Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-35015 | |
Entity Registrant Name | ACNB CORP | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2233457 | |
Entity Address, Address Line One | 16 Lincoln Square | |
Entity Address, City or Town | Gettysburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17325 | |
City Area Code | 717 | |
Local Phone Number | 334-3161 | |
Title of 12(b) Security | Common Stock, $2.50 par value per share | |
Trading Symbol | ACNB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Shell Company Report | false | |
Entity Common Stock, Shares Outstanding | 8,715,020 | |
Entity Central Index Key | 0000715579 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
ASSETS | |||
Cash and due from banks | $ 24,305 | $ 23,739 | $ 23,169 |
Interest bearing deposits with banks | 482,453 | 375,613 | 106,001 |
Total Cash and Cash Equivalents | 506,758 | 399,352 | 129,170 |
Equity securities with readily determinable fair values | 2,535 | 2,170 | 1,888 |
Debt securities available for sale | 355,008 | 337,718 | 253,048 |
Securities held to maturity, fair value $9,451; $18,565; $10,768 | 9,155 | 10,294 | 18,090 |
Loans held for sale | 12,000 | 11,034 | 4,786 |
Loans, net of allowance for loan losses $20,237; $15,852; $20,226 | 1,590,481 | 1,617,558 | 1,590,187 |
Premises and equipment, net | 32,491 | 33,013 | 34,506 |
Right of use assets | 2,984 | 3,145 | 5,974 |
Restricted investment in bank stocks | 2,798 | 2,942 | 3,701 |
Investment in bank-owned life insurance | 63,739 | 63,401 | 62,306 |
Investments in low-income housing partnerships | 1,349 | 1,380 | 1,474 |
Goodwill | 42,108 | 42,108 | 41,700 |
Intangible assets, net | 6,969 | 7,265 | 7,684 |
Foreclosed assets held for resale | 0 | 0 | 798 |
Other assets | 26,242 | 23,982 | 24,753 |
Total Assets | 2,654,617 | 2,555,362 | 2,180,065 |
Deposits: | |||
Non-interest bearing | 589,045 | 556,666 | 433,923 |
Interest bearing | 1,689,577 | 1,628,859 | 1,377,434 |
Total Deposits | 2,278,622 | 2,185,525 | 1,811,357 |
Short-term borrowings | 31,282 | 38,464 | 26,104 |
Long-term borrowings | 65,616 | 53,745 | 71,723 |
Lease liabilities | 2,984 | 3,138 | 6,047 |
Other liabilities | 18,501 | 16,518 | 17,840 |
Total Liabilities | 2,397,005 | 2,297,390 | 1,933,071 |
STOCKHOLDERS’ EQUITY | |||
Preferred stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding | 0 | 0 | 0 |
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,777,620, 8,732,506 and 8,771,993 shares issued; 8,715,020, 8,669,906 and 8,709,393 shares outstanding | 21,932 | 21,918 | 21,819 |
Treasury stock, at cost (62,600 shares) | (728) | (728) | (728) |
Additional paid-in capital | 94,215 | 94,048 | 93,150 |
Retained earnings | 153,666 | 148,372 | 135,273 |
Accumulated other comprehensive loss | (11,473) | (5,638) | (2,520) |
Total Stockholders’ Equity | 257,612 | 257,972 | 246,994 |
Total Liabilities and Stockholders’ Equity | $ 2,654,617 | $ 2,555,362 | $ 2,180,065 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Securities held to maturity, fair value | $ 9,451 | $ 10,768 | $ 18,565 |
Allowance for loan losses | $ 20,237 | $ 20,226 | $ 15,852 |
Preferred stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, shares issued | 8,777,620 | 8,771,993 | 8,732,506 |
Common stock, shares outstanding | 8,715,020 | 8,709,393 | 8,669,906 |
Treasury stock, shares | 62,600 | 62,600 | 62,600 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST AND DIVIDEND INCOME | ||
Loans, including fees | $ 17,798 | $ 19,035 |
Securities: | ||
Taxable | 1,284 | 1,284 |
Tax-exempt | 135 | 92 |
Dividends | 61 | 90 |
Other | 92 | 408 |
Total Interest Income | 19,370 | 20,909 |
INTEREST EXPENSE | ||
Deposits | 1,654 | 2,921 |
Short-term borrowings | 10 | 15 |
Long-term borrowings | 381 | 518 |
Total Interest Expense | 2,045 | 3,454 |
Net Interest Income | 17,325 | 17,455 |
PROVISION FOR LOAN LOSSES | 50 | 4,000 |
Net Interest Income after Provision for Loan Losses | 17,275 | 13,455 |
OTHER INCOME | ||
Commissions from insurance sales | 1,383 | 1,440 |
Earnings on investment in bank-owned life insurance | 338 | 347 |
Net gains (losses) on equity securities | 365 | (475) |
Other | 289 | 240 |
Total Other Income | 5,913 | 4,166 |
OTHER EXPENSES | ||
Salaries and employee benefits | 8,668 | 8,501 |
Net occupancy | 1,167 | 981 |
Equipment | 1,291 | 1,284 |
Other tax | 393 | 327 |
Professional services | 224 | 402 |
Supplies and postage | 163 | 209 |
Marketing and corporate relations | 77 | 184 |
FDIC and regulatory | 232 | 41 |
Merger related expenses | 0 | 5,965 |
Intangible assets amortization | 296 | 315 |
Foreclosed real estate (income) expenses | (1) | 75 |
Other operating | 1,277 | 1,173 |
Total Other Expenses | 13,787 | 19,457 |
Income (Loss) before Income Taxes | 9,401 | (1,836) |
PROVISION (BENEFIT) FOR INCOME TAXES | 1,930 | (613) |
Net Income (Loss) | $ 7,471 | $ (1,223) |
PER SHARE DATA | ||
Basic earnings (in dollars per share) | $ 0.86 | $ (0.14) |
Cash dividends declared (in dollars per share) | $ 0.25 | $ 0.25 |
Service charges on deposit accounts | ||
OTHER INCOME | ||
Revenue from contract with customer, excluding assessed tax | $ 774 | $ 990 |
Income from fiduciary, investment management and brokerage activities | ||
OTHER INCOME | ||
Revenue from contract with customer, excluding assessed tax | 703 | 668 |
Income from mortgage loans held for sale | ||
OTHER INCOME | ||
Revenue from contract with customer, excluding assessed tax | 1,283 | 318 |
Service charges on ATM and debit card transactions | ||
OTHER INCOME | ||
Revenue from contract with customer, excluding assessed tax | $ 778 | $ 638 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 7,471 | $ (1,223) | |
SECURITIES | |||
Unrealized (losses) gains arising during the period, net of income taxes of $(1,738) and $907, respectively | (6,079) | 3,202 | |
Reclassification adjustment for net gains included in net income, net of income taxes of $0 and $0, respectively (A) (C) | [1],[2] | 0 | 0 |
PENSION | |||
Amortization of pension net loss, transition liability, and prior service cost, net of income taxes of $69 and $38, respectively (B) (C) | [2],[3] | 244 | 131 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (5,835) | 3,333 | |
TOTAL COMPREHENSIVE INCOME | $ 1,636 | $ 2,110 | |
[1] | Gross amounts are included in net gains on sales or calls of securities on the Consolidated Statements of Income in total other income. | ||
[2] | Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. | ||
[3] | Gross amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income in total other expenses. |
CONSOLIDATED STATEMENTS OF CO_3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
SECURITIES: Unrealized (losses) gains arising during the period, income taxes | $ (1,738) | $ 907 |
SECURITIES: Reclassification adjustment for net gains included in net income, income taxes | 0 | 0 |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, income taxes | $ 69 | $ 38 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2019 | $ 189,516 | $ 17,855 | $ (728) | $ 39,579 | $ 138,663 | $ (5,853) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,223) | (1,223) | ||||
Other comprehensive income (loss), net of taxes | 3,333 | 3,333 | ||||
Common stock shares issued | 57,273 | 3,964 | 53,309 | |||
Restricted stock compensation expense | 262 | 262 | ||||
Cash dividends declared | (2,167) | (2,167) | ||||
Ending Balance at Mar. 31, 2020 | 246,994 | 21,819 | (728) | 93,150 | 135,273 | (2,520) |
Beginning Balance at Dec. 31, 2020 | 257,972 | 21,918 | (728) | 94,048 | 148,372 | (5,638) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 7,471 | 7,471 | ||||
Other comprehensive income (loss), net of taxes | (5,835) | (5,835) | ||||
Common stock shares issued | (181) | 14 | (195) | |||
Restricted stock compensation expense | 362 | 362 | ||||
Cash dividends declared | (2,177) | (2,177) | ||||
Ending Balance at Mar. 31, 2021 | $ 257,612 | $ 21,932 | $ (728) | $ 94,215 | $ 153,666 | $ (11,473) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock shares issued (in shares) | 5,627 | 1,590,547 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 7,471 | $ (1,223) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of loans originated for sale | (1,283) | (318) |
Loss on sales of foreclosed assets held for resale, including writedowns | 0 | 13 |
Earnings on investment in bank-owned life insurance | (338) | (347) |
(Gain) Loss on equity securities | (365) | 475 |
Restricted stock compensation expense | 362 | 262 |
Depreciation and amortization | 866 | 959 |
Provision for loan losses | 50 | 4,000 |
Net amortization of investment securities premiums | 410 | 125 |
Decrease (Increase) in accrued interest receivable | 183 | (91) |
Decrease in accrued interest payable | (612) | (153) |
Mortgage loans originated for sale | (46,670) | (14,302) |
Proceeds from sales of loans originated for sale | 46,987 | 16,290 |
(Increase) Decrease in other assets | (184) | 943 |
Increase in deferred tax expense | (398) | (221) |
Increase in other liabilities | 2,559 | 2,004 |
Net Cash Provided by Operating Activities | 9,038 | 8,416 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities of investment securities held to maturity | 1,139 | 1,144 |
Proceeds from maturities of investment securities available for sale | 26,693 | 6,087 |
Purchase of investment securities available for sale | (52,210) | (42,404) |
Redemption of restricted investment in bank stocks | 144 | 1,084 |
Net decrease (increase) in loans | 27,027 | (5,622) |
Purchase of bank-owned life insurance | 0 | (400) |
Bank acquisition, net of cash acquired | 0 | 35,262 |
Capital expenditures | (76) | (406) |
Proceeds from sales of premises and equipment | 28 | 0 |
Proceeds from sales of foreclosed real estate | 0 | 135 |
Net Cash Provided by (Used in) Investing Activities | 2,745 | (5,120) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits | 32,379 | 16,054 |
Net increase in time certificates of deposits and interest bearing deposits | 60,718 | 8,985 |
Net decrease in short-term borrowings | (7,182) | (7,331) |
Proceeds from long-term borrowings | 15,000 | 0 |
Repayments on long-term borrowings | (3,129) | (4,023) |
Dividends paid | (2,177) | (2,167) |
Common stock issued | 14 | 0 |
Net Cash Provided by Financing Activities | 95,623 | 11,518 |
Net Increase in Cash and Cash Equivalents | 107,406 | 14,814 |
CASH AND CASH EQUIVALENTS — BEGINNING | 399,352 | 114,356 |
CASH AND CASH EQUIVALENTS — ENDING | 506,758 | 129,170 |
Supplemental disclosures of cash flow information | ||
Interest paid | 2,657 | 3,607 |
Income taxes paid | 0 | 0 |
Loans transferred to foreclosed assets held for resale and other foreclosed transactions | 0 | 118 |
Increase in assets and liabilities: | ||
Securities | 0 | 22,167 |
Loans | 0 | 333,967 |
Premises and equipment | 0 | 11,682 |
Investment in bank-owned life insurance | 0 | 10,896 |
Restricted investments in bank stocks | 0 | 1,141 |
Foreclosed assets held for resale | 0 | 464 |
Goodwill | 0 | 22,120 |
Core deposit intangible assets | 0 | 3,572 |
Other assets | 0 | 2,970 |
Noninterest bearing deposits | 0 | 103,492 |
Interest bearing deposits | 0 | 270,566 |
Trust preferred debentures | 0 | 6,000 |
Long term borrowings | 0 | 3,450 |
Other liabilities | 0 | 2,824 |
Common shares issued | $ 0 | $ 57,909 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations ACNB Corporation (the Corporation or ACNB), headquartered in Gettysburg, Pennsylvania, provides banking, insurance, and financial services to businesses and consumers through its wholly-owned subsidiaries, ACNB Bank (Bank) and Russell Insurance Group, Inc. (RIG). The Bank engages in full-service commercial and consumer banking and wealth management services, including trust and retail brokerage, through its thirty-one community banking offices, including twenty community banking office locations in Adams, Cumberland, Franklin and York Counties, Pennsylvania, as of April 1, 2021. There are also loan production offices situated in Lancaster and York, Pennsylvania, and Hunt Valley, Maryland. RIG is a full-service insurance agency based in Westminster, Maryland, with additional locations in Germantown and Jarrettsville, Maryland. The agency offers a broad range of property and casualty and group life and health insurance to both individual and commercial clients. On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp, Inc. (New Windsor) of Taneytown, Maryland. At the effective time of the acquisition, New Windsor merged with and into a wholly-owned subsidiary of ACNB, immediately followed by the merger of New Windsor State Bank (NWSB) with and into ACNB Bank. ACNB Bank now operates in the Maryland market as “NWSB Bank, A Division of ACNB Bank” and serves its marketplace with banking and wealth management services via a network of six community banking offices located in Carroll County, Maryland, as of April 1, 2021. On January 11, 2020, ACNB completed the acquisition of Frederick County Bancorp, Inc. (FCBI), a bank holding company based in Frederick, Maryland. In addition, Frederick County Bank, a Maryland state-chartered bank and FCBI’s wholly-owned subsidiary, merged with and into ACNB Bank. ACNB Bank now operates in the Frederick County, Maryland, market as “FCB Bank, A Division of ACNB Bank” and serves its marketplace with banking and wealth management services via a network of five community banking offices located in Frederick County, Maryland. Further discussion of the FCBI acquisition can be found in Note 2 of these Notes to Consolidated Financial Statements. The Corporation’s primary sources of revenue are interest income on loans and investment securities and fee income on its products and services. Expenses consist of interest expense on deposits and borrowed funds, provisions for loan losses, and other operating expenses. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly ACNB Corporation’s financial position and the results of operations, comprehensive (loss) income, changes in stockholders’ equity, and cash flows. All such adjustments are of a normal recurring nature. The accounting policies followed by the Corporation are set forth in Note A to the Corporation’s consolidated financial statements in the 2020 ACNB Corporation Annual Report on Form 10-K, filed with the SEC on March 5, 2021. It is suggested that the consolidated financial statements contained herein be read in conjunction with the consolidated financial statements and notes included in the Corporation’s Annual Report on Form 10-K. The results of operations for the three month period ended March 31, 2021, are not necessarily indicative of the results to be expected for the full year. ASU 2018-14 The Corporation adopted ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removes the following disclosures: • the amounts in accumulated other comprehensive income that the entity expects to recognize in net periodic benefit cost during the next fiscal year; • the amount and timing of plan assets expected to be returned to the employer; and, • certain related party disclosures. The ASU clarifies the following disclosure requirements: • the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets must be disclosed; and, • the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets must be disclosed. The ASU adds the following disclosure requirements: • the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and, • an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for public business entities in fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2021, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Acquisition of Frederick County
Acquisition of Frederick County Bancorp, Inc. | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition of Frederick County Bancorp, Inc. | Acquisition of Frederick County Bancorp, Inc. On January 11, 2020, ACNB completed its previously announced acquisition of Frederick County Bancorp, Inc. (FCBI) of Frederick, Maryland. FCBI was a locally owned and managed institution with five locations in Frederick County, Maryland. The acquisition positioned ACNB Corporation for continual and profitable growth in a desirable market that is adjacent to the Corporation’s current footprint in southcentral Pennsylvania and central Maryland. ACNB transacted the merger to complement the Corporation’s existing operations, while consistent with the Corporation’s strategic plan of enhancing long-term shareholder value. The fair value of total assets acquired as a result of the merger totaled $443.4 million, loans totaled $329.3 million and deposits totaled $374.1 million. Goodwill recorded in the merger was $22.5 million. In accordance with the terms of the Reorganization Agreement, each share of FCBI common stock was converted into the right to receive 0.9900 share of ACNB common stock. As a result of the merger, ACNB issued 1,590,547 shares of its common stock and cash in exchange for fractional shares based upon $36.43, the determined market price of ACNB common stock in accordance with the Reorganization Agreement. The results of the combined entity’s operations are included in the Corporation’s Consolidated Financial Statements from the date of acquisition. The acquisition of FCBI is being accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. The following table summarizes the consideration paid for FCBI and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock FCBI shares outstanding 1,601,764 Shares paid in cash for fractional shares 150.88 Cash consideration (per share) $ 36.43 Cash portion of purchase price (cash payout of stock options and cash in lieu of fractional shares) $ 100,798 FCBI shares outstanding 1,601,764 Shares paid stock consideration 1,601,613 Exchange ratio 0.9900 Total ACNB shares issued 1,585,597 ACNB’s share price for purposes of calculation $ 36.34 Equity portion of purchase price $ 57,620,595 Cost of shares owned by buyer $ 187,200 Total consideration paid $ 57,908,593 Allocation of Purchase Price In thousands Total Purchase Price $ 57,909 Fair Value of Assets Acquired Cash and cash equivalents 35,262 Investment securities 22,167 Loans held for sale 4,050 Loans 329,312 Restricted stock 1,141 Premises and equipment 10,959 Core deposit intangible asset 3,560 Other assets 14,446 Total assets 420,897 Fair Value of Liabilities Assumed Non-interest bearing deposits 103,492 Interest bearing deposits 270,566 Subordinated debt 6,000 Long term borrowings 3,450 Other liabilities 2,008 Total liabilities 385,516 Net Assets Acquired 35,381 Goodwill Recorded in Acquisition $ 22,528 Pursuant to the accounting requirements, the Corporation assigned a fair value to the assets acquired and liabilities assumed of FCBI. ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The assets acquired and liabilities assumed in the acquisition of FCBI were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition. The items most susceptible to adjustment are the fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Investment securities available-for-sale The estimated fair values of the investment securities available for sale, primarily comprised of U.S. Government agency mortgage-backed securities, U.S. government agencies and municipal bonds, were determined using Level 2 inputs in the fair value hierarchy. The fair values were determined using independent pricing services. The Corporation’s independent pricing service utilized matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific security but rather relying on the security’s relationship to other benchmark quoted prices. Management reviewed the data and assumptions used in pricing the securities. A fair value premium of $163,000 was recorded and will be amortized over the estimated life of the investments using the interest rate method. Loans Acquired loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected life time losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The acquired loans were recorded at fair value at the acquisition date without carryover of FCBI’s previously established allowance for loan losses. The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $339,577,000. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at January 11, 2020 $ 339,577 Interest rate fair value adjustment on pools of homogeneous loans (2,632) Credit fair value adjustment on pools of homogeneous loans (5,931) Credit fair value adjustment on purchased credit impaired loans (1,702) Fair value of acquired loans at January 11, 2020 $ 329,312 For loans acquired without evidence of credit quality deterioration, ACNB prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value discount of $2.6 million. Additionally for loans acquired without credit deterioration, a credit fair value adjustment was calculated using a two-part credit fair value analysis: 1) expected lifetime credit migration losses; and 2) estimated fair value adjustment for certain qualitative factors. The expected lifetime losses were calculated using historical losses observed at the Bank, FCBI and peer banks. ACNB also estimated an environmental factor to apply to each loan type. The environmental factor represents potential discount which may arise due to general credit and economic factors. A credit fair value discount of $5.3 million was determined. Both the interest rate and credit fair value adjustments relate to loans acquired with evidence of credit quality deterioration will be substantially recognized as interest income on a level yield amortization method over the expected life of the loans. The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 4,289 Nonaccretable difference (2,361) Expected cash flows at acquisition 1,928 Accretable yield (354) Fair value of purchased impaired loans $ 1,574 The Corporation acquired five branches of FCBI. The fair value of FCBI’s premises, including land, buildings, and improvements, was determined based upon independent third-party appraisals performed by licensed appraisers in the market in which the premises are located. The Corporation prepared an internal analysis to compare the lease contract obligations to comparable market rental rates. The Corporation believed that the leased contract rates were in a reasonable range of market rental rates and concluded that no fair market value adjustment related to leasehold interest was necessary. Core Deposit Intangible The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates. The core deposit intangible will be amortized over ten years using the sum-of-years digits method. Time Deposits The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit premium of approximately $255,000 is being amortized into income on a level yield amortization method over the contractual life of the deposits. Long-term Borrowings The Corporation assumed a trust preferred subordinated debt in connection with the merger. The fair value of the trust preferred subordinated debt was determined using a discounted cash flow method using a market participant discount rate for similar instruments. The trust preferred capital note was valued at discount of $854,000, which is being amortized into income on a level yield amortization method based upon the assumed market rate, and the term of the trust preferred subordinated debt instrument. The following table presents certain pro forma information as if FCBI had been acquired on September 30, 2019. These results combine the historical results of the Corporation in the Corporation’s Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on September 30, 2019. In particular, no adjustments have been made to eliminate the amount of FCBI’s provision for loan losses that would not have been necessary had the acquired loans been recorded at fair value as of September 30, 2019. The Corporation expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below: In thousands For the Nine Months Total revenues (net interest income plus non-interest income) $ 72,281 Net Income 22,138 Acquisition-related expenses associated with the acquisition of FCBI were $6.0 million for the three months ended March 31, 2020. Such costs include legal and accounting fees, lease and contract termination expenses, system conversion, operations integration, and employee severances, which have been expensed as incurred. |
Earnings Per Share and Restrict
Earnings Per Share and Restricted Stock | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Restricted Stock | Earnings Per Share and Restricted Stock The Corporation has a simple capital structure. Basic earnings per share of common stock is computed based on 8,710,393 and 8,477,642 weighted average shares of common stock outstanding for the three months ended March 31, 2021 and 2020, respectively. All outstanding unvested restricted stock awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. The Corporation has no instruments that would create dilutive earnings per share. The ACNB Corporation 2009 Restricted Stock Plan expired by its own terms after 10 years on February 24, 2019. The purpose of this plan was to provide employees and directors of the Bank who have responsibility for its growth with additional incentives by allowing them to acquire ownership in the Corporation and, thereby, encouraging them to contribute to the organization’s success. As of March 31, 2021, 25,945 shares were issued under this plan and all shares were fully vested. No further shares may be issued under this restricted stock plan. The Corporation’s Registration Statement under the Securities Act of 1933 on Form S-8 for the ACNB Corporation 2009 Restricted Stock Plan was filed with the Securities and Exchange Commission on January 4, 2013. Post-Effective Amendment No. 1 to this Form S-8 was filed with the Commission on March 8, 2019, effectively transferring the 174,055 authorized, but not issued, shares under the ACNB Corporation 2009 Restricted Stock Plan to the ACNB Corporation 2018 Omnibus Stock Incentive Plan. On May 1, 2018, shareholders approved and ratified the ACNB Corporation 2018 Omnibus Stock Incentive Plan, effective as of March 20, 2018, in which awards shall not exceed, in the aggregate, 400,000 shares of common stock, plus any shares that are authorized, but not issued, under the ACNB Corporation 2009 Restricted Stock Plan. As of March 31, 2021, 35,587 shares were issued under this plan, of which 17,124 were fully vested, 11,917 vested during the quarter, and the remaining 6,546 will vest over the next year. The Corporation’s Registration Statement under the Securities Act of 1933 on Form S-8 for the ACNB Corporation 2018 Omnibus Stock Incentive Plan was filed with the Securities and Exchange Commission on March 8, 2019. In addition, on March 8, 2019, the Corporation filed Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 for the ACNB Corporation 2009 Restricted Stock Plan to add the ACNB Corporation 2018 Omnibus Stock Incentive Plan to the registration statement. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three month periods ended March 31 were as follows: Three Months Ended March 31, In thousands 2021 2020 Service cost $ 220 $ 188 Interest cost 236 270 Expected return on plan assets (704) (687) Amortization of net loss 314 169 Net Periodic Benefit Expense (Income) $ 66 $ (60) |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Corporation does not issue any guarantees that would require liability recognition or disclosure, other than its |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Pension Accumulated Other BALANCE — MARCH 31, 2021 $ (1,434) $ (10,039) $ (11,473) BALANCE — DECEMBER 31, 2020 $ 4,645 $ (10,283) $ (5,638) BALANCE — MARCH 31, 2020 $ 4,463 $ (6,983) $ (2,520) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Corporation has two reporting segments, the Bank and RIG. RIG is managed separately from the banking segment, which includes the Bank and related financial services that the Corporation offers through its banking subsidiary. RIG offers a broad range of property and casualty, life, and health insurance to both commercial and individual clients. Segment information for the three month periods ended March 31, 2021 and 2020, is as follows: In thousands Banking Insurance Total 2021 Net interest income and other income from external customers $ 21,866 $ 1,372 $ 23,238 Income before income taxes 9,185 216 9,401 Total assets 2,641,782 12,835 2,654,617 Capital expenditures 76 — 76 2020 Net interest income and other income from external customers $ 20,186 $ 1,435 $ 21,621 (Loss) Income before income taxes (2,001) 165 (1,836) Total assets 2,167,427 12,638 2,180,065 Capital expenditures 406 — 406 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Debt securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in other comprehensive income (loss). Equity securities with readily determinable fair values are recorded at fair value with changes in fair value recognized in net income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Amortized cost and fair value of securities at March 31, 2021, and December 31, 2020, were as follows: In thousands Amortized Gross Gross Fair SECURITIES AVAILABLE FOR SALE MARCH 31, 2021 U.S. Government and agencies $ 199,033 $ 1,378 $ 4,281 $ 196,130 Mortgage-backed securities, residential 113,145 2,366 1,210 114,301 State and municipal 35,899 225 418 35,706 Corporate bonds 8,775 100 4 8,871 $ 356,852 $ 4,069 $ 5,913 $ 355,008 DECEMBER 31, 2020 U.S. Government and agencies $ 181,704 $ 2,117 $ 218 $ 183,603 Mortgage-backed securities, residential 105,327 3,529 34 108,822 State and municipal 35,930 561 7 36,484 Corporate bonds 8,784 41 16 8,809 $ 331,745 $ 6,248 $ 275 $ 337,718 SECURITIES HELD TO MATURITY MARCH 31, 2021 Mortgage-backed securities, residential $ 9,155 $ 296 $ — $ 9,451 $ 9,155 $ 296 $ — $ 9,451 DECEMBER 31, 2020 Mortgage-backed securities, residential $ 10,294 $ 474 $ — $ 10,768 $ 10,294 $ 474 $ — $ 10,768 The fair value disclosures required by ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018, are as follows: In thousands Fair Value at January 1, 2021 Unrealized Unrealized Fair Value at March 31, 2021 MARCH 31, 2021 CRA Mutual Fund $ 1,065 $ — $ 17 $ 1,048 Stock in other banks 1,105 382 — 1,487 $ 2,170 $ 382 $ 17 $ 2,535 In thousands Fair Value at January 1, 2020 Unrealized Unrealized Fair Value at March 31, 2020 MARCH 31, 2020 CRA Mutual Fund $ 1,045 $ 16 $ — $ 1,061 Stock in other banks 1,318 — 491 827 $ 2,363 $ 16 $ 491 $ 1,888 In thousands Fair Value at January 1, 2020 Unrealized Unrealized Fair Value at December 31, 2020 DECEMBER 31, 2020 CRA Mutual Fund $ 1,045 $ 25 $ 5 $ 1,065 Stock in other banks 1,318 — 213 1,105 $ 2,363 $ 25 $ 218 $ 2,170 The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2021, and December 31, 2020: Less than 12 Months 12 Months or More Total In thousands Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE FOR SALE MARCH 31, 2021 U.S. Government and agencies $ 107,396 $ 4,281 $ — $ — $ 107,396 $ 4,281 Mortgage-backed securities, residential 49,943 1,209 254 1 50,197 1,210 State and municipal 16,765 418 — — 16,765 418 Corporate bond 1,996 4 — — 1,996 4 $ 176,100 $ 5,912 $ 254 $ 1 $ 176,354 $ 5,913 DECEMBER 31, 2020 U.S. Government and agencies $ 32,629 $ 218 $ — $ — $ 32,629 $ 218 Mortgage-backed securities, residential 10,458 34 — — 10,458 34 State and municipal 2,148 7 — — 2,148 7 Corporate bond 1,514 16 — — 1,514 16 $ 46,749 $ 275 $ — $ — $ 46,749 $ 275 SECURITIES HELD TO MATURITY MARCH 31, 2021 Mortgage-backed securities, residential $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — DECEMBER 31, 2020 Mortgage-backed securities, residential $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — All mortgage-backed security investments are government sponsored enterprise (GSE) pass-through instruments issued by the Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) or Federal Home Loan Mortgage Corporation (FHLMC), which guarantee the timely payment of principal on these investments. At March 31, 2021, forty-two available for sale U.S. Government and agency securities had unrealized losses that individually did not exceed 8% of amortized cost. None of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At March 31, 2021, twenty-two available for sale residential mortgage-backed securities had unrealized losses that individually did not exceed 5% of amortized cost. None of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At March 31, 2021, twenty-six available for sale state and municipal securities had unrealized losses that individually did not exceed 9% of amortized cost. None of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At March 31, 2021, one corporate bond had an unrealized loss that did not exceed 1% of amortized cost. This security has not been in a continuous loss position for 12 months or more. This unrealized loss relates principally to changes in interest rates subsequent to the acquisition of the specific security. In analyzing the issuer’s financial condition, management considers industry analysts’ reports, financial performance, and projected target prices of investment analysts within a one-year time frame. Based on the above information, management has determined that none of these investments are other-than-temporarily impaired. The fair values of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2) which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the security’s relationship to other benchmark quoted prices. The Corporation uses independent service providers to provide matrix pricing. Management routinely sells securities from its available for sale portfolio in an effort to manage and allocate the portfolio. At March 31, 2021, management had not identified any securities with an unrealized loss that it intends to sell or will be required to sell. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Amortized cost and fair value at March 31, 2021, by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Fair Amortized Fair 1 year or less $ 54,160 $ 54,583 $ — $ — Over 1 year through 5 years 34,050 34,902 — — Over 5 years through 10 years 111,373 108,131 — — Over 10 years 44,124 43,091 — — Mortgage-backed securities, residential 113,145 114,301 9,155 9,451 $ 356,852 $ 355,008 $ 9,155 $ 9,451 The Corporation did not sell any securities available for sale during the first three months of 2021 or 2020. At March 31, 2021, and December 31, 2020, securities with a carrying value of $267,184,000 and $301,201,000, respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans | Loans The Corporation grants commercial, residential, and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout southcentral Pennsylvania and northern Maryland. The ability of the Corporation’s debtors to honor their contracts is dependent upon the real estate values and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The loans receivable portfolio is segmented into commercial, residential mortgage, home equity lines of credit, and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, and commercial real estate construction. The accrual of interest on residential mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer loans (consisting of home equity lines of credit and consumer loan classes) 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. All interest accrued, but not collected, for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses (the “allowance”) is established as losses are estimated to occur through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statement of condition. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity, and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for the previous twelve quarters for each of these categories of loans, adjusted for qualitative risk factors. These qualitative risk factors include: • lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • national, regional and local economic and business conditions, as well as the condition of various market segments, including the impact on the value of underlying collateral for collateral dependent loans; • the nature and volume of the portfolio and terms of loans; • the experience, ability and depth of lending management and staff; • the volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; and, • the existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. It covers risks that are inherently difficult to quantify including, but not limited to, collateral risk, information risk, and historical charge-off risk. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and/or interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A specific allocation within the allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the Corporation’s impaired loans are measured based on the estimated fair value of the loan’s collateral or the discounted cash flows method. It is the policy of the Corporation to order an updated valuation on all real estate secured loans when the loan becomes 90 days past due and there has not been an updated valuation completed within the previous 12 months. In addition, the Corporation orders third-party valuations on all impaired real estate collateralized loans within 30 days of the loan being classified as impaired. Until the valuations are completed, the Corporation utilizes the most recent independent third-party real estate valuation to estimate the need for a specific allocation to be assigned to the loan. These existing valuations are discounted downward to account for such things as the age of the existing collateral valuation, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Once the updated valuation is completed, the collateral value is updated accordingly. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging reports, equipment appraisals, or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The Corporation actively monitors the values of collateral as well as the age of the valuation of impaired loans. The Corporation orders valuations at least every 18 months, or more frequently if management believes that there is an indication that the fair value has declined. For impaired loans secured by collateral other than real estate, the Corporation considers the net book value of the collateral, as recorded in the most recent financial statements of the borrower, and determines fair value based on estimates made by management. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructure. Loans whose terms are modified are classified as troubled debt restructured loans if the Corporation grants such borrowers concessions that it would not otherwise consider and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate, a below market interest rate given the risk associated with the loan, or an extension of a loan’s stated maturity date. Nonaccrual troubled debt restructurings may be restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period of time and, based on a well-documented credit evaluation of the borrower’s financial condition, there is reasonable assurance of repayment. Loans classified as troubled debt restructurings are generally designated as impaired. The allowance calculation methodology includes further segregation of loan classes into credit quality rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are generally evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio and economic conditions, management believes the current level of the allowance for loan losses is adequate. Commercial and Industrial Lending — The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory, and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and may be renewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum values have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc. In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis. Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial Real Estate Lending — The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial loan portfolio is secured primarily by commercial retail space, office buildings, and hotels. Generally, commercial real estate loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property, and are typically secured by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Corporation are performed by independent appraisers. Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral. Commercial Real Estate Construction Lending — The Corporation engages in commercial real estate construction lending in its primary market area and surrounding areas. The Corporation’s commercial real estate construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Corporation’s commercial real estate construction loans are generally secured with the subject property. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate construction loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc. Appraisals on properties securing commercial real estate construction loans originated by the Corporation are performed by independent appraisers. Commercial real estate construction loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the uncertainties surrounding total construction costs. Residential Mortgage Lending — One-to-four family residential mortgage loan originations, including home equity closed-end loans, are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. The Corporation offers fixed-rate and adjustable-rate mortgage loans with terms up to a maximum of 30 years for both permanent structures and those under construction. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The majority of the Corporation’s residential mortgage loans originate with a loan-to-value of 80% or less. Loans in excess of 80% are required to have private mortgage insurance. In underwriting one-to-four family residential real estate loans, the Corporation evaluates both the borrower’s financial ability to repay the loan as agreed and the value of the property securing the loan. Properties securing real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Corporation has not engaged in subprime residential mortgage originations. Residential mortgage loans are subject to risk due primarily to general economic conditions, as well as a continued weak housing market. Home Equity Lines of Credit Lending — The Corporation originates home equity lines of credit primarily within the Corporation’s market area or with customers primarily from the market area. Home equity lines of credit are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting home equity lines of credit, the Corporation evaluates both the value of the property securing the loan and the borrower’s financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Home equity lines of credit generally present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. Consumer Lending — The Corporation offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. Consumer loan terms vary according to the type and value of collateral and the creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Acquired Loans Acquired loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected lifetime losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The carryover of allowance for loan losses related to acquired loans is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. The allowance for loan losses on acquired loans reflects only those losses incurred after acquisition and represents the present value of cash flows expected at acquisition that is no longer expected to be collected. Acquired loans are marked to fair value on the date of acquisition. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Corporation performs an analysis on acquired loans to determine whether or not there has been subsequent deterioration in relation to those loans. If deterioration has occurred, the Corporation will include these loans in the calculation of the allowance for loan losses after the initial valuation, and provide accordingly. Upon acquisition, in accordance with US GAAP, the Corporation has individually determined whether each acquired loan is within the scope of ASC 310-30. The Corporation’s senior lending management reviewed the accounting seller’s loan portfolio on a loan by loan basis to determine if any loans met the two-part definition of an impaired loan as defined by ASC 310-30: 1) Credit deterioration on the loan from its inception until the acquisition date, and 2) It is probable that not all of the contractual cash flows will be collected on the loan. With regards to ASC 310-30 loans, for external disclosure purposes, the aggregate contractual cash flows less the aggregate expected cash flows resulted in a credit related non-accretable yield amount. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount. The accretable yield reflects the contractual cash flows management expects to collect above the loan’s acquisition date fair value and will be recognized over the life of the loan on a level-yield basis as a component of interest income. Over the life of the acquired ASC 310-30 loan, the Corporation continues to estimate cash flows expected to be collected. Decreases in expected cash flows, other than from prepayments or rate adjustments, are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for credit losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized on a prospective basis over the loan’s remaining life. Acquired ASC 310-30 loans that met the criteria for non-accrual of interest prior to acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Corporation can reasonably estimate the timing and amount of expected cash flows on such loans. Accordingly, the Corporation does not consider acquired contractually delinquent loans to be non-accruing and continue to recognize interest income on these loans using the accretion model. Acquired ASC 310-20 loans, which are loans that did not meet the criteria above, were pooled into groups of similar loans based on various factors including borrower type, loan purpose, and collateral type. For these pools, the Corporation used certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average margin, and weighted average interest rate along with estimated prepayment rates, expected lifetime losses, environment factors to estimate the expected cash flow for each loan pool. The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within the Corporation’s internal risk rating system as of March 31, 2021, and December 31, 2020: In thousands Pass Special Mention Substandard Doubtful Total MARCH 31, 2021 Originated Loans Commercial and industrial $ 267,234 $ 4,521 $ 3,368 $ — $ 275,123 Commercial real estate 438,258 56,452 10,269 — 504,979 Commercial real estate construction 36,030 1,552 — — 37,582 Residential mortgage 311,659 5,319 178 — 317,156 Home equity lines of credit 76,153 496 — — 76,649 Consumer 11,111 — — — 11,111 Total Originated Loans 1,140,445 68,340 13,815 — 1,222,600 Acquired Loans Commercial and industrial 37,549 1,558 1,480 — 40,587 Commercial real estate 235,532 14,985 3,839 — 254,356 Commercial real estate construction 10,189 2,361 — — 12,550 Residential mortgage 52,933 3,588 2,264 — 58,785 Home equity lines of credit 20,089 37 483 — 20,609 Consumer 1,231 — — — 1,231 Total Acquired Loans 357,523 22,529 8,066 — 388,118 Total Loans Commercial and industrial 304,783 6,079 4,848 — 315,710 Commercial real estate 673,790 71,437 14,108 — 759,335 Commercial real estate construction 46,219 3,913 — — 50,132 Residential mortgage 364,592 8,907 2,442 — 375,941 Home equity lines of credit 96,242 533 483 — 97,258 Consumer 12,342 — — — 12,342 Total Loans $ 1,497,968 $ 90,869 $ 21,881 $ — $ 1,610,718 In thousands Pass Special Mention Substandard Doubtful Total DECEMBER 31, 2020 Originated Loans Commercial and industrial $ 270,047 $ 5,168 $ 2,688 $ — $ 277,903 Commercial real estate 414,538 54,122 10,463 — 479,123 Commercial real estate construction 39,462 1,746 — — 41,208 Residential mortgage 332,632 4,327 178 — 337,137 Home equity lines of credit 80,560 346 — — 80,906 Consumer 11,819 — — — 11,819 Total Originated Loans 1,149,058 65,709 13,329 — 1,228,096 Acquired Loans Commercial and industrial 38,882 1,893 1,476 — 42,251 Commercial real estate 245,597 16,706 3,201 — 265,504 Commercial real estate construction 10,300 2,394 — — 12,694 Residential mortgage 58,787 3,535 1,881 — 64,203 Home equity lines of credit 23,165 97 442 — 23,704 Consumer 1,330 — 2 — 1,332 Total Acquired Loans 378,061 24,625 7,002 — 409,688 Total Loans Commercial and industrial 308,929 7,061 4,164 — 320,154 Commercial real estate 660,135 70,828 13,664 — 744,627 Commercial real estate construction 49,762 4,140 — — 53,902 Residential mortgage 391,419 7,862 2,059 — 401,340 Home equity lines of credit 103,725 443 442 — 104,610 Consumer 13,149 — 2 — 13,151 Total Loans $ 1,527,119 $ 90,334 $ 20,331 $ — $ 1,637,784 The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Balance at beginning of period $ 596 $ 642 Acquisitions of impaired loans — 354 Reclassification from non-accretable differences — — Accretion to loan interest income (98) (128) Balance at end of period $ 498 $ 868 Cash flows expected to be collected on acquired loans are estimated quarterly by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Improved cash flow expectations for loans or pools are recorded first as a reversal of previously recorded impairment, if any, and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Decreases in expected cash flows are recognized as impairment through a charge to the provision for loan losses and credit to the allowance for loan losses. The following table summarizes information relative to impaired loans by loan portfolio class as of March 31, 2021, and December 31, 2020: Impaired Loans with Allowance Impaired Loans with In thousands Recorded Unpaid Related Recorded Unpaid MARCH 31, 2021 Commercial and industrial $ 2,739 $ 2,739 $ 1,954 $ — $ — Commercial real estate 1,703 1,703 152 6,802 6,802 Commercial real estate construction — — — — — Residential mortgage — — — 101 101 Home equity lines of credit — — — — — $ 4,442 $ 4,442 $ 2,106 $ 6,903 $ 6,903 DECEMBER 31, 2020 Commercial and industrial $ 2,031 $ 2,031 $ 1,224 $ — $ — Commercial real estate 2,728 2,728 158 5,861 5,861 Commercial real estate construction — — — — — Residential mortgage — — — 101 101 Home equity lines of credit — — — — — $ 4,759 $ 4,759 $ 1,382 $ 5,962 $ 5,962 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended March 31, 2021 and 2020: Impaired Loans with Impaired Loans with In thousands Average Interest Average Interest MARCH 31, 2021 Commercial and industrial $ 2,385 $ — $ — $ — Commercial real estate 1,703 — 6,716 54 Commercial real estate construction — — 128 — Residential mortgage — — 101 — Home equity lines of credit — — — — $ 4,088 $ — $ 6,945 $ 54 MARCH 31, 2020 Commercial and industrial $ 62 $ — $ — $ — Commercial real estate 530 — 7,340 70 Commercial real estate construction — — — — Residential mortgage — — 136 7 Home equity lines of credit — — 76 — $ 592 $ — $ 7,552 $ 77 No additional funds are committed to be advanced in connection with impaired loans. The following table presents nonaccrual loans by loan portfolio class as of March 31, 2021, and December 31, 2020, the table below excludes $6.0 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands March 31, 2021 December 31, 2020 Commercial and industrial $ 2,739 $ 2,031 Commercial real estate 4,852 4,909 Commercial real estate construction — — Residential mortgage 101 101 Home equity lines of credit — — $ 7,692 $ 7,041 There were no loans whose terms have been modified thereby resulting in a troubled debt restructuring during the three months ended March 31, 2021 and 2020. The Corporation classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term and/or the restructuring of scheduled principal payments. The Corporation had pre-existing nonaccruing and accruing troubled debt restructurings of $3,764,000 a nd $3,933,000 at March 31, 2021 and March 31, 2020, respectively. All of the Corporation’s troubled debt restructured loans are also impaired loans, of which some have resulted in a specific allocation and, subsequently, a charge-off as appropriate. Included in the non-accrual loan total at March 31, 2021 and March 31, 2020, were $111,000 and $175,000, respectively, of troubled debt restructurings. In addition to the troubled debt restructurings included in non-accrual loans, the Corporation also has a loan classified as an accruing troubled debt restructuring at March 31, 2021 and March 31, 2020, which totale |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance. This guidance further clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value measurement and disclosure guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at March 31, 2021, and December 31, 2020, are as follows: March 31, 2021 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 196,130 $ — $ 196,130 $ — Mortgage-backed securities, residential 114,301 — 114,301 — State and municipal 35,706 — 35,706 — Corporate bonds 8,871 — 8,871 — Total securities available for sale Recurring $ 355,008 $ — $ 355,008 $ — Equity securities with readily determinable fair values Recurring $ 2,535 $ 2,535 $ — $ — Collateral dependent impaired loans Nonrecurring $ 6,430 $ — $ — $ 6,430 December 31, 2020 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 183,603 $ — $ 183,603 $ — Mortgage-backed securities, residential 108,822 — 108,822 — State and municipal 36,484 — 36,484 — Corporate bonds 8,809 — 8,809 — Total securities available for sale Recurring $ 337,718 $ — $ 337,718 $ — Equity securities with readily determinable fair values Recurring $ 2,170 $ 2,170 $ — $ — Collateral dependent impaired loans Nonrecurring $ 7,498 $ — $ — $ 7,498 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average March 31, 2021 Impaired loans $ 6,430 Appraisal of collateral (a) Appraisal adjustments (b) (10) – (50)% (54)% December 31, 2020 Impaired loans $ 7,498 Appraisal of collateral (a) Appraisal adjustments (b) (10) – (50)% (52)% (a) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of March 31, 2021: March 31, 2021 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,305 $ 24,305 $ 10,252 $ 14,053 $ — Interest-bearing deposits in banks 482,453 482,453 482,453 — — Equity securities available for sale 2,535 2,535 2,535 — — Investment securities available for sale 355,008 355,008 — 355,008 — Investment securities held to maturity 9,155 9,451 — 9,451 — Loans held for sale 12,000 12,000 — 12,000 — Loans, less allowance for loan losses 1,590,481 1,616,326 — — 1,616,326 Accrued interest receivable 6,767 6,767 — 6,767 — Restricted investment in bank stocks 2,798 2,798 — 2,798 — Financial liabilities: Demand deposits and savings 1,816,731 1,816,731 — 1,816,731 — Time deposits 461,891 465,265 — 465,265 — Short-term borrowings 31,282 31,282 — 31,282 — Long-term borrowings 54,616 55,329 — 55,329 — Trust preferred subordinated debt 11,000 9,914 — 9,914 — Accrued interest payable 822 822 — 822 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2020: December 31, 2020 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 23,739 $ 23,739 $ 12,436 $ 11,303 $ — Interest-bearing deposits in banks 375,613 375,613 375,613 — — Equity securities available for sale 2,170 2,170 2,170 — — Investment securities available for sale 337,718 337,718 — 337,718 — Investment securities held to maturity 10,294 10,768 — 10,768 — Loans held for sale 11,034 11,034 — 11,034 — Loans, less allowance for loan losses 1,617,558 1,662,342 — — 1,662,342 Accrued interest receivable 6,950 6,950 — 6,950 — Restricted investment in bank stocks 2,942 2,942 — 2,942 — Financial liabilities: Demand deposits and savings 1,708,868 1,708,868 — 1,708,868 — Time deposits 476,657 481,138 — 481,138 — Short-term borrowings 38,464 38,464 — 38,464 — Long-term borrowings 42,745 43,669 — 43,669 — Trust preferred subordinated debt 11,000 9,902 — 9,902 — Accrued interest payable 1,434 1,434 — 1,434 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Repurchase Agreements [Abstract] | |
