History Municipal PD/LGD Credit Loss History Commercial real estate Owner Occupied PD/LGD Credit Loss History Non-Owner Occupied PD/LGD Credit Loss History Multifamily PD/LGD Credit Loss History Farmland PD/LGD Credit Loss History Construction PD/LGD Credit Loss History |
Schedule of Par Value of Purchased Loans | 2023 Par value of acquired loans at acquisition $ 797,616 Net purchase discount ( 55,958 ) Allowance for credit losses of PCD loans ( 999 ) Purchase price of loans at acquisition $ 740,659 |
Schedule of Outstanding Balance and Related Allowance on Loans | The outstanding balance at December 31, 2023 and related allowance on PCD loans is as follows (in thousands): Loan Balance ACL Balance Commercial real estate Owner Occupied $ 430 $ 19 Non-owner Occupied 30,653 914 Farmland 9 0 Commercial Commercial and industrial 2,229 158 Agricultural 149 9 Residential real estate 1-4 family residential 1,211 7 Home equity lines of credit 3 0 Total $ 34,684 $ 1,107 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Noninterest Income by Revenue Stream and Reportable Segment, Net of Eliminations | All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. ASC 606 rules govern the disclosure of revenue tied to contracts. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the years ended December 31, 2023, 2022 and 2021. Items outside the scope of ASC 606 are noted as such. (In Thousands of Dollars) Trust Bank Totals December 31, 2023 Service charges on deposit accounts $ 0 $ 6,322 $ 6,322 Debit card and EFT fees 0 7,059 7,059 Trust fees 10,108 0 10,108 Insurance agency commissions 0 5,444 5,444 Retirement plan consulting fees 1,406 0 1,406 Investment commissions 0 1,978 1,978 Other (outside the scope of ASC 606) 0 9,544 9,544 Total noninterest income $ 11,514 $ 30,347 $ 41,861 (In Thousands of Dollars) Trust Bank Totals December 31, 2022 Service charges on deposit accounts $ 0 $ 4,716 $ 4,716 Debit card and EFT fees 0 5,814 5,814 Trust fees 9,638 0 9,638 Insurance agency commissions 0 4,402 4,402 Retirement plan consulting fees 1,389 0 1,389 Investment commissions 0 2,183 2,183 Other (outside the scope of ASC 606) 8,375 7,685 16,060 Total noninterest income $ 19,402 $ 24,800 $ 44,202 (In Thousands of Dollars) Trust Bank Totals December 31, 2021 Service charges on deposit accounts $ 0 $ 3,660 $ 3,660 Debit card and EFT fees 0 5,144 5,144 Trust fees 9,438 0 9,438 Insurance agency commissions 0 3,456 3,456 Retirement plan consulting fees 1,421 0 1,421 Investment commissions 0 2,276 2,276 Other 0 12,798 12,798 Total noninterest income $ 10,859 $ 27,334 $ 38,193 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Principal Balance for Mortgage Loans | The principal balances of these loans at year-end are as follows: 2023 2022 Mortgage loan portfolios serviced for: FHLMC $ 544,140 $ 532,868 FHLB Pittsburgh 28,405 0 Ending balance $ 572,545 $ 532,868 |
Summary of Activity for Mortgage Servicing Rights | Activity for mortgage servicing rights for years ended December 31, 2023, 2022 and 2021 are as follows: 2023 2022 2021 Servicing rights: Beginning balance $ 3,331 $ 3,403 $ 3,198 Additions 588 960 1,556 Acquired in merger 305 0 0 Amortization to expense ( 735 ) ( 1,015 ) ( 1,351 ) Total servicing rights before valuation allowance $ 3,489 $ 3,348 $ 3,403 Change in valuation allowance ( 37 ) ( 17 ) 0 Ending balance $ 3,452 $ 3,331 $ 3,403 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at December 31, 2023 Using: Carrying Quoted Prices Significant Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 127,955 $ 0 127,955 $ 0 State and political subdivisions 556,169 0 556,169 0 Corporate bonds 18,275 0 16,935 1,340 Mortgage-backed securities-residential 520,386 0 520,386 0 Collateralized mortgage obligations 73,999 0 73,999 0 Small Business Administration 2,917 0 2,917 0 Total investment securities $ 1,299,701 $ 0 $ 1,298,361 $ 1,340 Equity securities $ 226 $ 226 $ 0 $ 0 Loans held for sale 3,711 0 3,711 0 Interest rate swaps 4,191 0 4,191 0 Interest rate lock commitments 109 0 109 0 Financial Liabilities Interest rate swaps $ 4,191 $ 0 $ 4,191 $ 0 Fair value hedge derivative 836 0 836 0 Mortgage banking derivative 14 0 14 0 Fair Value Measurements at December 31, 2022 Using: Carrying Quoted Prices Significant Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 128,096 $ 0 $ 128,096 $ 0 State and political subdivisions 530,080 0 530,080 0 Corporate bonds 3,879 0 3,879 0 Mortgage-backed securities-residential 555,142 0 555,141 1 Collateralized mortgage obligations 47,354 0 47,354 0 Small Business Administration 3,474 0 3,474 0 Equity securities Equity securities at fair value 196 196 0 0 Other equity investments measured at net asset value 15,048 n/a n/a n/a Total investment securities $ 1,283,269 $ 196 $ 1,268,024 $ 1 Loans held for sale $ 858 $ 0 $ 858 $ 0 Interest rate swaps 5,503 0 5,503 0 Mortgage banking derivative 31 0 31 0 Financial Liabilities Interest rate swaps $ 5,503 $ 0 $ 5,503 $ 0 |
Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31: Investment Securities Available-for-sale (Level 3) 2023 2022 2021 Beginning Balance $ 1 $ 3 $ 4 Transfers between levels 0 0 0 Acquired and/or purchased 1,600 0 0 Discount accretion (premium amortization) 48 0 0 Repayments, calls and maturities ( 401 ) ( 2 ) ( 1 ) Changes to unrealized gains (losses) 92 0 0 Ending Balance $ 1,340 $ 1 $ 3 |
Assets Measured at Fair Value on Non-Recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2023 Using: Carrying Quoted Prices Significant Significant Financial Assets Individually Evaluated loans Commercial real estate Non-Owner occupied $ 838 $ 0 $ 0 $ 838 Commercial 267 0 0 267 1–4 family residential 1,547 0 0 1,547 Mortgage servicing rights 210 0 0 210 Fair Value Measurements at December 31, 2022 Using: Carrying Quoted Prices Significant Significant Financial Assets Individually Evaluated loans Commercial real estate Non-Owner occupied $ 746 $ 0 $ 0 $ 746 Commercial 395 0 0 395 1–4 family residential 74 0 0 74 |
Fair Value Measurements for Financial Instruments | The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at year ended 2023 and 2022: December 31, 2023 Fair value Valuation Unobservable Range Individually Evaluated Commercial real estate $ 838 Income approach Adjustment for difference between cap rates of comparable sales ( 49.65 %) - 46.77 % 16.63 %) Commercial 267 Quoted price for collateral Offer price 64.38 % Residential 1,547 Sales comparison Adjustment for differences between comparable sales ( 5.39 %) - ( 2.11 %) 2.67 %) December 31, 2022 Fair value Valuation Unobservable Range Individually Evaluated Commercial real estate $ 746 Quoted price for collateral Offer price 7.45 % Commercial 395 Quoted price for collateral Offer price 43.00 % Residential 74 Sales comparison Adjustment for differences between comparable sales ( 13.77 %) - ( 5.68 %) 13.77 %) |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not previously presented, at December 31, 2023 and December 31, 2022 are as follows: Fair Value Measurements at December 31, 2023 Using: Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 103,658 $ 28,896 $ 74,762 $ 0 $ 103,658 Regulatory stock 20,197 n/a n/a n/a n/a Loans, net 3,163,687 0 0 3,015,732 3,015,732 Financial liabilities Deposits 4,177,386 3,452,104 719,497 0 4,171,601 Short-term borrowings 355,000 0 355,000 0 355,000 Long-term borrowings 88,663 0 70,893 0 70,893 Fair Value Measurements at December 31, 2022 Using: Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 75,551 $ 21,395 $ 54,156 $ 0 $ 75,551 Regulatory stock 18,200 n/a n/a n/a n/a Loans, net 2,377,772 0 0 2,330,164 2,330,164 Financial liabilities Deposits 3,561,768 2,999,188 561,292 0 3,560,480 Short-term borrowings 95,000 0 95,000 0 95,000 Long-term borrowings 88,211 0 73,566 0 73,566 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Year-end premises and equipment owned and utilized in the operations of the Company were as follows: 2023 2022 Land $ 10,134 $ 6,200 Buildings 40,291 30,296 Furniture, fixtures and equipment 20,281 18,474 Leasehold Improvements 3,440 1,347 74,146 56,317 Less accumulated depreciation ( 29,782 ) ( 25,553 ) Net book value $ 44,364 $ 30,764 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows as of December 31, 2023: 2024 $ 1,175 2025 1,092 2026 975 2027 898 2028 917 Thereafter 5,659 Total Payments 10,716 Less: Imputed Interest ( 1,738 ) Total $ 8,978 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Acquired intangible assets were as follows: 2023 2022 Gross Accumulated Gross Accumulated Other intangible: Customer relationship intangibles $ 7,210 $ ( 6,953 ) $ 7,210 $ ( 6,793 ) Non-compete contracts 457 ( 413 ) 457 ( 401 ) Trade Name 1,126 ( 440 ) 1,126 ( 409 ) Core deposit intangible 32,115 ( 10,260 ) 12,866 ( 7,030 ) Total $ 40,908 $ ( 18,066 ) $ 21,659 $ ( 14,633 ) |
Estimated Amortization Expense | Estimated amortization expense for each of the next five years and thereafter: 2024 $ 2,872 2025 2,806 2026 2,710 2027 2,596 2028 2,586 Thereafter 9,272 Total $ 22,842 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Year-end deposits | Following is a summary of year-end deposits: 2023 2022 Noninterest-bearing demand $ 1,026,630 $ 896,957 Interest-bearing demand 1,362,609 1,224,884 Money market 593,975 435,369 Savings 468,890 441,978 Brokered time deposits 0 138,051 Certificates of deposit 725,282 424,529 Total $ 4,177,386 $ 3,561,768 |
Summary of Scheduled Maturities of Brokered Deposits and Certifcates of Deposit | Following is a summary of scheduled maturities of brokered deposits and certificates of deposit during the years following December 31, 2023: 2024 $ 656,154 2025 32,302 2026 20,007 2027 5,569 2028 4,302 Thereafter 6,948 Total $ 725,282 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of All Junior Subordinated Debentures and Subordinated Debentures | Balances were as follows at December 31, 2023 and 2022: 2023 2022 Amount Amount TSEO Statutory Trust I $ 2,521 $ 2,472 Maple Leaf Financial Statutory Trust II 7,740 7,517 Cortland Statutory Trust I 4,382 4,327 Total junior subordinated debentures owed to unconsolidated subsidiary trusts $ 14,643 $ 14,316 Subordinated debentures 74,020 73,895 Total long-term borrowings $ 88,663 $ 88,211 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
The Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk at Year End | The contractual amounts of financial instruments with off-balance-sheet risk at year-end were as follows: 2023 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments and unused lines of credit $ 150,697 $ 647,843 $ 111,889 $ 513,614 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Award Activity under Plan | The following is the activity under the Plan during 2023: Maximum Weighted Maximum Weighted Beginning balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 Granted 105,891 10.63 102,750 14.16 Vested ( 41,401 ) 12.78 ( 30,635 ) 14.35 Forfeited ( 3,729 ) 14.65 0 0.00 Ending balance - non-vested shares 253,776 $ 14.97 209,484 $ 15.01 The following is the activity under the Plan during 2022: Maximum Weighted Maximum Weighted Beginning balance - non-vested shares 99,564 $ 16.13 158,988 $ 14.40 Granted 132,268 16.63 56,724 17.25 Vested ( 35,817 ) 15.79 ( 65,481 ) 17.48 Forfeited ( 3,000 ) 13.68 ( 12,862 ) 14.74 Ending balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts (Not Including Capital Conservation Buffer) and Ratios | Actual and required capital amounts (not including the capital conservation buffer) and ratios are presented below at year-end Actual Requirement For Capital To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio 2023 Common equity tier 1 capital ratio Consolidated $ 392,244 10.61 % $ 166,303 4.5 % N/A N/A Bank 411,304 11.15 % 165,996 4.5 % 239,772 6.5 % Total risk based capital ratio Consolidated 519,684 14.06 % 295,650 8.0 % N/A N/A Bank 447,584 12.13 % 295,104 8.0 % 368,881 10.0 % Tier I risk based capital ratio Consolidated 410,244 11.10 % 221,737 6.0 % N/A N/A Bank 411,304 11.15 % 221,328 6.0 % 295,104 8.0 % Tier I leverage ratio Consolidated 410,244 8.02 % 204,598 4.0 % N/A N/A Bank 411,304 8.07 % 203,989 4.0 % 254,986 5.0 % 2022 Common equity tier 1 capital ratio Consolidated $ 403,307 13.71 % $ 132,349 4.5 % N/A N/A Bank 372,679 12.71 % 131,968 4.5 % 190,620 6.5 % Total risk based capital ratio Consolidated 523,285 17.79 % 235,288 8.0 % N/A N/A Bank 399,657 13.62 % 234,609 8.0 % 293,262 10.0 % Tier I risk based capital ratio Consolidated 421,307 14.32 % 176,466 6.0 % N/A N/A Bank 372,679 12.71 % 175,957 6.0 % 234,609 8.0 % Tier I leverage ratio Consolidated 421,307 9.84 % 171,233 4.0 % N/A N/A Bank 372,679 8.76 % 170,245 4.0 % 212,807 5.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes (Credit) | The provision for income taxes (credit) consists of the following: 2023 2022 2021 Current expense $ 9,230 $ 10,885 $ 10,794 Deferred expense (benefit) ( 464 ) 1,353 ( 524 ) Totals $ 8,766 $ 12,238 $ 10,270 |
Effective Tax Rates Differ from Federal Statutory Rate | Effective tax rates differ from the federal statutory rate of 21 % that were applied to income before income taxes due to the following: 2023 2022 2021 Statutory tax $ 12,327 $ 15,295 $ 13,026 Effect of nontaxable interest ( 2,040 ) ( 2,591 ) ( 2,274 ) Bank owned life insurance, net ( 513 ) ( 380 ) ( 273 ) Tax credit investments ( 366 ) ( 194 ) ( 200 ) Effect of nontaxable insurance premiums ( 404 ) ( 318 ) ( 322 ) Stock compensation 41 ( 63 ) ( 9 ) Other ( 279 ) 489 322 Actual tax $ 8,766 $ 12,238 $ 10,270 |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) are comprised of the following: 2023 2022 Deferred tax assets: Allowance for credit losses $ 7,235 $ 5,665 Net unrealized loss on securities available for sale 45,599 55,962 Net unrealized loss on swap derivative 269 0 Basis in investment securities 6,976 0 Purchase accounting adjustments 4,147 0 Deferred and accrued compensation 2,060 1,748 Deferred loan fees and costs 0 275 Nonaccrual loan interest income 659 648 Restricted stock 795 501 Lease liabilities 2,164 1,841 Other 198 0 Gross deferred tax assets $ 70,102 $ 66,640 Deferred tax liabilities: Depreciation and amortization $ ( 1,701 ) $ ( 1,485 ) Federal Home Loan Bank dividends 0 ( 904 ) Purchase accounting adjustments 0 ( 1,862 ) Mortgage servicing rights ( 725 ) ( 700 ) Prepaid expenses ( 41 ) ( 365 ) Lease right of use asset ( 2,116 ) ( 1,766 ) Other 0 ( 234 ) Gross deferred tax liabilities ( 4,583 ) ( 7,316 ) Net deferred tax asset $ 65,519 $ 59,324 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2023 and 2022. Net unrealized holding gains (losses) on available for sale securities Reclassification adjustment for (gains) losses realized in income on fair value hedge Change in funded status of post-retirement plan Total December 31, 2023 Beginning balance $ ( 210,489 ) $ 0 $ ( 1 ) $ ( 210,490 ) Other comprehensive income (loss) before reclassification 38,557 0 ( 1 ) 38,556 Amounts reclassified from accumulated other comprehensive income (loss) 393 ( 1,013 ) 0 ( 620 ) Net current period other comprehensive income (loss) 38,950 ( 1,013 ) ( 1 ) 37,936 Ending balance $ ( 171,539 ) $ ( 1,013 ) $ ( 2 ) $ ( 172,554 ) December 31, 2022 Beginning balance $ 9,293 $ 0 $ 2 $ 9,295 Other comprehensive (loss) before reclassification ( 220,110 ) 0 ( 3 ) ( 220,113 ) Amounts reclassified from accumulated other comprehensive income 328 0 0 328 Net current period other comprehensive (loss) ( 219,782 ) 0 ( 3 ) ( 219,785 ) Ending balance $ ( 210,489 ) $ 0 $ ( 1 ) $ ( 210,490 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Loans to Principal Officers, Directors, and Their Affiliates | Loans to principal officers, directors, and their affiliates during 2023 and 2022 were as follows: 2023 2022 Beginning balance $ 10,491 $ 11,074 New loans 4,404 983 Repayments ( 1,941 ) ( 1,566 ) Ending balance $ 12,954 $ 10,491 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The factors used in the earnings per share computation follow: 2023 2022 2021 Basic EPS Net income $ 49,932 $ 60,597 $ 51,844 Weighted average shares outstanding 37,384,122 33,844,945 29,167,357 Basic earnings per share $ 1.34 $ 1.79 $ 1.78 Diluted EPS Net income $ 49,932 $ 60,597 $ 51,844 Weighted average shares for basic earnings per share 37,384,122 33,844,945 29,167,357 Average unvested restricted stock awards 114,147 83,994 112,430 Weighted average shares for diluted earnings per share 37,498,269 33,928,939 29,279,787 Diluted earnings per share $ 1.33 $ 1.79 $ 1.77 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the Interest Rate Swap Designated as a Fair Value Hedge | A summary of the interest rate swap designated as a fair value hedge is presented below: December 31, 2023 Notional amount fair value hedge $ 100,000 Fixed pay rates 4.35 % Variable SOFR receive rates 5.38 % Remaining maturity (in years) 2.6 Fair value $ ( 836 ) |
