Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-16540 | ||
Entity Registrant Name | UNITED BANCORP INC /OH/ | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-1405357 | ||
Entity Address, Address Line One | 201 South Fourth Street | ||
Entity Address, City or Town | Martins Ferry | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43935 | ||
City Area Code | 740 | ||
Local Phone Number | 633-0445 | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 | ||
Trading Symbol | UBCP | ||
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 Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 5,702,685 | ||
Entity Voluntary Filers | No | ||
Entity Central Index Key | 0000731653 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 57,635,454 | ||
Auditor Name | S.R. Snodgrass, P.C. | ||
Auditor Firm ID | 74 | ||
Auditor Location | Cranberry Township, Pennsylvania | ||
Document Annual Report | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 7,352 | $ 8,279 |
Interest-bearing demand deposits | 33,418 | 21,801 |
Cash and cash equivalents | 40,770 | 30,080 |
Available-for-sale securities, amortized cost of $251,683 net of allowance for credit losses of $0 at December 31, 2023 | 242,760 | 217,624 |
Loans, net of allowance for credit losses of $3,918 and $2,052 at December 31, 2023 and 2022, respectively | 479,318 | |
Loans, net of allowance for credit losses of $3,918 and $2,052 at December 31, 2023 and 2022, respectively | 458,823 | |
Premises and equipment | 14,984 | 12,144 |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Foreclosed assets held for sale, net | 3,377 | 3,519 |
Core deposit intangible assets | 260 | 410 |
Goodwill | 682 | 682 |
Accrued interest receivable | 4,098 | 3,403 |
Deferred federal income tax | 2,409 | 2,423 |
Bank-owned life insurance | 19,423 | 19,000 |
Other assets | 7,389 | 6,793 |
Total Assets | 819,449 | 757,400 |
Deposits | ||
Demand | 339,280 | 402,341 |
Savings | 130,821 | 145,836 |
Time | 151,358 | 101,736 |
Total deposits | 621,459 | 649,913 |
Securities sold under repurchase agreements | 26,781 | 18,106 |
Subordinated debentures | 23,787 | 23,726 |
Advances Federal Home Loan Bank | 75,000 | 0 |
Lease liability - finance lease | 2,764 | 0 |
Interest payable and other liabilities | 6,065 | 5,918 |
Total liabilities | 755,856 | 697,663 |
Stockholders' Equity | ||
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | ||
Common stock, $1 par value; authorized 10,000,000 shares; issued 2023 - 6,063,851 shares, 2022 - 6,043,851 shares; outstanding 2023 - 5,702,685 shares, 2022 - 5,740,251 shares | 6,064 | 6,044 |
Additional paid-in capital | 25,913 | 24,814 |
Retained earnings | 44,018 | 41,945 |
Stock held by deferred compensation plan; 2023 - 181,803 shares, 2022 - 174,237 shares | (2,363) | (1,902) |
Unearned ESOP compensation | ||
Accumulated other comprehensive loss | (7,478) | (9,336) |
Treasury stock, at cost 2023 - 179,363 shares, 2022 - 129,363 shares | (2,561) | (1,828) |
Total stockholders' equity | 63,593 | 59,737 |
Total liabilities and stockholders' equity | $ 819,449 | $ 757,400 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Amortized Cost | $ 251,683 | $ 228,607 |
Available-for-sale securities, allowance for credit losses | 0 | |
Loans, allowance for credit losses | $ 3,918 | |
Loans, allowance for loan losses | $ 2,052 | |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 6,063,851 | 6,043,851 |
Common shares, shares outstanding | 5,702,685 | 5,740,251 |
Stock held by deferred compensation plan, shares | 181,803 | 174,237 |
Treasury stock, shares | 179,363 | 129,363 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest and Dividend Income | ||
Loans | $ 25,232 | $ 20,734 |
Taxable | 2,741 | 1,899 |
Tax-exempt | 5,870 | 4,396 |
Federal funds sold | 2,752 | 493 |
Dividends on Federal Home Loan Bank and other stock | 254 | 139 |
Total interest and dividend income | 36,849 | 27,661 |
Interest Expense | ||
Deposits | 5,873 | 1,643 |
Borrowings | 5,141 | 1,630 |
Total interest expense | 11,014 | 3,273 |
Net Interest Income | 25,835 | 24,388 |
Credit for loan losses | ||
Provision for (reversal of ) Credit Losses | (454) | |
Provision for (reversal of) credit loss expense | (955) | |
Net Interest Income After Provision for (reversal of) Credit Losses | 26,289 | 25,343 |
Noninterest Income | ||
Customer service fees | 2,940 | 2,978 |
Net gains on loan sales | 29 | 36 |
Earnings on bank-owned life insurance | 725 | 708 |
Other | 360 | 361 |
Total noninterest income | 4,054 | 4,083 |
Noninterest Expense | ||
Salaries and employee benefits | 10,272 | 10,305 |
Net occupancy and equipment expense | 2,064 | 2,217 |
Professional fees | 1,465 | 1,451 |
Insurance | 623 | 568 |
Deposit insurance premiums | 375 | 198 |
Franchise and other taxes | 555 | 562 |
Advertising expense | 361 | 346 |
Printing and office supplies | 113 | 110 |
Amortization of Intangible Assets | 150 | 150 |
Other | 4,874 | 3,983 |
Total noninterest expense | 20,852 | 19,890 |
Income Before Federal Income Taxes | 9,491 | 9,536 |
Provision for Federal Income Taxes | 541 | 879 |
Net Income | $ 8,950 | $ 8,657 |
Basic Earnings Per Share | $ 1.57 | $ 1.50 |
Diluted Earnings Per Share | $ 1.57 | $ 1.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Comprehensive Income | ||
Net Income (Loss) | $ 8,950 | $ 8,657 |
Unrealized holding gain (losses) losses on available-for-sale securities during the period, net of taxes (benefits) of $432 and $4,605 for each respective period | 1,628 | (17,322) |
Change in funded status of defined benefit plan, net of taxes of $69 and $252 for each respective period | (263) | (947) |
Amortization of prior service included in net periodic pension expense, net of tax benefits of $19 and $19 for each respective period | (70) | (70) |
Amortization of net loss included in net periodic pension cost, net of taxes of $10 and $38 for each respective period | 37 | 145 |
Comprehensive income (loss) | $ 10,808 | $ (7,643) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Comprehensive Income | ||
Unrealized holding gains (loss) on securities during the period, net of tax (benefit) | $ 432 | $ 4,605 |
Change in funded status of defined benefit plan, net of tax benefits | 69 | 252 |
Amortization of prior service included in net periodic pension expense, net of tax benefits | 19 | 19 |
Amortization of net loss included in net periodic pension cost, net of taxes | $ 10 | $ 38 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock And Deferred Compensation | Retained Earnings Cumulative effect of adoption of ASU 2016-13 | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of ASU 2016-13 | Total |
Beginning Balance at Dec. 31, 2021 | $ 6,054 | $ 23,635 | $ (2,799) | $ 37,847 | $ 6,964 | $ 71,701 | ||
Net Income (Loss) | 8,657 | 8,657 | ||||||
Other comprehensive income (loss) | (16,300) | (16,300) | ||||||
Cash dividends - per share | (4,559) | (4,559) | ||||||
Shares activity for deferred compensation plan | 164 | (164) | ||||||
Shares purchased for treasury stock | 767 | 767 | ||||||
Expense related to share-based compensation plans | 1,005 | 1,005 | ||||||
Restricted stock activity | (10) | 10 | ||||||
Ending Balance at Dec. 31, 2022 | 6,044 | 24,814 | (3,730) | 41,945 | (9,336) | 59,737 | ||
Net Income (Loss) | 8,950 | 8,950 | ||||||
Other comprehensive income (loss) | 1,858 | 1,858 | ||||||
Cash dividends - per share | (4,789) | (4,789) | ||||||
Shares activity for deferred compensation plan | 461 | (461) | ||||||
Shares purchased for treasury stock | 733 | 733 | ||||||
Expense related to share-based compensation plans | 658 | 658 | ||||||
Restricted stock activity | 20 | (20) | ||||||
Ending Balance at Dec. 31, 2023 | $ 6,064 | $ 25,913 | $ (4,924) | $ (2,088) | $ 44,018 | $ (7,478) | $ (2,088) | $ 63,593 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Stockholders' Equity | ||
Dividend per share | $ 0.815 | $ 0.775 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities | ||
Net Income (Loss) | $ 8,950,000 | $ 8,657,000 |
Items not requiring (providing) cash: | ||
Depreciation and amortization | 997,000 | 1,013,000 |
Provision for (reversal of) credit loss expense | (454,000) | |
Provision for (reversal of) credit loss expense | (955,000) | |
Amortization of premiums and discounts on securities-net | 512,000 | 533,000 |
Amortization of intangible assets | 150,000 | 150,000 |
Deferred income taxes | 13,000 | 342,000 |
Originations of loans held for sale | (615,000) | (1,891,000) |
Proceeds from sale of loans held for sale | 644,000 | 1,927,000 |
Net gains on sales of loans | (29,000) | (36,000) |
Expense related to share-based compensation plans | 658,000 | 1,005,000 |
Net loss (gain) or on sale or write-down of foreclosed assets and other repossessed assets | 12,000 | 23,000 |
Increase in cash surrender value of bank-owned life insurance | (422,000) | (191,000) |
Amortization of debt instrument costs | 61,000 | 61,000 |
Accrued interest receivable | (695,000) | (1,058,000) |
Other assets | (288,000) | (824,000) |
Interest payable and other liabilities | (31,000) | (275,000) |
Net cash provided by operating activities | 9,463,000 | 8,481,000 |
Investing Activities | ||
Purchases of available-for-sale securities | (25,918,000) | (99,992,000) |
Maturities, prepayments and calls | 2,330,000 | 6,190,000 |
Net change in loans | (22,465,000) | (10,415,000) |
Purchase of Federal Home Loan Bank Stock | (3,149,000) | |
Redemption of Federal Home Loan Bank Stock | 1,669,000 | 1,205,000 |
Purchases of premises and equipment | (1,081,000) | (511,000) |
Purchases of premises and equipment, net | 9,000 | 111,000 |
Proceeds from sales of foreclosed assets | 133,000 | 156,000 |
Net cash used in investing activities | (48,472,000) | (103,256,000) |
Financing Activities | ||
Net (decrease) increase in deposits | (28,454,000) | 44,777,000 |
Net change in securities sold under repurchase agreements | 8,675,000 | 2,405,000 |
Repurchase of common stock | (733,000) | (767,000) |
Proceeds from Federal Home Loan Bank Advances | 75,000,000 | |
Cash dividends paid | (4,789,000) | (4,559,000) |
Net cash provided by financing activities | 49,699,000 | 41,856,000 |
Increase (Decrease) in Cash and Cash Equivalents | 10,690,000 | (52,919,000) |
Cash and Cash Equivalents, Beginning of Year | 30,080,000 | 82,999,000 |
Cash and Cash Equivalents, End of Year | 40,770,000 | 30,080,000 |
Supplemental Cash Flows Information | ||
Interest paid on deposits and borrowings | 10,585,000 | 3,150,000 |
Federal income taxes paid | 230,000 | |
Supplemental Disclosure of Non-Cash Investing Activities | ||
Transfers from loans to foreclosed assets held for sale | 33,000 | $ 3,283,000 |
Adoption of ASU 2016-13 | 2,089,000 | |
Finance lease asset and lease liability | $ 2,764,000 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank” or “Unified”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moundsville West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary policy, that are outside of management’s control. Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our statements of income as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets held for sale, management obtains independent appraisals for significant properties. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2023 and 2022, cash equivalents consisted primarily of due from accounts with the Federal Reserve and other correspondent banks. Currently, the FDIC’s insurance limits are $250,000. At December 31, 2023 and 2022, the Company’s various cash accounts did not exceed the federally insured limit of $250,000. At December 31, 2023 and 2022, the Company held $33,418,000 and $21,541,000 at the Federal Home Loan Bank and the Federal Reserve Bank, respectively, which are not subject to FDIC limits. Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. At December 31, 2023 and 2022, the Company did not have any loans held for sale. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collaterized by real estate. Homogenouse loans consisting similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Accounting Pronouncements Adopted in 2023 In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and available-for-sale debt securities and unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $2,088,000, net of tax, of which $1,911,000 related to loans, $177,000 related to unfunded commitments. The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption. The Company did not change the segmentation from the incurred loss method upon adoption of ASC 326. In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses. Allowance for Credit Losses – Loans The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments. Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation and the rapid increase in interest rates, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial and commercial real estate loans, as well as residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. The impact of the change from incurred loss model to the current expected credit loss model is detailed below (in thousands) January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation which range from 10-39 years for Company buildings, 3-7 years for furniture and equipment, and 1-3 years for computer software. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. An accelerated method is used for tax purposes. Expenditures for maintenance and repairs are charged against income as incurred. Costs of major additions and improvements are capitalized. Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. Bank-Owned Life Insurance The Company and the Bank have purchased life insurance policies on certain key executives. Company and bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Treasury Stock Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average cost. Restricted Stock Awards The Company has a share-based employee compensation plan, which is described more fully in Note 14. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if based on the weight of evidence available it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. At December 31, 2023, the Company had no uncertain tax positions. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. With a few exceptions, the Company is no longer subject to the examination by tax authorities for years before 2020. Deferred Compensation Plan Directors have the option to defer all or a portion of fees for their services into a deferred stock compensation plan that invests in common shares of the Company. Officers of the Company have the option to defer up to 50% of their annual incentive award into this plan. The plan does not permit diversification and must be settled by the delivery of a fixed number of shares of the Company stock. The stock held in the plan is included in equity as deferred shares and is accounted for in a manner similar to treasury stock. Subsequent changes in the fair value of the Company’s stock are not recognized. The deferred compensation obligation is also classified as an equity instrument and changes in the fair value of the amount owed to the participant are not recognized. The Company has entered into supplemental income agreements for certain individuals. These agreements call for a fixed payment over 180 months after the individual reaches normal retirement age. Stockholders’ Equity and Dividend Restrictions The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Generally, the Bank’s payment of dividends is limited to net income for the current year plus the two preceding calendar years, less capital distributions paid over the comparable time period. Dividend payments to the stockholders may be legally paid from additional paid-in capital or retained earnings. Earnings Per Share Basic earnings per share allocated to common stockholders is calculated using the two-class method and is computed by dividing net income allocated to common stockholders by the weighted average number of commons shares outstanding during the period. Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury method. There were no dilutive effects for the years ended December 31, 2023 and 2022. Comprehensive Income (Loss) Comprehensive income consists of net income (loss) and other comprehensive (loss) income, net of applicable income taxes. Other comprehensive (loss) income includes unrealized appreciation (depreciation) on available-for-sale securities and changes in the funded status of the defined benefit pension plan. Advertising Advertising expenses are expensed as incurred. |