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | Securities Sold Under Agreements to Repurchase (Repurchase Agreements) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Corporation’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Corporation could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Corporation in a segregated custodial account under a tri-party agreement. The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of March 31, 2021, and December 31, 2020: Gross Amounts Not Offset in the Statements of Condition In thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2021 Repurchase agreements Commercial customers and government entities (a) $ 31,282 $ — $ 31,282 $ (31,282) $ — $ — December 31, 2020 Repurchase agreements Commercial customers and government entities (a) $ 38,464 $ — $ 38,464 $ (38,464) $ — $ — (a) As of March 31, 2021, and December 31, 2020, the fair value of securities pledged in connection with repurchase agreements was $40,147,000 and $54,680,000, respectively. The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of March 31, 2021: Remaining Contractual Maturity of the Agreements In thousands Overnight Up to 30 Days 30 – 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 31,282 $ — $ — $ — $ 31,282 Total $ 31,282 $ — $ — $ — $ 31,282 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Corporation had long-term debt outstanding as follows: In thousands March 31, 2021 December 31, 2020 FHLB advances $ 35,716 $ 38,716 Loan payable to local bank 1,200 1,329 Loan payable variable rate 2,700 2,700 Trust preferred subordinated debt 5,000 5,000 Trust preferred subordinated debt 6,000 6,000 Subordinated debt 15,000 — $ 65,616 $ 53,745 The FHLB advances are collateralized by the assets defined in the security agreement and FHLB capital stock. FHLB advances have maturity dates from 2020 to 2023 with a weighted average rate of 2.39%. The loan payable to a local bank has a fixed rate of 4.5% for the first five years and a variable rate of interest with Prime Rate thereafter to final maturity in June 2028. The principal balance of this note may be prepaid at any time without penalty. The loan payable variable rate represents a promissory note (note) issued by FCBI in July 2011 and assumed by ACNB Corporation through the acquisition. The note has been amended from time to time through change in terms agreements. Under the current change in terms agreement, the maturity date of the note is April 9, 2021, with the rate of interest accruing on the principal balance of 3.25% per year. The note is unsecured. The first trust preferred subordinated debt is comprised of debt securities issued by New Windsor in June 2005 and assumed by ACNB Corporation through the acquisition. New Windsor issued $5,000,000 of 6.39% fixed rate capital securities to institutional investors in a private pooled transaction. The proceeds were transferred to New Windsor as trust preferred subordinated debt under the same terms and conditions. The Corporation then contributed the full amount to the Bank in the form of Tier 1 capital. The Corporation has, through various contractual arrangements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities. The second trust preferred subordinated debt is comprised of debt securities issued by FCBI in December 2006 and assumed by ACNB Corporation through the acquisition. FCBI completed the private placement of an aggregate of $6,000,000 of trust preferred securities. The interest rate on the subordinated debentures is currently adjusted quarterly to 163 basis points over three-month LIBOR. The debenture has a provision if LIBOR is no longer available. On December 31, 2020, the most recent interest rate reset date, the interest rate was adjusted to 1.84650% for the period ending March 14, 2021. The trust preferred securities mature on December 15, 2036, and may be redeemed at par, at the Corporation’s option, on any interest payment date. The proceeds were transferred to FCBI as trust preferred subordinated debt under the same terms and conditions. The Corporation then contributed the full amount to the Bank in the form of Tier 1 capital. The Corporation has, through various contractual agreements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities. On March 30, 2021, ACNB Corporation (the Company) entered into Subordinated Note Purchase Agreements (Purchase Agreements) with certain institutional accredited investors and qualified institutional buyers (the Purchasers) pursuant to which the Company sold and issued $15.0 million in aggregate principal amount of its 4.00% fixed-to-floating rate subordinated notes due March 31, 2031 (the Notes). The Notes were issued by the Company to the Purchasers at a price equal to 100% of their face amount. The Company intends to use the net proceeds it received from the sale of the Notes to retire outstanding debt of the Company, repurchase issued and outstanding shares of the Company, support general corporate purposes, underwrite growth opportunities, create an interest reserve for the Notes, and downstream proceeds to ACNB Bank (the Bank), to be used by the Bank to continue to meet regulatory capital requirements, increase the regulatory lending ability of the Bank, and support the Bank’s organic growth initiatives. The Notes have a stated maturity of March 31, 2031, are redeemable by the Company at its option, in whole or in part, on or after March 30, 2026, and at any time upon the occurrences of certain events. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets On January 5, 2005, ACNB Corporation completed its acquisition of Russell Insurance Group, Inc. of Westminster, Maryland. The acquisition of RIG resulted in goodwill of approximately $6,308,000. On July 1, 2017, the Corporation completed its acquisition of New Windsor Bancorp, Inc. of Taneytown, Maryland. The acquisition of New Windsor resulted in goodwill of approximately $13,272,000 and generated $2,418,000 in core deposit intangibles. On January 11, 2020, the Corporation completed its acquisition of Frederick County Bancorp, Inc. of Frederick, Maryland. The acquisition of FCBI resulted in goodwill of approximately $22,528,000 and generated $3,560,000 in core deposit intangibles. Combined goodwill included in the Corporation’s consolidated statement of condition is $42,108,000. Goodwill, which has an indefinite useful life, is evaluated for impairment annually and is evaluated for impairment more frequently if events and circumstances indicate that the asset might be impaired. The Corporation did not identify any goodwill impairment on RIG or the Bank’s outstanding goodwill from its most recent testing. Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, customer relationship intangibles and renewal lists, are amortized over their estimated useful lives and subject to periodic impairment testing. Core deposit intangibles are primarily amortized over ten years using accelerated methods. Customer renewal lists are amortized over their estimated useful lives which range from eight The carrying value and accumulated amortization of the intangible assets and core deposit intangibles are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 10,428 $ 7,226 New Windsor core deposit intangibles 2,418 1,418 FCBI core deposit intangibles 3,560 793 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition As of January 1, 2018, the Corporation adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , as well as subsequent ASUs that modified ASC 606. The Company has elected to apply the ASU and all related ASUs using the cumulative effect approach. The implementation of the guidance had no material impact on the measurement or recognition of revenue of prior periods. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Additional disclosures related to the Corporation’s largest sources of non-interest income within the consolidated statements of income that are subject to ASC 606 are as follows: Income from fiduciary, investment management and brokerage activities – ACNB Bank’s Trust & Investment Services, under the umbrella of ACNB Wealth Management, provides a wide range of financial services, including trust services for individuals, businesses and retirement funds. Other services include, but are not limited to, those related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, power of attorney, custodial accounts and investment management and advisor accounts. In addition, ACNB’s Wealth Management Department offers retail brokerage-services through a third party provider. Wealth Management clients are located primarily within the Corporation’s geographic markets. Assets held by the Corporation’s Wealth Management Department, including trust and retail brokerage, in an agency, fiduciary or retail brokerage capacity for its customers are excluded from the consolidated financial statement since they do not constitute assets of the Corporation. Assets held by the Wealth Management Department amounted to $468,340,000 and $350,500,000 at March 31, 2021 and 2020, respectively. Income from fiduciary, investment management and brokerage activities are included in other income. The majority of trust services revenue is earned and collected monthly, with the amount determined based on the investment funds in each trust multiplied by a fee schedule for type of trust. Each trust has one integrated set of performance obligations so no allocation is required. The performance obligation is met by performing the identified fiduciary service. Successful performance is confirmed by ongoing internal and regulatory control, measurement is by valuing the trust assets at a monthly date to which a fee schedule is applied. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The costs of acquiring trust customers are incremental and recognized within non-interest expense in the consolidated statements of income. Service charges on deposit accounts – Deposits are included as liabilities in the consolidated balance sheets. Service charges on deposit accounts include: overdraft fees, which are charged when customers overdraw their accounts beyond available funds; automated teller machine (ATM) fees charged for withdrawals by deposit customers from other financial institutions’ ATMs; and a variety of other monthly or transactional fees for services provided to retail and business customers, mainly associated with checking accounts. All deposit liabilities are considered to have one-day terms and therefore related fees are recognized in income at the time when the services are provided to the customers. Incremental costs of obtaining deposit contracts are not significant and are recognized as expense when incurred within non-interest expense in the consolidated statements of income. Interchange revenue from debit card transactions - The Corporation issues debit cards to consumer and business customers with checking, savings or money market deposit accounts. Debit card and ATM transactions are processed via electronic systems that involve several parties. The Corporation’s debit card and ATM transaction processing is executed via contractual arrangements with payment processing networks, a processor and a settlement bank. As described above, all deposit liabilities are considered to have one-day terms and therefore interchange revenue from customers’ use of their debit cards to initiate transactions are recognized in income at the time when the services are provided and related fees received in the Corporation’s deposit account with the settlement bank. Incremental costs associated with ATM and interchange processing are recognized as expense when incurred within non-interest expense in the consolidated statements of income. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. Until recently, the new CECL standard was expected to become effective for the Corporation on January 1, 2020, and for interim periods within that year. In October 2019, FASB voted to delay implementation of the new CECL standard for certain companies, including those companies that qualify as a smaller reporting company under SEC rules, until January 1, 2023. The Corporation currently expects to continue to qualify as a smaller reporting company, based upon the current SEC definition, and as a result, will likely be able to defer implementation of the new CECL standard for a period of time. The Corporation will not early adopt as of January 1, 2020, but will continue to review factors that might indicate that the full deferral time period should not be used. The Corporation continues to evaluate the impact the CECL model will have on the accounting for credit losses, but the Corporation expects to recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. The Corporation cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on its consolidated financial condition or results of operations. Management has developed a committee to address CECL and the committee is currently evaluating options to comply with the ASU in a timely manner. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , an update to simplify accounting for income taxes by removing certain exceptions in Topic 740. In addition, ASU 2019-12 improves consistent application of other areas of guidance within Topic 740 by clarifying and amending existing guidance. The new guidance is effective for fiscal years beginning after December 15, 2020. The adoption of the new guidance is not expected to have a material effect on the Corporation’s consolidated financial condition or results of operations. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this Update provide optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered “minor” so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. Until recently, the new CECL standard was expected to become effective for the Corporation on January 1, 2020, and for interim periods within that year. In October 2019, FASB voted to delay implementation of the new CECL standard for certain companies, including those companies that qualify as a smaller reporting company under SEC rules, until January 1, 2023. The Corporation currently expects to continue to qualify as a smaller reporting company, based upon the current SEC definition, and as a result, will likely be able to defer implementation of the new CECL standard for a period of time. The Corporation will not early adopt as of January 1, 2020, but will continue to review factors that might indicate that the full deferral time period should not be used. The Corporation continues to evaluate the impact the CECL model will have on the accounting for credit losses, but the Corporation expects to recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. The Corporation cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on its consolidated financial condition or results of operations. Management has developed a committee to address CECL and the committee is currently evaluating options to comply with the ASU in a timely manner. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , an update to simplify accounting for income taxes by removing certain exceptions in Topic 740. In addition, ASU 2019-12 improves consistent application of other areas of guidance within Topic 740 by clarifying and amending existing guidance. The new guidance is effective for fiscal years beginning after December 15, 2020. The adoption of the new guidance is not expected to have a material effect on the Corporation’s consolidated financial condition or results of operations. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this Update provide optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered “minor” so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
Acquisition of Frederick Coun_2
Acquisition of Frederick County Bancorp, Inc. (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Purchase price consideration in common stock | The following table summarizes the consideration paid for FCBI and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock FCBI shares outstanding 1,601,764 Shares paid in cash for fractional shares 150.88 Cash consideration (per share) $ 36.43 Cash portion of purchase price (cash payout of stock options and cash in lieu of fractional shares) $ 100,798 FCBI shares outstanding 1,601,764 Shares paid stock consideration 1,601,613 Exchange ratio 0.9900 Total ACNB shares issued 1,585,597 ACNB’s share price for purposes of calculation $ 36.34 Equity portion of purchase price $ 57,620,595 Cost of shares owned by buyer $ 187,200 Total consideration paid $ 57,908,593 Allocation of Purchase Price In thousands Total Purchase Price $ 57,909 Fair Value of Assets Acquired Cash and cash equivalents 35,262 Investment securities 22,167 Loans held for sale 4,050 Loans 329,312 Restricted stock 1,141 Premises and equipment 10,959 Core deposit intangible asset 3,560 Other assets 14,446 Total assets 420,897 Fair Value of Liabilities Assumed Non-interest bearing deposits 103,492 Interest bearing deposits 270,566 Subordinated debt 6,000 Long term borrowings 3,450 Other liabilities 2,008 Total liabilities 385,516 Net Assets Acquired 35,381 Goodwill Recorded in Acquisition $ 22,528 |
Fair value adjustments | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at January 11, 2020 $ 339,577 Interest rate fair value adjustment on pools of homogeneous loans (2,632) Credit fair value adjustment on pools of homogeneous loans (5,931) Credit fair value adjustment on purchased credit impaired loans (1,702) Fair value of acquired loans at January 11, 2020 $ 329,312 |
Acquired purchased credit impaired loans receivable | The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 4,289 Nonaccretable difference (2,361) Expected cash flows at acquisition 1,928 Accretable yield (354) Fair value of purchased impaired loans $ 1,574 |
Pro forma results | The following table presents certain pro forma information as if FCBI had been acquired on September 30, 2019. These results combine the historical results of the Corporation in the Corporation’s Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on September 30, 2019. In particular, no adjustments have been made to eliminate the amount of FCBI’s provision for loan losses that would not have been necessary had the acquired loans been recorded at fair value as of September 30, 2019. The Corporation expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below: In thousands For the Nine Months Total revenues (net interest income plus non-interest income) $ 72,281 Net Income 22,138 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three month periods ended March 31 were as follows: Three Months Ended March 31, In thousands 2021 2020 Service cost $ 220 $ 188 Interest cost 236 270 Expected return on plan assets (704) (687) Amortization of net loss 314 169 Net Periodic Benefit Expense (Income) $ 66 $ (60) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Pension Accumulated Other BALANCE — MARCH 31, 2021 $ (1,434) $ (10,039) $ (11,473) BALANCE — DECEMBER 31, 2020 $ 4,645 $ (10,283) $ (5,638) BALANCE — MARCH 31, 2020 $ 4,463 $ (6,983) $ (2,520) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information for the three month periods ended March 31, 2021 and 2020, is as follows: In thousands Banking Insurance Total 2021 Net interest income and other income from external customers $ 21,866 $ 1,372 $ 23,238 Income before income taxes 9,185 216 9,401 Total assets 2,641,782 12,835 2,654,617 Capital expenditures 76 — 76 2020 Net interest income and other income from external customers $ 20,186 $ 1,435 $ 21,621 (Loss) Income before income taxes (2,001) 165 (1,836) Total assets 2,167,427 12,638 2,180,065 Capital expenditures 406 — 406 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | Amortized cost and fair value of securities at March 31, 2021, and December 31, 2020, were as follows: In thousands Amortized Gross Gross Fair SECURITIES AVAILABLE FOR SALE MARCH 31, 2021 U.S. Government and agencies $ 199,033 $ 1,378 $ 4,281 $ 196,130 Mortgage-backed securities, residential 113,145 2,366 1,210 114,301 State and municipal 35,899 225 418 35,706 Corporate bonds 8,775 100 4 8,871 $ 356,852 $ 4,069 $ 5,913 $ 355,008 DECEMBER 31, 2020 U.S. Government and agencies $ 181,704 $ 2,117 $ 218 $ 183,603 Mortgage-backed securities, residential 105,327 3,529 34 108,822 State and municipal 35,930 561 7 36,484 Corporate bonds 8,784 41 16 8,809 $ 331,745 $ 6,248 $ 275 $ 337,718 SECURITIES HELD TO MATURITY MARCH 31, 2021 Mortgage-backed securities, residential $ 9,155 $ 296 $ — $ 9,451 $ 9,155 $ 296 $ — $ 9,451 DECEMBER 31, 2020 Mortgage-backed securities, residential $ 10,294 $ 474 $ — $ 10,768 $ 10,294 $ 474 $ — $ 10,768 The fair value disclosures required by ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018, are as follows: In thousands Fair Value at January 1, 2021 Unrealized Unrealized Fair Value at March 31, 2021 MARCH 31, 2021 CRA Mutual Fund $ 1,065 $ — $ 17 $ 1,048 Stock in other banks 1,105 382 — 1,487 $ 2,170 $ 382 $ 17 $ 2,535 In thousands Fair Value at January 1, 2020 Unrealized Unrealized Fair Value at March 31, 2020 MARCH 31, 2020 CRA Mutual Fund $ 1,045 $ 16 $ — $ 1,061 Stock in other banks 1,318 — 491 827 $ 2,363 $ 16 $ 491 $ 1,888 In thousands Fair Value at January 1, 2020 Unrealized Unrealized Fair Value at December 31, 2020 DECEMBER 31, 2020 CRA Mutual Fund $ 1,045 $ 25 $ 5 $ 1,065 Stock in other banks 1,318 — 213 1,105 $ 2,363 $ 25 $ 218 $ 2,170 |