Summary of Non-Designated Derivative Instruments used for Risk Management | The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the years ended December 31: 2023 2022 2021 Forward sales contracts $ ( 45 ) $ 362 $ 0 Interest rate lock commitments 87 21 423 |
Summary of Fair Value of Derivatives in Consolidated Balance Sheets | The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as on December 31: 2023 2022 Notional Fair Notional Fair Amount Value Amount Value Included in other assets: Forward sales contracts $ 0 $ 0 $ 4,300 $ 30 Interest rate lock commitments 7,400 109 4,900 21 Total included in other assets $ 7,400 $ 109 $ 9,200 $ 51 Included in other liabilities: Forward sales contracts $ 3,300 $ ( 14 ) $ 0 $ 0 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Significant segment totals are reconciled to the financial statements as follows: December 31, 2023 Trust Bank Eliminations Consolidated Assets Goodwill and other intangibles $ 5,680 $ 188,871 $ ( 4,263 ) $ 190,288 Total assets $ 15,845 $ 5,065,150 $ ( 2,645 ) $ 5,078,350 December 31, 2022 Trust Bank Eliminations Consolidated Goodwill and other intangibles $ 5,739 $ 100,190 $ ( 4,263 ) $ 101,666 Total assets $ 14,383 $ 4,064,112 $ 3,705 $ 4,082,200 For year ended 2023 Trust Bank Eliminations Consolidated Net interest income $ 257 $ 141,444 $ ( 3,915 ) $ 137,786 Provision for credit losses and unfunded loans 0 9,153 0 9,153 Service fees, security gains and other 11,615 31,434 ( 1,188 ) 41,861 Noninterest expense 7,122 96,705 642 104,469 Amortization and depreciation expense 90 6,786 451 7,327 Income before taxes 4,660 60,234 ( 6,196 ) 58,698 Income tax 980 9,386 ( 1,600 ) 8,766 Net Income $ 3,680 $ 50,848 $ ( 4,596 ) $ 49,932 For year ended 2022 Trust Bank Eliminations Consolidated Net interest income $ 172 $ 127,353 $ ( 3,359 ) $ 124,166 Provision for loan losses and unfunded loans 0 1,122 0 1,122 Service fees, security gains and other 19,535 25,304 ( 637 ) 44,202 Noninterest expense 8,635 79,987 890 89,512 Amortization and depreciation expense 110 4,336 453 4,899 Income before taxes 10,962 67,212 ( 5,339 ) 72,835 Income tax 2,301 11,277 ( 1,340 ) 12,238 Net Income $ 8,661 $ 55,935 $ ( 3,999 ) $ 60,597 For year ended 2021 Trust Bank Eliminations Consolidated Net interest income $ 134 $ 108,726 $ ( 870 ) $ 107,990 Provision for loan losses and unfunded loans 0 4,893 0 4,893 Service fees, security gains and other 11,045 27,347 ( 199 ) 38,193 Noninterest expense 6,854 68,194 589 75,637 Amortization and depreciation expense 262 2,931 346 3,539 Income before taxes 4,063 60,055 ( 2,004 ) 62,114 Income tax 852 10,023 ( 605 ) 10,270 Net Income $ 3,211 $ 50,032 $ ( 1,399 ) $ 51,844 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Parent Company Only Condensed Financial Information | Below is condensed financial information of Farmers National Banc Corp. (parent company only). This information should be read in conjunction with the consolidated financial statements and related notes. December 31, 2023 2022 BALANCE SHEETS Assets: Cash $ 57,071 $ 104,497 Investment in subsidiaries Bank 424,393 261,631 Farmers Trust 13,431 13,598 Captive 0 2,722 Other investments 424 600 Total assets $ 495,319 $ 383,048 Liabilities: Other liabilities $ 2,241 $ 2,542 Subordinated debt 88,663 88,211 Total liabilities 90,904 90,753 Total stockholders' equity 404,415 292,295 Total liabilities and stockholders' equity $ 495,319 $ 383,048 STATEMENTS OF INCOME Years ended December 31, 2023 2022 2021 Income: Dividends from subsidiaries Bank $ 20,000 $ 30,000 $ 45,620 Farmers Trust 4,000 8,000 2,800 Captive Insurance 0 1,400 1,135 Interest and dividends on securities 44 0 11 Security gains/(losses) 0 0 130 Total Income 24,044 39,400 49,696 Interest on borrowings 4,086 3,428 918 Other expenses 4,109 3,451 2,792 Income before income tax benefit and undistributed 15,849 32,521 45,986 Income tax benefit 1,624 1,345 611 Equity in undistributed net income of subsidiaries Bank 30,848 25,935 4,412 Farmers Trust ( 320 ) 662 412 Captive 1,931 134 423 Net Income $ 49,932 $ 60,597 $ 51,844 Comprehensive Income $ 87,868 $ ( 159,188 ) $ 39,107 STATEMENTS OF CASH FLOWS Years ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 49,932 $ 60,597 $ 51,844 Adjustments to reconcile net income to net cash from Dividends in excess of net income (Equity in ( 32,459 ) ( 26,731 ) ( 5,247 ) Other 5,481 559 6,846 Net cash from operating activities 22,954 34,425 53,443 Cash flows from investing activities: Net cash paid in business combinations ( 33,440 ) 0 ( 29,618 ) Net cash from investing activities ( 33,440 ) 0 ( 29,618 ) Cash flows from financing activities: Proceeds from long term borrowings 0 0 73,749 Repurchase of common shares ( 11,544 ) 0 ( 164 ) Cash dividends paid ( 25,396 ) ( 22,004 ) ( 14,072 ) Net cash from financing activities ( 36,940 ) ( 22,004 ) 59,513 Net change in cash and cash equivalents ( 47,426 ) 12,421 83,338 Beginning cash and cash equivalents 104,497 92,076 8,738 Ending cash and cash equivalents $ 57,071 $ 104,497 $ 92,076 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) County_Economy Location | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Number of locations served by bank | Location | 64 | ||
Purchased and sold period of federal fund | 1 day | ||
Delinquent period of principal or interest payment on debt security become non-accrual status | 90 days | ||
Delinquent period of loans after which interest income is discontinued | 90 days | ||
Number of county economy from which credit risk exposure effected | County_Economy | 11 | ||
Percentage of portfolio loans secured by real estate | 68.20% | ||
Fair value of mortgage servicing rights | $ 5,390 | $ 5,280 | |
Valuation allowance against servicing assets | 37 | 17 | $ 0 |
Other real estate owned properties | 92 | 0 | |
Restricted stock | $ 20,200 | 18,200 | |
Recognized tax amount | 50% | ||
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 250 | ||
ASU 2016-13 | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
ASU 2022-02 | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 | ||
Minimum | Allowance For Credit Loss | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Loan balances | $ 500 | ||
Minimum | Allowance For Credit Loss | Consumer | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Loan balances | $ 250 | ||
Minimum | Core Deposits | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Intangible assets amortized period | 7 years | ||
Minimum | Customer Relationships | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Intangible assets amortized period | 13 years | ||
Maximum | Core Deposits | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Intangible assets amortized period | 8 years | ||
Maximum | Customer Relationships | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Intangible assets amortized period | 15 years | ||
Buildings | Minimum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Range of buildings and furniture depreciated | 5 years | ||
Buildings | Maximum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Range of buildings and furniture depreciated | 40 years | ||
Furniture Fixtures and Equipment | Minimum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Range of buildings and furniture depreciated | 3 years | ||
Furniture Fixtures and Equipment | Maximum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Range of buildings and furniture depreciated | 10 years | ||
Mortgage Servicing Rights | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Valuation allowance against servicing assets | $ 54 | $ 17 |
Business Combinations (Details
Business Combinations (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2023 | Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 01, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 167,446 | $ 94,640 | |||
Randy L. Jones Agency, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business combination, date of acquisition | Jul. 01, 2022 | ||||
Business combination, assets acquired | $ 900 | ||||
Business combination, intangible assets acquired | 633 | ||||
Goodwill | $ 267 | ||||
Cortland Bank | |||||
Business Acquisition [Line Items] | |||||
Nonrecurring merger costs | $ 4,400 | ||||
Emclaire Financial Corp | |||||
Business Acquisition [Line Items] | |||||
Business combination, assets acquired | $ 977,621 | ||||
Business acquisition, date of merger agreement | Jan. 01, 2023 | ||||
Cash consideration per share | $ 14.12 | ||||
Maximum percentage of common shares exchanged for company shares under merger agreement | 70% | ||||
Remaining percentage of common shares exchanged for company cash under merger agreement | 30% | ||||
Value of stock issued for acquisition | $ 33,440 | ||||
Fair value of total consideration transferred | 92,642 | $ 92,600 | |||
Merger related costs | $ 5,500 | $ 2,000 | |||
Goodwill | $ 72,938 | $ 72,900 | |||
Emclaire Financial Corp | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Cash consideration per share | $ 40 | ||||
Shares of stock issued for acquisition | 2.15 | 4,200,000 | |||
Value of stock issued for acquisition | $ 33,400 | ||||
PCD Loans | |||||
Business Acquisition [Line Items] | |||||
Business combination acquired receivables with fair value | $ 714,400 | ||||
Business combination acquired loans with gross contractual amounts receivable | $ 764,800 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Nov. 01, 2021 | |
Fair value of liabilities assumed | ||||
Goodwill created | $ 94,640 | $ 167,446 | ||
Emclaire Financial Corp | ||||
Consideration | ||||
Cash | $ 33,440 | |||
Stock | 59,202 | |||
Fair value of total consideration transferred | 92,642 | $ 92,600 | ||
Fair value of assets acquired | ||||
Cash and cash equivalents | 20,265 | |||
Securities available for sale | 126,970 | |||
Other investments | 7,795 | |||
Loans, net | 740,659 | |||
Premises and equipment | 14,808 | |||
Bank owned life insurance | 22,485 | |||
Core deposit intangible | 19,249 | |||
Current and deferred taxes | 17,708 | |||
Other assets | 7,682 | |||
Total assets acquired | 977,621 | |||
Fair value of liabilities assumed | ||||
Deposits | 875,813 | |||
Short-term borrowings | 75,000 | |||
Accrued interest payable and other liabilities | 7,104 | |||
Total liabilities | 957,917 | |||
Net assets acquired | 19,704 | |||
Goodwill created | 72,938 | $ 72,900 | ||
Total net assets acquired | $ 92,642 |
Business Combinations (Detail_2
Business Combinations (Details 1) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares | |
Business Combinations [Abstract] | |
Net interest income | $ 168,692 |
Provision for credit losses | 17,246 |
Noninterest income | 47,206 |
Noninterest expense | 137,930 |
Income before income taxes | 60,722 |
Income tax expense | 10,007 |
Net income | $ 50,715 |
Basic earnings per share | $ / shares | $ 1.34 |
Diluted earnings per share | $ / shares | $ 1.33 |
Securities Available for Sale_2
Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 1,516,841 | $ 1,534,512 |
Gross Unrealized Gains | 5,424 | 278 |
Gross Unrealized Losses | (222,564) | (266,765) |
Fair Value | 1,299,701 | 1,268,025 |
U.S. Treasury and U.S. government sponsored entities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 145,439 | 149,712 |
Gross Unrealized Gains | 113 | 0 |
Gross Unrealized Losses | (17,597) | (21,616) |
Fair Value | 127,955 | 128,096 |
State and political subdivisions | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 644,880 | 651,705 |
Gross Unrealized Gains | 4,792 | 266 |
Gross Unrealized Losses | (93,503) | (121,891) |
Fair Value | 556,169 | 530,080 |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 18,554 | 4,181 |
Gross Unrealized Gains | 187 | 0 |
Gross Unrealized Losses | (466) | (302) |
Fair Value | 18,275 | 3,879 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 624,529 | 672,784 |
Gross Unrealized Gains | 1 | 12 |
Gross Unrealized Losses | (104,144) | (117,654) |
Fair Value | 520,386 | 555,142 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 80,227 | 52,291 |
Gross Unrealized Gains | 331 | 0 |
Gross Unrealized Losses | (6,559) | (4,937) |
Fair Value | 73,999 | 47,354 |
Small Business Administration | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 3,212 | 3,839 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (295) | (365) |
Fair Value | $ 2,917 | $ 3,474 |
Securities Available for Sale_3
Securities Available for Sale (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Proceeds from sales of available-for-sale securities and the associated gains and losses | |||
Proceeds | $ 85,306 | $ 37,190 | $ 35,175 |
Gross gains | 441 | 6 | 863 |
Gross losses | $ (939) | $ (421) | $ (25) |
Securities Available for Sale_4
Securities Available for Sale (Details Textual) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Securities | Dec. 31, 2022 USD ($) Securities | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | |||
Tax provision related to net realized gain | $ (105,000) | $ (87,000) | $ 176,000 |
Pledged to secure public deposits and repurchase agreements and Pledge to qualify carrying amount of securities | $ 1,100,000,000 | $ 479,000,000 | |
Number of securities not more than 10% of stockholder equities | Securities | 0 | 0 | |
Number of securities | Securities | 978 | ||
Number of securities on unrealized loss position | Securities | 743 | ||
Allowance for credit losses on available-for-sale securities | $ 0 | ||
Small Business Investment Company Partnership Investments | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Equity securities | 14,900,000 | $ 15,000,000 | |
Local and Regional Bank Holdings and Other Miscellaneous Equity Funds | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Equity securities | 226,000 | 196,000 | |
Farmers Trust Company | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Pledged to secure public deposits and repurchase agreements and Pledge to qualify carrying amount of securities | $ 117,000 | $ 100,000 |
Securities Available for Sale_5
Securities Available for Sale (Details 2) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost and fair value of the debt securities maturity | ||
Amortized Cost, Within one year | $ 600 | |
Amortized Cost, One to five years | 32,288 | |
Amortized Cost, Five to ten years | 186,137 | |
Amortized Cost, Beyond ten years | 589,848 | |
Amortized Cost, Mortgage-backed Securities, Collateralized Mortgage Obligations and Small Business Administration | 707,968 | |
Amortized Cost | 1,516,841 | $ 1,534,512 |
Fair Value, Within one year | 592 | |
Fair Value, One to five years | 30,039 | |