Restriction on Cash and Due Fro
Restriction on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2023 | |
Restriction on Cash and Due From Banks | |
Restriction on Cash and Due From Banks | Note 2: Restriction on Cash and Due From Banks The Company did not have a reserve requirement at December 31, 2023 and 2022. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Securities | Note 3: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2023: U.S. government agencies $ 45,000 $ — $ (732) $ 44,268 Subordinated notes 29,013 — (4,713) 24,300 State and municipal obligations 177,670 2,264 (5,742) 174,192 Total debt securities $ 251,683 $ 2,264 $ (11,187) $ 242,760 Available-for-sale Securities: December 31, 2022: U.S. government agencies $ 45,000 $ — $ (968) $ 44,032 Subordinated notes 31,160 — (3,066) 28,094 State and municipal obligations 152,447 459 (7,408) 145,498 Total debt securities $ 228,607 $ 459 $ (11,442) $ 217,624 There were no allowance for credit losses as of December 31, 2023. There were no sales of investment securities during 2023 and 2022. The amortized cost and fair value of available-for-sale securities at December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Less than one year $ 15,000 $ 14,869 One to five years 30,597 29,937 Five to ten years 32,930 28,234 Over ten years 173,156 169,720 Totals $ 251,683 $ 242,760 The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $72.8 million and $68.7 million at December 31, 2023 and 2022, respectively. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2023 and 2022, was $123.1 million and $166.1 million, which represented approximately 51% and approximately 76%, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are not credit related. The following tables show the Company’s investments’ gross unrealized losses and fair value for which an allowance for credit losses has not been recorded,, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022: December 31, 2023 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (In thousands) US government agencies $ — $ — $ 44,268 $ (732) $ 44,268 $ (732) Subordinated notes 3,717 (799) 20,583 (3,914) 24,300 (4,713) State and municipal obligations 3,365 (12) 51,163 (5,730) 54,528 (5,742) Total temporarily impaired securities $ 7,082 $ (811) $ 116,014 $ (10,376) $ 123,096 $ (11,187) December 31, 2022 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (In thousands) US government agencies $ 44,032 $ (968) $ — $ — $ 44,032 $ (968) Subordinated notes 11,185 (1,565) 10,300 (1,501) 21,485 (3,066) State and municipal obligations 100,599 (7,408) — — 100,599 (7,408) Total temporarily impaired securities $ 155,816 $ (9,941) $ 10,300 $ (1,501) $ 166,116 $ (11,442) The unrealized losses on the Company’s investments in US government agencies, state and municipal obligations, and subordinated notes were caused by interest rate increases. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | Note 4: Loans and Allowance for Credit Losses Categories of loans at December 31, include: 2023 2022 (In thousands) Commercial and industrial loans $ 91,294 $ 90,548 Commercial real estate 291,859 270,312 Residential real estate 93,364 94,012 Consumer loans 6,719 6,003 Total gross loans 483,236 460,875 Less allowance for credit losses (3,918) (2,052) Total loans $ 479,318 $ 458,823 The risk characteristics of each loan portfolio segment are as follows: Commercial and Industrial Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential and Consumer Residential and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the balance in the allowance for credit losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2023 and 2022: 2023 Commercial Commercial And Industrial Real Estate Residential Consumer Total (In thousands) Allowance for credit losses: Balance, beginning of year $ 215 $ 815 $ 816 $ 206 $ 2,052 Provision for (reversal of) credit losses (421) 205 (352) 114 (454) Impact of adopting ASC 326 755 388 1,379 (103) 2,419 Losses charged off — — — (138) (138) Recoveries 24 — — 15 39 Balance, end of year $ 573 $ 1,408 $ 1,843 $ 94 $ 3,918 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 573 $ 1,408 $ 1,843 $ 94 $ 3,918 Loans: Ending balance: individually evaluated for credit loss $ — $ 8 $ 318 $ — $ 326 Ending balance: collectively evaluated for credit loss $ 91,294 $ 291,851 $ 93,046 $ 6,719 $ 482,910 2022 Commercial Commercial Real Estate Residential Installment Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision charged to expense (842) 141 (303) 49 (955) Losses charged off (16) (561) (2) (143) (722) Recoveries 27 — — 29 56 Balance, end of year $ 215 $ 815 $ 816 $ 206 $ 2,052 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 215 $ 815 $ 816 $ 206 $ 2,052 Loans: Ending balance: individually evaluated for impairment $ — $ 123 $ — $ — $ 123 Ending balance: collectively evaluated for impairment $ 90,548 $ 270,189 $ 94,012 $ 6,003 $ 460,752 The following tables show the portfolio quality indicators. Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of December 31, 2023 (in thousands): Revolving Revolving Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass $ 21,847 $ 14,723 $ 13,067 $ 14,042 $ 6,017 $ 5,292 $ 15,019 $ — $ 90,007 Special Mention — 26 — — — 128 1,133 — 1,287 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 21,847 $ 14,752 $ 13,067 $ 14,042 $ 6,017 $ 5,459 $ 16,152 $ — $ 91,294 Commercial and industrial Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk Rating Pass $ 29,246 $ 35,721 $ 48,569 $ 34,671 $ 26,562 $ 57,441 $ 55,141 $ — $ 287,351 Special Mention — — 242 2,050 — 2,121 — — 4,413 Substandard — — — — — 95 — — 95 Doubtful — — — — — — — — — Total $ 29,246 $ 35,721 $ 48,811 $ 36,721 $ 26,562 $ 59,657 $ 55,141 $ — $ 291,859 Commercial real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Pass $ 51,093 $ 50,444 $ 61,636 $ 48,713 $ 32,579 $ 62,733 $ 70,160 $ — $ 377,358 Special Mention — 26 242 2,050 — 2,249 1,133 — 5,700 Substandard — — — — — 95 — — 95 Doubtful — — — — — — — — — Total $ 51,093 $ 50,473 $ 62,853 $ 50,763 $ 32,579 $ 65,047 $ 71,293 $ — $ 383,153 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed quarterly. The following table presents the amortized cost in residential and consumer loans based on payment activity (in thousands): Revolving Revolving Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential Real Estate Payment Performance Performing $ 12,036 $ 18,297 $ 16,343 $ 19,476 $ 5,687 $ 21,046 $ — $ — $ 92,885 Nonperforming — — — 38 — 441 — — 479 Total $ 12,036 $ 18,297 $ 16,343 $ 19,514 $ 5,687 $ 21,487 $ — $ — $ 93,364 Residential real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Payment Performance Performing $ 2,484 $ 1,396 $ 674 $ 456 $ 385 $ 953 $ 371 $ — $ 6,719 Nonperforming — — — — — — — — — Total $ 2,484 $ 1,396 $ 674 $ 456 $ 385 $ 953 $ 371 $ — $ 6,719 Consumer Current period gross charge-offs $ 138 $ — $ — $ — $ — $ — $ — $ — $ 138 Total Payment Performance Performing $ 14,520 $ 19,693 $ 17,017 $ 19,932 $ 6,072 $ 21,999 $ 371 $ — $ 99,604 Nonperforming — — — 38 —- 441 — — 479 Total $ 14,520 $ 19,693 $ 17,017 $ 19,970 $ 6,072 $ 24,440 $ 371 $ — $ 100,083 Current period gross charge-offs $ 138 $ — $ — $ — $ — $ — $ — $ — $ 138 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the allowance for credit loss estimate, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. For the years ended December 31, 2023 and 2022, the Company recorded a credit to the loan credit provision of $454,000 and $955,000, respectively. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The following table shows the portfolio quality indicators as of December 31, 2022: Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,548 $ 262,472 $ 94,012 $ 6,003 $ 453,035 Special Mention — 4,066 — — 4,066 Substandard — 3,774 — — 3,774 Doubtful — — — — — $ 90,548 $ 270,312 $ 94,012 $ 6,003 $ 460,875 The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant methodology changes were made during 2022. The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2023: 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Past Than 90 Total Past Due and Due and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial and industrial $ 10 $ 48 $ 154 $ — $ 212 $ 91,082 $ 91,294 Commercial real estate — 242 — 8 250 291,609 291,859 Residential 201 — — 479 680 92,684 93,364 Consumer 5 — — — 5 6,714 6,719 Total $ 216 $ 290 $ 154 $ 487 $ 1,147 $ 482,089 $ 483,236 The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2022: 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Past Than 90 Total Past Due and Due and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial and industrial $ 126 $ — $ — $ — $ 126 $ 90,422 $ 90,548 Commercial real estate 158 — — 9 167 270,145 270,312 Residential 102 24 — 173 299 93,713 94,012 Installment 15 — — — 15 5,988 6,003 Total $ 401 $ 24 $ — $ 182 $ 607 $ 460,268 $ 460,875 Nonperforming Loans The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of December 31, 2023: Loans Past Due Over 90 Days Total Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Still Accruing Nonperforming (In thousands) Commercial and industrial $ — $ — $ — $ 154 $ 154 Commercial real estate 8 — 8 — 8 Residential 479 — 479 — 479 Consumer — — — — — Total $ 487 $ — $ 487 $ 154 $ 641 The Company did recognized approximately $13,000 interest income on nonaccrual loans during the the period ended December 31, 2023. Impaired Loans For 2022, a loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial and industrial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following table presents impaired loans for the year ended December 31,2022: Average Unpaid Investment in Interest Recorded Principal Specific Impaired Income Balance Balance Allowance Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial and industrial $ — $ — $ — $ 27 $ 1 Commercial real estate 123 123 — 130 11 Real Estate — — — — — Installment — — — — — $ 123 $ 123 $ — $ 157 $ 12 Loans with a specific valuation allowance: Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 3,653 40 Real Estate — — — — — $ — $ — $ — $ 3,653 $ 40 Total: Commercial and industrial $ — $ — $ — $ 27 $ 1 Commercial Real Estate $ 123 $ 123 $ — $ 3,783 $ 51 Real Estate $ — $ — $ — $ — $ — Installment $ — $ — $ — $ — $ — At December 31, 2022, the Company had certain loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate. The following tables present information regarding troubled debt restructurings by class and by type of modification for the year ended December 31, 2022: Year Ended December 31, 2022 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial and industrial — $ — $ — Commercial Real Estate 1 $ 48 $ 48 Year Ended December 31, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial and industrial $ — $ — $ — $ — Commercial Real Estate $ 1 $ 1 $ — $ 1 During the year ended December 31, 2022, troubled debt restructurings did not have an impact on the allowance for loan losses. At December 31, 2022, there were no material defaults of any troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | Note 5: Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: 2023 2022 (In thousands) Land, buildings and improvements $ 22,927 $ 20,493 Furniture and equipment 15,398 15,567 Computer software 2,546 2,460 40,871 38,520 Less accumulated depreciation (25,887) (26,376) Net premises and equipment $ 14,984 $ 12,144 Depreciation and amortization charged to operations was $997,000 in 2023 and $1,013,000 in 2022. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Time Deposits | |
Time Deposits | Note 6: Time Deposits Time deposits in denominations of $250,000 or more were $37.6 million at December 31, 2023 and $11.3 million at December 31, 2022. At December 31, 2023, the scheduled maturities of time deposits are as follows: (In thousands) Due during the year ending December 31, 2024 $ 79,670 2025 63,073 2026 7,961 2027 163 2028 230 Thereafter 261 $ 151,358 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Borrowings | Note 7: Borrowings At December 31, 2023 and 2022, as a member of the Federal Home Loan Bank system the Bank had the ability to obtain up to $87.5 million and $177.2 million, respectively, in additional borrowings based on securities and certain loans pledged to the FHLB. At December 31, 2023, Advances from the Federal Home Loan Bank were $75 million. The Company did not have any advances from the Federal Home Loan Bank at December 31, 2022. At December 31, 2023, required annual payments on Federal Home Loan Bank advances were for year ending December 31, 2026 $20 million (4.39% fixed rate), December 31, 2027 $35 million (4.24% fixed rate) and December 31, 2028 $20 million (4.11% fixed rate). At December 31, 2023 and 2022, the Bank had approximately $251.0 million and $248.0 million, respectively of one- to four-family residential real estate and commercial real estate loans pledged as collateral for borrowings. Also at December 31, 2023 and 2022, the Company and the Bank have cash management lines of credit with various correspondent banks (excluding FHLB cash management lines of credit) enabling additional borrowings of up to $18.0 million. At December 31, 2022 the Company had no outstanding borrowings with the FHLB. Securities sold under repurchase agreements were approximately $26.8 million and $18.1 million at December 31, 2023 and 2022, respectively. Securities sold under agreements to repurchase are financing arrangements whereby the Company sells securities and agrees to repurchase the identical securities at the maturities of the agreements at specified prices. Physical control is maintained for all securities sold under repurchase agreements. Information concerning securities sold under agreements to repurchase is summarized as follows: 2023 2022 (Dollars in thousands) Balance outstanding at year end $ 26,781 $ 18,106 Average daily balance during the year $ 25,049 $ 22,581 Average interest rate during the year 4.17 % 1.02 % Maximum month-end balance during the year $ 30,509 $ 28,114 Weighted-average interest rate at year end 4.589 % 3.04 % All repurchase agreements are subject to term and conditions of repurchase/security agreements between the Company and the customer and are accounted for as secured borrowings. The Company’s repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 December 31, 2023 Continuous Up to 30 Days 30 ‑ 90 Days Days Total Repurchase Agreements State and municipal obligations $ 26,781 $ — $ — $ — $ 26,781 Total $ 26,781 $ — $ — $ — $ 26,781 Overnight and Greater than 90 December 31, 2022 Continuous Up to 30 Days 30 ‑ 90 Days Days Total Repurchase Agreements U.S government agencies $ 18,106 $ — $ — $ — $ 18,106 Total $ 18,106 $ — $ — $ — $ 18,106 Securities with an approximate carrying value of $41.1 million and $38.8 million at December 31, 2023 and 2022, respectively, were pledged as collateral for repurchase borrowings. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debentures | |