Schedule of unrealized losses and fair value | The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2021, and December 31, 2020: Less than 12 Months 12 Months or More Total In thousands Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE FOR SALE MARCH 31, 2021 U.S. Government and agencies $ 107,396 $ 4,281 $ — $ — $ 107,396 $ 4,281 Mortgage-backed securities, residential 49,943 1,209 254 1 50,197 1,210 State and municipal 16,765 418 — — 16,765 418 Corporate bond 1,996 4 — — 1,996 4 $ 176,100 $ 5,912 $ 254 $ 1 $ 176,354 $ 5,913 DECEMBER 31, 2020 U.S. Government and agencies $ 32,629 $ 218 $ — $ — $ 32,629 $ 218 Mortgage-backed securities, residential 10,458 34 — — 10,458 34 State and municipal 2,148 7 — — 2,148 7 Corporate bond 1,514 16 — — 1,514 16 $ 46,749 $ 275 $ — $ — $ 46,749 $ 275 SECURITIES HELD TO MATURITY MARCH 31, 2021 Mortgage-backed securities, residential $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — DECEMBER 31, 2020 Mortgage-backed securities, residential $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — |
Schedule of amortized cost and fair value by contractual maturity | Amortized cost and fair value at March 31, 2021, by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Fair Amortized Fair 1 year or less $ 54,160 $ 54,583 $ — $ — Over 1 year through 5 years 34,050 34,902 — — Over 5 years through 10 years 111,373 108,131 — — Over 10 years 44,124 43,091 — — Mortgage-backed securities, residential 113,145 114,301 9,155 9,451 $ 356,852 $ 355,008 $ 9,155 $ 9,451 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of classes of loan portfolio summarized by the aggregate risk rating | The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within the Corporation’s internal risk rating system as of March 31, 2021, and December 31, 2020: In thousands Pass Special Mention Substandard Doubtful Total MARCH 31, 2021 Originated Loans Commercial and industrial $ 267,234 $ 4,521 $ 3,368 $ — $ 275,123 Commercial real estate 438,258 56,452 10,269 — 504,979 Commercial real estate construction 36,030 1,552 — — 37,582 Residential mortgage 311,659 5,319 178 — 317,156 Home equity lines of credit 76,153 496 — — 76,649 Consumer 11,111 — — — 11,111 Total Originated Loans 1,140,445 68,340 13,815 — 1,222,600 Acquired Loans Commercial and industrial 37,549 1,558 1,480 — 40,587 Commercial real estate 235,532 14,985 3,839 — 254,356 Commercial real estate construction 10,189 2,361 — — 12,550 Residential mortgage 52,933 3,588 2,264 — 58,785 Home equity lines of credit 20,089 37 483 — 20,609 Consumer 1,231 — — — 1,231 Total Acquired Loans 357,523 22,529 8,066 — 388,118 Total Loans Commercial and industrial 304,783 6,079 4,848 — 315,710 Commercial real estate 673,790 71,437 14,108 — 759,335 Commercial real estate construction 46,219 3,913 — — 50,132 Residential mortgage 364,592 8,907 2,442 — 375,941 Home equity lines of credit 96,242 533 483 — 97,258 Consumer 12,342 — — — 12,342 Total Loans $ 1,497,968 $ 90,869 $ 21,881 $ — $ 1,610,718 In thousands Pass Special Mention Substandard Doubtful Total DECEMBER 31, 2020 Originated Loans Commercial and industrial $ 270,047 $ 5,168 $ 2,688 $ — $ 277,903 Commercial real estate 414,538 54,122 10,463 — 479,123 Commercial real estate construction 39,462 1,746 — — 41,208 Residential mortgage 332,632 4,327 178 — 337,137 Home equity lines of credit 80,560 346 — — 80,906 Consumer 11,819 — — — 11,819 Total Originated Loans 1,149,058 65,709 13,329 — 1,228,096 Acquired Loans Commercial and industrial 38,882 1,893 1,476 — 42,251 Commercial real estate 245,597 16,706 3,201 — 265,504 Commercial real estate construction 10,300 2,394 — — 12,694 Residential mortgage 58,787 3,535 1,881 — 64,203 Home equity lines of credit 23,165 97 442 — 23,704 Consumer 1,330 — 2 — 1,332 Total Acquired Loans 378,061 24,625 7,002 — 409,688 Total Loans Commercial and industrial 308,929 7,061 4,164 — 320,154 Commercial real estate 660,135 70,828 13,664 — 744,627 Commercial real estate construction 49,762 4,140 — — 53,902 Residential mortgage 391,419 7,862 2,059 — 401,340 Home equity lines of credit 103,725 443 442 — 104,610 Consumer 13,149 — 2 — 13,151 Total Loans $ 1,527,119 $ 90,334 $ 20,331 $ — $ 1,637,784 |
Schedule of changes In accretable yields of acquired loans | The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Balance at beginning of period $ 596 $ 642 Acquisitions of impaired loans — 354 Reclassification from non-accretable differences — — Accretion to loan interest income (98) (128) Balance at end of period $ 498 $ 868 |
Summary of information relative to impaired loans by loan portfolio class | The following table summarizes information relative to impaired loans by loan portfolio class as of March 31, 2021, and December 31, 2020: Impaired Loans with Allowance Impaired Loans with In thousands Recorded Unpaid Related Recorded Unpaid MARCH 31, 2021 Commercial and industrial $ 2,739 $ 2,739 $ 1,954 $ — $ — Commercial real estate 1,703 1,703 152 6,802 6,802 Commercial real estate construction — — — — — Residential mortgage — — — 101 101 Home equity lines of credit — — — — — $ 4,442 $ 4,442 $ 2,106 $ 6,903 $ 6,903 DECEMBER 31, 2020 Commercial and industrial $ 2,031 $ 2,031 $ 1,224 $ — $ — Commercial real estate 2,728 2,728 158 5,861 5,861 Commercial real estate construction — — — — — Residential mortgage — — — 101 101 Home equity lines of credit — — — — — $ 4,759 $ 4,759 $ 1,382 $ 5,962 $ 5,962 |
Summary of information in regards to the average of impaired loans and related income by loan portfolio class | The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended March 31, 2021 and 2020: Impaired Loans with Impaired Loans with In thousands Average Interest Average Interest MARCH 31, 2021 Commercial and industrial $ 2,385 $ — $ — $ — Commercial real estate 1,703 — 6,716 54 Commercial real estate construction — — 128 — Residential mortgage — — 101 — Home equity lines of credit — — — — $ 4,088 $ — $ 6,945 $ 54 MARCH 31, 2020 Commercial and industrial $ 62 $ — $ — $ — Commercial real estate 530 — 7,340 70 Commercial real estate construction — — — — Residential mortgage — — 136 7 Home equity lines of credit — — 76 — $ 592 $ — $ 7,552 $ 77 |
Schedule of nonaccrual loans by loan portfolio class | The following table presents nonaccrual loans by loan portfolio class as of March 31, 2021, and December 31, 2020, the table below excludes $6.0 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands March 31, 2021 December 31, 2020 Commercial and industrial $ 2,739 $ 2,031 Commercial real estate 4,852 4,909 Commercial real estate construction — — Residential mortgage 101 101 Home equity lines of credit — — $ 7,692 $ 7,041 |
Schedule of classes of loan portfolio summarized by the past due status | The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2021, and December 31, 2020: In thousands 30–59 Days Past Due 60–89 Days >90 Days Total Past Current Total Loans Loans MARCH 31, 2021 Originated Loans Commercial and industrial $ 85 $ 1,319 $ 1,274 $ 2,678 $ 272,445 $ 275,123 $ — Commercial real estate 464 552 2,933 3,949 501,030 504,979 — Commercial real estate construction — — — — 37,582 37,582 — Residential mortgage 1,752 — 451 2,203 314,953 317,156 351 Home equity lines of credit 91 — 72 163 76,486 76,649 72 Consumer 30 16 — 46 11,065 11,111 — Total originated loans 2,422 1,887 4,730 9,039 1,213,561 1,222,600 423 Acquired Loans Commercial and industrial 14 — — 14 40,573 40,587 — Commercial real estate — — — — 254,356 254,356 — Commercial real estate construction — — 97 97 12,453 12,550 97 Residential mortgage 823 — 145 968 57,817 58,785 145 Home equity lines of credit — 29 10 39 20,570 20,609 10 Consumer — — — — 1,231 1,231 — Total acquired loans 837 29 252 1,118 387,000 388,118 252 Total Loans Commercial and industrial 99 1,319 1,274 2,692 313,018 315,710 — Commercial real estate 464 552 2,933 3,949 755,386 759,335 — Commercial real estate construction — — 97 97 50,035 50,132 97 Residential mortgage 2,575 — 596 3,171 372,770 375,941 496 Home equity lines of credit 91 29 82 202 97,056 97,258 82 Consumer 30 16 — 46 12,296 12,342 — Total Loans $ 3,259 $ 1,916 $ 4,982 $ 10,157 $ 1,600,561 $ 1,610,718 $ 675 In thousands 30–59 Days Past Due 60–89 Days >90 Days Total Past Current Total Loans Loans DECEMBER 31, 2020 Originated Loans Commercial and industrial $ 1,432 $ — $ — $ 1,432 $ 276,471 $ 277,903 $ — Commercial real estate 133 2,463 1,631 4,227 474,896 479,123 — Commercial real estate construction — 76 — 76 41,132 41,208 — Residential mortgage 1,382 335 623 2,340 334,797 337,137 522 Home equity lines of credit 54 60 58 172 80,734 80,906 58 Consumer 98 51 — 149 11,670 11,819 — Total originated loans 3,099 2,985 2,312 8,396 1,219,700 1,228,096 580 Acquired Loans Commercial and industrial 122 231 — 353 41,898 42,251 — Commercial real estate 319 220 — 539 264,965 265,504 — Commercial real estate construction 42 — 97 139 12,555 12,694 97 Residential mortgage 834 349 146 1,329 62,874 64,203 146 Home equity lines of credit 196 — 32 228 23,476 23,704 32 Consumer — 16 — 16 1,316 1,332 — Total acquired loans 1,513 816 275 2,604 407,084 409,688 275 Total Loans Commercial and industrial 1,554 231 — 1,785 318,369 320,154 — Commercial real estate 452 2,683 1,631 4,766 739,861 744,627 — Commercial real estate construction 42 76 97 215 53,687 53,902 97 Residential mortgage 2,216 684 769 3,669 397,671 401,340 668 Home equity lines of credit 250 60 90 400 104,210 104,610 90 Consumer 98 67 — 165 12,986 13,151 — Total Loans $ 4,612 $ 3,801 $ 2,587 $ 11,000 $ 1,626,784 $ 1,637,784 $ 855 |
Summary of allowance for loan losses and recorded investment in loans receivable | The following tables summarize the allowance for loan losses and recorded investment in loans receivable: In thousands Commercial Commercial Commercial Residential Home Equity Consumer Unallocated Total AS OF AND FOR THE PERIOD ENDED MARCH 31, 2021 Allowance for Loan Losses Beginning balance - January 1, 2021 $ 4,037 $ 9,569 $ 503 $ 3,395 $ 693 $ 648 $ 1,381 $ 20,226 Charge-offs (18) — — — — (37) — (55) Recoveries 8 — — — — 8 — 16 Provisions (credits) 476 (29) 40 (29) (64) (11) (333) 50 Ending balance - March 31, 2021 $ 4,503 $ 9,540 $ 543 $ 3,366 $ 629 $ 608 $ 1,048 $ 20,237 Ending balance: individually evaluated for impairment $ 1,954 $ 152 $ — $ — $ — $ — $ — $ 2,106 Ending balance: collectively evaluated for impairment $ 2,549 $ 9,388 $ 543 $ 3,366 $ 629 $ 608 $ 1,048 $ 18,131 Loans Receivable Ending balance $ 315,710 $ 759,335 $ 50,132 $ 375,941 $ 97,258 $ 12,342 $ — $ 1,610,718 Ending balance: individually evaluated for impairment $ 2,739 $ 8,505 $ — $ 101 $ — $ — $ — $ 11,345 Ending balance: collectively evaluated for impairment $ 312,971 $ 750,830 $ 50,132 $ 375,840 $ 97,258 $ 12,342 $ — $ 1,599,373 AS OF AND FOR THE PERIOD ENDED MARCH 31, 2020 Allowance for Loan Losses Beginning balance - January 1, 2020 $ 2,400 $ 6,693 $ 298 $ 2,555 $ 619 $ 650 $ 620 $ 13,835 Charge-offs (2,017) — — — — (51) — (2,068) Recoveries 70 6 — — — 9 — 85 Provisions (credits) 2,193 812 (67) 146 (14) 15 915 4,000 Ending balance - March 31, 2020 $ 2,646 $ 7,511 $ 231 $ 2,701 $ 605 $ 623 $ 1,535 $ 15,852 Ending balance: individually evaluated for impairment $ 36 $ 42 $ — $ — $ — $ — $ — $ 78 Ending balance: collectively evaluated for impairment $ 2,610 $ 7,469 $ 231 $ 2,701 $ 605 $ 623 $ 1,535 $ 15,774 Loans Receivable Ending balance $ 208,859 $ 763,415 $ 44,198 $ 456,436 $ 118,603 $ 14,528 $ — $ 1,606,039 Ending balance: individually evaluated for impairment $ 58 $ 8,357 $ — $ 101 $ 68 $ — $ — $ 8,584 Ending balance: collectively evaluated for impairment $ 208,801 $ 755,058 $ 44,198 $ 456,335 $ 118,535 $ 14,528 $ — $ 1,597,455 In thousands Commercial Commercial Commercial Residential Home Equity Consumer Unallocated Total AS OF DECEMBER 31, 2020 Allowance for Loan Losses Ending balance $ 4,037 $ 9,569 $ 503 $ 3,395 $ 693 $ 648 $ 1,381 $ 20,226 Ending balance: individually evaluated for impairment $ 1,224 $ 158 $ — $ — $ — $ — $ — $ 1,382 Ending balance: collectively evaluated for impairment $ 2,813 $ 9,411 $ 503 $ 3,395 $ 693 $ 648 $ 1,381 $ 18,844 Loans Receivable Ending balance $ 320,154 $ 744,627 $ 53,902 $ 401,340 $ 104,610 $ 13,151 $ — $ 1,637,784 Ending balance: individually evaluated for impairment $ 2,031 $ 8,589 $ — $ 101 $ — $ — $ — $ 10,721 Ending balance: collectively evaluated for impairment $ 318,123 $ 736,038 $ 53,902 $ 401,239 $ 104,610 $ 13,151 $ — $ 1,627,063 |
Schedule of expected commercial loan modifications | Details with respect to actual loan modifications are as follows: Type of Loans Number of Loans Deferral Period Balance Percentage of Capital Commercial Purpose 28 Up to 6 months $ 23,562,751 9.15 % Consumer Purpose 2 Up to 6 months 157,609 0.06 30 $ 23,720,360 The following table provides information with respect to the Corporation’s Commercial loans by industry at March 31, 2021 that may have suffered, or are expected to suffer, greater losses as a result of COVID-19. Type of Loans Number of Loans Balance Percentage of Total Loan Portfolio Percentage of Capital Lessors of Commercial Real Estate 6 $ 6,105,203 0.38 % 2.37 % Lessors of Residential Real Estate — — — — Hospitality Industry (Hotels/Bed & Breakfast) 5 13,479,711 0.84 5.24 Food Services Industry 1 55,248 0.00 0.02 Other 16 3,922,589 0.24 1.52 28 $ 23,562,751 1.46 % 9.15 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements by level within the fair value hierarchy and the basis of measurement used | For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at March 31, 2021, and December 31, 2020, are as follows: March 31, 2021 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 196,130 $ — $ 196,130 $ — Mortgage-backed securities, residential 114,301 — 114,301 — State and municipal 35,706 — 35,706 — Corporate bonds 8,871 — 8,871 — Total securities available for sale Recurring $ 355,008 $ — $ 355,008 $ — Equity securities with readily determinable fair values Recurring $ 2,535 $ 2,535 $ — $ — Collateral dependent impaired loans Nonrecurring $ 6,430 $ — $ — $ 6,430 December 31, 2020 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 183,603 $ — $ 183,603 $ — Mortgage-backed securities, residential 108,822 — 108,822 — State and municipal 36,484 — 36,484 — Corporate bonds 8,809 — 8,809 — Total securities available for sale Recurring $ 337,718 $ — $ 337,718 $ — Equity securities with readily determinable fair values Recurring $ 2,170 $ 2,170 $ — $ — Collateral dependent impaired loans Nonrecurring $ 7,498 $ — $ — $ 7,498 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average March 31, 2021 Impaired loans $ 6,430 Appraisal of collateral (a) Appraisal adjustments (b) (10) – (50)% (54)% December 31, 2020 Impaired loans $ 7,498 Appraisal of collateral (a) Appraisal adjustments (b) (10) – (50)% (52)% (a) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal. |
Schedule of carrying amount, exit pricing concept fair value and placement in the fair value hierarchy | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of March 31, 2021: March 31, 2021 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,305 $ 24,305 $ 10,252 $ 14,053 $ — Interest-bearing deposits in banks 482,453 482,453 482,453 — — Equity securities available for sale 2,535 2,535 2,535 — — Investment securities available for sale 355,008 355,008 — 355,008 — Investment securities held to maturity 9,155 9,451 — 9,451 — Loans held for sale 12,000 12,000 — 12,000 — Loans, less allowance for loan losses 1,590,481 1,616,326 — — 1,616,326 Accrued interest receivable 6,767 6,767 — 6,767 — Restricted investment in bank stocks 2,798 2,798 — 2,798 — Financial liabilities: Demand deposits and savings 1,816,731 1,816,731 — 1,816,731 — Time deposits 461,891 465,265 — 465,265 — Short-term borrowings 31,282 31,282 — 31,282 — Long-term borrowings 54,616 55,329 — 55,329 — Trust preferred subordinated debt 11,000 9,914 — 9,914 — Accrued interest payable 822 822 — 822 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2020: December 31, 2020 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 23,739 $ 23,739 $ 12,436 $ 11,303 $ — Interest-bearing deposits in banks 375,613 375,613 375,613 — — Equity securities available for sale 2,170 2,170 2,170 — — Investment securities available for sale 337,718 337,718 — 337,718 — Investment securities held to maturity 10,294 10,768 — 10,768 — Loans held for sale 11,034 11,034 — 11,034 — Loans, less allowance for loan losses 1,617,558 1,662,342 — — 1,662,342 Accrued interest receivable 6,950 6,950 — 6,950 — Restricted investment in bank stocks 2,942 2,942 — 2,942 — Financial liabilities: Demand deposits and savings 1,708,868 1,708,868 — 1,708,868 — Time deposits 476,657 481,138 — 481,138 — Short-term borrowings 38,464 38,464 — 38,464 — Long-term borrowings 42,745 43,669 — 43,669 — Trust preferred subordinated debt 11,000 9,902 — 9,902 — Accrued interest payable 1,434 1,434 — 1,434 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement | The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of March 31, 2021, and December 31, 2020: Gross Amounts Not Offset in the Statements of Condition In thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2021 Repurchase agreements Commercial customers and government entities (a) $ 31,282 $ — $ 31,282 $ (31,282) $ — $ — December 31, 2020 Repurchase agreements Commercial customers and government entities (a) $ 38,464 $ — $ 38,464 $ (38,464) $ — $ — (a) As of March 31, 2021, and December 31, 2020, the fair value of securities pledged in connection with repurchase agreements was $40,147,000 and $54,680,000, respectively. |
Schedule of remaining contractual maturity of the master netting arrangement or repurchase agreements | The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of March 31, 2021: Remaining Contractual Maturity of the Agreements In thousands Overnight Up to 30 Days 30 – 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 31,282 $ — $ — $ — $ 31,282 Total $ 31,282 $ — $ — $ — $ 31,282 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | The Corporation had long-term debt outstanding as follows: In thousands March 31, 2021 December 31, 2020 FHLB advances $ 35,716 $ 38,716 Loan payable to local bank 1,200 1,329 Loan payable variable rate 2,700 2,700 Trust preferred subordinated debt 5,000 5,000 Trust preferred subordinated debt 6,000 6,000 Subordinated debt 15,000 — $ 65,616 $ 53,745 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The carrying value and accumulated amortization of the intangible assets and core deposit intangibles are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 10,428 $ 7,226 New Windsor core deposit intangibles 2,418 1,418 FCBI core deposit intangibles 3,560 793 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Operations (Details) - bank | Jan. 11, 2020 | Jul. 01, 2017 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Number of community banking office locations, ACNB | 31 | ||