Fair Value, Five to ten years | 168,851 | |
Fair Value, Beyond ten years | 502,917 | |
Fair Value, Mortgage-backed Securities, Collateralized Mortgage Obligations and Small Business Administration | 597,302 | |
Fair Value, Total | $ 1,299,701 | $ 1,268,025 |
Securities Available for Sale_6
Securities Available for Sale (Details 3) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | $ 49,846 | $ 506,824 |
Unrealized Losses, Less Than 12 Months | (3,025) | (80,411) |
Fair Value, 12 Months or Longer | 1,116,642 | 728,881 |
Unrealized Losses, 12 Months or Longer | (219,539) | (186,354) |
Fair Value, Total | 1,166,488 | 1,235,705 |
Unrealized Losses, Total | (222,564) | (266,765) |
U.S. Treasury and U.S. government sponsored entities | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 399 | 52,311 |
Unrealized Losses, Less Than 12 Months | (1) | (5,835) |
Fair Value, 12 Months or Longer | 122,361 | 75,685 |
Unrealized Losses, 12 Months or Longer | (17,596) | (15,781) |
Fair Value, Total | 122,760 | 127,996 |
Unrealized Losses, Total | (17,597) | (21,616) |
State and political subdivisions | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 15,852 | 306,709 |
Unrealized Losses, Less Than 12 Months | (1,684) | (56,650) |
Fair Value, 12 Months or Longer | 428,416 | 191,584 |
Unrealized Losses, 12 Months or Longer | (91,819) | (65,241) |
Fair Value, Total | 444,268 | 498,293 |
Unrealized Losses, Total | (93,503) | (121,891) |
Corporate bonds | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 8,463 | 2,893 |
Unrealized Losses, Less Than 12 Months | (284) | (122) |
Fair Value, 12 Months or Longer | 3,881 | 986 |
Unrealized Losses, 12 Months or Longer | (182) | (180) |
Fair Value, Total | 12,344 | 3,879 |
Unrealized Losses, Total | (466) | (302) |
Mortgage-backed securities - residential | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 5,113 | 101,476 |
Unrealized Losses, Less Than 12 Months | (76) | (13,545) |
Fair Value, 12 Months or Longer | 515,259 | 453,233 |
Unrealized Losses, 12 Months or Longer | (104,068) | (104,109) |
Fair Value, Total | 520,372 | 554,709 |
Unrealized Losses, Total | (104,144) | (117,654) |
Collateralized mortgage obligations | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 20,019 | 42,140 |
Unrealized Losses, Less Than 12 Months | (980) | (4,137) |
Fair Value, 12 Months or Longer | 43,808 | 5,214 |
Unrealized Losses, 12 Months or Longer | (5,579) | (800) |
Fair Value, Total | 63,827 | 47,354 |
Unrealized Losses, Total | (6,559) | (4,937) |
Small Business Administration | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 0 | 1,295 |
Unrealized Losses, Less Than 12 Months | 0 | (122) |
Fair Value, 12 Months or Longer | 2,917 | 2,179 |
Unrealized Losses, 12 Months or Longer | (295) | (243) |
Fair Value, Total | 2,917 | 3,474 |
Unrealized Losses, Total | $ (295) | $ (365) |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of loan balances | ||||
Total loans | $ 3,163,687 | $ 2,377,772 | ||
Net deferred loan costs | 8,757 | 6,890 | ||
Allowance for credit losses | (34,440) | (26,978) | $ (29,386) | $ (22,144) |
Commercial real estate | ||||
Schedule of loan balances | ||||
Allowance for credit losses | (18,150) | (14,840) | (15,879) | (10,746) |
Commercial | ||||
Schedule of loan balances | ||||
Allowance for credit losses | (5,087) | (4,186) | (4,949) | (5,018) |
Residential real estate | ||||
Schedule of loan balances | ||||
Allowance for credit losses | (6,916) | (4,374) | (4,870) | (3,687) |
Consumer | ||||
Schedule of loan balances | ||||
Allowance for credit losses | (4,287) | (3,578) | $ (3,688) | $ (2,693) |
Originated Loans | ||||
Schedule of loan balances | ||||
Total loans | 3,189,370 | 2,397,860 | ||
Originated Loans | Commercial real estate, Owner occupied | Commercial real estate | ||||
Schedule of loan balances | ||||
Loan balances | 399,273 | 330,768 | ||
Originated Loans | Commercial real estate, Non-owner occupied | Commercial real estate | ||||
Schedule of loan balances | ||||
Loan balances | 712,315 | 563,652 | ||
Originated Loans | Commercial real estate, Farmland | Commercial real estate | ||||
Schedule of loan balances | ||||
Loan balances | 202,950 | 188,850 | ||
Originated Loans | Commercial real estate, Other | Commercial real estate | ||||
Schedule of loan balances | ||||
Loan balances | 224,218 | 133,630 | ||
Originated Loans | Commercial, Commercial and industrial | Commercial | ||||
Schedule of loan balances | ||||
Loan balances | 346,354 | 293,643 | ||
Originated Loans | Residential real estate, 1-4 family residential | Residential real estate | ||||
Schedule of loan balances | ||||
Loan balances | 843,697 | 475,791 | ||
Originated Loans | Commercial, Agricultural | Commercial | ||||
Schedule of loan balances | ||||
Loan balances | 58,338 | 58,087 | ||
Originated Loans | Residential real estate, Home equity lines of credit | Residential real estate | ||||
Schedule of loan balances | ||||
Loan balances | 142,441 | 132,179 | ||
Originated Loans | Consumer, Indirect | Consumer | ||||
Schedule of loan balances | ||||
Loan balances | 226,815 | 197,125 | ||
Originated Loans | Consumer, Direct | Consumer | ||||
Schedule of loan balances | ||||
Loan balances | 23,805 | 16,421 | ||
Originated Loans | Consumer, Other | Consumer | ||||
Schedule of loan balances | ||||
Loan balances | $ 9,164 | $ 7,714 |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | $ 26,978 | $ 29,386 | $ 22,144 |
Impact of CECL adoption | 2,160 | ||
Provision for credit losses | 8,718 | 250 | 4,649 |
PCD ACL on loans acquired | 999 | 1,295 | |
Loans charged off | (2,937) | (3,304) | (1,667) |
Recoveries | 682 | 646 | 805 |
Ending balance | 34,440 | 26,978 | 29,386 |
Commercial real estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 14,840 | 15,879 | 10,746 |
Impact of CECL adoption | (2,137) | ||
Provision for credit losses | 2,808 | (742) | 6,226 |
PCD ACL on loans acquired | 850 | 1,081 | |
Loans charged off | (349) | (300) | (70) |
Recoveries | 1 | 3 | 33 |
Ending balance | 18,150 | 14,840 | 15,879 |
Commercial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 4,186 | 4,949 | 5,018 |
Impact of CECL adoption | 259 | ||
Provision for credit losses | 1,931 | 1,204 | (349) |
PCD ACL on loans acquired | 138 | 210 | |
Loans charged off | (1,272) | (2,042) | (388) |
Recoveries | 104 | 75 | 199 |
Ending balance | 5,087 | 4,186 | 4,949 |
Residential real estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 4,374 | 4,870 | 3,687 |
Impact of CECL adoption | 193 | ||
Provision for credit losses | 2,834 | (493) | 1,121 |
PCD ACL on loans acquired | 11 | 4 | |
Loans charged off | (384) | (92) | (297) |
Recoveries | 81 | 89 | 162 |
Ending balance | 6,916 | 4,374 | 4,870 |
Consumer | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balance | 3,578 | 3,688 | 2,693 |
Impact of CECL adoption | 3,845 | ||
Provision for credit losses | 1,145 | 281 | (2,349) |
PCD ACL on loans acquired | 0 | 0 | |
Loans charged off | (932) | (870) | (912) |
Recoveries | 496 | 479 | 411 |
Ending balance | $ 4,287 | $ 3,578 | $ 3,688 |
Loans (Details 2)
Loans (Details 2) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | $ 5,052,000 | |
Nonaccrual with an allowance for credit loss | 7,728,000 | $ 14,311,000 |
Loans Past Due 90 Days or More Still Accruing | 655,000 | 492,000 |
Commercial real estate, Non-Owner occupied | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 1,630,000 | 0 |
Originated Loans | Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 1,804,000 | |
Nonaccrual with an allowance for credit loss | 830,000 | 993,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Non-Owner occupied | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 19,000 | |
Nonaccrual with an allowance for credit loss | 1,491,000 | 3,031,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 1,957,000 | |
Nonaccrual with an allowance for credit loss | 9,000 | 2,183,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Other | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 0 | |
Nonaccrual with an allowance for credit loss | 80,000 | 33,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | |
Originated Loans | Commercial, Commercial and industrial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 394,000 | |
Nonaccrual with an allowance for credit loss | 1,408,000 | 3,840,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | 50,000 |
Originated Loans | Commercial, Agricultural | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 203,000 | |
Nonaccrual with an allowance for credit loss | 317,000 | 299,000 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 348,000 | |
Nonaccrual with an allowance for credit loss | 3,009,000 | 2,703,000 |
Loans Past Due 90 Days or More Still Accruing | 460,000 | 310,000 |
Originated Loans | Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 240,000 | |
Nonaccrual with an allowance for credit loss | 210,000 | 735,000 |
Loans Past Due 90 Days or More Still Accruing | 69,000 | 58,000 |
Originated Loans | Consumer Indirect | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 22,000 | |
Nonaccrual with an allowance for credit loss | 300,000 | 313,000 |
Loans Past Due 90 Days or More Still Accruing | 125,000 | 62,000 |
Originated Loans | Consumer, Direct | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 65,000 | |
Nonaccrual with an allowance for credit loss | 69,000 | 179,000 |
Loans Past Due 90 Days or More Still Accruing | 1,000 | 12,000 |
Originated Loans | Consumer, Other | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 0 | |
Nonaccrual with an allowance for credit loss | 5,000 | 2,000 |
Loans Past Due 90 Days or More Still Accruing | $ 0 | $ 0 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 3,198,127 | $ 2,404,750 |
Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,836 | |
Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,070 | |
Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 72 | |
Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 66 | |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 11,339 | 7,160 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5,366 | 2,445 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 13,435 | 14,803 |
Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 30,140 | 24,408 |
Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,167,987 | 2,380,342 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,334,600 | 1,026,822 |
Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 294,406 | |
Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 843,561 | 475,348 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 267,875 | 228,794 |
Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 399,028 | 330,457 |
Commercial real estate, Owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,804 | |
Commercial real estate, Owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 302 | 159 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 293 | 0 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,634 | 993 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,229 | 1,152 |
Commercial real estate, Owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 395,799 | 329,305 |
Commercial real estate, Non-owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 711,795 | 563,044 |
Commercial real estate, Non-owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,335 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 90 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,510 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,600 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 710,195 | 560,013 |
Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 202,726 | 188,582 |
Commercial real estate, Farmland | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,957 | |
Commercial real estate, Farmland | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 365 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,966 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,331 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 200,395 | 186,399 |
Commercial real estate, Other | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 223,777 | 133,321 |
Commercial real estate, Other | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 80 | 33 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 80 | 33 |
Commercial real estate, Other | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 223,697 | 133,288 |
Commercial, Commercial and industrial | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 347,819 | 294,406 |
Commercial, Commercial and industrial | Commercial | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 94 | |
Commercial, Commercial and industrial | Commercial | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 867 | |
Commercial, Commercial and industrial | Commercial | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 540 | 1,034 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 199 | 185 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,802 | 3,890 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,541 | 5,109 |
Commercial, Commercial and industrial | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 345,278 | 289,297 |
Commercial, Agricultural | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 59,075 | 58,589 |
Commercial, Agricultural | Commercial | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 203 | |
Commercial, Agricultural | Commercial | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 292 | 104 |
Commercial, Agricultural | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 40 | 20 |
Commercial, Agricultural | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 520 | 299 |
Commercial, Agricultural | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 852 | 423 |
Commercial, Agricultural | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 58,223 | 58,166 |
Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 843,561 | 475,348 |
Residential real estate, 1-4 family residential | Residential real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,352 | |
Residential real estate, 1-4 family residential | Residential real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 6,819 | 4,247 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 4,488 | 1,775 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,817 | 3,013 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 15,124 | 9,035 |
Residential real estate, 1-4 family residential | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 828,437 | 466,313 |
Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 142,471 | 132,209 |
Residential real estate, Home equity lines of credit | Residential real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 294 | |
Residential real estate, Home equity lines of credit | Residential real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 729 | 115 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 34 | 92 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 519 | 793 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,282 | 1,000 |
Residential real estate, Home equity lines of credit | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 141,189 | 131,209 |
Consumer, Indirect | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 234,886 | 204,623 |
Consumer, Indirect | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 53 | |
Consumer, Indirect | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,045 | 1,267 |
Consumer, Indirect | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 289 | 298 |
Consumer, Indirect | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 447 | 375 |
Consumer, Indirect | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,781 | 1,940 |