Subordinated Debentures | Note 8: Subordinated Debentures On May 14, 2019 the Company issued $20,000,000 of junior subordinated debentures. The debentures bear interest at a fixed rate of 6.0% until May 2024, which then becomes a floating interest rate equal to the three-month SOFR plus 3.625%, resetting quarterly. Interest on the subordinated notes is payable semiannually through May 2024 In 2005, a Delaware statutory business trust owned by the Company, United Bancorp Statutory Trust I (“Trust I” or the “Trust”), issued $4.1 million of mandatorily redeemable debt securities. The sale proceeds were utilized to purchase $4.1 million of the Company’s subordinated debentures which mature in 2035. The Company’s subordinated debentures are the sole asset of Trust I. The Company’s investment in Trust I is not consolidated herein as the Company is not deemed the primary beneficiary of the Trust. However, the $4.1 million of mandatorily redeemable debt securities issued by the Trust are includible for regulatory purposes as a component of the Company’s Tier I Capital. Interest on the Company’s subordinated debentures is equal to three month SOFR plus 1.35% and is payable quarterly. Subordinated debentures, net of unamortized debt costs, totaled $23.8 million and $23.7 million at December 31, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 9: Income Taxes The provision for income taxes includes these components: 2023 2022 (In thousands) Taxes currently payable $ 528 $ 537 Deferred income taxes 13 342 Income tax expense $ 541 $ 879 A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: 2023 2022 (In thousands) Computed at the statutory rate (21%) $ 1,993 $ 2,003 (Decrease) increase resulting from Tax exempt interest (1,256) (935) Earnings on bank-owned life insurance - net (152) (149) Low income housing credit (49) (49) Other 5 9 Actual tax expense $ 541 $ 879 The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: 2023 2022 (In thousands) Deferred tax assets Allowance for credit losses $ 870 $ 431 Stock based compensation 238 310 Deferred compensation, and other accruals 80 507 Employee benefit expense 525 — Non-accrual loan interest 6 1 Unrealized loss on securities available for sale 1,874 2,307 Other — 10 Total deferred tax assets 3,593 3,566 Deferred tax liabilities Depreciation (410) (414) Deferred loan costs, net (2) (11) FHLB stock dividends (60) (182) Prepaid expenses (55) (68) Intangibles (58) (78) Employee benefit expense (599) (390) Total deferred tax liabilities (1,184) (1,143) Net deferred tax asset $ 2,409 $ 2,423 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 10: Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: 2023 2022 (In thousands) Net unrealized loss on securities available-for-sale $ (8,922) $ (10,984) Net unrealized loss for funded status of defined benefit plan liability (543) (835) (9,465) (11,819) Tax effect 1,987 2,483 Net-of-tax amount $ (7,478) $ (9,336) |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters | |
Regulatory Matters | Note 11: Regulatory Matters Unified is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory–and possibly additional discretionary–actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. In July 2013, the Federal Reserve approved final rules, referred to herein as the Basel III Rules, establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Rules generally implement the Basel Committee on Banking Supervision’s December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Basel III Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and Unified, as compared to the current U.S. general risk-based capital rules. The Basel III Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the computation of regulatory capital ratios. The Basel III rules added another capital ratio component “Tier 1 Common Capital Ratio” which is a measurement of a bank’s core equity capital compared with its total risk-weighted assets The Basel III Rules also prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current categories to a larger more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes. The Basel III capital rules became effective for Unified on January 1, 2015, subject to phase-in periods for certain components. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. As of December 31, 2023, the most recent notification from Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2023 Total Capital (to Risk-Weighted Assets) Unified 81,811 13.9 46,975 8.0 $ 58,719 10.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Unified 77,893 13.3 26,424 4.5 $ 38,167 6.5 % Tier I Capital (to Risk-Weighted Assets) Unified 77,893 13.3 35,231 6.0 $ 46,975 8.0 % Tier I Capital (to Average Assets) Unified 77,893 9.7 32,302 4.0 $ 40,378 5.0 % As of December 31, 2022 Total Capital (to Risk-Weighted Assets) Unified 79,551 14.2 44,778 8.0 $ 55,973 10.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Unified 77,499 13.9 25,188 4.5 $ 36,383 6.5 % Tier I Capital (to Risk-Weighted Assets) Unified 77,499 13.9 33,584 6.0 $ 44,778 8.0 % Tier I Capital (to Average Assets) Unified 77,499 10.1 30,617 4.0 $ 38,272 5.0 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 12: Related Party Transactions At December 31, 2023 and 2022, the Bank had loan commitments outstanding to executive officers, directors, significant stockholders and their affiliates (related parties). In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. Such loans are summarized below. 2023 2022 (In thousands) Aggregate balance – January 1 $ 20,041 $ 20,347 New loans 4,394 1,726 Repayments (2,212) (2,032) Aggregate balance – December 31 $ 22,223 $ 20,041 Deposits from related parties held by the Bank at December 31, 2023 and 2022, totaled approximately $5.9 million and $3.3 million, respectively.The Company is under a purchase contract to acquire real estate from a related party. The amount of the purchase is approximately $2.8 million and it will be used for future expansion. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Benefit Plans | |
Benefit Plans | Note 13: Benefit Plans Pension and Other Postretirement Benefit Plans The Company has a noncontributory defined benefit pension plan covering all employees who meet the eligibility requirements. The Company’s funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $672,000 to the plan in 2024. The Company has certain agreements which provide for a fixed number of payments once the individual reaches normal retirement age. At December 31, 2023, the present value of these future payments was approximately $383,000. The Company uses a December 31st measurement date for the plan. Information about the plan’s funded status and pension cost follows: Pension Benefits 2023 2022 (In thousands) Change in benefit obligation Beginning of year $ (5,078) $ (7,558) Service cost (302) (519) Interest cost (311) (274) Actuarial gain (loss) (229) 2,991 Benefits paid 441 282 End of year (5,479) (5,078) Change in fair value of plan assets Beginning of year 6,988 7,744 Actual return on plan assets 1,092 (1,217) Employer contribution 742 744 Benefits paid (441) (283) End of year 8,381 6,988 Funded status at end of year $ 2,902 $ 1,910 Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of: Pension Benefits 2023 2022 (In thousands) Unamortized net loss $ 770 $ 1,150 Unamortized prior service (227) (315) $ 543 $ 835 The estimated net loss and prior service credit for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss as a credit into net periodic benefit cost over the next fiscal year is approximately $89,000. The accumulated benefit obligation for the defined benefit pension plan was $4.7 million and $4.4 million at December 31, 2023 and 2022, respectively. Information for the pension plan with respect to accumulated benefit obligation and plan assets is as follows: December 31, 2023 2022 (In thousands) Projected benefit obligation $ 5,479 $ 5,078 Accumulated benefit obligation $ 4,695 $ 4,421 Fair value of plan assets $ 8,381 $ 6,988 December 31, 2023 2022 (In thousands) Components of net periodic benefit cost Service cost $ 302 $ 519 Interest cost 311 274 Expected return on plan assets (530) (575) Amortization of prior service credit (89) (89) Amortization of net loss 48 183 Net periodic benefit cost $ 42 $ 312 Significant assumptions include: Pension Benefits 2023 2022 Weighted-average assumptions used to determine benefit obligation: Discount rate 3.75 % 3.75 % Rate of compensation increase 3.50 % 3.50 % Weighted-average assumptions used to determine benefit cost: Discount rate 3.75 % 3.75 % Expected return on plan assets 7.00 % 7.00 % Rate of compensation increase 3.50 % 3.50 % The Company has estimated the long-term rate of return on plan assets based primarily on historical returns on plan assets, adjusted for changes in target portfolio allocations and recent changes in long-term interest rates based on publicly available information. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2023: Pension Benefits (In thousands) 2024 $ 316 2025 339 2026 312 2027 635 2028 529 2029-2033 5,104 Total $ 7,235 Plan assets are held by an outside trustee which invests the plan assets in accordance with the provisions of the plan agreement. All equity and fixed income investments are held in various mutual funds with quoted market prices. Mutual fund equity securities primarily include investment funds that are comprised of large-cap, mid-cap and international companies. Fixed income mutual funds primarily include investments in corporate bonds, mortgage-backed securities and U.S. Treasuries. Other types of investments include a prime money market fund. The asset allocation strategy of the plan is designed to allow flexibility in the determination of the appropriate investment allocations between equity and fixed income investments. This strategy is designed to help achieve the actuarial long term rate on plan assets of 7.0%. The target asset allocation percentages for both 2023 and 2022 are as follows: Large-Cap stocks Not to exceed 68% Small-Cap stocks Not to exceed 23% Mid-Cap stocks Not to exceed 23% International equity securities Not to exceed 30% Fixed income investments Not to exceed 35% Alternative investments Not to exceed 19% At December 31, 2023 and 2022, the fair value of plan assets as a percentage of the total was invested in the following: December 31, 2023 2022 Equity securities 69.2 % 70.0 % Debt securities 27.5 27.8 Cash and cash equivalents 3.3 2.2 100.0 % 100.0 % Pension Plan Assets Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy. Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets include investments in mutual funds that involve equity, bond and money market investments. All of the Plan’s assets are classified as Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. At December 31, 2023 and 2022, the Plan did not contain Level 2 or Level 3 investments. The fair values of Company’s pension plan assets at December 31st, by asset category are as follows: December 31, 2023 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Total Fair Identical Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (In thousands) Mutual money market $ 279 $ 279 $ — $ — Mutual funds – equities ETF mutual funds 5,283 5,283 — — Large and small Cap 159 159 — — International 356 356 Mutual funds – fixed income Fixed income 1,559 1,559 — — ETF fixed income 745 745 — — Total $ 8,381 $ 8,381 $ — $ — December 31, 2022 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Total Fair Identical Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (In thousands) Mutual money market $ 154 $ 154 $ — $ — Mutual funds – equities ETF mutual funds 4,445 4,445 — — Large and small Cap 142 142 — — International 301 301 Mutual funds – fixed income Fixed income 1,348 1,348 — — ETF fixed income 598 598 — — Total $ 6,988 $ 6,988 $ — $ — Employee Stock Ownership and 401(k) Plans The Company has an Employee Stock Ownership Plan (“ESOP”) with an integrated 401(k) plan covering substantially all employees of the Company. The Company’s 401(k) matching percentage was 50% of the employees’ first 6% of contributions for 2023 and 2022. The Company’s 401(k) expense for the years ended December 31, 2023 and 2022 was approximately $142,000 and $141,000, respectively. Share information for the ESOP is as follows at December 31, 2023 and 2022: 2023 2022 Allocated shares at beginning of the year 384,404 398,104 Net shares distributed due to retirement/diversification (6,534) (13,700) Total ESOP shares 377,870 384,404 Fair value of unearned shares at December 31st $ — $ — At December 31, 2023, the fair value of the 377,870 the shares held by the ESOP was approximately $4,852,000. There were no unearned ESOP shares as of December 31, 2023 and 2022. Split Dollar Life Insurance Arrangements The Company has split-dollar life insurance arrangements with its executive officers and certain directors that provide certain death benefits to the executive’s beneficiaries upon his or her death. The agreements provide a pre- and post-retirement death benefit payable to the beneficiaries of the executive in the event of the executive’s death. The Company has purchased life insurance policies on the lives of all participants covered by these agreements in amounts sufficient to provide the sums necessary to pay the beneficiaries, and the Company pays all premiums due on the policies. In the case of an early separation from the Company, the nonvested executive portion of the death benefit is retained by the Company. The accumulated post retirement benefit obligation was $2.0 million and $1.9 million at December 31, 2023 and 2022, respectively. |
Restricted Stock Plan
Restricted Stock Plan | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Stock Plan | |
Restricted Stock Plan | Note 14: Restricted Stock Plan During 2018, the Company’s stockholders authorized the adoption of the United Bancorp, Inc. 2018 Stock Incentive Plan (the “2018 Plan”). No more than 500,000 shares of the Company’s common stock may be issued under the 2018 Plan. As of December 31, 2023, 162,500 shares have been issued under this plan. The shares that may be issued can be authorized but unissued shares or treasury shares. The 2018 Plan permits the grant of incentive awards in the form of options, stock appreciation rights, restricted share and share unit awards, and performance share awards. The 2018 Plan contains annual limits on certain types of awards to individual participants. In any calendar year, no participant may be granted awards covering more than 25,000 shares. During 2008, the Company’s stockholders authorized the adoption of the United Bancorp, Inc. 2008 Stock Incentive Plan (the “2008 Plan”). No more than 500,000 shares of the Company’s common stock may be issued under the 2008 Plan. The shares that may be issued can be authorized but unissued shares or treasury shares. The 2008 Plan permits the grant of incentive awards in the form of options, stock appreciation rights, restricted share and share unit awards, and performance share awards. The 2008 Plan contains annual limits on certain types of awards to individual participants. In any calendar year, no participant may be granted awards covering more than 25,000 shares. As of December 31, 2018, no additional shares can be awarded under the 2008 Plan. The Company believes that such awards better align the interests of its employees with those of its stockholders. Stock options are generally granted with an exercise price, and restricted stock awards are valued, equal to the market price of the Company’s stock at the date of grant; stock option awards generally vest within 9.5 years of continuous service and have a 9.5 year contractual term. Restricted stock awards generally vest over a 9.5 year contractual term, or over the period to retirement, whichever is shorter. Restricted stock awards have no post-vesting restrictions. Restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the Plans). A summary of the status of the Company’s nonvested restricted shares as of December 31, 2023, and changes during the year then ended, is presented below: Weighted- Average Grant-Date Shares Fair Value Nonvested, beginning of year 257,500 $ 11.86 Granted 20,000 12.03 Vested (50,000) 12.19 Forfeited — — Nonvested, end of year 227,500 $ 11.79 Total compensation cost recognized in the income statement for share-based payment arrangements during the years ended December 31, 2023 and 2022 was $658,000 and $1,006,000, respectively. The recognized tax benefits related thereto were $138,000 and $211,000, for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, there was $1,253,000 and $1,549,000, respectively, of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.8 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 15: Earnings Per Share Earnings per share (EPS) were computed as follows: Year Ended December 31, 2023 Weighted- Average Net Shares Per Share Income Outstanding Amount (In thousands) Net income $ 8,950 Less allocated earnings on non-vested restricted stock (167) Less allocated dividends on non-vested restricted stock (190) Net income allocated to common stockholders 8,593 5,490,488 Basic and diluted earnings per share $ 1.57 Year Ended December 31, 2022 Weighted- Average Per Share Net Shares Income Outstanding Amount (In thousands) Net income $ 8,657 Less allocated earnings on non-vested restricted stock (185) Less allocated dividends on non-vested restricted stock (203) Net income allocated to common stockholders 8,269 5,483,305 Basic and diluted earnings per share $ 1.50 |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities | |
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities | Note 16: Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities The Company 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 Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2023 and 2022: December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) U.S government agencies $ 44,268 $ — $ 44,268 $ — Subordinated notes 24,300 — 24,300 — State and municipal obligation 174,192 — 174,192 — December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) U.S government agencies $ 44,032 $ — $ 44,032 $ — Subordinated notes 28,094 — 28,094 — State and municipal obligation 145,498 — 145,498 — Following is a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Collateral Dependent Collateral dependent loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on collateral dependent loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, collateral dependent loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of other real estate owned (OREO) are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2023 and 2022: December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale 3,273 — — 3,273 December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) Collateral dependent impaired loans $ 9 $ — $ — $ 9 Foreclosed assets held for sale 3,519 — — 3,519 Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements. Fair Value at Valuation 12/31/23 Technique Unobservable Inputs Range (In thousands) Collateral-dependent loans $ — Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,273 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/22 Technique Unobservable Inputs Range (In thousands) Collateral-dependent loans $ 9 Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,519 Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2023. The following tables presents estimated fair values of the Company’s financial instruments not required to be reported at fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Quoted Prices in Active Markets for Significant Significant Identical Other Unobservable Carrying Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2023 Financial assets Cash and cash equivalents $ 40,770 $ 40,770 $ — $ — Loans, net of allowance 479,318 — — 459,759 Federal Home Loan Bank stock 3,979 — 3,979 — Accrued interest receivable 4,098 — 4,098 — Financial liabilities Deposits $ 621,459 $ — $ 623,813 $ — Securities sold under repurchase agreements 26,781 — 26,781 — Federal Home Loan Bank Advances 75,000 — 74,911 — Subordinated debentures 23,787 — 22,146 — Interest payable 579 — 579 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2022 Financial assets Cash and cash equivalents $ 30,080 $ 30,080 $ — $ — Loans, net of allowance 458,823 — — 444,704 Federal Home Loan Bank stock 2,499 — 2,499 — Accrued interest receivable 3,403 — 3,403 — Financial liabilities Deposits $ 649,913 $ — $ 646,455 $ — Securities sold under repurchase agreements 18,106 — 18,106 — Subordinated debentures 23,726 — 24,454 — Interest payable 304 — 304 — The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans Fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Securities Sold Under Repurchase Agreements and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Advances from the Federal Home Loan Bank The fair values of advances from the Federal Home Loan Bank, are based on the discounted value of estimated cash flows. The discounted rate is estimated using market rates currently offered for debts with similar credit rating, terms and remaining maturities. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at December 31, 2023 and 2022. |
Significant Estimates and Conce
Significant Estimates and Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Significant Estimates and Concentrations | |
Significant Estimates and Concentrations | Note 17: Significant Estimates and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses are reflected in the footnote regarding loans. Current vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments and credit risk. The Company invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is possible that changes in the values of investment securities may occur and that such changes could affect the amounts reported in the accompanying consolidated balance sheets. |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Credit Risk | |
Commitments and Credit Risk | Note 18: Commitments and Credit Risk At December 31, 2023 and 2022, total commercial and commercial real estate loans made up 79.3% and 78.3%, respectively, of the loan portfolio. Installment loans account for 1.4% and 1.3%, respectively, of the loan portfolio. Real estate loans comprise 19.3% and 20.4% of the loan portfolio as of December 31, 2023 and 2022, respectively, and primarily include first mortgage loans on residential properties and home equity lines of credit. Included in cash and cash and cash equivalents as of December 31, 2023 and 2022 is $33.4 million and $21.5 million, respectively, of deposits with the Federal Reserve Bank of Cleveland and the Federal Home Loan Bank. Commitments to Originate Loans Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. At December 31, 2023 and 2022, the Company had outstanding commitments to originate variable rate loans aggregating approximately $91.7 million and $77.9 million, respectively. The commitments extended over varying periods of time with the majority being disbursed within a one-year period. Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 60 to 90 days, some of which are intended for sale to investors in the secondary market. The Company did not have any mortgage loans in the process of origination which are intended for sale at December 31, 2023 or 2022. Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Fees for letters of credit are initially recorded by the Company as deferred revenue and are included in earnings at the termination of the respective agreements. Should the Company be obligated to perform under the standby letters of credit, the Company may seek recourse from the customer for reimbursement of amounts paid. The Company had $136,000 and $136,000 at December 31, 2023 and 2022, respectively in outstanding standby letters of credit. At both December 31, 2023 and 2022, the Company had no deferred revenue under standby letter of credit agreements. Lines of Credit and Other Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. At December 31, 2023, the Company had granted unused lines of credit to borrowers aggregating approximately $93.7 million and $37.0 million for commercial lines and open-end consumer lines, respectively. At December 31, 2022, the Company had granted unused lines of credit to borrowers aggregating approximately $79.7 million and $37.6 million for commercial lines and open-end consumer lines, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 19: Recent Accounting Pronouncements Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information (Parent Company Only) | |
Condensed Financial Information (Parent Company Only) | Note 20: Condensed Financial Information (Parent Company Only) Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: Condensed Balance Sheets December 31, 2023 2022 (In thousands) Assets Cash and cash equivalents $ 12,094 $ 11,273 Investment in the Bank 71,787 69,914 Other assets 4,078 3,110 Total assets $ 87,959 $ 84,297 Liabilities and Stockholders’ Equity Subordinated debentures $ 23,787 $ 23,726 Other liabilities 579 834 Stockholders’ equity 63,593 59,737 Total liabilities and stockholders’ equity $ 87,959 $ 84,297 Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2023 2022 (In thousands) Operating Income Dividends from subsidiary $ 12,103 $ 10,779 Interest and dividend income from securities and federal funds 9 — Total operating income 12,112 10,779 General, Administrative and Other Expenses 4,390 4,498 Income (Loss) Before Income Taxes and Equity in Undistributed Income of Subsidiary 7,722 6,281 Income Tax Benefits 983 1,095 Income (Loss) Before Equity in Undistributed Income of Subsidiary 8,705 7,376 Equity in Undistributed Income of Subsidiary 245 1,281 Net Income $ 8,950 $ 8,657 Comprehensive Income (Loss) $ 10,808 $ (7,643) Condensed Statements of Cash Flows Years Ended December 31, 2023 2022 (In thousands) Operating Activities Net income $ 8,950 $ 8,657 Items not requiring (providing) cash Equity in undistributed income of subsidiary (245) (1,281) Amortization of share-based compensation plans 658 1,005 Net change in other assets and other liabilities (3,021) (874) Net cash provided by operating activities 6,342 7,507 Investing Activities Net cash used in investing activities — — Financing Activities Repurchase of common stock (733) (767) Cash dividends paid (4,788) (4,559) Net cash used in financing activities (5,521) (5,326) Net Change in Cash and Cash Equivalents 821 2,181 Cash and Cash Equivalents at Beginning of Year 11,273 9,092 Cash and Cash Equivalents at End of Year $ 12,094 $ 11,273 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | Note 21: Quarterly Financial Data (Unaudited) The following tables summarize the Company’s quarterly results of operations for the years ended December 31, 2023 and 2022. Three Months Ended 2023: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 8,208 $ 9,286 $ 9,651 $ 9,704 Total interest expense 1,785 2,941 3,085 3,203 Net interest income 6,423 6,345 6,566 6,501 Provision (Credit) for loan losses — (146) (154) (154) Noninterest income 1,016 1,046 963 1,029 Noninterest expense 5,438 5,089 5,233 5,092 Income before income taxes 2,001 2,448 2,450 2,592 Federal income taxes 113 168 58 202 Net income $ 1,888 $ 2,280 $ 2,392 $ 2,390 Earnings per share Basic $ 0.33 $ 0.40 $ 0.42 $ 0.42 Diluted $ 0.33 $ 0.40 $ 0.42 $ 0.42 Three Months Ended 2022: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 5,997 $ 6,445 $ 7,297 $ 7,922 Total interest expense 487 477 928 1,381 Net interest income 5,510 5,968 6,369 6,541 Provision for loan losses (500) (485) 15 15 Noninterest income 987 988 1,043 1,065 Noninterest expense 5,110 4,849 4,879 5,052 Income before income taxes 1,887 2,592 2,518 2,539 Federal income taxes 136 295 215 233 Net income $ 1,751 $ 2,297 $ 2,303 $ 2,306 Earnings per share Basic $ 0.30 $ 0.40 $ 0.40 $ 0.40 Diluted $ 0.30 $ 0.40 $ 0.40 $ 0.40 |
Goodwill and Core Deposits
Goodwill and Core Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Core Deposits | |
Goodwill and Core Deposits | Note 22: Goodwill and Core Deposits The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of year $ 682 $ 682 Intangible assets in the consolidated balance sheets at December 31, 2023 and 2022 were as follows (in thousands): 2023 2022 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 $ 781 $ 260 $ 1,041 $ 631 $ 410 The estimated aggregate future amortization expense for each of the next two years for intangible assets remaining as of December 31, 2023 is as follows (in thousands): 2024 $ 150 2025 110 |
Finance Lease
Finance Lease | 12 Months Ended |
Dec. 31, 2023 | |
Finance Lease | |
Finance Lease | Note 23: Finance Lease The Company has a finance lease in connection with the expansion into Wheeling, West Virginia to build a banking center during 2024. The finance lease term is 40 years with two additional 10 year terms available. The payment structure for this lease is fixed and will either increase or decrease on pre-dertemined dates at a pre-determined amount. In accordance with ASC 842, the Company recognized a financing lease asset and corresponding lease liability related to the ground lease. The financing lease asset represents the Company’s right to use an underlying asset for the lease terms, and the lease liability represents the Company’s obligation to make lease payments over the lease term. The lease is a net lease and, therefore does not contain non-lease components. The Company either pays directly or reimburses the lessor for property and casualty insurance cost and the the propery taxes asserted on the property, as well as a portion of the common area maintenance associated with the property which as categorized as non-components as outline in the applicable guidance. This financing lease asset and lease liability was determined at the commencement date of the lease based on the present value of the lease payments. This lease does not provide an implicit interest rate. The Company used its incremental collateralized borrowing rate at the Federal Home Loan Bank with similar terms of repayment. The Company used a discount rate of 6.86% and recorded a right of use asset Premise and Equipment Maturities of the finance lease liability as December 31, 2023 are as follows: (In thousands) Due during the year ending December 31, 2024 $ 93 2025 130 2026 210 2027 210 2028 207 Thereafter 8,760 Total lease payments $ 9,610 Interest (6,846) Lease Liability $ 2,764 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank” or “Unified”). All intercompany transactions and balances have been eliminated in consolidation. |
Nature of Operations | Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moundsville West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary policy, that are outside of management’s control. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our statements of income as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets held for sale, management obtains independent appraisals for significant properties. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2023 and 2022, cash equivalents consisted primarily of due from accounts with the Federal Reserve and other correspondent banks. Currently, the FDIC’s insurance limits are $250,000. At December 31, 2023 and 2022, the Company’s various cash accounts did not exceed the federally insured limit of $250,000. At December 31, 2023 and 2022, the Company held $33,418,000 and $21,541,000 at the Federal Home Loan Bank and the Federal Reserve Bank, respectively, which are not subject to FDIC limits. |
Investment Securities | Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. |
Allowance for Credit Losses - Available for Sale Securities | Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheets. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. At December 31, 2023 and 2022, the Company did not have any loans held for sale. |
Loans | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collaterized by real estate. Homogenouse loans consisting similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments. |