Adams, Cumberland, Franklin and York Counties, Pennsylvania | |||
Business Acquisition [Line Items] | |||
Number of community banking office locations, ACNB | 20 | ||
New Windsor | |||
Business Acquisition [Line Items] | |||
Number of community banking offices acquired | 6 | ||
Frederick County Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Number of community banking offices acquired | 5 |
Acquisition of Frederick Coun_3
Acquisition of Frederick County Bancorp, Inc. - Narrative (Details) | Jan. 11, 2020USD ($)bank$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill Recorded in Acquisition | $ 42,108,000 | $ 41,700,000 | $ 42,108,000 | |
Loans receivable, gross amortized cost basis | $ 339,577,000 | |||
Interest rate fair value discount | 2,600,000 | |||
Credit fair value discount | 5,300,000 | |||
Liabilities, Fair Value Adjustment | $ 854,000 | |||
Merger related expenses | $ 6,000,000 | |||
Common Stock | ||||
Business Acquisition [Line Items] | ||||
Total ACNB shares issued | shares | 1,590,547 | |||
Frederick County Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Number of community banking offices acquired | bank | 5 | |||
Fair value of total assets acquired | $ 443,400,000 | |||
Fair value of total loans acquired | 329,312,000 | |||
Fair value of total deposits acquired | 374,100,000 | |||
Goodwill Recorded in Acquisition | $ 22,528,000 | |||
ACNB's share price for purposes of calculation (in dollars per share) | $ / shares | $ 36.43 | |||
Loans receivable, gross amortized cost basis | $ 339,577,000 | |||
Interest rate fair value discount | (2,632,000) | |||
Credit fair value discount | $ (5,931,000) | |||
Frederick County Bancorp, Inc. | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Exchange ratio | shares | 0.9900 | |||
Total ACNB shares issued | shares | 1,585,597 | |||
Investment securities available-for-sale | Frederick County Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets, fair value premium | $ 163,000 | |||
Time deposits | Frederick County Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets, fair value premium | $ 255,000 | |||
Core deposit intangibles | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 10 years | |||
Core deposit intangibles | Frederick County Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 10 years |
Acquisition of Frederick Coun_4
Acquisition of Frederick County Bancorp, Inc. - Purchase Price Consideration in Common Stock (Details) - USD ($) | Jan. 11, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, shares outstanding | 8,715,020 | 8,709,393 | 8,669,906 | |
Fair Value of Liabilities Assumed | ||||
Goodwill Recorded in Acquisition | $ 42,108,000 | $ 42,108,000 | $ 41,700,000 | |
Common Stock | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Total ACNB shares issued | 1,590,547 | |||
Frederick County Bancorp, Inc. | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Cash consideration (per FCBI share) (in dollars per share) | $ 36.43 | |||
Cash portion of purchase price (cash payout of stock options and cash in lieu of fractional shares) | $ 100,798 | |||
ACNB's share price for purposes of calculation (in dollars per share) | $ 36.34 | |||
Equity portion of purchase price | $ 57,620,595 | |||
Cost of shares owned by buyer | 187,200 | |||
Total consideration paid | 57,908,593 | |||
Fair Value of Assets Acquired | ||||
Cash and cash equivalents | 35,262,000 | |||
Investment securities | 22,167,000 | |||
Loans held for sale | 4,050,000 | |||
Loans | 329,312,000 | |||
Restricted stock | 1,141,000 | |||
Premises and equipment | 10,959,000 | |||
Core deposit intangible asset | 3,560,000 | |||
Other assets | 14,446,000 | |||
Total assets | 420,897,000 | |||
Fair Value of Liabilities Assumed | ||||
Non-interest bearing deposits | 103,492,000 | |||
Interest bearing deposits | 270,566,000 | |||
Subordinated debt | 6,000,000 | |||
Long term borrowings | 3,450,000 | |||
Other liabilities | 2,008,000 | |||
Total liabilities | 385,516,000 | |||
Net Assets Acquired | 35,381,000 | |||
Goodwill Recorded in Acquisition | $ 22,528,000 | |||
Frederick County Bancorp, Inc. | Common Stock | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Exchange ratio | 0.9900 | |||
Total ACNB shares issued | 1,585,597 | |||
Frederick County Bancorp, Inc. | Frederick County Bancorp, Inc. | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, shares outstanding | 1,601,764 | |||
Shares paid in cash for fractional shares | 150.88 | |||
Shares paid stock consideration | 1,601,613 |
Acquisition of Frederick Coun_5
Acquisition of Frederick County Bancorp, Inc. - Fair Value Adjustments (Details) $ in Thousands | Jan. 11, 2020USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at January 11, 2020 | $ 339,577 |
Interest rate fair value adjustment on pools of homogeneous loans | 2,600 |
Credit fair value adjustment on pools of homogeneous loans | 5,300 |
Frederick County Bancorp, Inc. | |
Business Acquisition [Line Items] | |
Gross amortized cost basis at January 11, 2020 | 339,577 |
Interest rate fair value adjustment on pools of homogeneous loans | (2,632) |
Credit fair value adjustment on pools of homogeneous loans | (5,931) |
Fair value of acquired loans at January 11, 2020 | 329,312 |
Purchased credit impaired loans | Frederick County Bancorp, Inc. | |
Business Acquisition [Line Items] | |
Credit fair value adjustment on pools of homogeneous loans | $ (1,702) |
Acquisition of Frederick Coun_6
Acquisition of Frederick County Bancorp, Inc. - Acquired Purchased Credit Impaired Loans Receivable (Details) - Frederick County Bancorp, Inc. $ in Thousands | Jan. 11, 2020USD ($) |
Business Acquisition [Line Items] | |
Contractual principal and interest at acquisition | $ 4,289 |
Nonaccretable difference | (2,361) |
Expected cash flows at acquisition | 1,928 |
Accretable yield | (354) |
Fair value of purchased impaired loans | $ 1,574 |
Acquisition of Frederick Coun_7
Acquisition of Frederick County Bancorp, Inc. - Pro forma information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Business Combinations [Abstract] | |
Total revenues (net interest income plus noninterest income) | $ 72,281 |
Net Income | $ 22,138 |
Earnings Per Share and Restri_2
Earnings Per Share and Restricted Stock (Details) - USD ($) $ in Thousands | Feb. 24, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 08, 2019 | Mar. 20, 2018 |
Earnings Per Share [Abstract] | |||||
Weighted average shares of common stock outstanding (in shares) | 8,710,393 | 8,477,642 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
2009 Restricted Stock Plan, Number of shares authorized, but not issued (in shares) | 174,055 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 28 | $ 33 | |||
ACNB Corporation 2009 Restricted Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
2009 Restricted Stock Plan, expiration period | 10 years | ||||
ACNB Corporation 2009 Restricted Stock Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under plan (in shares) | 25,945 | ||||
ACNB Corporation 2018 Omnibus Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate shares of common stock under new stock incentive plan (in shares) | 400,000 | ||||
ACNB Corporation 2018 Omnibus Stock Incentive Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under plan (in shares) | 35,587 | ||||
Shares fully vested (in shares) | 17,124 | ||||
Shares vested during the quarter (in shares) | 11,917 | ||||
Non-vested number of shares (in shares) | 6,546 | ||||
Vesting period (in years) | 1 year |
Retirement Benefits (Details)
Retirement Benefits (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)person | Mar. 31, 2020USD ($) | |
Postemployment Benefits [Abstract] | ||
Service cost | $ 220 | $ 188 |
Interest cost | 236 | 270 |
Expected return on plan assets | (704) | (687) |
Amortization of net loss | 314 | 169 |
Net Periodic Benefit Expense (Income) | $ 66 | $ (60) |
Number of active, vested, terminated and retired persons in the Plan | person | 347 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Guarantor Obligations [Line Items] | |
Line of credit facility expiration period | 1 year |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Guarantees amount | $ 8,094 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ 257,612 | $ 257,972 | $ 246,994 | $ 189,516 |
Unrealized (Losses) Gains on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | (1,434) | 4,645 | 4,463 | |
Pension Liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | (10,039) | (10,283) | (6,983) | |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ (11,473) | $ (5,638) | $ (2,520) | $ (5,853) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||
Number of reporting segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Net interest income and other income from external customers | $ 23,238 | $ 21,621 | |
Income (Loss) before income taxes | 9,401 | (1,836) | |
Total assets | 2,654,617 | 2,180,065 | $ 2,555,362 |
Capital expenditures | 76 | 406 | |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income and other income from external customers | 21,866 | 20,186 | |
Income (Loss) before income taxes | 9,185 | (2,001) | |
Total assets | 2,641,782 | 2,167,427 | |
Capital expenditures | 76 | 406 | |
Insurance | |||
Segment Reporting Information [Line Items] | |||
Net interest income and other income from external customers | 1,372 | 1,435 | |
Income (Loss) before income taxes | 216 | 165 | |
Total assets | 12,835 | 12,638 | |
Capital expenditures | $ 0 | $ 0 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
SECURITIES AVAILABLE FOR SALE | |||
Available for Sale, Amortized Cost | $ 356,852 | $ 331,745 | |
Gross Unrealized Gains | 4,069 | 6,248 | |
Gross Unrealized Losses | 5,913 | 275 | |
Investment securities available for sale | 355,008 | 337,718 | $ 253,048 |
SECURITIES HELD TO MATURITY | |||
Held to Maturity, Amortized Cost | 9,155 | 10,294 | 18,090 |
Gross Unrealized Gains | 296 | 474 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 9,451 | 10,768 | $ 18,565 |
U.S. Government and agencies | |||
SECURITIES AVAILABLE FOR SALE | |||
Available for Sale, Amortized Cost | 199,033 | 181,704 | |
Gross Unrealized Gains | 1,378 | 2,117 | |
Gross Unrealized Losses | 4,281 | 218 | |
Investment securities available for sale | 196,130 | 183,603 | |
Mortgage-backed securities, residential | |||
SECURITIES AVAILABLE FOR SALE | |||
Available for Sale, Amortized Cost | 113,145 | 105,327 | |
Gross Unrealized Gains | 2,366 | 3,529 | |
Gross Unrealized Losses | 1,210 | 34 | |
Investment securities available for sale | 114,301 | 108,822 | |
SECURITIES HELD TO MATURITY | |||
Held to Maturity, Amortized Cost | 9,155 | 10,294 | |
Gross Unrealized Gains | 296 | 474 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 9,451 | 10,768 | |
State and municipal | |||
SECURITIES AVAILABLE FOR SALE | |||
Available for Sale, Amortized Cost | 35,899 | 35,930 | |
Gross Unrealized Gains | 225 | 561 | |
Gross Unrealized Losses | 418 | 7 | |
Investment securities available for sale | 35,706 | 36,484 | |
Corporate bonds | |||
SECURITIES AVAILABLE FOR SALE | |||
Available for Sale, Amortized Cost | 8,775 | 8,784 | |
Gross Unrealized Gains | 100 | 41 | |
Gross Unrealized Losses | 4 | 16 | |
Investment securities available for sale | $ 8,871 | $ 8,809 |
Securities - Schedule of Requir
Securities - Schedule of Required Fair Value Disclosures for Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | $ 2,170 | $ 2,363 | $ 2,363 |
Fair value at beginning of period, including equity securities acquired in business combination | 2,170 | ||
Unrealized Gains | 382 | 16 | 25 |
Unrealized Losses | 17 | 491 | 218 |
Fair value at end of period | 2,535 | 1,888 | 2,170 |
CRA Mutual Fund | |||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | 1,065 | 1,045 | 1,045 |
Fair value at beginning of period, including equity securities acquired in business combination | 1,065 | ||
Unrealized Gains | 0 | 16 | 25 |
Unrealized Losses | 17 | 0 | 5 |
Fair value at end of period | 1,048 | 1,061 | 1,065 |
Stock in other banks | |||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | 1,105 | 1,318 | 1,318 |
Fair value at beginning of period, including equity securities acquired in business combination | 1,105 | ||
Unrealized Gains | 382 | 0 | 0 |
Unrealized Losses | 0 | 491 | 213 |
Fair value at end of period | $ 1,487 | $ 827 | $ 1,105 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | $ 176,100 | $ 46,749 |
Unrealized Losses, Less than 12 Months | 5,912 | 275 |
Fair Value, 12 Months or More | 254 | 0 |
Unrealized Losses, 12 Months or More | 1 | 0 |
Total Fair Value | 176,354 | 46,749 |
Total Unrealized Losses | 5,913 | 275 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 0 | 0 |
Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | 0 |
Total Fair Value | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
U.S. Government and agencies | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 107,396 | 32,629 |
Unrealized Losses, Less than 12 Months | 4,281 | 218 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | 0 |
Total Fair Value | 107,396 | 32,629 |
Total Unrealized Losses | 4,281 | 218 |
Mortgage-backed securities, residential | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 49,943 | 10,458 |
Unrealized Losses, Less than 12 Months | 1,209 | 34 |
Fair Value, 12 Months or More | 254 | 0 |
Unrealized Losses, 12 Months or More | 1 | 0 |
Total Fair Value | 50,197 | 10,458 |
Total Unrealized Losses | 1,210 | 34 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 0 | 0 |
Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | 0 |
Total Fair Value | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
State and municipal | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 16,765 | 2,148 |
Unrealized Losses, Less than 12 Months | 418 | 7 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | 0 |
Total Fair Value | 16,765 | 2,148 |
Total Unrealized Losses | 418 | 7 |
Corporate bonds | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 1,996 | 1,514 |
Unrealized Losses, Less than 12 Months | 4 | 16 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | 0 |
Total Fair Value | 1,996 | 1,514 |
Total Unrealized Losses | $ 4 | $ 16 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | Mar. 31, 2021USD ($)Security | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of securities pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes | $ | $ 267,184 | $ 301,201 |
U.S. Government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities in unrealized loss positions | 42 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 8.00% | |
Mortgage-backed securities, residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities in unrealized loss positions | 22 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 5.00% | |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities in unrealized loss positions | 26 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 9.00% | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities in unrealized loss positions | 1 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 1.00% |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Available for Sale Amortized Cost | |||
1 year or less | $ 54,160 | ||
Over 1 year through 5 years | 34,050 | ||
Over 5 years through 10 years | 111,373 | ||
Over 10 years | 44,124 | ||
Available for Sale, Amortized Cost | 356,852 | $ 331,745 | |
Available for Sale Fair Value | |||
1 year or less | 54,583 | ||
Over 1 year through 5 years | 34,902 | ||
Over 5 years through 10 years | 108,131 | ||
Over 10 years | 43,091 | ||
Available for Sale, Fair Value | 355,008 | 337,718 | $ 253,048 |
Held-to-Maturity Amortized Cost | |||
1 year or less | 0 | ||
Over 1 year through 5 years | 0 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Held to Maturity, Amortized Cost | 9,155 | 10,294 | 18,090 |
Held-to-Maturity Fair Value | |||
1 year or less | 0 | ||
Over 1 year through 5 years | 0 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Held to Maturity, Fair Value | 9,451 | 10,768 | $ 18,565 |
Mortgage-backed securities, residential | |||
Available for Sale Amortized Cost | |||
Without single maturity date | 113,145 | ||
Available for Sale, Amortized Cost | 113,145 | 105,327 | |
Available for Sale Fair Value | |||
Without single maturity date | 114,301 | ||
Available for Sale, Fair Value | 114,301 | 108,822 | |
Held-to-Maturity Amortized Cost | |||
Without single maturity date | 9,155 | ||
Held to Maturity, Amortized Cost | 9,155 | 10,294 | |
Held-to-Maturity Fair Value | |||
Without single maturity date | 9,451 | ||
Held to Maturity, Fair Value | $ 9,451 | $ 10,768 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)Contractloanapplication | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for order of valuations (at least) | 18 months | ||
Troubled debt restructured loans, balance | $ 3,764,000 | $ 3,933,000 | |
Number of loans which has periodic late payments | Contract | 1 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts with Active Forbearance Agreements | 0 | ||
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | $ 506,000 | $ 391,000 | |
Recognized loan fee income | $ 17,798,000 | 19,035,000 | |
Residential mortgage and commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due to discontinue accrual interest on financing receivable | 90 days | ||
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due for write-off of financing receivable (no later than) | 120 days | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of financing receivable, updated valuation on real estate secured loans (number of days past due) | 90 days | ||
Number of previous months with no updated valuation completed for corporation to update valuation | 12 months | ||
Impaired financing receivable, valuation on real estate collateralized loans (number of days after the loan is classified as impaired) | 30 days | ||
CARES Act | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructured loans, balance | $ 23,720,360 | ||
Number of loans with temporary modifications | loan | 30 | ||
Number of applications | application | 2,049 | ||
Total amount under PPP (up to) | $ 213,977,091 | ||
Projected fee income | 8,700,000 | ||
Recognized loan fee income | 953,000 | $ 2,800,000 | |
CARES Act | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructured loans, balance | $ 157,609 | ||
Number of loans with temporary modifications | loan | 2 | ||