Consumer, Indirect | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 232,105 | 202,683 |
Consumer, Direct | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23,825 | 16,457 |
Consumer, Direct | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 19 | |
Consumer, Direct | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 66 | |
Consumer, Direct | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 153 | 234 |
Consumer, Direct | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23 | 70 |
Consumer, Direct | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 135 | 191 |
Consumer, Direct | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 311 | 495 |
Consumer, Direct | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23,514 | 15,962 |
Consumer, Other | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 9,164 | 7,714 |
Consumer, Other | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 4 | 0 |
Consumer, Other | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 5 |
Consumer, Other | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5 | 2 |
Consumer, Other | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 9 | 7 |
Consumer, Other | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 9,155 | $ 7,707 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 3,198,127 | $ 2,404,750 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 11,339 | 7,160 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5,366 | 2,445 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 13,435 | 14,803 |
Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 30,140 | 24,408 |
Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,167,987 | 2,380,342 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,334,600 | 1,026,822 |
Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 294,406 | |
Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 843,561 | 475,348 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 267,875 | 228,794 |
Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 399,028 | 330,457 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 302 | 159 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 293 | 0 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,634 | 993 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,229 | 1,152 |
Commercial real estate, Owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 395,799 | 329,305 |
Commercial real estate, Non-owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 711,795 | 563,044 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 90 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,510 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,600 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 710,195 | 560,013 |
Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 202,726 | 188,582 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 365 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,966 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,331 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 200,395 | 186,399 |
Commercial real estate, Other | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 223,777 | 133,321 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 80 | 33 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 80 | 33 |
Commercial real estate, Other | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 223,697 | 133,288 |
Commercial, Commercial and industrial | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 347,819 | 294,406 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 540 | 1,034 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 199 | 185 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,802 | 3,890 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,541 | 5,109 |
Commercial, Commercial and industrial | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 345,278 | 289,297 |
Commercial, Agricultural | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 59,075 | 58,589 |
Commercial, Agricultural | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 292 | 104 |
Commercial, Agricultural | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 40 | 20 |
Commercial, Agricultural | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 520 | 299 |
Commercial, Agricultural | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 852 | 423 |
Commercial, Agricultural | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 58,223 | 58,166 |
Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 843,561 | 475,348 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 6,819 | 4,247 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 4,488 | 1,775 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,817 | 3,013 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 15,124 | 9,035 |
Residential real estate, 1-4 family residential | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 828,437 | 466,313 |
Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 142,471 | 132,209 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 729 | 115 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 34 | 92 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 519 | 793 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,282 | 1,000 |
Residential real estate, Home equity lines of credit | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 141,189 | 131,209 |
Consumer, Indirect | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 234,886 | 204,623 |
Consumer, Indirect | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,045 | 1,267 |
Consumer, Indirect | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 289 | 298 |
Consumer, Indirect | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 447 | 375 |
Consumer, Indirect | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,781 | 1,940 |
Consumer, Indirect | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 232,105 | 202,683 |
Consumer, Direct | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23,825 | 16,457 |
Consumer, Direct | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 153 | 234 |
Consumer, Direct | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23 | 70 |
Consumer, Direct | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 135 | 191 |
Consumer, Direct | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 311 | 495 |
Consumer, Direct | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23,514 | 15,962 |
Consumer, Other | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 9,164 | 7,714 |
Consumer, Other | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 4 | 0 |
Consumer, Other | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 5 |
Consumer, Other | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5 | 2 |
Consumer, Other | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 9 | 7 |
Consumer, Other | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 9,155 | $ 7,707 |
Loans (Details 5)
Loans (Details 5) - Residential real estate $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | $ 210 |
% of Total class of Financing receivable | 0.01% |
Term Extension | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | $ 48 |
Term Extension | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 0 |
Interest Rate Reduction | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 30 |
Interest Rate Reduction | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 30 |
Combination Term Extension and Interest Rate Reduction | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 132 |
Combination Term Extension and Interest Rate Reduction | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 0 |
Residential real estate, 1-4 family residential | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | $ 210 |
% of Total class of Financing receivable | 0.03% |
Residential real estate, 1-4 family residential | Term Extension | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | $ 48 |
Residential real estate, 1-4 family residential | Term Extension | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 0 |
Residential real estate, 1-4 family residential | Interest Rate Reduction | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 30 |
Residential real estate, 1-4 family residential | Interest Rate Reduction | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 30 |
Residential real estate, 1-4 family residential | Combination Term Extension and Interest Rate Reduction | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | 132 |
Residential real estate, 1-4 family residential | Combination Term Extension and Interest Rate Reduction | Financial Asset, 30 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Amortized Cost Basis | $ 0 |
Loans (Details 6)
Loans (Details 6) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Current | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | $ 180 |
30-89 Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 30 |
90+ Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Accruing restructured loans | Current | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 132 |
Accruing restructured loans | 30-89 Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 30 |
Accruing restructured loans | 90+ Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Nonaccrual restructured loans | Current | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 48 |
Nonaccrual restructured loans | 30-89 Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Nonaccrual restructured loans | 90+ Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Residential real estate | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 210 |
Residential real estate, 1-4 family residential | Residential real estate | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 210 |
Residential real estate, 1-4 family residential | Residential real estate | Accruing restructured loans | Current | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 132 |
Residential real estate, 1-4 family residential | Residential real estate | Accruing restructured loans | 30-89 Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 30 |
Residential real estate, 1-4 family residential | Residential real estate | Accruing restructured loans | 90+ Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Residential real estate, 1-4 family residential | Residential real estate | Nonaccrual restructured loans | Current | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 48 |
Residential real estate, 1-4 family residential | Residential real estate | Nonaccrual restructured loans | 30-89 Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | 0 |
Residential real estate, 1-4 family residential | Residential real estate | Nonaccrual restructured loans | 90+ Days Past due | |
Financing Receivable Modifications [Line Items] | |
Payment status (Amortized cost Basis) | $ 0 |
Loans (Details 7)
Loans (Details 7) - Residential real estate, 1-4 family residential - Residential real estate | 12 Months Ended |
Dec. 31, 2023 | |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Years Added to the Life | 6 years 3 months 18 days |
Maximum | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Contractual Interest Rate | 4.77% |
Minimum | Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted-Average Contractual Interest Rate | 3.38% |
Loans (Details 8)
Loans (Details 8) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | $ 1,944,220 | $ 1,568,399 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 1,843,047 | 1,511,935 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 38,229 | 27,761 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 62,944 | 28,703 |
Commercial real estate | Commercial real estate, Owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 399,028 | 330,457 |
Commercial real estate | Commercial real estate, Owner occupied | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 386,015 | 324,979 |
Commercial real estate | Commercial real estate, Owner occupied | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 9,628 | 1,193 |
Commercial real estate | Commercial real estate, Owner occupied | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 3,385 | 4,285 |
Commercial real estate | Commercial real estate, Non-owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 711,795 | 563,044 |
Commercial real estate | Commercial real estate, Non-owner occupied | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 648,063 | 527,267 |
Commercial real estate | Commercial real estate, Non-owner occupied | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 27,938 | 25,541 |
Commercial real estate | Commercial real estate, Non-owner occupied | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 35,794 | 10,236 |
Commercial real estate | Commercial farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 202,726 | 188,582 |
Commercial real estate | Commercial farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 200,240 | 186,057 |
Commercial real estate | Commercial farmland | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate | Commercial farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 2,486 | 2,525 |
Commercial real estate | Commercial real estate, Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 223,777 | 133,321 |
Commercial real estate | Commercial real estate, Other | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 215,459 | 133,218 |
Commercial real estate | Commercial real estate, Other | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate | Commercial real estate, Other | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 8,318 | 103 |
Commercial | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 347,819 | 294,406 |
Commercial | Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 334,764 | 282,412 |
Commercial | Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 646 | 777 |
Commercial | Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 12,409 | 11,217 |
Commercial | Commercial, Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 59,075 | 58,589 |
Commercial | Commercial, Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 58,506 | 58,002 |
Commercial | Commercial, Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 17 | 250 |
Commercial | Commercial, Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | $ 552 | $ 337 |
Loans (Details 9)
Loans (Details 9) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 3,198,127 | $ 2,404,750 |
Residential real estate | Residential real estate, 1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 843,561 | 475,348 |
Residential real estate | Residential real estate, 1-4 family residential | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 839,744 | 472,335 |
Residential real estate | Residential real estate, 1-4 family residential | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 3,817 | 3,013 |
Residential real estate | Residential real estate, Home equity lines of credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 142,471 | 132,209 |
Residential real estate | Residential real estate, Home equity lines of credit | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 141,952 | 131,416 |
Residential real estate | Residential real estate, Home equity lines of credit | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 519 | 793 |
Consumer | Consumer, Indirect | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 234,886 | 204,623 |
Consumer | Consumer, Indirect | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 234,439 | 204,248 |
Consumer | Consumer, Indirect | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 447 | 375 |
Consumer | Consumer, Direct | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 23,825 | 16,457 |