Accounting Pronouncements Adopted in 2023 | Accounting Pronouncements Adopted in 2023 In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and available-for-sale debt securities and unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $2,088,000, net of tax, of which $1,911,000 related to loans, $177,000 related to unfunded commitments. The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption. The Company did not change the segmentation from the incurred loss method upon adoption of ASC 326. In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses – Loans The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments. Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation and the rapid increase in interest rates, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial and commercial real estate loans, as well as residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. The impact of the change from incurred loss model to the current expected credit loss model is detailed below (in thousands) January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation which range from 10-39 years for Company buildings, 3-7 years for furniture and equipment, and 1-3 years for computer software. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. An accelerated method is used for tax purposes. Expenditures for maintenance and repairs are charged against income as incurred. Costs of major additions and improvements are capitalized. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company and the Bank have purchased life insurance policies on certain key executives. Company and bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. |
Treasury Stock | Treasury Stock Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average cost. |
Restricted Stock Awards | Restricted Stock Awards The Company has a share-based employee compensation plan, which is described more fully in Note 14. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if based on the weight of evidence available it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. At December 31, 2023, the Company had no uncertain tax positions. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. With a few exceptions, the Company is no longer subject to the examination by tax authorities for years before 2020. |
Deferred Compensation Plan | Deferred Compensation Plan Directors have the option to defer all or a portion of fees for their services into a deferred stock compensation plan that invests in common shares of the Company. Officers of the Company have the option to defer up to 50% of their annual incentive award into this plan. The plan does not permit diversification and must be settled by the delivery of a fixed number of shares of the Company stock. The stock held in the plan is included in equity as deferred shares and is accounted for in a manner similar to treasury stock. Subsequent changes in the fair value of the Company’s stock are not recognized. The deferred compensation obligation is also classified as an equity instrument and changes in the fair value of the amount owed to the participant are not recognized. The Company has entered into supplemental income agreements for certain individuals. These agreements call for a fixed payment over 180 months after the individual reaches normal retirement age. |
Stockholders' Equity and Dividend Restrictions | Stockholders’ Equity and Dividend Restrictions The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Generally, the Bank’s payment of dividends is limited to net income for the current year plus the two preceding calendar years, less capital distributions paid over the comparable time period. Dividend payments to the stockholders may be legally paid from additional paid-in capital or retained earnings. |
Earnings Per Share | Earnings Per Share Basic earnings per share allocated to common stockholders is calculated using the two-class method and is computed by dividing net income allocated to common stockholders by the weighted average number of commons shares outstanding during the period. Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury method. There were no dilutive effects for the years ended December 31, 2023 and 2022. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income consists of net income (loss) and other comprehensive (loss) income, net of applicable income taxes. Other comprehensive (loss) income includes unrealized appreciation (depreciation) on available-for-sale securities and changes in the funded status of the defined benefit pension plan. |
Advertising | Advertising Advertising expenses are expensed as incurred. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Schedule of impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Amortized Costs Gross Unrealized Gains And Losses And Fair Value Of Investments [Table Text Block] | Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2023: U.S. government agencies $ 45,000 $ — $ (732) $ 44,268 Subordinated notes 29,013 — (4,713) 24,300 State and municipal obligations 177,670 2,264 (5,742) 174,192 Total debt securities $ 251,683 $ 2,264 $ (11,187) $ 242,760 Available-for-sale Securities: December 31, 2022: U.S. government agencies $ 45,000 $ — $ (968) $ 44,032 Subordinated notes 31,160 — (3,066) 28,094 State and municipal obligations 152,447 459 (7,408) 145,498 Total debt securities $ 228,607 $ 459 $ (11,442) $ 217,624 |
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity | The amortized cost and fair value of available-for-sale securities at December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Less than one year $ 15,000 $ 14,869 One to five years 30,597 29,937 Five to ten years 32,930 28,234 Over ten years 173,156 169,720 Totals $ 251,683 $ 242,760 |
Schedule of investments' gross unrealized losses and fair value, aggregated by investment category and length of time | December 31, 2023 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (In thousands) US government agencies $ — $ — $ 44,268 $ (732) $ 44,268 $ (732) Subordinated notes 3,717 (799) 20,583 (3,914) 24,300 (4,713) State and municipal obligations 3,365 (12) 51,163 (5,730) 54,528 (5,742) Total temporarily impaired securities $ 7,082 $ (811) $ 116,014 $ (10,376) $ 123,096 $ (11,187) December 31, 2022 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (In thousands) US government agencies $ 44,032 $ (968) $ — $ — $ 44,032 $ (968) Subordinated notes 11,185 (1,565) 10,300 (1,501) 21,485 (3,066) State and municipal obligations 100,599 (7,408) — — 100,599 (7,408) Total temporarily impaired securities $ 155,816 $ (9,941) $ 10,300 $ (1,501) $ 166,116 $ (11,442) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Schedule of categories of loans | 2023 2022 (In thousands) Commercial and industrial loans $ 91,294 $ 90,548 Commercial real estate 291,859 270,312 Residential real estate 93,364 94,012 Consumer loans 6,719 6,003 Total gross loans 483,236 460,875 Less allowance for credit losses (3,918) (2,052) Total loans $ 479,318 $ 458,823 |
Schedule of allowance for Credit Losses and Recorded Investment in Loans | 2023 Commercial Commercial And Industrial Real Estate Residential Consumer Total (In thousands) Allowance for credit losses: Balance, beginning of year $ 215 $ 815 $ 816 $ 206 $ 2,052 Provision for (reversal of) credit losses (421) 205 (352) 114 (454) Impact of adopting ASC 326 755 388 1,379 (103) 2,419 Losses charged off — — — (138) (138) Recoveries 24 — — 15 39 Balance, end of year $ 573 $ 1,408 $ 1,843 $ 94 $ 3,918 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 573 $ 1,408 $ 1,843 $ 94 $ 3,918 Loans: Ending balance: individually evaluated for credit loss $ — $ 8 $ 318 $ — $ 326 Ending balance: collectively evaluated for credit loss $ 91,294 $ 291,851 $ 93,046 $ 6,719 $ 482,910 2022 Commercial Commercial Real Estate Residential Installment Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision charged to expense (842) 141 (303) 49 (955) Losses charged off (16) (561) (2) (143) (722) Recoveries 27 — — 29 56 Balance, end of year $ 215 $ 815 $ 816 $ 206 $ 2,052 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 215 $ 815 $ 816 $ 206 $ 2,052 Loans: Ending balance: individually evaluated for impairment $ — $ 123 $ — $ — $ 123 Ending balance: collectively evaluated for impairment $ 90,548 $ 270,189 $ 94,012 $ 6,003 $ 460,752 |
Schedule of portfolio quality indicators | Revolving Revolving Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass $ 21,847 $ 14,723 $ 13,067 $ 14,042 $ 6,017 $ 5,292 $ 15,019 $ — $ 90,007 Special Mention — 26 — — — 128 1,133 — 1,287 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 21,847 $ 14,752 $ 13,067 $ 14,042 $ 6,017 $ 5,459 $ 16,152 $ — $ 91,294 Commercial and industrial Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk Rating Pass $ 29,246 $ 35,721 $ 48,569 $ 34,671 $ 26,562 $ 57,441 $ 55,141 $ — $ 287,351 Special Mention — — 242 2,050 — 2,121 — — 4,413 Substandard — — — — — 95 — — 95 Doubtful — — — — — — — — — Total $ 29,246 $ 35,721 $ 48,811 $ 36,721 $ 26,562 $ 59,657 $ 55,141 $ — $ 291,859 Commercial real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Pass $ 51,093 $ 50,444 $ 61,636 $ 48,713 $ 32,579 $ 62,733 $ 70,160 $ — $ 377,358 Special Mention — 26 242 2,050 — 2,249 1,133 — 5,700 Substandard — — — — — 95 — — 95 Doubtful — — — — — — — — — Total $ 51,093 $ 50,473 $ 62,853 $ 50,763 $ 32,579 $ 65,047 $ 71,293 $ — $ 383,153 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Revolving Revolving Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential Real Estate Payment Performance Performing $ 12,036 $ 18,297 $ 16,343 $ 19,476 $ 5,687 $ 21,046 $ — $ — $ 92,885 Nonperforming — — — 38 — 441 — — 479 Total $ 12,036 $ 18,297 $ 16,343 $ 19,514 $ 5,687 $ 21,487 $ — $ — $ 93,364 Residential real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Payment Performance Performing $ 2,484 $ 1,396 $ 674 $ 456 $ 385 $ 953 $ 371 $ — $ 6,719 Nonperforming — — — — — — — — — Total $ 2,484 $ 1,396 $ 674 $ 456 $ 385 $ 953 $ 371 $ — $ 6,719 Consumer Current period gross charge-offs $ 138 $ — $ — $ — $ — $ — $ — $ — $ 138 Total Payment Performance Performing $ 14,520 $ 19,693 $ 17,017 $ 19,932 $ 6,072 $ 21,999 $ 371 $ — $ 99,604 Nonperforming — — — 38 —- 441 — — 479 Total $ 14,520 $ 19,693 $ 17,017 $ 19,970 $ 6,072 $ 24,440 $ 371 $ — $ 100,083 Current period gross charge-offs $ 138 $ — $ — $ — $ — $ — $ — $ — $ 138 The following table shows the portfolio quality indicators as of December 31, 2022: Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,548 $ 262,472 $ 94,012 $ 6,003 $ 453,035 Special Mention — 4,066 — — 4,066 Substandard — 3,774 — — 3,774 Doubtful — — — — — $ 90,548 $ 270,312 $ 94,012 $ 6,003 $ 460,875 |
Schedule of loan portfolio aging analysis | The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2023: 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Past Than 90 Total Past Due and Due and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial and industrial $ 10 $ 48 $ 154 $ — $ 212 $ 91,082 $ 91,294 Commercial real estate — 242 — 8 250 291,609 291,859 Residential 201 — — 479 680 92,684 93,364 Consumer 5 — — — 5 6,714 6,719 Total $ 216 $ 290 $ 154 $ 487 $ 1,147 $ 482,089 $ 483,236 The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2022: 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Past Than 90 Total Past Due and Due and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial and industrial $ 126 $ — $ — $ — $ 126 $ 90,422 $ 90,548 Commercial real estate 158 — — 9 167 270,145 270,312 Residential 102 24 — 173 299 93,713 94,012 Installment 15 — — — 15 5,988 6,003 Total $ 401 $ 24 $ — $ 182 $ 607 $ 460,268 $ 460,875 |
Schedule of amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest | The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of December 31, 2023: Loans Past Due Over 90 Days Total Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Still Accruing Nonperforming (In thousands) Commercial and industrial $ — $ — $ — $ 154 $ 154 Commercial real estate 8 — 8 — 8 Residential 479 — 479 — 479 Consumer — — — — — Total $ 487 $ — $ 487 $ 154 $ 641 |
Schedule of impaired loans | The following table presents impaired loans for the year ended December 31,2022: Average Unpaid Investment in Interest Recorded Principal Specific Impaired Income Balance Balance Allowance Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial and industrial $ — $ — $ — $ 27 $ 1 Commercial real estate 123 123 — 130 11 Real Estate — — — — — Installment — — — — — $ 123 $ 123 $ — $ 157 $ 12 Loans with a specific valuation allowance: Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 3,653 40 Real Estate — — — — — $ — $ — $ — $ 3,653 $ 40 Total: Commercial and industrial $ — $ — $ — $ 27 $ 1 Commercial Real Estate $ 123 $ 123 $ — $ 3,783 $ 51 Real Estate $ — $ — $ — $ — $ — Installment $ — $ — $ — $ — $ — |
Schedule of troubled debt restructurings on financing receivables | Year Ended December 31, 2022 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial and industrial — $ — $ — Commercial Real Estate 1 $ 48 $ 48 Year Ended December 31, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial and industrial $ — $ — $ — $ — Commercial Real Estate $ 1 $ 1 $ — $ 1 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Schedule of major classifications of premises and equipment | 2023 2022 (In thousands) Land, buildings and improvements $ 22,927 $ 20,493 Furniture and equipment 15,398 15,567 Computer software 2,546 2,460 40,871 38,520 Less accumulated depreciation (25,887) (26,376) Net premises and equipment $ 14,984 $ 12,144 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Time Deposits | |
Scheduled maturities of time deposits | (In thousands) Due during the year ending December 31, 2024 $ 79,670 2025 63,073 2026 7,961 2027 163 2028 230 Thereafter 261 $ 151,358 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Schedule of information concerning securities sold under agreements to repurchase | 2023 2022 (Dollars in thousands) Balance outstanding at year end $ 26,781 $ 18,106 Average daily balance during the year $ 25,049 $ 22,581 Average interest rate during the year 4.17 % 1.02 % Maximum month-end balance during the year $ 30,509 $ 28,114 Weighted-average interest rate at year end 4.589 % 3.04 % |
Schedule of repurchase agreements | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 December 31, 2023 Continuous Up to 30 Days 30 ‑ 90 Days Days Total Repurchase Agreements State and municipal obligations $ 26,781 $ — $ — $ — $ 26,781 Total $ 26,781 $ — $ — $ — $ 26,781 Overnight and Greater than 90 December 31, 2022 Continuous Up to 30 Days 30 ‑ 90 Days Days Total Repurchase Agreements U.S government agencies $ 18,106 $ — $ — $ — $ 18,106 Total $ 18,106 $ — $ — $ — $ 18,106 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of components of income tax expense | 2023 2022 (In thousands) Taxes currently payable $ 528 $ 537 Deferred income taxes 13 342 Income tax expense $ 541 $ 879 |
Schedule of reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense | 2023 2022 (In thousands) Computed at the statutory rate (21%) $ 1,993 $ 2,003 (Decrease) increase resulting from Tax exempt interest (1,256) (935) Earnings on bank-owned life insurance - net (152) (149) Low income housing credit (49) (49) Other 5 9 Actual tax expense $ 541 $ 879 |
Schedule of tax effects of temporary differences related to deferred taxes shown on the balance sheets | 2023 2022 (In thousands) Deferred tax assets Allowance for credit losses $ 870 $ 431 Stock based compensation 238 310 Deferred compensation, and other accruals 80 507 Employee benefit expense 525 — Non-accrual loan interest 6 1 Unrealized loss on securities available for sale 1,874 2,307 Other — 10 Total deferred tax assets 3,593 3,566 Deferred tax liabilities Depreciation (410) (414) Deferred loan costs, net (2) (11) FHLB stock dividends (60) (182) Prepaid expenses (55) (68) Intangibles (58) (78) Employee benefit expense (599) (390) Total deferred tax liabilities (1,184) (1,143) Net deferred tax asset $ 2,409 $ 2,423 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive income (loss), included in stockholders' equity | 2023 2022 (In thousands) Net unrealized loss on securities available-for-sale $ (8,922) $ (10,984) Net unrealized loss for funded status of defined benefit plan liability (543) (835) (9,465) (11,819) Tax effect 1,987 2,483 Net-of-tax amount $ (7,478) $ (9,336) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters | |
Schedule of company's and bank's actual capital amounts and ratios | To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2023 Total Capital (to Risk-Weighted Assets) Unified 81,811 13.9 46,975 8.0 $ 58,719 10.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Unified 77,893 13.3 26,424 4.5 $ 38,167 6.5 % Tier I Capital (to Risk-Weighted Assets) Unified 77,893 13.3 35,231 6.0 $ 46,975 8.0 % Tier I Capital (to Average Assets) Unified 77,893 9.7 32,302 4.0 $ 40,378 5.0 % As of December 31, 2022 Total Capital (to Risk-Weighted Assets) Unified 79,551 14.2 44,778 8.0 $ 55,973 10.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Unified 77,499 13.9 25,188 4.5 $ 36,383 6.5 % Tier I Capital (to Risk-Weighted Assets) Unified 77,499 13.9 33,584 6.0 $ 44,778 8.0 % Tier I Capital (to Average Assets) Unified 77,499 10.1 30,617 4.0 $ 38,272 5.0 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Schedule of loans outstanding | 2023 2022 (In thousands) Aggregate balance – January 1 $ 20,041 $ 20,347 New loans 4,394 1,726 Repayments (2,212) (2,032) Aggregate balance – December 31 $ 22,223 $ 20,041 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Benefit Plans | |
Schedule of Information about the plan's funded status and pension cost | Pension Benefits 2023 2022 (In thousands) Change in benefit obligation Beginning of year $ (5,078) $ (7,558) Service cost (302) (519) Interest cost (311) (274) Actuarial gain (loss) (229) 2,991 Benefits paid 441 282 End of year (5,479) (5,078) Change in fair value of plan assets Beginning of year 6,988 7,744 Actual return on plan assets 1,092 (1,217) Employer contribution 742 744 Benefits paid (441) (283) End of year 8,381 6,988 Funded status at end of year $ 2,902 $ 1,910 |
Schedule of components of net periodic benefit cost | Pension Benefits 2023 2022 (In thousands) Unamortized net loss $ 770 $ 1,150 Unamortized prior service (227) (315) $ 543 $ 835 |
Schedule of Information For the Pension Plan With Respect To Accumulated Benefit Obligation And Plan Assets | December 31, 2023 2022 (In thousands) Projected benefit obligation $ 5,479 $ 5,078 Accumulated benefit obligation $ 4,695 $ 4,421 Fair value of plan assets $ 8,381 $ 6,988 |
Schedule of pension expense | December 31, 2023 2022 (In thousands) Projected benefit obligation $ 5,479 $ 5,078 Accumulated benefit obligation $ 4,695 $ 4,421 Fair value of plan assets $ 8,381 $ 6,988 December 31, 2023 2022 (In thousands) Components of net periodic benefit cost Service cost $ 302 $ 519 Interest cost 311 274 Expected return on plan assets (530) (575) Amortization of prior service credit (89) (89) Amortization of net loss 48 183 Net periodic benefit cost $ 42 $ 312 |
Schedule of Significant Assumptions | Pension Benefits 2023 2022 Weighted-average assumptions used to determine benefit obligation: Discount rate 3.75 % 3.75 % Rate of compensation increase 3.50 % 3.50 % Weighted-average assumptions used to determine benefit cost: Discount rate 3.75 % 3.75 % Expected return on plan assets 7.00 % 7.00 % Rate of compensation increase 3.50 % 3.50 % |
Schedule of Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2023: Pension Benefits (In thousands) 2024 $ 316 2025 339 2026 312 2027 635 2028 529 2029-2033 5,104 Total $ 7,235 |
Schedule of Target Asset Allocation Percentages | Large-Cap stocks Not to exceed 68% Small-Cap stocks Not to exceed 23% Mid-Cap stocks Not to exceed 23% International equity securities Not to exceed 30% Fixed income investments Not to exceed 35% Alternative investments Not to exceed 19% |
Schedule of Investment of Fair Value of Plan Assets as a Percentage of the Total | December 31, 2023 2022 Equity securities 69.2 % 70.0 % Debt securities 27.5 27.8 Cash and cash equivalents 3.3 2.2 100.0 % 100.0 % |
Schedule of Fair Values of Company's Pension Plan By Asset Category | December 31, 2023 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Total Fair Identical Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (In thousands) Mutual money market $ 279 $ 279 $ — $ — Mutual funds – equities ETF mutual funds 5,283 5,283 — — Large and small Cap 159 159 — — International 356 356 Mutual funds – fixed income Fixed income 1,559 1,559 — — ETF fixed income 745 745 — — Total $ 8,381 $ 8,381 $ — $ — December 31, 2022 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Total Fair Identical Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (In thousands) Mutual money market $ 154 $ 154 $ — $ — Mutual funds – equities ETF mutual funds 4,445 4,445 — — Large and small Cap 142 142 — — International 301 301 Mutual funds – fixed income Fixed income 1,348 1,348 — — ETF fixed income 598 598 — — Total $ 6,988 $ 6,988 $ — $ — |
Schedule of Share Information for the ESOP | 2023 2022 Allocated shares at beginning of the year 384,404 398,104 Net shares distributed due to retirement/diversification (6,534) (13,700) Total ESOP shares 377,870 384,404 Fair value of unearned shares at December 31st $ — $ — |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Stock Plan | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of the Company’s nonvested restricted shares as of December 31, 2023, and changes during the year then ended, is presented below: Weighted- Average Grant-Date Shares Fair Value Nonvested, beginning of year 257,500 $ 11.86 Granted 20,000 12.03 Vested (50,000) 12.19 Forfeited — — Nonvested, end of year 227,500 $ 11.79 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended December 31, 2023 Weighted- Average Net Shares Per Share Income Outstanding Amount (In thousands) Net income $ 8,950 Less allocated earnings on non-vested restricted stock (167) Less allocated dividends on non-vested restricted stock (190) Net income allocated to common stockholders 8,593 5,490,488 Basic and diluted earnings per share $ 1.57 Year Ended December 31, 2022 Weighted- Average Per Share Net Shares Income Outstanding Amount (In thousands) Net income $ 8,657 Less allocated earnings on non-vested restricted stock (185) Less allocated dividends on non-vested restricted stock (203) Net income allocated to common stockholders 8,269 5,483,305 Basic and diluted earnings per share $ 1.50 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities | |
Schedule of fair value measurements of assets recognized in consolidated balance sheets measured at fair value on recurring basis | December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) U.S government agencies $ 44,268 $ — $ 44,268 $ — Subordinated notes 24,300 — 24,300 — State and municipal obligation 174,192 — 174,192 — December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) U.S government agencies $ 44,032 $ — $ 44,032 $ — Subordinated notes 28,094 — 28,094 — State and municipal obligation 145,498 — 145,498 — |
Schedule of fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a non-recurring basis | December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale 3,273 — — 3,273 December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) Collateral dependent impaired loans $ 9 $ — $ — $ 9 Foreclosed assets held for sale 3,519 — — 3,519 |
Schedule of information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements | Fair Value at Valuation 12/31/23 Technique Unobservable Inputs Range (In thousands) Collateral-dependent loans $ — Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,273 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/22 Technique Unobservable Inputs Range (In thousands) Collateral-dependent loans $ 9 Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,519 Market comparable properties Marketability discount 10% – 35% |
Schedule of estimated fair values of company's financial instruments | Fair Value Measurements Using Quoted Prices in Active Markets for Significant Significant Identical Other Unobservable Carrying Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2023 Financial assets Cash and cash equivalents $ 40,770 $ 40,770 $ — $ — Loans, net of allowance 479,318 — — 459,759 Federal Home Loan Bank stock 3,979 — 3,979 — Accrued interest receivable 4,098 — 4,098 — Financial liabilities Deposits $ 621,459 $ — $ 623,813 $ — Securities sold under repurchase agreements 26,781 — 26,781 — Federal Home Loan Bank Advances 75,000 — 74,911 — Subordinated debentures 23,787 — 22,146 — Interest payable 579 — 579 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2022 Financial assets Cash and cash equivalents $ 30,080 $ 30,080 $ — $ — Loans, net of allowance 458,823 — — 444,704 Federal Home Loan Bank stock 2,499 — 2,499 — Accrued interest receivable 3,403 — 3,403 — Financial liabilities Deposits $ 649,913 $ — $ 646,455 $ — Securities sold under repurchase agreements 18,106 — 18,106 — Subordinated debentures 23,726 — 24,454 — Interest payable 304 — 304 — |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information (Parent Company Only) | |
Schedule of Condensed Balance Sheets | December 31, 2023 2022 (In thousands) Assets Cash and cash equivalents $ 12,094 $ 11,273 Investment in the Bank 71,787 69,914 Other assets 4,078 3,110 Total assets $ 87,959 $ 84,297 Liabilities and Stockholders’ Equity Subordinated debentures $ 23,787 $ 23,726 Other liabilities 579 834 Stockholders’ equity 63,593 59,737 Total liabilities and stockholders’ equity $ 87,959 $ 84,297 |
Schedule of Condensed Statements of Income and Comprehensive Income | Years Ended December 31, 2023 2022 (In thousands) Operating Income Dividends from subsidiary $ 12,103 $ 10,779 Interest and dividend income from securities and federal funds 9 — Total operating income 12,112 10,779 General, Administrative and Other Expenses 4,390 4,498 Income (Loss) Before Income Taxes and Equity in Undistributed Income of Subsidiary 7,722 6,281 Income Tax Benefits 983 1,095 Income (Loss) Before Equity in Undistributed Income of Subsidiary 8,705 7,376 Equity in Undistributed Income of Subsidiary 245 1,281 Net Income $ 8,950 $ 8,657 Comprehensive Income (Loss) $ 10,808 $ (7,643) |
Schedule of Condensed Statements of Cash Flows | Years Ended December 31, 2023 2022 (In thousands) Operating Activities Net income $ 8,950 $ 8,657 Items not requiring (providing) cash Equity in undistributed income of subsidiary (245) (1,281) Amortization of share-based compensation plans 658 1,005 Net change in other assets and other liabilities (3,021) (874) Net cash provided by operating activities 6,342 7,507 Investing Activities Net cash used in investing activities — — Financing Activities Repurchase of common stock (733) (767) Cash dividends paid (4,788) (4,559) Net cash used in financing activities (5,521) (5,326) Net Change in Cash and Cash Equivalents 821 2,181 Cash and Cash Equivalents at Beginning of Year 11,273 9,092 Cash and Cash Equivalents at End of Year $ 12,094 $ 11,273 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Schedule Of Quarterly Financial Information | Three Months Ended 2023: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 8,208 $ 9,286 $ 9,651 $ 9,704 Total interest expense 1,785 2,941 3,085 3,203 Net interest income 6,423 6,345 6,566 6,501 Provision (Credit) for loan losses — (146) (154) (154) Noninterest income 1,016 1,046 963 1,029 Noninterest expense 5,438 5,089 5,233 5,092 Income before income taxes 2,001 2,448 2,450 2,592 Federal income taxes 113 168 58 202 Net income $ 1,888 $ 2,280 $ 2,392 $ 2,390 Earnings per share Basic $ 0.33 $ 0.40 $ 0.42 $ 0.42 Diluted $ 0.33 $ 0.40 $ 0.42 $ 0.42 Three Months Ended 2022: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 5,997 $ 6,445 $ 7,297 $ 7,922 Total interest expense 487 477 928 1,381 Net interest income 5,510 5,968 6,369 6,541 Provision for loan losses (500) (485) 15 15 Noninterest income 987 988 1,043 1,065 Noninterest expense 5,110 4,849 4,879 5,052 Income before income taxes 1,887 2,592 2,518 2,539 Federal income taxes 136 295 215 233 Net income $ 1,751 $ 2,297 $ 2,303 $ 2,306 Earnings per share Basic $ 0.30 $ 0.40 $ 0.40 $ 0.40 Diluted $ 0.30 $ 0.40 $ 0.40 $ 0.40 |
Goodwill and Core Deposits (Tab
Goodwill and Core Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Core Deposits | |
Schedule of changes in the carrying amount of goodwill | The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of year $ 682 $ 682 |
Schedule of intangible assets | Intangible assets in the consolidated balance sheets at December 31, 2023 and 2022 were as follows (in thousands): 2023 2022 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 $ 781 $ 260 $ 1,041 $ 631 $ 410 |
Schedule of estimated aggregate future amortization expense for each of the next four years for intangible assets remaining | The estimated aggregate future amortization expense for each of the next two years for intangible assets remaining as of December 31, 2023 is as follows (in thousands): 2024 $ 150 2025 110 |
Finance Lease (Tables)
Finance Lease (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance Lease | |
Schedule of maturities of the finance lease liability | Maturities of the finance lease liability as December 31, 2023 are as follows: (In thousands) Due during the year ending December 31, 2024 $ 93 2025 130 2026 210 2027 210 2028 207 Thereafter 8,760 Total lease payments $ 9,610 Interest (6,846) Lease Liability $ 2,764 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2023 | |
Summary of Significant Accounting Policies | |||
Accrued interest receivable on available-for-sale debt securities | $ 2,700,000 | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | ||
Accrued interest receivable on loans receivable | $ 1,400,000 | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | ||
Retained earnings | $ 44,018,000 | $ 41,945,000 | |
Loans, net of allowance | 479,318,000 | ||
Amount of loans evaluated for determination of allowance for credit losses | 100,000 | ||
Effective income tax rate reconciliation, change in enacted tax rate, amount | $ 0 | ||
Maximum deferrable under annual incentive award percent | 50% | ||
Dilutive effects | $ 0 | 0 | |
Federal Home Loan and Reserve Bank Stock | |||
Summary of Significant Accounting Policies | |||
Cash, uninsured amount | $ 33,418,000 | $ 21,541,000 | |
ASU No. 2016-13 | As Reported | |||
Summary of Significant Accounting Policies | |||
Retained earnings | $ 2,088,000 | ||
Loans other than unfunded loan commitments | ASU No. 2016-13 | As Reported | |||
Summary of Significant Accounting Policies | |||
Loans, net of allowance | 1,911,000 | ||
Unfunded loan commitments | ASU No. 2016-13 | As Reported | |||
Summary of Significant Accounting Policies | |||
Loans, net of allowance | $ 177,000 | ||
Company buildings | Minimum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 10 years | ||
Company buildings | Maximum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 39 years | ||
Furniture and equipment | Minimum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 3 years | ||
Furniture and equipment | Maximum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 7 years | ||
Computer software | Minimum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 1 year | ||
Computer software | Maximum | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives (in years) | 3 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | $ 2,052 | $ 3,673 | |
ASU No. 2016-13 | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | $ 2,052 | ||
ASU No. 2016-13 | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 215 | ||
ASU No. 2016-13 | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 815 | ||
ASU No. 2016-13 | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 816 | ||
ASU No. 2016-13 | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 206 | ||