Maximum | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Maximum | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 30 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Loan-to-value ratio that requires private mortgage insurance (in excess of) | 80.00% | ||
Maximum | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 90.00% | ||
Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructured loans, balance | $ 111,000 | 175,000 | |
Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructured loans, balance | $ 3,653,000 | $ 3,758,000 |
Loans - Schedule of Classes of
Loans - Schedule of Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 1,610,718 | $ 1,637,784 | $ 1,606,039 |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,497,968 | 1,527,119 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 90,869 | 90,334 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 21,881 | 20,331 | |
Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 315,710 | 320,154 | 208,859 |
Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 304,783 | 308,929 | |
Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,079 | 7,061 | |
Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 4,848 | 4,164 | |
Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 759,335 | 744,627 | 763,415 |
Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 673,790 | 660,135 | |
Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 71,437 | 70,828 | |
Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,108 | 13,664 | |
Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 50,132 | 53,902 | 44,198 |
Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 46,219 | 49,762 | |
Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,913 | 4,140 | |
Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 375,941 | 401,340 | 456,436 |
Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 364,592 | 391,419 | |
Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,907 | 7,862 | |
Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,442 | 2,059 | |
Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 97,258 | 104,610 | 118,603 |
Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 96,242 | 103,725 | |
Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 533 | 443 | |
Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 483 | 442 | |
Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 12,342 | 13,151 | $ 14,528 |
Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 12,342 | 13,149 | |
Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 2 | |
Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,222,600 | 1,228,096 | |
Originated Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,140,445 | 1,149,058 | |
Originated Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 68,340 | 65,709 | |
Originated Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 13,815 | 13,329 | |
Originated Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 275,123 | 277,903 | |
Originated Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 267,234 | 270,047 | |
Originated Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 4,521 | 5,168 | |
Originated Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,368 | 2,688 | |
Originated Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 504,979 | 479,123 | |
Originated Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 438,258 | 414,538 | |
Originated Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 56,452 | 54,122 | |
Originated Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 10,269 | 10,463 | |
Originated Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 37,582 | 41,208 | |
Originated Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 36,030 | 39,462 | |
Originated Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,552 | 1,746 | |
Originated Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 317,156 | 337,137 | |
Originated Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 311,659 | 332,632 | |
Originated Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,319 | 4,327 | |
Originated Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 178 | 178 | |
Originated Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 76,649 | 80,906 | |
Originated Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 76,153 | 80,560 | |
Originated Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 496 | 346 | |
Originated Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 11,111 | 11,819 | |
Originated Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 11,111 | 11,819 | |
Originated Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 388,118 | 409,688 | |
Acquired Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 357,523 | 378,061 | |
Acquired Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 22,529 | 24,625 | |
Acquired Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,066 | 7,002 | |
Acquired Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 40,587 | 42,251 | |
Acquired Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 37,549 | 38,882 | |
Acquired Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,558 | 1,893 | |
Acquired Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,480 | 1,476 | |
Acquired Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 254,356 | 265,504 | |
Acquired Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 235,532 | 245,597 | |
Acquired Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,985 | 16,706 | |
Acquired Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,839 | 3,201 | |
Acquired Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 12,550 | 12,694 | |
Acquired Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 10,189 | 10,300 | |
Acquired Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,361 | 2,394 | |
Acquired Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 58,785 | 64,203 | |
Acquired Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 52,933 | 58,787 | |
Acquired Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,588 | 3,535 | |
Acquired Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,264 | 1,881 | |
Acquired Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,609 | 23,704 | |
Acquired Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,089 | 23,165 | |
Acquired Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 37 | 97 | |
Acquired Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 483 | 442 | |
Acquired Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,231 | 1,332 | |
Acquired Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,231 | 1,330 | |
Acquired Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 2 | |
Acquired Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 0 | $ 0 |
Loans - Schedule of Change in A
Loans - Schedule of Change in Accretable Yields of Acquired Loans (Details) - Acquired Loans Accounted For Under ASC 310-30 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 596 | $ 642 |
Acquisitions of impaired loans | 0 | 354 |
Reclassification from non-accretable differences | 0 | 0 |
Accretion to loan interest income | (98) | (128) |
Balance at end of period | $ 498 | $ 868 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | $ 4,442 | $ 4,759 |
Impaired Loans with Allowance: Unpaid Principal Balance | 4,442 | 4,759 |
Impaired Loans with Allowance: Related Allowance | 2,106 | 1,382 |
Impaired Loans with No Allowance: Recorded Investment | 6,903 | 5,962 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 6,903 | 5,962 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 2,739 | 2,031 |
Impaired Loans with Allowance: Unpaid Principal Balance | 2,739 | 2,031 |
Impaired Loans with Allowance: Related Allowance | 1,954 | 1,224 |
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 1,703 | 2,728 |
Impaired Loans with Allowance: Unpaid Principal Balance | 1,703 | 2,728 |
Impaired Loans with Allowance: Related Allowance | 152 | 158 |
Impaired Loans with No Allowance: Recorded Investment | 6,802 | 5,861 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 6,802 | 5,861 |
Commercial real estate construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Allowance: Recorded Investment | 101 | 101 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 101 | 101 |
Home equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 0 | $ 0 |
Loans - Summary of Average of I
Loans - Summary of Average of Impaired Loans and Related Interest Income by Loan Portfolio Class (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | $ 4,088 | $ 592 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 6,945 | 7,552 |
Impaired Loans with No Allowance: Interest Income | 54 | 77 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | 2,385 | 62 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Interest Income | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | 1,703 | 530 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 6,716 | 7,340 |
Impaired Loans with No Allowance: Interest Income | 54 | 70 |
Commercial real estate construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 128 | 0 |
Impaired Loans with No Allowance: Interest Income | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 101 | 136 |
Impaired Loans with No Allowance: Interest Income | 0 | 7 |
Home equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 76 |
Impaired Loans with No Allowance: Interest Income | $ 0 | $ 0 |
Loans - Schedule of Nonaccrual
Loans - Schedule of Nonaccrual Loans by Classes of the Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Purchase credit impaired loans, net of unamortized fair value adjustments | $ 6,000 | |
Total nonaccrual loans | 7,692 | $ 7,041 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 2,739 | 2,031 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 4,852 | 4,909 |
Commercial real estate construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 101 | 101 |
Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | $ 0 | $ 0 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio Summarized by the Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 10,157 | $ 11,000 | |
Current | 1,600,561 | 1,626,784 | |
Total Loans Receivable | 1,610,718 | 1,637,784 | $ 1,606,039 |
Loans Receivable greater than 90 Days and Accruing | 675 | 855 | |
30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,259 | 4,612 | |
60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,916 | 3,801 | |
Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,982 | 2,587 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,692 | 1,785 | |
Current | 313,018 | 318,369 | |
Total Loans Receivable | 315,710 | 320,154 | 208,859 |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Commercial and industrial | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 99 | 1,554 | |
Commercial and industrial | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,319 | 231 | |
Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,274 | 0 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,949 | 4,766 | |
Current | 755,386 | 739,861 | |
Total Loans Receivable | 759,335 | 744,627 | 763,415 |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Commercial real estate | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 464 | 452 | |
Commercial real estate | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 552 | 2,683 | |
Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,933 | 1,631 | |
Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 97 | 215 | |
Current | 50,035 | 53,687 | |
Total Loans Receivable | 50,132 | 53,902 | 44,198 |
Loans Receivable greater than 90 Days and Accruing | 97 | 97 | |
Commercial real estate construction | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 42 | |
Commercial real estate construction | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 76 | |
Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 97 | 97 | |
Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,171 | 3,669 | |
Current | 372,770 | 397,671 | |
Total Loans Receivable | 375,941 | 401,340 | 456,436 |
Loans Receivable greater than 90 Days and Accruing | 496 | 668 | |
Residential mortgage | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,575 | 2,216 | |
Residential mortgage | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 684 | |
Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 596 | 769 | |
Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 202 | 400 | |
Current | 97,056 | 104,210 | |
Total Loans Receivable | 97,258 | 104,610 | 118,603 |
Loans Receivable greater than 90 Days and Accruing | 82 | 90 | |
Home equity lines of credit | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 91 | 250 | |
Home equity lines of credit | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 29 | 60 | |
Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 82 | 90 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 46 | 165 | |
Current | 12,296 | 12,986 | |
Total Loans Receivable | 12,342 | 13,151 | $ 14,528 |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Consumer | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 30 | 98 | |
Consumer | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 16 | 67 | |
Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 9,039 | 8,396 | |
Current | 1,213,561 | 1,219,700 | |
Total Loans Receivable | 1,222,600 | 1,228,096 | |
Loans Receivable greater than 90 Days and Accruing | 423 | 580 | |
Originated Loans | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,422 | 3,099 | |
Originated Loans | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,887 | 2,985 | |
Originated Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,730 | 2,312 | |
Originated Loans | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,678 | 1,432 | |
Current | 272,445 | 276,471 | |
Total Loans Receivable | 275,123 | 277,903 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial and industrial | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 85 | 1,432 | |
Originated Loans | Commercial and industrial | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,319 | 0 | |
Originated Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,274 | 0 | |
Originated Loans | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,949 | 4,227 | |
Current | 501,030 | 474,896 | |
Total Loans Receivable | 504,979 | 479,123 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial real estate | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 464 | 133 | |
Originated Loans | Commercial real estate | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 552 | 2,463 | |
Originated Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,933 | 1,631 | |
Originated Loans | Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 76 | |
Current | 37,582 | 41,132 | |
Total Loans Receivable | 37,582 | 41,208 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial real estate construction | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Commercial real estate construction | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 76 | |
Originated Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,203 | 2,340 | |
Current | 314,953 | 334,797 | |
Total Loans Receivable | 317,156 | 337,137 | |
Loans Receivable greater than 90 Days and Accruing | 351 | 522 | |
Originated Loans | Residential mortgage | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,752 | 1,382 | |
Originated Loans | Residential mortgage | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 335 | |
Originated Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 451 | 623 | |
Originated Loans | Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 163 | 172 | |
Current | 76,486 | 80,734 | |
Total Loans Receivable | 76,649 | 80,906 | |
Loans Receivable greater than 90 Days and Accruing | 72 | 58 | |
Originated Loans | Home equity lines of credit | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 91 | 54 | |
Originated Loans | Home equity lines of credit | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 60 | |
Originated Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 72 | 58 | |
Originated Loans | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 46 | 149 | |
Current | 11,065 | 11,670 | |
Total Loans Receivable | 11,111 | 11,819 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Consumer | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 30 | 98 | |
Originated Loans | Consumer | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 16 | 51 | |
Originated Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,118 | 2,604 | |
Current | 387,000 | 407,084 | |
Total Loans Receivable | 388,118 | 409,688 | |
Loans Receivable greater than 90 Days and Accruing | 252 | 275 | |
Acquired Loans | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 837 | 1,513 | |
Acquired Loans | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 29 | 816 | |
Acquired Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 252 | 275 | |
Acquired Loans | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 14 | 353 | |
Current | 40,573 | 41,898 | |
Total Loans Receivable | 40,587 | 42,251 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Commercial and industrial | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 14 | 122 | |
Acquired Loans | Commercial and industrial | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 231 | |
Acquired Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 539 | |
Current | 254,356 | 264,965 | |
Total Loans Receivable | 254,356 | 265,504 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Commercial real estate | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 319 | |
Acquired Loans | Commercial real estate | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 220 | |
Acquired Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 97 | 139 | |
Current | 12,453 | 12,555 | |
Total Loans Receivable | 12,550 | 12,694 | |
Loans Receivable greater than 90 Days and Accruing | 97 | 97 | |
Acquired Loans | Commercial real estate construction | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 42 | |
Acquired Loans | Commercial real estate construction | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 97 | 97 | |
Acquired Loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 968 | 1,329 | |
Current | 57,817 | 62,874 | |
Total Loans Receivable | 58,785 | 64,203 | |
Loans Receivable greater than 90 Days and Accruing | 145 | 146 | |
Acquired Loans | Residential mortgage | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 823 | 834 | |
Acquired Loans | Residential mortgage | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 349 | |
Acquired Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 145 | 146 | |
Acquired Loans | Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 39 | 228 | |
Current | 20,570 | 23,476 | |
Total Loans Receivable | 20,609 | 23,704 | |
Loans Receivable greater than 90 Days and Accruing | 10 | 32 | |
Acquired Loans | Home equity lines of credit | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 196 | |
Acquired Loans | Home equity lines of credit | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 29 | 0 | |
Acquired Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 10 | 32 | |
Acquired Loans | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 16 | |
Current | 1,231 | 1,316 | |