Consumer | Consumer, Direct | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 23,690 | 16,266 |
Consumer | Consumer, Direct | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 135 | 191 |
Consumer | Consumer, Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 9,164 | 7,714 |
Consumer | Consumer, Other | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 9,159 | 7,712 |
Consumer | Consumer, Other | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 5 | $ 2 |
Loans (Details 10)
Loans (Details 10) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 3,198,127 | $ 2,404,750 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 176,071 | 188,240 |
2022 | 250,657 | 175,570 |
2021 | 218,416 | 123,000 |
2020 | 155,811 | 145,596 |
2019 | 148,991 | 90,660 |
Prior | 369,229 | 285,307 |
Revolving Loans | 15,425 | 18,449 |
Total | 1,334,600 | 1,026,822 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 0 | |
Gross write-offs, 2020 | 0 | |
Gross write-offs, 2019 | 145 | |
Gross write-offs, Prior | 204 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 349 | |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 176,071 | 188,240 |
2022 | 250,364 | 174,841 |
2021 | 202,288 | 120,883 |
2020 | 128,800 | 138,342 |
2019 | 138,444 | 89,769 |
Prior | 338,829 | 256,103 |
Revolving Loans | 14,741 | 17,286 |
Total | 1,249,537 | 985,464 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 293 | 711 |
2021 | 12,156 | 1,861 |
2020 | 8,779 | 5,286 |
2019 | 6,565 | 624 |
Prior | 9,773 | 18,252 |
Revolving Loans | 0 | 0 |
Total | 37,566 | 26,734 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 18 |
2021 | 3,972 | 256 |
2020 | 18,232 | 1,968 |
2019 | 3,982 | 267 |
Prior | 20,627 | 10,952 |
Revolving Loans | 684 | 1,163 |
Total | 47,497 | 14,624 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 91,002 | |
2022 | 88,947 | |
2021 | 41,779 | |
2020 | 22,219 | |
2019 | 10,813 | |
Prior | 23,729 | |
Revolving Loans | 69,330 | |
Total | 347,819 | |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 178 | |
Gross write-offs, 2021 | 579 | |
Gross write-offs, 2020 | 11 | |
Gross write-offs, 2019 | 16 | |
Gross write-offs, Prior | 394 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 1,178 | |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 90,807 | |
2022 | 85,255 | |
2021 | 40,444 | |
2020 | 21,794 | |
2019 | 9,736 | |
Prior | 23,030 | |
Revolving Loans | 63,698 | |
Total | 334,764 | |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 141 | |
2021 | 355 | |
2020 | 21 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 129 | |
Total | 646 | |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 195 | |
2022 | 3,551 | |
2021 | 980 | |
2020 | 404 | |
2019 | 1,077 | |
Prior | 699 | |
Revolving Loans | 5,503 | |
Total | 12,409 | |
Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 104,010 | |
2022 | 47,400 | |
2021 | 34,466 | |
2020 | 17,006 | |
2019 | 13,684 | |
Prior | 16,425 | |
Revolving Loans | 61,415 | |
Total | 294,406 | |
Commercial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 100,368 | |
2022 | 45,872 | |
2021 | 34,110 | |
2020 | 16,854 | |
2019 | 13,574 | |
Prior | 14,664 | |
Revolving Loans | 56,970 | |
Total | 282,412 | |
Commercial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 197 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 580 | |
Total | 777 | |
Commercial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 3,642 | |
2022 | 1,331 | |
2021 | 356 | |
2020 | 152 | |
2019 | 110 | |
Prior | 1,761 | |
Revolving Loans | 3,865 | |
Total | 11,217 | |
Agricultural Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 36,314 | 51,096 |
2022 | 57,502 | 36,755 |
2021 | 30,255 | 44,368 |
2020 | 37,845 | 23,733 |
2019 | 20,070 | 24,003 |
Prior | 63,315 | 47,636 |
Revolving Loans | 16,500 | 19,580 |
Total | 261,801 | 247,171 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 15 | |
Gross write-offs, 2021 | 70 | |
Gross write-offs, 2020 | 3 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 6 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 94 | |
Agricultural Portfolio Segment | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 36,314 | 51,096 |
2022 | 57,469 | 36,376 |
2021 | 29,807 | 44,133 |
2020 | 37,620 | 23,661 |
2019 | 20,020 | 24,003 |
Prior | 61,033 | 45,490 |
Revolving Loans | 16,483 | 19,300 |
Total | 258,746 | 244,059 |
Agricultural Portfolio Segment | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 17 | 250 |
Total | 17 | 250 |
Agricultural Portfolio Segment | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 33 | 379 |
2021 | 448 | 235 |
2020 | 225 | 72 |
2019 | 50 | 0 |
Prior | 2,282 | 2,146 |
Revolving Loans | 0 | 30 |
Total | 3,038 | 2,862 |
Residential real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 63,402 | 83,951 |
2022 | 171,920 | 112,599 |
2021 | 164,781 | 76,414 |
2020 | 134,634 | 31,643 |
2019 | 49,495 | 23,003 |
Prior | 255,677 | 143,782 |
Revolving Loans | 3,652 | 3,956 |
Total | 843,561 | 475,348 |
Gross write-offs, 2023 | 52 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 49 | |
Gross write-offs, 2020 | 130 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 129 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 360 | |
Residential real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 63,365 | 83,951 |
2022 | 171,587 | 112,463 |
2021 | 164,271 | 76,095 |
2020 | 132,022 | 31,404 |
2019 | 49,035 | 22,918 |
Prior | 245,980 | 135,757 |
Revolving Loans | 3,652 | 3,956 |
Total | 829,912 | 466,544 |
Residential real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 229 | 0 |
2021 | 0 | 70 |
2020 | 66 | 118 |
2019 | 107 | 76 |
Prior | 1,655 | 93 |
Revolving Loans | 0 | 0 |
Total | 2,057 | 357 |
Residential real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 37 | 0 |
2022 | 104 | 136 |
2021 | 510 | 249 |
2020 | 2,546 | 121 |
2019 | 353 | 9 |
Prior | 8,042 | 7,932 |
Revolving Loans | 0 | 0 |
Total | 11,592 | 8,447 |
Home equity lines of credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 45 | 23 |
2021 | 27 | 137 |
2020 | 126 | 20 |
2019 | 51 | 16 |
Prior | 3,767 | 3,242 |
Revolving Loans | 138,455 | 128,771 |
Total | 142,471 | 132,209 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 0 | |
Gross write-offs, 2020 | 8 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 16 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 24 | |
Home equity lines of credit | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 19 | 10 |
2021 | 14 | 0 |
2020 | 44 | 0 |
2019 | 7 | 16 |
Prior | 1,911 | 1,394 |
Revolving Loans | 138,356 | 128,622 |
Total | 140,351 | 130,042 |
Home equity lines of credit | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 49 |
Total | 0 | 49 |
Home equity lines of credit | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 26 | 13 |
2021 | 13 | 137 |
2020 | 82 | 20 |
2019 | 44 | 0 |
Prior | 1,856 | 1,848 |
Revolving Loans | 99 | 100 |
Total | 2,120 | 2,118 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 78,031 | 98,632 |
2022 | 75,642 | 47,058 |
2021 | 34,929 | 32,551 |
2020 | 22,768 | 21,079 |
2019 | 12,477 | 11,027 |
Prior | 35,026 | 11,144 |
Revolving Loans | 9,002 | 7,303 |
Total | 267,875 | 228,794 |
Gross write-offs, 2023 | 44 | |
Gross write-offs, 2022 | 176 | |
Gross write-offs, 2021 | 93 | |
Gross write-offs, 2020 | 86 | |
Gross write-offs, 2019 | 32 | |
Gross write-offs, Prior | 352 | |
Gross write-offs, Revolving Loans | 149 | |
Gross write-offs | 932 | |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 77,977 | 98,530 |
2022 | 75,517 | 46,945 |
2021 | 34,754 | 32,284 |
2020 | 22,580 | 20,849 |
2019 | 12,344 | 10,918 |
Prior | 34,840 | 10,942 |
Revolving Loans | 9,002 | 7,302 |
Total | 267,014 | 227,770 |
Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 54 | 102 |
2022 | 125 | 113 |
2021 | 175 | 267 |
2020 | 188 | 230 |
2019 | 133 | 109 |
Prior | 186 | 202 |
Revolving Loans | 0 | 1 |
Total | $ 861 | $ 1,024 |
Loans (Details 11)
Loans (Details 11) | 12 Months Ended |
Dec. 31, 2023 | |
Home equity lines of credit | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Residential real estate | Residential real estate, 1-4 family residential | 1st Liens | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Residential real estate | Residential real estate, 1-4 family residential | 2nd Liens | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer Finance Cash Reserve Loan | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer, Direct | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer, Indirect | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Commercial | Commercial, Commercial and industrial | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial | Commercial, Agricultural | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial | Commercial, municipal | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, multifamily | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Owner occupied | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Non-owner occupied | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Farmland | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, construction | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Loans (Details 12)
Loans (Details 12) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Risks and Uncertainties [Abstract] | |
Par value of acquired loans at acquisition | $ 797,616 |
Net purchase discount | (55,958) |
Allowance for credit losses of PCD loans | (999) |
Purchase price of loans at acquisition | $ 740,659 |
Loans (Details 13)
Loans (Details 13) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
ACL Balance | $ 34,440 | $ 26,978 | $ 29,386 | $ 22,144 |
PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 34,684 | |||
ACL Balance | 1,107 | |||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
ACL Balance | 18,150 | 14,840 | 15,879 | 10,746 |
Commercial real estate | Commercial real estate, Owner occupied | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 430 | |||
ACL Balance | 19 | |||
Commercial real estate | Commercial real estate, Non-owner occupied | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 30,653 | |||
ACL Balance | 914 | |||
Commercial real estate | Commercial real estate, Farmland | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 9 | |||
ACL Balance | 0 | |||
Commercial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
ACL Balance | 5,087 | 4,186 | 4,949 | 5,018 |
Commercial | Commercial, Commercial and industrial | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 2,229 | |||
ACL Balance | 158 | |||
Commercial | Commercial, Agricultural | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 149 | |||
ACL Balance | 9 | |||
Residential real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
ACL Balance | 6,916 | $ 4,374 | $ 4,870 | $ 3,687 |
Residential real estate | Residential real estate, 1-4 family residential | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 1,211 | |||
ACL Balance | 7 | |||
Residential real estate | Residential real estate, Home equity lines of credit | PCD Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan balances | 3 | |||
ACL Balance | $ 0 |
Loans (Details Textual)
Loans (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Modifications [Line Items] | ||||
Commitments to lend any additional funds on restructured loans | $ 0 | |||
Nonaccrual with no allowance for credit loss | 5,052,000 | |||
Loans originated | 1,944,220,000 | $ 1,568,399,000 | ||
Maximum commercial loan and commercial real estate relationships | 1,000,000 | |||
Unfunded commitments | 753,000,000 | 603,000,000 | ||
Increase in unfunded commitments | 150,000,000 | |||
Anticipated credit losses | 1,840,000 | 1,400,000 | ||
Provision for anticipated credit losses | 435,000 | |||
ACL Balance | 34,440,000 | 26,978,000 | $ 29,386,000 | $ 22,144,000 |
Increase (decrease) loans and leases receivable, allowance | 7,400,000 | |||
Payments to Acquire Loans Receivable | 740,659,000 | |||
Financing Receivable, Modified, Commitment to Lend | 0 | |||
Other real estate owned properties | $ 92,000 | 0 | ||
ASU 2022-02 | ||||
Financing Receivable Modifications [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted [true false] | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 | |||
ASU 2016-13 | ||||
Financing Receivable Modifications [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted [true false] | true | |||
PCD Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
ACL Balance | $ 1,107,000 | |||
Decrease of loan balance | 34,684,000 | |||
Business combination acquired loans with fair value | 25,900,000 | |||
Credit discount | 999,000 | |||
Noncredit discount | 5,500,000 | |||
Business combination amount of remaining discounts for acquired loans | 4,400,000 | |||
Residential real estate, 1-4 family residential | ||||
Financing Receivable Modifications [Line Items] | ||||
Other real estate owned properties | 92,000 | 0 | ||
Other real estate properties in foreclosure | 207,000 | 129,000 | ||
Commercial real estate | ||||
Financing Receivable Modifications [Line Items] | ||||
ACL Balance | 18,150,000 | 14,840,000 | $ 15,879,000 | $ 10,746,000 |
Commercial real estate | Commercial real estate, Non-Owner occupied | ||||
Financing Receivable Modifications [Line Items] | ||||
Nonaccrual with no allowance for credit loss | 1,630,000 | 0 | ||
Loans originated | 711,795,000 | $ 563,044,000 | ||
Commercial real estate | Commercial real estate, Non-Owner occupied | PCD Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
ACL Balance | 914,000 | |||
Decrease of loan balance | $ 30,653,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
TOTAL NONINTEREST INCOME | $ 41,861 | $ 44,202 | $ 38,193 |
Service Charges on Deposit Accounts | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 6,322 | 4,716 | 3,660 |
Debit Card and EFT Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 7,059 | 5,814 | 5,144 |
Trust Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 10,108 | 9,638 | 9,438 |
Insurance Agency Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 5,444 | 4,402 | 3,456 |
Retirement Plan Consulting Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,406 | 1,389 | 1,421 |
Investment Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,978 | 2,183 | 2,276 |
Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
TOTAL NONINTEREST INCOME | 41,861 | 44,202 | 38,193 |
Operating Segments | Service Charges on Deposit Accounts | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 6,322 | 4,716 | 3,660 |
Operating Segments | Debit Card and EFT Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 7,059 | 5,814 | 5,144 |
Operating Segments | Trust Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 10,108 | 9,638 | 9,438 |
Operating Segments | Insurance Agency Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 5,444 | 4,402 | 3,456 |
Operating Segments | Retirement Plan Consulting Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,406 | 1,389 | 1,421 |
Operating Segments | Investment Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,978 | 2,183 | 2,276 |
Operating Segments | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Other (outside the scope of ASC 606) | 9,544 | 16,060 | 12,798 |
Operating Segments | Trust Segment | |||
Disaggregation Of Revenue [Line Items] | |||
TOTAL NONINTEREST INCOME | 11,514 | 19,402 | 10,859 |
Operating Segments | Trust Segment | Service Charges on Deposit Accounts | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Trust Segment | Debit Card and EFT Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Trust Segment | Trust Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 10,108 | 9,638 | 9,438 |