ASU No. 2016-13 | Adoption Impact | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 2,419 | ||
ASU No. 2016-13 | Adoption Impact | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 755 | ||
ASU No. 2016-13 | Adoption Impact | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 388 | ||
ASU No. 2016-13 | Adoption Impact | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 1,379 | ||
ASU No. 2016-13 | Adoption Impact | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | (103) | ||
ASU No. 2016-13 | As Reported | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 4,471 | ||
ASU No. 2016-13 | As Reported | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 970 | ||
ASU No. 2016-13 | As Reported | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 1,203 | ||
ASU No. 2016-13 | As Reported | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 2,195 | ||
ASU No. 2016-13 | As Reported | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | $ 103 |
Restriction on Cash and Due F_2
Restriction on Cash and Due From Banks (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Restriction on Cash and Due From Banks | ||
Cash reserve deposit required and made | $ 0 | $ 0 |
Securities - Amortized cost and
Securities - Amortized cost and fair values, together with gross unrealized gains and losses of securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities | ||
Amortized Cost | $ 251,683 | $ 228,607 |
Gross Unrealized Gains | 2,264 | 459 |
Gross Unrealized Losses | (11,187) | (11,442) |
Fair Value | 242,760 | 217,624 |
U.S. government agencies | ||
Securities | ||
Amortized Cost | 45,000 | 45,000 |
Gross Unrealized Losses | (732) | (968) |
Fair Value | 44,268 | 44,032 |
State and municipal obligations | ||
Securities | ||
Amortized Cost | 177,670 | 152,447 |
Gross Unrealized Gains | 2,264 | 459 |
Gross Unrealized Losses | (5,742) | (7,408) |
Fair Value | 174,192 | 145,498 |
Subordinated notes | ||
Securities | ||
Amortized Cost | 29,013 | 31,160 |
Gross Unrealized Losses | (4,713) | (3,066) |
Fair Value | $ 24,300 | $ 28,094 |
Securities - Schedule of amorti
Securities - Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale, Amortized Cost | ||
Less than one year | $ 15,000 | |
One to five years | 30,597 | |
Five to ten year | 32,930 | |
Over ten years | 173,156 | |
Totals | 251,683 | $ 228,607 |
Available-for-sale, Fair Value | ||
Less than one year | 14,869 | |
One to five years | 29,937 | |
Five to ten year | 28,234 | |
Over ten years | 169,720 | |
Totals | $ 242,760 | $ 217,624 |
Securities - Gross Unrealized L
Securities - 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 (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities | ||
Less than 12 Months, Fair Value | $ 7,082 | $ 155,816 |
Less than 12 Months, Unrealized Losses | (811) | (9,941) |
12 Months or More, Fair Value | 116,014 | 10,300 |
12 Months or More, Unrealized Losses | (10,376) | (1,501) |
Total, Fair Value | 123,096 | 166,116 |
Total, Unrealized Losses | (11,187) | (11,442) |
US Government Agencies Debt Securities [Member] | ||
Securities | ||
Less than 12 Months, Fair Value | 44,032 | |
Less than 12 Months, Unrealized Losses | (968) | |
12 Months or More, Fair Value | 44,268 | |
12 Months or More, Unrealized Losses | (732) | |
Total, Fair Value | 44,268 | 44,032 |
Total, Unrealized Losses | (732) | (968) |
Subordinated Debt [Member] | ||
Securities | ||
Less than 12 Months, Fair Value | 3,717 | 11,185 |
Less than 12 Months, Unrealized Losses | (799) | (1,565) |
12 Months or More, Fair Value | 20,583 | 10,300 |
12 Months or More, Unrealized Losses | (3,914) | (1,501) |
Total, Fair Value | 24,300 | 21,485 |
Total, Unrealized Losses | (4,713) | (3,066) |
State and municipal obligations | ||
Securities | ||
Less than 12 Months, Fair Value | 3,365 | 100,599 |
Less than 12 Months, Unrealized Losses | (12) | (7,408) |
12 Months or More, Fair Value | 51,163 | |
12 Months or More, Unrealized Losses | (5,730) | |
Total, Fair Value | 54,528 | 100,599 |
Total, Unrealized Losses | $ (5,742) | $ (7,408) |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Securities | ||
Allowance for Credit Losses | $ 0 | |
Proceeds from sale of available-for-sale securities | 0 | $ 0 |
Carrying value of securities pledged | 72,800 | 68,700 |
Fair value of investment in debt securities | $ 123,100 | $ 166,100 |
Percentage of fair value of investment in debt | 51% | 76% |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Schedule of Categories of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Categories of loans | |||
Total gross loans | $ 483,236 | ||
Total gross loans | $ 460,875 | ||
Less allowance for credit losses | (3,918) | ||
Less allowance for credit losses | (2,052) | $ (3,673) | |
Total loans | 479,318 | ||
Total loans | 458,823 | ||
Commercial and Industrial | |||
Categories of loans | |||
Total gross loans | 91,294 | ||
Total gross loans | 90,548 | ||
Less allowance for credit losses | (573) | ||
Less allowance for credit losses | (215) | (1,046) | |
Commercial Real Estate | |||
Categories of loans | |||
Total gross loans | 291,859 | ||
Total gross loans | 270,312 | ||
Less allowance for credit losses | (1,408) | ||
Less allowance for credit losses | (815) | (1,235) | |
Residential real estate | |||
Categories of loans | |||
Total gross loans | 93,364 | ||
Total gross loans | 94,012 | ||
Less allowance for credit losses | (1,843) | ||
Less allowance for credit losses | (816) | $ (1,121) | |
Consumer loans | |||
Categories of loans | |||
Total gross loans | 6,719 | ||
Total gross loans | 6,003 | ||
Less allowance for credit losses | $ (94) | ||
Less allowance for credit losses | $ (206) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for credit losses: | |||||
Provision for (reversal of) credit loss expense | $ (154) | $ (154) | $ (146) | $ (454) | |
Impact of adopting ASC 326 | 3,918 | 3,918 | |||
Losses charged off | (138) | ||||
Recoveries | 39 | ||||
Balance, end of period | 3,918 | 3,918 | |||
Allowance for loan losses: | |||||
Balance, beginning of period | 2,052 | $ 3,673 | |||
Provision charged to expense | (955) | ||||
Losses charged off | (722) | ||||
Recoveries | 56 | ||||
Balance, end of period | 2,052 | ||||
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 0 | 0 | |||
Ending balance: collectively evaluated for credit losses | 3,918 | 3,918 | |||
Ending balance: collectively evaluated for impairment | 2,052 | ||||
Loans: | |||||
Ending balance: individually evaluated for impairment | 326 | 326 | |||
Ending balance: collectively evaluated for impairment | 482,910 | 482,910 | |||
Ending balance: individually evaluated for impairment | 123 | ||||
Ending balance: collectively evaluated for impairment | 460,752 | ||||
ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 2,419 | 2,419 | |||
Balance, end of period | 2,419 | 2,419 | |||
Commercial and Industrial | |||||
Allowance for credit losses: | |||||
Provision for (reversal of) credit loss expense | (421) | ||||
Impact of adopting ASC 326 | 573 | 573 | |||
Losses charged off | 0 | ||||
Recoveries | 24 | ||||
Balance, end of period | 573 | 573 | |||
Allowance for loan losses: | |||||
Balance, beginning of period | 215 | 1,046 | |||
Provision charged to expense | (842) | ||||
Losses charged off | (16) | ||||
Recoveries | 27 | ||||
Balance, end of period | 215 | ||||
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 0 | 0 | |||
Ending balance: collectively evaluated for credit losses | 573 | 573 | |||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 215 | ||||
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 91,294 | 91,294 | |||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 90,548 | ||||
Commercial and Industrial | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 755 | 755 | |||
Balance, end of period | 755 | 755 | |||
Commercial Real Estate | |||||
Allowance for credit losses: | |||||
Provision for (reversal of) credit loss expense | 205 | ||||
Impact of adopting ASC 326 | 1,408 | 1,408 | |||
Losses charged off | 0 | ||||
Recoveries | 0 | ||||
Balance, end of period | 1,408 | 1,408 | |||
Allowance for loan losses: | |||||
Balance, beginning of period | 815 | 1,235 | |||
Provision charged to expense | 141 | ||||
Losses charged off | (561) | ||||
Recoveries | 0 | ||||
Balance, end of period | 815 | ||||
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 0 | 0 | |||
Ending balance: collectively evaluated for credit losses | 1,408 | 1,408 | |||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 815 | ||||
Loans: | |||||
Ending balance: individually evaluated for impairment | 8 | 8 | |||
Ending balance: collectively evaluated for impairment | 291,851 | 291,851 | |||
Ending balance: individually evaluated for impairment | 123 | ||||
Ending balance: collectively evaluated for impairment | 270,189 | ||||
Commercial Real Estate | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 388 | 388 | |||
Balance, end of period | 388 | 388 | |||
Residential | |||||
Allowance for credit losses: | |||||
Provision for (reversal of) credit loss expense | (352) | ||||
Impact of adopting ASC 326 | 1,843 | 1,843 | |||
Losses charged off | 0 | ||||
Recoveries | 0 | ||||
Balance, end of period | 1,843 | 1,843 | |||
Allowance for loan losses: | |||||
Balance, beginning of period | 816 | 1,121 | |||
Provision charged to expense | (303) | ||||
Losses charged off | (2) | ||||
Recoveries | 0 | ||||
Balance, end of period | 816 | ||||
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 0 | 0 | |||
Ending balance: collectively evaluated for credit losses | 1,843 | 1,843 | |||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 816 | ||||
Loans: | |||||
Ending balance: individually evaluated for impairment | 318 | 318 | |||
Ending balance: collectively evaluated for impairment | 93,046 | 93,046 | |||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 94,012 | ||||
Residential | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 1,379 | 1,379 | |||
Balance, end of period | 1,379 | 1,379 | |||
Installment | |||||
Allowance for loan losses: | |||||
Balance, beginning of period | 206 | 271 | |||
Provision charged to expense | 49 | ||||
Losses charged off | (143) | ||||
Recoveries | 29 | ||||
Balance, end of period | 206 | ||||
Allocation: | |||||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 206 | ||||
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 6,003 | ||||
Consumer | |||||
Allowance for credit losses: | |||||
Provision for (reversal of) credit loss expense | 114 | ||||
Impact of adopting ASC 326 | 94 | 94 | |||
Losses charged off | (138) | ||||
Recoveries | 15 | ||||
Balance, end of period | 94 | 94 | |||
Allowance for loan losses: | |||||
Balance, beginning of period | 206 | ||||
Balance, end of period | $ 206 | ||||
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 0 | 0 | |||
Ending balance: collectively evaluated for credit losses | 94 | 94 | |||
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 6,719 | 6,719 | |||
Consumer | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | (103) | (103) | |||
Balance, end of period | $ (103) | $ (103) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Portfolio Quality Indicators (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | ||
Total | $ 460,875 | |
Total gross loans | ||
Total | $ 483,236 | |
Current period gross charge-offs | ||
Total | 138 | |
Commercial and Industrial | ||
Total gross loans | ||
2023 | 51,093 | |
2022 | 50,473 | |
2021 | 62,853 | |
2020 | 50,763 | |
2019 | 32,579 | |
Prior | 65,047 | |
Revolving Loans Amortized Cost Basis | 71,293 | |
Total | 383,153 | |
Current period gross charge-offs | ||
2023 | 138 | |
Total | 138 | |
Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 90,548 | |
Total gross loans | ||
2023 | 21,847 | |
2022 | 14,752 | |
2021 | 13,067 | |
2020 | 14,042 | |
2019 | 6,017 | |
Prior | 5,459 | |
Revolving Loans Amortized Cost Basis | 16,152 | |
Total | 91,294 | |
Current period gross charge-offs | ||
Total | 0 | |
Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total | 270,312 | |
Total gross loans | ||
2023 | 29,246 | |
2022 | 35,721 | |
2021 | 48,811 | |
2020 | 36,721 | |
2019 | 26,562 | |
Prior | 59,657 | |
Revolving Loans Amortized Cost Basis | 55,141 | |
Total | 291,859 | |
Current period gross charge-offs | ||
Total | 0 | |
Installment [Member] | ||
Loans and Allowance for Loan Losses | ||
Total | 6,003 | |
Residential Real Estate and Consumer, Total | ||
Total gross loans | ||
2023 | 14,520 | |
2022 | 19,693 | |
2021 | 17,017 | |
2020 | 19,970 | |
2019 | 6,072 | |
Prior | 24,440 | |
Revolving Loans Amortized Cost Basis | 371 | |
Total | 100,083 | |
Residential Real Estate and Consumer, Total | Performing | ||
Total gross loans | ||
2023 | 14,520 | |
2022 | 19,693 | |
2021 | 17,017 | |
2020 | 19,932 | |
2019 | 6,072 | |
Prior | 21,999 | |
Revolving Loans Amortized Cost Basis | 371 | |
Total | 99,604 | |
Residential Real Estate and Consumer, Total | Nonperforming | ||
Total gross loans | ||
2020 | 38 | |
Prior | 441 | |
Total | 479 | |
Residential | ||
Loans and Allowance for Loan Losses | ||
Total | 94,012 | |
Total gross loans | ||
2023 | 12,036 | |
2022 | 18,297 | |
2021 | 16,343 | |
2020 | 19,514 | |
2019 | 5,687 | |
Prior | 21,487 | |
Total | 93,364 | |
Current period gross charge-offs | ||
Total | 0 | |
Residential | Performing | ||
Total gross loans | ||
2023 | 12,036 | |
2022 | 18,297 | |
2021 | 16,343 | |
2020 | 19,476 | |
2019 | 5,687 | |
Prior | 21,046 | |
Total | 92,885 | |
Residential | Nonperforming | ||
Total gross loans | ||
2020 | 38 | |
Prior | 441 | |
Total | 479 | |
Consumer | ||
Total gross loans | ||
2023 | 2,484 | |
2022 | 1,396 | |
2021 | 674 | |
2020 | 456 | |
2019 | 385 | |
Prior | 953 | |
Revolving Loans Amortized Cost Basis | 371 | |
Total | 6,719 | |
Current period gross charge-offs | ||
2023 | 138 | |
Total | 138 | |
Consumer | Performing | ||
Total gross loans | ||
2023 | 2,484 | |
2022 | 1,396 | |
2021 | 674 | |
2020 | 456 | |
2019 | 385 | |
Prior | 953 | |
Revolving Loans Amortized Cost Basis | 371 | |
Total | 6,719 | |
Pass Grade | ||
Loans and Allowance for Loan Losses | ||
Total | 453,035 | |
Pass Grade | Commercial and Industrial | ||
Total gross loans | ||
2023 | 51,093 | |
2022 | 50,444 | |
2021 | 61,636 | |
2020 | 48,713 | |
2019 | 32,579 | |
Prior | 62,733 | |
Revolving Loans Amortized Cost Basis | 70,160 | |
Total | 377,358 | |
Pass Grade | Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 90,548 | |
Total gross loans | ||
2023 | 21,847 | |
2022 | 14,723 | |
2021 | 13,067 | |
2020 | 14,042 | |
2019 | 6,017 | |
Prior | 5,292 | |
Revolving Loans Amortized Cost Basis | 15,019 | |
Total | 90,007 | |
Pass Grade | Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total | 262,472 | |
Total gross loans | ||
2023 | 29,246 | |
2022 | 35,721 | |
2021 | 48,569 | |
2020 | 34,671 | |
2019 | 26,562 | |
Prior | 57,441 | |
Revolving Loans Amortized Cost Basis | 55,141 | |
Total | 287,351 | |
Pass Grade | Installment [Member] | ||
Loans and Allowance for Loan Losses | ||
Total | 6,003 | |
Pass Grade | Residential | ||
Loans and Allowance for Loan Losses | ||
Total | 94,012 | |
Special Mention | ||
Loans and Allowance for Loan Losses | ||
Total | 4,066 | |
Special Mention | Commercial and Industrial | ||
Total gross loans | ||
2022 | 26 | |
2021 | 242 | |
2020 | 2,050 | |
Prior | 2,249 | |
Revolving Loans Amortized Cost Basis | 1,133 | |
Total | 5,700 | |
Special Mention | Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Total gross loans | ||
2022 | 26 | |
Prior | 128 | |
Revolving Loans Amortized Cost Basis | 1,133 | |
Total | 1,287 | |
Special Mention | Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total | 4,066 | |
Total gross loans | ||
2021 | 242 | |
2020 | 2,050 | |
Prior | 2,121 | |
Total | 4,413 | |
Special Mention | Installment [Member] | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Special Mention | Residential | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Substandard | ||