Total Loans Receivable | 1,231 | 1,332 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Consumer | 30–59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Consumer | 60–89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 16 | |
Acquired Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Loan Losses and Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | $ 20,226 | $ 13,835 | |||
Charge-offs | (55) | (2,068) | |||
Recoveries | 16 | 85 | |||
Provisions (credits) | 50 | 4,000 | |||
Allowance for Loan Losses, Ending Balance | 20,237 | 15,852 | |||
Allowance for Loan Losses, Ending Balance | 20,226 | 15,852 | $ 20,237 | $ 20,226 | $ 15,852 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 2,106 | 1,382 | 78 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 18,131 | 18,844 | 15,774 | ||
Total Loans Receivable | 1,610,718 | 1,637,784 | 1,606,039 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 11,345 | 10,721 | 8,584 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,599,373 | 1,627,063 | 1,597,455 | ||
Commercial and Industrial | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,037 | 2,400 | |||
Charge-offs | (18) | (2,017) | |||
Recoveries | 8 | 70 | |||
Provisions (credits) | 476 | 2,193 | |||
Allowance for Loan Losses, Ending Balance | 4,503 | 2,646 | |||
Allowance for Loan Losses, Ending Balance | 4,037 | 2,646 | 4,503 | 4,037 | 2,646 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1,954 | 1,224 | 36 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,549 | 2,813 | 2,610 | ||
Total Loans Receivable | 315,710 | 320,154 | 208,859 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 2,739 | 2,031 | 58 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 312,971 | 318,123 | 208,801 | ||
Commercial Real Estate | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 9,569 | 6,693 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 6 | |||
Provisions (credits) | (29) | 812 | |||
Allowance for Loan Losses, Ending Balance | 9,540 | 7,511 | |||
Allowance for Loan Losses, Ending Balance | 9,540 | 7,511 | 9,540 | 9,569 | 7,511 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 152 | 158 | 42 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 9,388 | 9,411 | 7,469 | ||
Total Loans Receivable | 759,335 | 744,627 | 763,415 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 8,505 | 8,589 | 8,357 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 750,830 | 736,038 | 755,058 | ||
Commercial Real Estate Construction | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 503 | 298 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provisions (credits) | 40 | (67) | |||
Allowance for Loan Losses, Ending Balance | 543 | 231 | |||
Allowance for Loan Losses, Ending Balance | 543 | 231 | 543 | 503 | 231 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 543 | 503 | 231 | ||
Total Loans Receivable | 50,132 | 53,902 | 44,198 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 50,132 | 53,902 | 44,198 | ||
Residential Mortgage | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 3,395 | 2,555 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provisions (credits) | (29) | 146 | |||
Allowance for Loan Losses, Ending Balance | 3,366 | 2,701 | |||
Allowance for Loan Losses, Ending Balance | 3,366 | 2,701 | 3,366 | 3,395 | 2,701 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3,366 | 3,395 | 2,701 | ||
Total Loans Receivable | 375,941 | 401,340 | 456,436 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 101 | 101 | 101 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 375,840 | 401,239 | 456,335 | ||
Home Equity Lines of Credit | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 693 | 619 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provisions (credits) | (64) | (14) | |||
Allowance for Loan Losses, Ending Balance | 629 | 605 | |||
Allowance for Loan Losses, Ending Balance | 629 | 605 | 629 | 693 | 605 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 629 | 693 | 605 | ||
Total Loans Receivable | 97,258 | 104,610 | 118,603 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 68 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 97,258 | 104,610 | 118,535 | ||
Consumer | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 648 | 650 | |||
Charge-offs | (37) | (51) | |||
Recoveries | 8 | 9 | |||
Provisions (credits) | (11) | 15 | |||
Allowance for Loan Losses, Ending Balance | 608 | 623 | |||
Allowance for Loan Losses, Ending Balance | 648 | 623 | 608 | 648 | 623 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 608 | 648 | 623 | ||
Total Loans Receivable | 12,342 | 13,151 | 14,528 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 12,342 | 13,151 | 14,528 | ||
Unallocated | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 1,381 | 620 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provisions (credits) | (333) | 915 | |||
Allowance for Loan Losses, Ending Balance | 1,048 | 1,535 | |||
Allowance for Loan Losses, Ending Balance | $ 1,381 | $ 1,535 | 1,048 | 1,381 | 1,535 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,048 | 1,381 | 1,535 | ||
Total Loans Receivable | 0 | 0 | 0 | ||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
Loans - Schedule of Actual Loan
Loans - Schedule of Actual Loan Modifications (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Balance | $ 3,764,000 | $ 3,933,000 |
CARES Act | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 30 | |
Balance | $ 23,720,360 | |
Commercial and Industrial | CARES Act | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 28 | |
Deferral Period (up to) | 6 months | |
Balance | $ 23,562,751 | |
Percentage of Capital | 9.15% | |
Consumer | CARES Act | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | |
Deferral Period (up to) | 6 months | |
Balance | $ 157,609 | |
Percentage of Capital | 0.06% |
Loans - Schedule of Expected Co
Loans - Schedule of Expected Commercial Loan Modifications (Details) | 3 Months Ended |
Mar. 31, 2021USD ($)Contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 28 |
Balance of loans expected to be modified | $ | $ 23,562,751 |
Percentage of Loan Portfolio | 1.46% |
Percentage of Capital | 9.15% |
Lessors of Commercial Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 6 |
Balance of loans expected to be modified | $ | $ 6,105,203 |
Percentage of Loan Portfolio | 0.38% |
Percentage of Capital | 2.37% |
Lessors of Residential Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 0 |
Balance of loans expected to be modified | $ | $ 0 |
Percentage of Loan Portfolio | 0.00% |
Percentage of Capital | 0.00% |
Hospitality Industry (Hotels/Bed & Breakfast) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 5 |
Balance of loans expected to be modified | $ | $ 13,479,711 |
Percentage of Loan Portfolio | 0.84% |
Percentage of Capital | 5.24% |
Food Services Industry | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 1 |
Balance of loans expected to be modified | $ | $ 55,248 |
Percentage of Loan Portfolio | 0.00% |
Percentage of Capital | 0.02% |
Other | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans expected to be modified | Contract | 16 |
Balance of loans expected to be modified | $ | $ 3,922,589 |
Percentage of Loan Portfolio | 0.24% |
Percentage of Capital | 1.52% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | $ 355,008 | $ 337,718 | $ 253,048 | |
Equity securities with readily determinable fair values | 2,535 | 2,170 | $ 1,888 | $ 2,363 |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Equity securities with readily determinable fair values | 2,535 | 2,170 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 355,008 | 337,718 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
U.S. Government and agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 196,130 | 183,603 | ||
Mortgage-backed securities, residential | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 114,301 | 108,822 | ||
State and municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 35,706 | 36,484 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 8,871 | 8,809 | ||
Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Equity securities with readily determinable fair values | 2,535 | 2,170 | ||
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 355,008 | 337,718 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
Recurring | U.S. Government and agencies | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | U.S. Government and agencies | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 196,130 | 183,603 | ||
Recurring | U.S. Government and agencies | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | Mortgage-backed securities, residential | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | Mortgage-backed securities, residential | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 114,301 | 108,822 | ||
Recurring | Mortgage-backed securities, residential | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | State and municipal | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | State and municipal | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 35,706 | 36,484 | ||
Recurring | State and municipal | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | Corporate bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | Corporate bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 8,871 | 8,809 | ||
Recurring | Corporate bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0 | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0 | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 6,430 | 7,498 | ||
Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 355,008 | 337,718 | ||
Equity securities with readily determinable fair values | 2,535 | 2,170 | ||
Fair Value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 355,008 | 337,718 | ||
Equity securities with readily determinable fair values | 2,535 | 2,170 | ||
Fair Value | Recurring | U.S. Government and agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 196,130 | 183,603 | ||
Fair Value | Recurring | Mortgage-backed securities, residential | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 114,301 | 108,822 | ||
Fair Value | Recurring | State and municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 35,706 | 36,484 | ||
Fair Value | Recurring | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 8,871 | 8,809 | ||
Fair Value | Nonrecurring | Collateral dependent impaired loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | $ 6,430 | $ 7,498 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Additional Quantitative Information (Details) - Nonrecurring - Collateral dependent impaired loans - Level 3 $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 6,430 | $ 7,498 |
Measurement Input, Discount Rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.54 | 0.52 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.10 | 0.10 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.50 | 0.50 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Carrying Amount, Fair Value and Placement in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||||
Interest-bearing deposits in banks | $ 482,453 | $ 375,613 | $ 106,001 | |
Equity securities available for sale | 2,535 | 2,170 | 1,888 | $ 2,363 |
Investment securities available for sale | 355,008 | 337,718 | 253,048 | |
Investment securities held to maturity | 9,451 | 10,768 | 18,565 | |
Restricted investment in bank stocks | 2,798 | 2,942 | $ 3,701 | |
Level 1 | ||||
Financial assets: | ||||
Cash and due from banks | 10,252 | 12,436 | ||
Interest-bearing deposits in banks | 482,453 | 375,613 | ||
Equity securities available for sale | 2,535 | 2,170 | ||
Investment securities available for sale | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, less allowance for loan losses | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Restricted investment in bank stocks | 0 | 0 | ||
Financial liabilities: | ||||
Demand deposits and savings | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Trust preferred subordinated debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Level 2 | ||||
Financial assets: | ||||
Cash and due from banks | 14,053 | 11,303 | ||
Interest-bearing deposits in banks | 0 | 0 | ||
Equity securities available for sale | 0 | 0 | ||
Investment securities available for sale | 355,008 | 337,718 | ||
Investment securities held to maturity | 9,451 | 10,768 | ||
Loans held for sale | 12,000 | 11,034 | ||
Loans, less allowance for loan losses | 0 | 0 | ||
Accrued interest receivable | 6,767 | 6,950 | ||
Restricted investment in bank stocks | 2,798 | 2,942 | ||
Financial liabilities: | ||||
Demand deposits and savings | 1,816,731 | 1,708,868 | ||
Time deposits | 465,265 | 481,138 | ||
Short-term borrowings | 31,282 | 38,464 | ||
Long-term borrowings | 55,329 | 43,669 | ||
Trust preferred subordinated debt | 9,914 | 9,902 | ||
Accrued interest payable | 822 | 1,434 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Level 3 | ||||
Financial assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits in banks | 0 | 0 | ||
Equity securities available for sale | 0 | 0 | ||
Investment securities available for sale | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, less allowance for loan losses | 1,616,326 | 1,662,342 | ||
Accrued interest receivable | 0 | 0 | ||
Restricted investment in bank stocks | 0 | 0 | ||
Financial liabilities: | ||||
Demand deposits and savings | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Trust preferred subordinated debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and due from banks | 24,305 | 23,739 | ||
Interest-bearing deposits in banks | 482,453 | 375,613 | ||
Equity securities available for sale | 2,535 | 2,170 | ||
Investment securities available for sale | 355,008 | 337,718 | ||
Investment securities held to maturity | 9,155 | 10,294 | ||
Loans held for sale | 12,000 | 11,034 | ||
Loans, less allowance for loan losses | 1,590,481 | 1,617,558 | ||
Accrued interest receivable | 6,767 | 6,950 | ||
Restricted investment in bank stocks | 2,798 | 2,942 | ||
Financial liabilities: | ||||
Demand deposits and savings | 1,816,731 | 1,708,868 | ||
Time deposits | 461,891 | 476,657 | ||
Short-term borrowings | 31,282 | 38,464 | ||
Long-term borrowings | 54,616 | 42,745 | ||
Trust preferred subordinated debt | 11,000 | 11,000 | ||
Accrued interest payable | 822 | 1,434 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and due from banks | 24,305 | 23,739 | ||
Interest-bearing deposits in banks | 482,453 | 375,613 | ||
Equity securities available for sale | 2,535 | 2,170 | ||
Investment securities available for sale | 355,008 | 337,718 | ||
Investment securities held to maturity | 9,451 | 10,768 | ||
Loans held for sale | 12,000 | 11,034 | ||
Loans, less allowance for loan losses | 1,616,326 | 1,662,342 | ||
Accrued interest receivable | 6,767 | 6,950 | ||
Restricted investment in bank stocks | 2,798 | 2,942 | ||
Financial liabilities: | ||||
Demand deposits and savings | 1,816,731 | 1,708,868 | ||
Time deposits | 465,265 | 481,138 | ||
Short-term borrowings | 31,282 | 38,464 | ||
Long-term borrowings | 55,329 | 43,669 | ||
Trust preferred subordinated debt | 9,914 | 9,902 | ||
Accrued interest payable | 822 | 1,434 | ||
Off-balance sheet financial instruments | $ 0 | $ 0 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 31,282 | $ 38,464 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 31,282 | 38,464 |
Financial Instruments | (31,282) | (38,464) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Fair value of securities pledged in connection with repurchase agreements | 40,147 | $ 54,680 |
Total | 31,282 | |
U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 31,282 | |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 31,282 | |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 31,282 | |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Up to 30 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 – 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 – 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | $ 0 |
Borrowings (Details)
Borrowings (Details) - USD ($) | Mar. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 65,616,000 | $ 53,745,000 | $ 71,723,000 | |
FHLB Advances | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 35,716,000 | 38,716,000 | ||
Weighted average rate percentage | 2.39% | |||
Subordinated debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 15,000,000 | 0 | ||
Interest rate percentage | 4.00% | |||
Subordinated debt issued | $ 15,000,000 | |||
Debt Instrument, issuance price, percentage | 100.00% | |||
Loan payable to local bank, 4.5% | Loan payable to local bank | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 1,200,000 | 1,329,000 | ||
Interest rate percentage | 4.50% | |||
Period of fixed interest rate | 5 years | |||
Loan payable variable rate, FCBI | Unsecured promissory note | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 2,700,000 | 2,700,000 | ||
Interest rate percentage | 3.25% | |||
Trust preferred subordinated debt, NWSB | Subordinated debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 5,000,000 | 5,000,000 | ||
Interest rate percentage | 6.39% | |||
Subordinated debt issued | $ 5,000,000 | |||
Trust preferred subordinated debt, FCBI | Subordinated debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | 6,000,000 | $ 6,000,000 | ||
Subordinated debt issued | $ 6,000,000 | |||
Trust preferred subordinated debt, FCBI | Subordinated debt | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate percentage | 1.8465% | |||
Basis spread on prime rate, percentage | 1.63% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 11, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jul. 01, 2017 | Jan. 05, 2005 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 42,108 | $ 42,108 | $ 41,700 | |||
RIG | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 6,308 | |||||
New Windsor | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 13,272 | |||||
Frederick County Bancorp, Inc. | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 22,528 | |||||
Customer lists | RIG | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross carrying amount of intangible asset | 10,428 | |||||
Accumulated amortization of intangible asset | $ 7,226 | |||||
Customer lists | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period | 15 years | |||||
Customer lists | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period | 8 years | |||||
Core deposit intangibles | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period | 10 years | |||||
Core deposit intangibles | New Windsor | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross carrying amount of intangible asset | $ 2,418 | $ 2,418 | ||||
Accumulated amortization of intangible asset | 1,418 | |||||
Core deposit intangibles | Frederick County Bancorp, Inc. | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period | 10 years | |||||
Gross carrying amount of intangible asset | $ 3,560 | 3,560 | ||||
Accumulated amortization of intangible asset | $ 793 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Revenue Recognition [Abstract] | ||
Assets Held-in-trust | $ 468,340 | $ 350,500 |