Operating Segments | Trust Segment | Insurance Agency Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Trust Segment | Retirement Plan Consulting Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,406 | 1,389 | 1,421 |
Operating Segments | Trust Segment | Investment Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Trust Segment | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Other (outside the scope of ASC 606) | 0 | 8,375 | 0 |
Operating Segments | Bank Segment | |||
Disaggregation Of Revenue [Line Items] | |||
TOTAL NONINTEREST INCOME | 30,347 | 24,800 | 27,334 |
Operating Segments | Bank Segment | Service Charges on Deposit Accounts | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 6,322 | 4,716 | 3,660 |
Operating Segments | Bank Segment | Debit Card and EFT Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 7,059 | 5,814 | 5,144 |
Operating Segments | Bank Segment | Trust Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Bank Segment | Insurance Agency Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 5,444 | 4,402 | 3,456 |
Operating Segments | Bank Segment | Retirement Plan Consulting Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 0 | 0 | 0 |
Operating Segments | Bank Segment | Investment Commissions | |||
Disaggregation Of Revenue [Line Items] | |||
Noninterest income | 1,978 | 2,183 | 2,276 |
Operating Segments | Bank Segment | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Other (outside the scope of ASC 606) | $ 9,544 | $ 7,685 | $ 12,798 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue From Contract With Customer [Line Items] | |||
Legal settlement | $ 0 | $ 8,375,000 | $ 0 |
ASC 606 | |||
Revenue From Contract With Customer [Line Items] | |||
Contingent debit card interchange fees | 0 | ||
Contingent incentive fees | 0 | ||
Contingent commission | 0 | ||
ASC 606 | Cetera | |||
Revenue From Contract With Customer [Line Items] | |||
Contingent investment commissions to be refunded | $ 0 |
Loan Servicing - Summary of Pri
Loan Servicing - Summary of Principal Balance for Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Mortgage loan portfolios serviced for: | ||
Loan Portfolio Expense | $ 572,545 | $ 532,868 |
FHLMC | ||
Mortgage loan portfolios serviced for: | ||
Loan Portfolio Expense | 544,140 | 532,868 |
FHLB Pittsburgh | ||
Mortgage loan portfolios serviced for: | ||
Loan Portfolio Expense | $ 28,405 | $ 0 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Servicing Assets at Fair Value [Line Items] | ||
Escrow balances maintained in connection with serviced loans | $ 4.8 | $ 4.4 |
Measurement Input, Discount Rate | Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.09 | 0.09 |
Measurement Input, Discount Rate | Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.11 | 0.11 |
Measurement Input, Prepayment Speed | Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 1 | 1.05 |
Measurement Input, Prepayment Speed | Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 4.18 | 3.26 |
Loan Servicing - Summary of Act
Loan Servicing - Summary of Activity for Mortgage Servicing Rights of Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing rights: | |||
Beginning balance | $ 3,331 | $ 3,403 | $ 3,198 |
Additions | 588 | 960 | 1,556 |
Acquired In Merger | 305 | 0 | 0 |
Amortization to expense | (735) | (1,015) | (1,351) |
Total servicing rights before valuation allowance | 3,489 | 3,348 | 3,403 |
Change in valuation allowance | (37) | (17) | 0 |
Ending balance | $ 3,452 | $ 3,331 | $ 3,403 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Securities fair value less than amortized cost | $ 0 | ||
Fair value assets liabilities transfers amount between level 1 and level 2 | $ 0 | $ 0 | |
Other real estate owned measured at fair value less costs to sell | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Securities available for sale | $ 1,299,701 | $ 1,268,025 |
Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,299,701 | 1,283,269 |
U.S. Treasury and U.S. government sponsored entities | ||
Financial Assets | ||
Securities available for sale | 127,955 | 128,096 |
U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 127,955 | 128,096 |
State and political subdivisions | ||
Financial Assets | ||
Securities available for sale | 556,169 | 530,080 |
State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 556,169 | 530,080 |
Mortgage-backed securities - residential | ||
Financial Assets | ||
Securities available for sale | 520,386 | 555,142 |
Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 520,386 | 555,142 |
Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 226 | 196 |
Corporate bonds | ||
Financial Assets | ||
Securities available for sale | 18,275 | 3,879 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 18,275 | 3,879 |
Collateralized mortgage obligations | ||
Financial Assets | ||
Securities available for sale | 73,999 | 47,354 |
Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 73,999 | 47,354 |
Small Business Administration | ||
Financial Assets | ||
Securities available for sale | 2,917 | 3,474 |
Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 2,917 | 3,474 |
Other equity investments measured at net asset value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 15,048 | |
Interest rate lock commitments | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 109 | |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | $ 4,191 | $ 5,503 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Financial Liabilities | ||
Derivative liabilities | $ 4,191 | $ 5,503 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Fair value hedge derivative | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Derivative liabilities | $ 836 | |
Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 3,711 | $ 858 |
Mortgage banking derivative | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 31 | |
Financial Liabilities | ||
Derivative liabilities | 14 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 0 | 196 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 226 | 196 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Financial Liabilities | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage banking derivative | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | |
Financial Liabilities | ||
Derivative liabilities | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,298,361 | 1,268,024 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 127,955 | 128,096 |
Significant Other Observable Inputs (Level 2) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 556,169 | 530,080 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 520,386 | 555,141 |
Significant Other Observable Inputs (Level 2) | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 16,935 | 3,879 |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 73,999 | 47,354 |
Significant Other Observable Inputs (Level 2) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 2,917 | 3,474 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 109 | |
Significant Other Observable Inputs (Level 2) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 4,191 | 5,503 |
Financial Liabilities | ||
Derivative liabilities | 4,191 | 5,503 |
Significant Other Observable Inputs (Level 2) | Fair value hedge derivative | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Derivative liabilities | 836 | |
Significant Other Observable Inputs (Level 2) | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 3,711 | 858 |
Significant Other Observable Inputs (Level 2) | Mortgage banking derivative | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 31 | |
Financial Liabilities | ||
Derivative liabilities | 14 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,340 | 1 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 1 |
Significant Unobservable Inputs (Level 3) | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 1,340 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Financial Liabilities | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair value hedge derivative | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Derivative liabilities | 0 | |
Significant Unobservable Inputs (Level 3) | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage banking derivative | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | $ 0 | |
Financial Liabilities | ||
Derivative liabilities | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs | |||
Beginning Balance | $ 1 | $ 3 | $ 4 |
Transfers between levels | 0 | 0 | 0 |
Acquired and/or purchased | 1,600 | 0 | 0 |
Discount accretion (premium amortization) | 48 | 0 | 0 |
Repayments, calls and maturities | (401) | (2) | (1) |
Changes to unrealized gains (losses) | $ 92 | $ 0 | $ 0 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax |
Ending Balance | $ 1,340 | $ 1 | $ 3 |
Fair Value (Details 2)
Fair Value (Details 2) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 267 | $ 395 |
Commercial real estate, Non-Owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 838 | 746 |
1-4 family residential | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 1,547 | 74 |
Mortgage servicing rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 210 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate, Non-Owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | 1-4 family residential | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial real estate, Non-Owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | 1-4 family residential | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 267 | 395 |
Significant Unobservable Inputs (Level 3) | Commercial real estate, Non-Owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 838 | 746 |
Significant Unobservable Inputs (Level 3) | 1-4 family residential | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 1,547 | $ 74 |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 210 |
Fair Value (Details 3)
Fair Value (Details 3) - Fair Value, Nonrecurring $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Commercial | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 267 | $ 395 |
Sales Comparison Valuation | Commercial real estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 746 | |
Sales Comparison Valuation | Commercial real estate | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.0745 | |
Sales Comparison Valuation | Commercial | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 267 | $ 395 |
Sales Comparison Valuation | Commercial | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.6438 | 0.43 |
Sales Comparison Valuation | Residential Real Estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 1,547 | $ 74 |
Sales Comparison Valuation | Residential Real Estate | Minimum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.0539) | (0.1377) |
Sales Comparison Valuation | Residential Real Estate | Maximum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.0211) | (0.0568) |
Sales Comparison Valuation | Residential Real Estate | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.0267) | (0.1377) |
Income approach | Commercial real estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 838 | |
Income approach | Commercial real estate | Minimum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.4965) | |
Income approach | Commercial real estate | Maximum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.4677 | |
Income approach | Commercial real estate | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.1663) |
Fair Value (Details 4)
Fair Value (Details 4) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Cash and cash equivalents, Carrying Amount | $ 103,658 | $ 75,551 |
Regulatory stock, Carrying Amount | 20,197 | 18,200 |
Loans, net, Carrying Amount | 3,163,687 | 2,377,772 |
Financial liabilities | ||
Deposits, Carrying Amount | 4,177,386 | 3,561,768 |
Short-term borrowings | 355,000 | 95,000 |
Long-term borrowings | 88,663 | 88,211 |
Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 103,658 | 75,551 |
Loans, net, Fair Value | 3,015,732 | 2,330,164 |
Financial liabilities | ||
Deposits, Fair Value | 4,171,601 | 3,560,480 |
Short-term borrowings, Fair Value | 355,000 | 95,000 |
Long-term borrowings, Fair Value | 70,893 | 73,566 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 28,896 | 21,395 |
Loans, net, Fair Value | 0 | 0 |
Financial liabilities | ||
Deposits, Fair Value | 3,452,104 | 2,999,188 |
Short-term borrowings, Fair Value | 0 | 0 |
Long-term borrowings, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 74,762 | 54,156 |
Loans, net, Fair Value | 0 | 0 |
Financial liabilities | ||
Deposits, Fair Value | 719,497 | 561,292 |
Short-term borrowings, Fair Value | 355,000 | 95,000 |
Long-term borrowings, Fair Value | 70,893 | 73,566 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Loans, net, Fair Value | 3,015,732 | 2,330,164 |
Financial liabilities | ||
Deposits, Fair Value | 0 | 0 |
Short-term borrowings, Fair Value | 0 | 0 |
Long-term borrowings, Fair Value | $ 0 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Premises and equipment | ||
Premises and equipment, gross | $ 74,146 | $ 56,317 |
Less accumulated depreciation | (29,782) | (25,553) |
Net book value | 44,364 | 30,764 |
Land | ||
Premises and equipment | ||
Premises and equipment, gross | 10,134 | 6,200 |
Buildings | ||
Premises and equipment | ||
Premises and equipment, gross | 40,291 | 30,296 |
Furniture Fixtures and Equipment | ||
Premises and equipment | ||
Premises and equipment, gross | 20,281 | 18,474 |
Leasehold Improvements | ||
Premises and equipment | ||
Premises and equipment, gross | $ 3,440 | $ 1,347 |
Premises and Equipment (Detai_2
Premises and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment (Textual) [Abstract] | |||
Depreciation expense | $ 3.4 | $ 2.5 | $ 1.8 |
Premises and Equipment (Detai_3
Premises and Equipment (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Nov. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||||
Total | $ 8,800 | $ 557 | $ 1,300 | $ 8,400 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | Other assets |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2023 | Jan. 01, 2023 | |
Lessee Lease Description [Line Items] | ||||
Operating leases options to extend [true false] | true | |||
Operating leases options to terminate the lease | April of 2023 | |||
Operating lease, description | The Company has operating leases for branch office locations, vehicles and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 17.6 years, some of which include options to extend the lease for up to 15 years and some of which include options to terminate the lease in June of 2024. The lease on office equipment, which includes leased printers and copiers, expired in December, 2023. A new lease agreement for office equipment was entered into in November of 2023, effective January 2024, with a new supplier. The initial right of use asset and lease liability recorded for this new lease was $557 thousand. | |||
Operating lease, right-of-use asset | $ 8,800 | $ 8,400 | $ 557 | $ 1,300 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | Other Assets |
Operating lease liability | $ 8,978 | $ 8,800 | $ 557 | $ 1,300 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | Other liabilities | Other liabilities |
Operating lease, expense | $ 1,200 | $ 985 | ||
Weighted average remaining lease term | 10 years 11 months 19 days | |||
Weighted-average discount rate | 2.99% | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Operating leases remaining lease terms | 17 years 7 months 6 days | |||
Operating leases options to extend | 15 years |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Nov. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||||
2024 | $ 1,175 | |||
2025 | 1,092 | |||
2026 | 975 | |||
2027 | 898 | |||
2028 | 917 | |||
Total Payments | 10,716 | |||
Thereafter | 5,659 | |||
Less: Imputed Interest | (1,738) | |||
Total | $ 8,978 | $ 557 | $ 1,300 | $ 8,800 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill associated with the Company's purchases and other past acquisitions | $ 167,446 | $ 94,640 | ||
Goodwill impairment | $ 0 | |||
Aggregate intangible amortization expense | $ 3,434 | $ 1,973 | $ 1,362 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired intangible assets | ||
Gross Carrying Amount | $ 40,908 | $ 21,659 |
Accumulated Amortization | (18,066) | (14,633) |
Customer Relationships | ||
Acquired intangible assets | ||
Gross Carrying Amount | 7,210 | 7,210 |
Accumulated Amortization | (6,953) | (6,793) |
Non-compete contracts | ||
Acquired intangible assets | ||
Gross Carrying Amount | 457 | 457 |
Accumulated Amortization | (413) | (401) |
Trade Name | ||
Acquired intangible assets | ||
Gross Carrying Amount | 1,126 | 1,126 |
Accumulated Amortization | (440) | (409) |
Core Deposits | ||
Acquired intangible assets | ||
Gross Carrying Amount | 32,115 | 12,866 |
Accumulated Amortization | $ (10,260) | $ (7,030) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2024 | $ 2,872 | |
2025 | 2,806 | |
2026 | 2,710 | |
2027 | 2,596 | |
2028 | 2,586 | |
Thereafter | 9,272 | |
Total | $ 22,842 | $ 7,026 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of year-end interest bearing deposits | ||
Noninterest-bearing demand | $ 1,026,630 | $ 896,957 |
Interest-bearing demand | 1,362,609 | 1,224,884 |
Money market | 593,975 | 435,369 |
Savings | 468,890 | 441,978 |
Brokered time deposits | 0 | 138,051 |
Certificates of deposit | 725,282 | 424,529 |
Total | $ 4,177,386 | $ 3,561,768 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Interest Bearing Deposits (Textual) [Abstract] | ||
Minimum time deposits amount | $ 250,000 | |
Time deposits of $100 thousand or more | $ 258,200,000 | $ 135,700,000 |
Deposits (Details)
Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Summary of scheduled maturities of certificates of deposit | |
2024 | $ 656,154 |
2025 | 32,302 |
2026 | 20,007 |
2027 | 5,569 |
2028 | 4,302 |
Thereafter | 6,948 |
TOTAL | $ 725,282 |
Investment, Type [Extensible Enumeration] | Certificates Of Deposit And Brokered Time Deposits [Member] |
Short-term borrowings (Details
Short-term borrowings (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short Term Debt [Line Items] | ||
Short-term borrowings | $ 355,000,000 | $ 95,000,000 |
Short-Term Debt | ||
Short Term Debt [Line Items] | ||
Interest rate on borrowings | 4.83% | |
Short-term borrowings | $ 285,000,000 | |
Securities par value | $ 298,100,000 | |
Short-term Borrowing maturity | 2024-12 | |
Domestic Line of Credit | ||
Short Term Debt [Line Items] | ||
Access to line of credit at domestic bank | $ 25,000,000 | |
Unsecured revolving line of credit, outstanding balance | 0 | 0 |
Revolving Credit Facility | Farmers National Banc Corp | Unsecured Debt | ||
Short Term Debt [Line Items] | ||
Unsecured revolving line of credit, outstanding balance | 5,000,000 | |
Letter of Credit | ||
Short Term Debt [Line Items] | ||
Unsecured revolving line of credit, outstanding balance | $ 0 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |
Pledged | ||
Short Term Debt [Line Items] | ||
Short-term Federal Home Loan Banks advances | $ 70,000,000 | $ 95,000,000 |
Interest rate on borrowings | 5.41% | 4.37% |
Long-term Borrowings (Details T
Long-term Borrowings (Details Textual) - USD ($) | 1 Months Ended | |||||
Nov. 01, 2021 | Jan. 07, 2020 | Dec. 31, 2015 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Long-rem advances from FHLB | $ 0 | $ 0 | ||||
Residential mortgage, commercial real estate, and multi-family loans | 1,600,000,000 | $ 1,200,000,000 | ||||
Additional borrowing limit | 819,500,000 | |||||
Par value of subordinated debentures less the remaining deferred offering expense | $ 75,000,000 | |||||
Subordinated Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 75,000,000 | |||||
Maturity date | Dec. 15, 2031 | |||||
Fixed rate | 3.125% | |||||
Notes maturity term | 5 years | |||||
Basis spread on variable rate | 220% | |||||
Net proceeds from sale | $ 73,800,000 | |||||
Junior Subordinated Debt Securities | Cortland Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Sep. 15, 2037 | |||||
Business acquisition, date of merger agreement | Nov. 01, 2021 | |||||
Acquisition-date fair value | $ 4,300,000 | |||||
Interest rate, effective percentage | 7.10% | 6.22% | ||||
Junior Subordinated Debt Securities | Maple Leaf | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 15, 2036 | |||||
Business acquisition, date of merger agreement | Jan. 07, 2020 | |||||
Interest rate, effective percentage | 7.45% | 6.57% | ||||
Junior Subordinated Debt Securities | National Bancshares Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jun. 15, 2035 | |||||
Interest rate, effective percentage | 7.35% | 6.47% | ||||
Junior Subordinated Debt Securities | LIBOR | Cortland Bank | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.45% | |||||
Junior Subordinated Debt Securities | LIBOR | Maple Leaf | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Junior Subordinated Debt Securities | LIBOR | National Bancshares Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.80% |
Long-term Borrowings (Details 1
Long-term Borrowings (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | $ 14,643 | $ 14,316 |
Subordinated debentures | 74,020 | 73,895 |
Total long-term borrowings | 88,663 | 88,211 |
TSEO Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | 2,521 | 2,472 |
Maple Leaf Financial Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | 7,740 | 7,517 |
Cortland Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | $ 4,382 | $ 4,327 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - Commitments and Unused Lines of Credit - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fixed Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | $ 150,697 | $ 111,889 |
Variable Rate | ||
The contractual amounts of financial instruments with off-balance-sheet risk at year end | ||
Total contractual amounts of financial instruments with off-balance-sheet risk | $ 647,843 | $ 513,614 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingent Liabilities (Additional Textual) [Abstract] | ||
Maximum commitment period to make loans | 30 days | |
Standby letters of credit contractual value | $ 6,800,000 | $ 8,800,000 |
Maximum subscription amount committed in SBIC investment funds | 20,200,000 | |
Investment in SBIC funds | $ 16,400,000 | |
Commitments and Unused Lines of Credit | Minimum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.375% |
Commitments and Unused Lines of Credit | Maximum | ||
Commitments and Contingent Liabilities (Textual) [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 21.90% | 21.90% |
Stock Based Compensation (Detai
Stock Based Compensation (Details Textual) - 2022 Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares vested | 72,036 | |||
Number of shares vested, weighted average fair value | $ 13.45 | |||
Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum shares available under equity incentive plan | 1,000,000 | |||
Number of shares available for grant | 734,859 | |||
Stock based compensation expense | $ 2,600 | $ 1,800 | $ 1,200 | |
Unrecognized compensation expense | $ 3,200 | |||
Compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | |||
Time Based Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share awards granted under equity incentive plan | 105,891 | 132,268 | ||
Number of shares vested | 41,401 | 35,817 | ||
Number of shares vested, weighted average fair value | $ 12.78 | $ 15.79 | ||
Performance Based Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share awards granted under equity incentive plan | 102,750 | 56,724 | ||
Number of shares vested | 30,635 | 65,481 | ||
Number of shares vested, weighted average fair value | $ 14.35 | $ 17.48 | ||
Total fair value of shares vested | $ 969 | $ 1,700 | $ 1,200 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - 2022 Incentive Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vested, Maximum Awarded Units | (72,036) | |
Vested, Weighted Average Grant Date Fair Value | $ 13.45 | |
Time Based Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Beginning balance - non-vested shares, Maximum Awarded Unit | 193,015 | 99,564 |
Granted, Maximum Awarded Units | 105,891 | 132,268 |
Vested, Maximum Awarded Units | (41,401) | (35,817) |
Forfeited, Maximum Awarded Units | (3,729) | (3,000) |
Ending balance - non-vested shares, Maximum Awarded Unit | 253,776 | 193,015 |
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 16.69 | $ 16.13 |
Granted, Weighted Average Grant Date Fair Value | 10.63 | 16.63 |
Vested, Weighted Average Grant Date Fair Value | 12.78 | 15.79 |
Forfeited, Weighted Average Grant Date Fair Value | 14.65 | 13.68 |
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 14.97 | $ 16.69 |
Performance Based Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Beginning balance - non-vested shares, Maximum Awarded Unit | 137,369 | 158,988 |
Granted, Maximum Awarded Units | 102,750 | 56,724 |
Vested, Maximum Awarded Units | (30,635) | (65,481) |
Forfeited, Maximum Awarded Units | 0 | (12,862) |
Ending balance - non-vested shares, Maximum Awarded Unit | 209,484 | 137,369 |
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 15.85 | $ 14.40 |
Granted, Weighted Average Grant Date Fair Value | 14.16 | 17.25 |
Vested, Weighted Average Grant Date Fair Value | 14.35 | 17.48 |
Forfeited, Weighted Average Grant Date Fair Value | 0 | 14.74 |
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 15.01 | $ 15.85 |
Regulatory Matters (Details Tex
Regulatory Matters (Details Textual) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Regulatory Matters (Additional Textual) [Abstract] | ||
Common equity tier 1 capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Tier 1 capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Total capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Capital conservation buffer ratio | 2.50% | 2.50% |
Capital conservation buffer, additional capital amount required | $ 92,400,000 | $ 73,500,000 |
Minimum ratio of common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum ratio of total capital to risk-weighted assets | 0.08 | 0.08 |
Minimum ratio of tier 1 capital to risk-weighted assets | 0.06 | 0.060 |
Minimum leverage ratio | 0.04 | 0.04 |
Farmers National Banc Corp | ||
Regulatory Matters (Additional Textual) [Abstract] | ||
Minimum ratio of common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum ratio of total capital to risk-weighted assets | 0.08 | 0.08 |
Minimum ratio of tier 1 capital to risk-weighted assets | 0.06 | 0.060 |
Minimum leverage ratio | 0.04 | 0.04 |
Dividends that can be declared without prior approval | $ 61,200,000 | |
Farmers Trust Company | ||
Regulatory Matters (Additional Textual) [Abstract] | ||
Minimum capital maintained by trust | 3,000,000 | |
Dividends that can be declared without prior approval | $ 753,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Common equity tier 1 capital ratio | ||
Actual, Amount | $ 392,244 | $ 403,307 |
Actual, Ratio | 10.61% | 13.71% |
Requirement for Capital Adequacy Purposes, Amount | $ 166,303 | $ 132,349 |
Requirement for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Total risk based capital ratio | ||
Actual, Amount | $ 519,684 | $ 523,285 |
Actual, Ratio | 0.1406 | 0.1779 |
Requirement for Capital Adequacy Purposes, Amount | $ 295,650 | $ 235,288 |
Requirement for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
Tier 1 risk based capital ratio | ||
Actual, Amount | $ 410,244 | $ 421,307 |
Actual, Ratio | 0.111 | 0.1432 |
Requirement for Capital Adequacy Purposes, Amount | $ 221,737 | $ 176,466 |
Requirement for Capital Adequacy Purposes, Ratio | 0.06 | 0.060 |
Tier 1 leverage ratio | ||
Actual, Amount | $ 410,244 | $ 421,307 |
Actual, Ratio | 0.0802 | 0.0984 |
Requirement for Capital Adequacy Purposes, Amount | $ 204,598 | $ 171,233 |
Requirement for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
Farmers National Banc Corp | ||
Common equity tier 1 capital ratio | ||
Actual, Amount | $ 411,304 | $ 372,679 |
Actual, Ratio | 11.15% | 12.71% |
Requirement for Capital Adequacy Purposes, Amount | $ 165,996 | $ 131,968 |
Requirement for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 239,772 | $ 190,620 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Total risk based capital ratio | ||
Actual, Amount | $ 447,584 | $ 399,657 |
Actual, Ratio | 0.1213 | 0.1362 |
Requirement for Capital Adequacy Purposes, Amount | $ 295,104 | $ 234,609 |
Requirement for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 368,881 | $ 293,262 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.100 |
Tier 1 risk based capital ratio | ||
Actual, Amount | $ 411,304 | $ 372,679 |
Actual, Ratio | 0.1115 | 0.1271 |
Requirement for Capital Adequacy Purposes, Amount | $ 221,328 | $ 175,957 |
Requirement for Capital Adequacy Purposes, Ratio | 0.06 | 0.060 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 295,104 | $ 234,609 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.08 | 0.080 |
Tier 1 leverage ratio | ||
Actual, Amount | $ 411,304 | $ 372,679 |
Actual, Ratio | 0.0807 | 0.0876 |
Requirement for Capital Adequacy Purposes, Amount | $ 203,989 | $ 170,245 |
Requirement for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 254,986 | $ 212,807 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.05 | 0.050 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Liability | $ 231 | ||
Benefit | 7 | $ 5 | $ 31 |
National Bancshares Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
(Benefit) expense under the plan | 36 | 105 | 11 |
Liability under the Plan | $ 751 | 799 | |
Director age for eligibility for annual retirement benefit plan | 70 years | ||
Maximum years for benefit payment under the plan | 15 years | ||
Cortland Acquisition | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period of benefits paid for after retirement | 15 years | ||
Payment benefit for director retirement | $ 10 | ||
Period over which benefits paid to directors after retirement | 10 years | ||
Liability for post-retirement benefits | $ 1,000 | 1,100 | |
Expense recognized for plans | 37 | 87 | 11 |
Benefits expected to be paid in 2023 | 81 | ||
Cortland Acquisition | Officers’ Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability for post-retirement benefits | 870,000 | 919,000 | |
Cortland Acquisition | Directors Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability for post-retirement benefits | 148 | 143 | |
Emclaire Acquisition | |||
Defined Benefit Plan Disclosure [Line Items] | |||
(Benefit) expense under the plan | 37 | ||
Liability for post-retirement benefits | 846 | ||
Benefits expected to be paid in 2023 | $ 62 | ||
Retirement Savings Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees who have completed no days of service | 90 days | ||
Percentage of matching contribution by company | 50% | ||
(Benefit) expense under the plan | $ 1,000 | 870 | 814 |
Retirement Savings Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of the participants' voluntary contributions of gross wages | 6% | ||
Profit Sharing Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
(Benefit) expense under the plan | $ 207 | $ 268 | |
Annual compensation for associates, Percent | 2% | 2% | 2% |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
(Benefit) expense under the plan | $ 5 | $ 5 | $ 6 |
Liability under the Plan | 71 | 83 | |
Deferred compensation plan liability recorded | $ 3,400 | $ 2,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for income taxes (credit) | |||
Current expense | $ 9,230 | $ 10,885 | $ 10,794 |
Deferred expense (benefit) | (464) | 1,353 | (524) |
Totals | $ 8,766 | $ 12,238 | $ 10,270 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes (Textual) [Abstract] | ||
Federal statutory income tax rate | 21% | |
Valuation allowance for deferred tax assets | $ 0 | $ 0 |
Unrecognized tax benefits | $ 0 | $ 0 |
Earliest Tax Year | ||
Income Taxes (Textual) [Abstract] | ||
Open tax year | 2020 | |
Latest Tax Year | ||
Income Taxes (Textual) [Abstract] | ||
Open tax year | 2022 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory tax | $ 12,327 | $ 15,295 | $ 13,026 |
Effect of nontaxable interest | (2,040) | (2,591) | (2,274) |
Bank owned life insurance, net | (513) | (380) | (273) |
Tax credit investments | (366) | (194) | (200) |
Effect of nontaxable insurance premiums | (404) | (318) | (322) |
Stock compensation | 41 | (63) | (9) |
Other | (279) | 489 | 322 |
Totals | $ 8,766 | $ 12,238 | $ 10,270 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 7,235 | $ 5,665 |
Net unrealized loss on securities available for sale | 45,599 | 55,962 |
Net unrealized loss on swap derivative | 269 | 0 |
Basis in investment securities | 6,976 | 0 |
Purchase accounting adjustments | 4,147 | 0 |
Deferred and accrued compensation | 2,060 | 1,748 |
Deferred loan fees and costs | 0 | 275 |
Nonaccrual loan interest income | 659 | 648 |
Restricted stock | 795 | 501 |
Lease liabilities | 2,164 | 1,841 |
Other | 198 | 0 |
Gross deferred tax assets | 70,102 | 66,640 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,701) | (1,485) |
Federal Home Loan Bank dividends | 0 | (904) |
Purchase accounting adjustment | 0 | (1,862) |
Mortgage servicing rights | (725) | (700) |
Prepaid expenses | (41) | (365) |
Lease right of use asset | (2,116) | (1,766) |
Other | 0 | (234) |
Gross deferred tax liabilities | (4,583) | (7,316) |
Net deferred tax asset | $ 65,519 | $ 59,324 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 292,295 | $ 472,432 | $ 350,097 |
Other comprehensive income (loss) before reclassification | 38,556 | (220,113) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (620) | 328 | |
Other comprehensive income (loss), net of tax | 37,936 | (219,785) | (12,737) |
Balance | 404,415 | 292,295 | 472,432 |
Net unrealized holding gains (losses) on available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (210,489) | 9,293 | |
Other comprehensive income (loss) before reclassification | 38,557 | (220,110) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 393 | 328 | |
Other comprehensive income (loss), net of tax | 38,950 | (219,782) | |
Balance | (171,539) | (210,489) | 9,293 |
Reclassification adjustment for (gains) losses realized in income on fair value hedge | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 0 | 0 | |
Other comprehensive income (loss) before reclassification | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,013) | 0 | |
Other comprehensive income (loss), net of tax | (1,013) | 0 | |
Balance | (1,013) | 0 | 0 |
Change in funded status of post-retirement plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (1) | 2 | |
Other comprehensive income (loss) before reclassification | (1) | (3) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Other comprehensive income (loss), net of tax | (1) | (3) | |
Balance | (2) | (1) | 2 |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (210,490) | 9,295 | 22,032 |
Other comprehensive income (loss), net of tax | 37,936 | (219,785) | (12,737) |
Balance | $ (172,554) | $ (210,490) | $ 9,295 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans to principal officers, directors, and their affiliates | ||
Beginning balance | $ 10,491 | $ 11,074 |
New loans | 4,404 | 983 |
Repayments | (1,941) | (1,566) |
Ending balance | $ 12,954 | $ 10,491 |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions (Textual) [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 52,886 | $ 44,926 |
Affiliated Entity | ||
Related Party Transactions (Textual) [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 13,400 | |
Affiliated Entity | Related Party | ||
Related Party Transactions (Textual) [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 18,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic EPS | |||
Net income | $ 49,932 | $ 60,597 | $ 51,844 |
Weighted average shares outstanding | 37,384,122 | 33,844,945 | 29,167,357 |
Basic earnings per share | $ 1.34 | $ 1.79 | $ 1.78 |
Diluted EPS | |||
Net income | $ 49,932 | $ 60,597 | $ 51,844 |
Weighted average shares outstanding | 37,384,122 | 33,844,945 | 29,167,357 |
Average unvested restricted stock awards | 114,147 | 83,994 | 112,430 |
Weighted average shares for diluted earnings per share | 37,498,269 | 33,928,939 | 29,279,787 |
Diluted earnings per share | $ 1.33 | $ 1.79 | $ 1.77 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Awards | |||
Earnings Per Share Basic [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 194,599 | 201,080 | 55,128 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Not Designated as Hedging Instrument | Interest Rate Lock Commitments | |||
Derivative [Line Items] | |||
Net Gain or Loss recognized in earnings | $ 87,000 | $ 21,000 | $ 423,000 |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative notional amount | 63,900,000 | 71,900,000 | |
Fair value, other assets | (4,200,000) | (5,500,000) | |
Fair value, other liabilities | 4,200,000 | 5,500,000 | |
Net Gain or Loss recognized in earnings | 0 | $ 0 | |
Interest rate swaps | Fair Value Hedge | |||
Derivative [Line Items] | |||
Derivative notional amount | 100,000,000 | ||
Fair value, other assets | (836,000) | ||
Interest rate swaps | Fair Value Hedge | Other Assets | |||
Derivative [Line Items] | |||
Fair value, other assets | (425,000) | ||
Interest rate swaps | Fair Value Hedge | Other Liabilities | |||
Derivative [Line Items] | |||
Fair value, other assets | $ (1,300,000) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount fair value hedge | $ 63,900 | $ 71,900 |
Fair Value Hedge | ||
Derivative [Line Items] | ||
Notional amount fair value hedge | $ 100,000 | |
Fixed pay rates | 4.35% | |
Variable SOFR receive rates | 5.38% | |
Remaining maturity (in years) | 2 years 7 months 6 days | |
Fair value | $ (836) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Detail 1) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Forward sales contracts | |||
Derivative [Line Items] | |||
Net Gain or Loss recognized in earnings | $ (45) | $ 362 | $ 0 |
Interest Rate Lock Commitments | |||
Derivative [Line Items] | |||
Net Gain or Loss recognized in earnings | $ 87 | $ 21 | $ 423 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Detail 2) - Mortgage Banking - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 7,400 | $ 9,200 |
Derivative liability, fair value | 109 | 51 |
Forward sales contracts | Other Assets | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 0 | 4,300 |
Derivative liability, fair value | 0 | 30 |
Forward sales contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 3,300 | 0 |
Derivative liability, fair value | (14) | 0 |
Interest Rate Lock Commitments | Other Assets | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 7,400 | 4,900 |
Derivative liability, fair value | $ 109 | $ 21 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Goodwill and other intangibles | $ 190,288 | $ 101,666 | |
Total assets | 5,078,350 | 4,082,200 | |
Net interest income | 137,786 | 124,166 | $ 107,990 |
Provision for credit/loan losses and unfunded loans | 9,153 | 1,122 | 4,893 |
Service fees, security gains and other noninterest income | 41,861 | 44,202 | 38,193 |
Noninterest expense | 104,469 | 89,512 | 75,637 |
Amortization and depreciation expense | 7,327 | 4,899 | 3,539 |
Income before taxes | 58,698 | 72,835 | 62,114 |
Income tax | 8,766 | 12,238 | 10,270 |
Net Income | 49,932 | 60,597 | 51,844 |
Eliminations And Others | |||
Segment Reporting Information [Line Items] | |||
Goodwill and other intangibles | (4,263) | (4,263) | |
Total assets | (2,645) | 3,705 | |
Net interest income | (3,915) | (3,359) | (870) |
Provision for credit/loan losses and unfunded loans | 0 | 0 | 0 |
Service fees, security gains and other noninterest income | (1,188) | (637) | (199) |
Noninterest expense | 642 | 890 | 589 |
Amortization and depreciation expense | 451 | 453 | 346 |
Income before taxes | (6,196) | (5,339) | (2,004) |
Income tax | (1,600) | (1,340) | (605) |
Net Income | (4,596) | (3,999) | (1,399) |
Trust Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Goodwill and other intangibles | 5,680 | 5,739 | |
Total assets | 15,845 | 14,383 | |
Net interest income | 257 | 172 | 134 |
Provision for credit/loan losses and unfunded loans | 0 | 0 | 0 |
Service fees, security gains and other noninterest income | 11,615 | 19,535 | 11,045 |
Noninterest expense | 7,122 | 8,635 | 6,854 |
Amortization and depreciation expense | 90 | 110 | 262 |
Income before taxes | 4,660 | 10,962 | 4,063 |
Income tax | 980 | 2,301 | 852 |
Net Income | 3,680 | 8,661 | 3,211 |
Bank Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Goodwill and other intangibles | 188,871 | 100,190 | |
Total assets | 5,065,150 | 4,064,112 | |
Net interest income | 141,444 | 127,353 | 108,726 |
Provision for credit/loan losses and unfunded loans | 9,153 | 1,122 | 4,893 |
Service fees, security gains and other noninterest income | 31,434 | 25,304 | 27,347 |
Noninterest expense | 96,705 | 79,987 | 68,194 |
Amortization and depreciation expense | 6,786 | 4,336 | 2,931 |
Income before taxes | 60,234 | 67,212 | 60,055 |
Income tax | 9,386 | 11,277 | 10,023 |
Net Income | $ 50,848 | $ 55,935 | $ 50,032 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | |||
Total assets | $ 4,082,200 | $ 5,078,350 | |
Deposits | $ 3,561,768 | $ 4,177,386 | |
Emclaire Financial Corp | |||
Subsequent Event [Line Items] | |||
Business acquisition, date of merger agreement | Jan. 01, 2023 | ||
Cash consideration per share | $ 14.12 | ||
Maximum percentage of common shares exchanged for company shares under merger agreement | 70% | ||
Percentage of common shares exchanged for company's cash under merger agreement | 30% | ||
Emclaire Financial Corp | Common Stock | |||
Subsequent Event [Line Items] | |||
Cash consideration per share | $ 40 | ||
Shares of stock issued for acquisition | 2.15 | 4,200,000 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Data Abstract | |||
Total interest income | $ 213,335 | $ 142,086 | $ 116,459 |
Total interest expense | 75,549 | 17,920 | 8,469 |
NET INTEREST INCOME | 137,786 | 124,166 | 107,990 |
Provision for credit losses | 8,718 | 250 | 4,649 |
Noninterest income | 41,861 | 44,202 | 38,193 |
Merger related costs | 5,475 | 4,070 | 7,109 |
Income before taxes | 58,698 | 72,835 | 62,114 |
Income taxes | 8,766 | 12,238 | 10,270 |
Net Income | $ 49,932 | $ 60,597 | $ 51,844 |
Diluted earnings per share | $ 1.33 | $ 1.79 | $ 1.77 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Other investments | $ 424 | $ 600 | ||
TOTAL ASSETS | 5,078,350 | 4,082,200 | ||
Liabilities: | ||||
Other liabilities | 52,886 | 44,926 | ||
Subordinated debentures | 74,020 | 73,895 | ||
TOTAL LIABILITIES | 4,673,935 | 3,789,905 | ||
Total stockholders' equity | 404,415 | 292,295 | $ 472,432 | $ 350,097 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 5,078,350 | 4,082,200 | ||
Farmers National Banc Corp | ||||
Assets: | ||||
Cash | 57,071 | 104,497 | ||
TOTAL ASSETS | 495,319 | 383,048 | ||
Liabilities: | ||||
Other liabilities | 2,241 | 2,542 | ||
Subordinated debentures | 88,663 | 88,211 | ||
TOTAL LIABILITIES | 90,904 | 90,753 | ||
Total stockholders' equity | 404,415 | 292,295 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 495,319 | 383,048 | ||
Farmers National Banc Corp | Bank Segment | ||||
Assets: | ||||
Investment in subsidiaries | 424,393 | 261,631 | ||
Farmers National Banc Corp | Farmers Trust | ||||
Assets: | ||||
Investment in subsidiaries | 13,431 | 13,598 | ||
Farmers National Banc Corp | Captive Insurance | ||||
Assets: | ||||
Investment in subsidiaries | $ 0 | $ 2,722 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income: | |||
Dividends from subsidiaries | $ 1,986 | $ 871 | $ 498 |
Income tax benefit | (8,766) | (12,238) | (10,270) |
Net Income | 49,932 | 60,597 | 51,844 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 87,868 | (159,188) | 39,107 |
Farmers National Banc Corp | |||
Income: | |||
Interest and dividends on securities | 44 | 0 | 11 |
Security gains/(losses) | 0 | 0 | 130 |
Total Income | 24,044 | 39,400 | 49,696 |
Interest on borrowings | 4,086 | 3,428 | 918 |
Other expenses | 4,109 | 3,451 | 2,792 |
Income before income tax benefit and undistributed subsidiary income | 15,849 | 32,521 | 45,986 |
Income tax benefit | 1,624 | 1,345 | 611 |
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | 32,459 | 26,731 | 5,247 |
Net Income | 49,932 | 60,597 | 51,844 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 87,868 | (159,188) | 39,107 |
Farmers National Banc Corp | Bank Segment | |||
Income: | |||
Dividends from subsidiaries | 20,000 | 30,000 | 45,620 |
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | 30,848 | 25,935 | 4,412 |
Farmers National Banc Corp | Farmers Trust | |||
Income: | |||
Dividends from subsidiaries | 4,000 | 8,000 | 2,800 |
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | (320) | 662 | 412 |
Farmers National Banc Corp | Captive Insurance | |||
Income: | |||
Dividends from subsidiaries | 0 | 1,400 | 1,135 |
Equity in undistributed net income of subsidiaries (dividends in excess of net income) | $ (1,931) | $ 134 | $ 423 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 49,932 | $ 60,597 | $ 51,844 |
NET CASH FROM OPERATING ACTIVITIES | 62,306 | 80,739 | 54,933 |
Cash flows from investing activities: | |||
NET CASH FROM INVESTING ACTIVITIES | 77,936 | (205,507) | (423,613) |
Cash flows from financing activities: | |||
Proceeds from long term borrowings | 0 | 0 | 73,749 |
Repurchase of common shares | (11,544) | 0 | (164) |
Cash dividends paid | (25,396) | (22,004) | (14,072) |
NET CASH FROM FINANCING ACTIVITIES | (112,135) | 87,529 | 226,849 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 28,107 | (37,239) | (141,831) |
Farmers National Banc Corp | |||
Cash flows from operating activities: | |||
Net income | 49,932 | 60,597 | 51,844 |
Dividends in excess of net income (Equity in undistributed net income of subsidiaries) | (32,459) | (26,731) | (5,247) |
Other | 5,481 | 559 | 6,846 |
NET CASH FROM OPERATING ACTIVITIES | 22,954 | 34,425 | 53,443 |
Cash flows from investing activities: | |||
Net cash paid in business combinations | (33,440) | 0 | (29,618) |
NET CASH FROM INVESTING ACTIVITIES | (33,440) | 0 | (29,618) |
Cash flows from financing activities: | |||
Proceeds from long term borrowings | 0 | 0 | 73,749 |
Repurchase of common shares | (11,544) | 0 | (164) |
Cash dividends paid | (25,396) | (22,004) | (14,072) |
NET CASH FROM FINANCING ACTIVITIES | (36,940) | (22,004) | 59,513 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (47,426) | 12,421 | 83,338 |
Beginning cash and cash equivalents | 104,497 | 92,076 | 8,738 |
Ending cash and cash equivalents | $ 57,071 | $ 104,497 | $ 92,076 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments in Affordable Housing Projects [Abstract] | ||
Qualified affordable housing projects | $ 17,900,000 | $ 13,600,000 |
Total unfunded commitments | 12,600,000 | 9,100,000 |
Amortization expense | 1,700,000 | 1,300,000 |
Tax credits and other benefits | 2,200,000 | 1,100,000 |
Impairment losses | $ 0 | $ 0 |