Loans and Allowance for Loan Losses | ||
Total | 3,774 | |
Substandard | Commercial and Industrial | ||
Total gross loans | ||
Prior | 95 | |
Total | 95 | |
Substandard | Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Substandard | Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total | 3,774 | |
Total gross loans | ||
Prior | 95 | |
Total | $ 95 | |
Substandard | Installment [Member] | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Substandard | Residential | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Doubtful | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Doubtful | Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Doubtful | Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Doubtful | Installment [Member] | ||
Loans and Allowance for Loan Losses | ||
Total | 0 | |
Doubtful | Residential | ||
Loans and Allowance for Loan Losses | ||
Total | $ 0 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | ||
Non Accrual | $ 182 | |
Total Loans Receivable | 460,875 | |
Non Accrual | $ 487 | |
Total gross loans | 483,236 | |
Interest income on nonaccrual loans | 13,000 | |
30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 401 | |
Total gross loans | 216 | |
60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 24 | |
Total gross loans | 290 | |
Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 154 | |
Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 607 | |
Total gross loans | 1,147 | |
Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 460,268 | |
Total gross loans | 482,089 | |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 0 | |
Total Loans Receivable | 90,548 | |
Non Accrual | 0 | |
Total gross loans | 91,294 | |
Commercial | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 126 | |
Total gross loans | 10 | |
Commercial | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 48 | |
Commercial | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 154 | |
Commercial | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 126 | |
Total gross loans | 212 | |
Commercial | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 90,422 | |
Total gross loans | 91,082 | |
Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 9 | |
Total Loans Receivable | 270,312 | |
Non Accrual | 8 | |
Total gross loans | 291,859 | |
Commercial Real Estate | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 158 | |
Commercial Real Estate | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 242 | |
Commercial Real Estate | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Commercial Real Estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 167 | |
Total gross loans | 250 | |
Commercial Real Estate | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 270,145 | |
Total gross loans | 291,609 | |
Residential | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 173 | |
Total Loans Receivable | 94,012 | |
Non Accrual | 479 | |
Total gross loans | 93,364 | |
Residential | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 102 | |
Total gross loans | 201 | |
Residential | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 24 | |
Total gross loans | 0 | |
Residential | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Residential | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 299 | |
Total gross loans | 680 | |
Residential | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 93,713 | |
Total gross loans | 92,684 | |
Installment | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 0 | |
Total Loans Receivable | 6,003 | |
Installment | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 15 | |
Installment | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Installment | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Installment | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 15 | |
Installment | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | $ 5,988 | |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 0 | |
Total gross loans | 6,719 | |
Consumer | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total gross loans | 5 | |
Consumer | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total gross loans | 0 | |
Consumer | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total gross loans | 0 | |
Consumer | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total gross loans | 5 | |
Consumer | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total gross loans | $ 6,714 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Recorded Balance | ||
Recorded balance, loans without a specific valuation allowance | $ 123 | |
Recorded balance, loans with a specific valuation allowance | 0 | |
Unpaid Principal Balance | ||
Unpaid principal balance, loans without a specific valuation allowance | 123 | |
Unpaid principal balance, loans with a specific valuation allowance | 0 | |
Specific Allowance | 0 | |
Average Investment in Impaired Loans | ||
Average investment in impaired loans, loans without a specific valuation allowance | 157 | |
Average investment in impaired loans, loans with a specific valuation allowance | 3,653 | |
Interest Income Recognized | ||
Interest income recognized, loans without a specific valuation allowance | 12 | |
Interest income recognized, loans with a specific valuation allowance | 40 | |
Nonaccrual with no ACL | $ 487 | |
Total Nonaccrual | 487 | |
Loans Past Due Over 90 Days Still Accruing | 154 | |
Total Nonperforming | 641 | |
Commercial and Industrial | ||
Recorded Balance | ||
Recorded balance, loans without a specific valuation allowance | 0 | |
Recorded balance, loans with a specific valuation allowance | 0 | |
Recorded balance, total | 0 | |
Unpaid Principal Balance | ||
Unpaid principal balance, loans without a specific valuation allowance | 0 | |
Unpaid principal balance, loans with a specific valuation allowance | 0 | |
Unpaid principal balance, total | 0 | |
Specific Allowance | 0 | |
Average Investment in Impaired Loans | ||
Average investment in impaired loans, loans without a specific valuation allowance | 27 | |
Average investment in impaired loans, loans with a specific valuation allowance | 0 | |
Average investment in impaired loans, total | 27 | |
Interest Income Recognized | ||
Interest income recognized, loans without a specific valuation allowance | 1 | |
Interest income recognized, loans with a specific valuation allowance | 0 | |
Interest income recognized, total | 1 | |
Total Nonaccrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 154 | |
Total Nonperforming | 154 | |
Real Estate | ||
Recorded Balance | ||
Recorded balance, loans without a specific valuation allowance | 0 | |
Recorded balance, loans with a specific valuation allowance | 0 | |
Recorded balance, total | 0 | |
Unpaid Principal Balance | ||
Unpaid principal balance, loans without a specific valuation allowance | 0 | |
Unpaid principal balance, loans with a specific valuation allowance | 0 | |
Unpaid principal balance, total | 0 | |
Specific Allowance | 0 | |
Average Investment in Impaired Loans | ||
Average investment in impaired loans, loans without a specific valuation allowance | 0 | |
Average investment in impaired loans, loans with a specific valuation allowance | 0 | |
Average investment in impaired loans, total | 0 | |
Interest Income Recognized | ||
Interest income recognized, loans without a specific valuation allowance | 0 | |
Interest income recognized, loans with a specific valuation allowance | 0 | |
Interest income recognized, total | 0 | |
Commercial Real Estate | ||
Recorded Balance | ||
Recorded balance, loans without a specific valuation allowance | 123 | |
Recorded balance, loans with a specific valuation allowance | 0 | |
Recorded balance, total | 123 | |
Unpaid Principal Balance | ||
Unpaid principal balance, loans without a specific valuation allowance | 123 | |
Unpaid principal balance, loans with a specific valuation allowance | 0 | |
Unpaid principal balance, total | 123 | |
Specific Allowance | 0 | |
Average Investment in Impaired Loans | ||
Average investment in impaired loans, loans without a specific valuation allowance | 130 | |
Average investment in impaired loans, loans with a specific valuation allowance | 3,653 | |
Average investment in impaired loans, total | 3,783 | |
Interest Income Recognized | ||
Interest income recognized, loans without a specific valuation allowance | 11 | |
Interest income recognized, loans with a specific valuation allowance | 40 | |
Interest income recognized, total | 51 | |
Nonaccrual with no ACL | 8 | |
Total Nonaccrual | 8 | |
Total Nonperforming | 8 | |
Residential | ||
Interest Income Recognized | ||
Nonaccrual with no ACL | 479 | |
Total Nonaccrual | 479 | |
Total Nonperforming | 479 | |
Installment [Member] | ||
Recorded Balance | ||
Recorded balance, loans without a specific valuation allowance | 0 | |
Recorded balance, total | 0 | |
Unpaid Principal Balance | ||
Unpaid principal balance, loans without a specific valuation allowance | 0 | |
Unpaid principal balance, total | 0 | |
Specific Allowance | 0 | |
Average Investment in Impaired Loans | ||
Average investment in impaired loans, loans without a specific valuation allowance | 0 | |
Average investment in impaired loans, total | 0 | |
Interest Income Recognized | ||
Interest income recognized, loans without a specific valuation allowance | 0 | |
Interest income recognized, total | $ 0 | |
Consumer | ||
Interest Income Recognized | ||
Total Nonaccrual | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) contract in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) contract | |
Commercial and Industrial | |
Loans and Allowance for Loan Losses | |
Interest Only | $ 0 |
Term | 0 |
Combination | $ 0 |
Commercial Real Estate | |
Loans and Allowance for Loan Losses | |
Number of Contracts | contract | 1 |
Pre- Modification Outstanding Recorded Investment | $ 48 |
Post-Modification Outstanding Recorded Investment | 48 |
Interest Only | 1 |
Term | 1 |
Combination | 0 |
Total Modification | $ 1 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Credit Losses | ||
Loan loss provision | $ 454,000 | $ 955,000 |
Interest income on nonaccrual loans | $ 13,000,000 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 40,871,000 | $ 38,520,000 |
Less accumulated depreciation | (25,887,000) | (26,376,000) |
Net premises and equipment | 14,984,000 | 12,144,000 |
Depreciation and amortization | 997,000 | 1,013,000 |
Land, buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 22,927,000 | 20,493,000 |
Furniture and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 15,398,000 | 15,567,000 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 2,546,000 | $ 2,460,000 |
Time Deposits - Maturities of T
Time Deposits - Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Time Deposits | |
2023 | $ 79,670 |
2024 | 63,073 |
2025 | 7,961 |
2026 | 163 |
2027 | 230 |
Thereafter | 261 |
Time deposits maturities, after next twelve months | $ 151,358 |
Time Deposits - Additional Info
Time Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Time Deposits | ||
Time deposits, $250,000 or more | $ 37.6 | $ 11.3 |
Borrowings - Securities sold un
Borrowings - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Balance outstanding at year end | $ 26,781 | $ 18,106 |
Average daily balance during the year | $ 25,049 | $ 22,581 |
Average interest rate during the year | 4.17% | 1.02% |
Maximum month-end balance during the year | $ 30,509 | $ 28,114 |
Weighted-average interest rate at year end | 4.589% | 3.04% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Outstanding borrowings with FHLB | $ 0 | |
Federal home loan bank additional borrowings capacity | $ 87,500,000 | 177,200,000 |
Advances Federal Home Loan Bank | 75,000,000 | 0 |
Federal home loan bank, advances, maturities summary, due in year three | $ 20,000,000 | |
Federal home loan bank, advance, maturity, fixed interest rate, year three | 4.39% | |
Federal home loan bank, advances, maturities summary, due in year four | $ 35,000,000 | |
Federal home loan bank, advance, maturity, fixed interest rate, year four | 4.24% | |
Federal home loan bank, advances, maturities summary, due in year five | $ 20,000,000 | |
Federal home loan bank, advance, maturity, fixed interest rate, year five | 4.11% | |
Loans, net of allowance | $ 479,318,000 | |
Loans, net of allowance | 458,823,000 | |
Cash management lines of credit, additional borrowings | 18,000,000 | |
Security owned and pledged as collateral, fair value | 41,100,000 | 38,800,000 |
Securities sold under agreements to repurchase | 26,781,000 | 18,106,000 |
Greater than 90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
Overnight and Continuous | ||
Borrowings | ||
Securities sold under agreements to repurchase | 26,781,000 | 18,106,000 |
Up to 30 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
One- to four-family residential real estate and Commercial real estate loans | ||
Borrowings | ||
Loans, net of allowance | 251,000,000 | |
Loans, net of allowance | 248,000,000 | |
State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | 26,781,000 | |
State and municipal obligations | Greater than 90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | |
State and municipal obligations | Overnight and Continuous | ||
Borrowings | ||
Securities sold under agreements to repurchase | 26,781,000 | |
State and municipal obligations | Up to 30 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | |
State and municipal obligations | 30-90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | $ 0 | |
U.S. government agencies | ||
Borrowings | ||
Securities sold under agreements to repurchase | 18,106,000 | |
U.S. government agencies | Greater than 90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | |
U.S. government agencies | Overnight and Continuous | ||
Borrowings | ||
Securities sold under agreements to repurchase | 18,106,000 | |
U.S. government agencies | Up to 30 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | |
U.S. government agencies | 30-90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | $ 0 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 12 Months Ended | |||
May 14, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2005 | |
Subordinated Debentures | ||||
Debentures, unamortized debt costs | $ 337,000 | $ 398,000 | ||
Debentures, unamortized discount premium net | $ 23,800,000 | $ 23,700,000 | ||
Subordinated debentures | ||||
Subordinated Debentures | ||||
Redeemable debt securities | $ 4,100,000 | |||
Debentures, sale proceeds utilized to purchase | $ 4,100,000 | |||
Subordinated debentures | LIBOR | ||||
Subordinated Debentures | ||||
Debentures, variable interest rate | 1.35% | |||
Junior subordinated debt | ||||
Subordinated Debentures | ||||
Debentures issued | $ 20,000,000 | |||
Interest on debentures | 6% | |||
Debentures, description of variable interest rate | three-month SOFR | |||
Debentures, variable interest rate | 3.625% | |||
Debentures, Maturity date | May 31, 2024 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||||||||||
Taxes currently payable | $ 528 | $ 537 | ||||||||
Deferred income taxes | 13 | 342 | ||||||||
Income tax expense | $ 202 | $ 58 | $ 168 | $ 113 | $ 233 | $ 215 | $ 295 | $ 136 | $ 541 | $ 879 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense at the Statutory Rate to the Company's Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||||||||||
Statutory rate | 21% | 21% | ||||||||
Computed at the statutory rate (21%) | $ 1,993 | $ 2,003 | ||||||||
(Decrease) increase resulting from | ||||||||||
Tax exempt interest | (1,256) | (935) | ||||||||
Earnings on bank-owned life insurance - net | (152) | (149) | ||||||||
Low income housing credit | (49) | (49) | ||||||||
Other | 5 | 9 | ||||||||
Actual tax expense | $ 202 | $ 58 | $ 168 | $ 113 | $ 233 | $ 215 | $ 295 | $ 136 | $ 541 | $ 879 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences Related to Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Allowance for credit losses | $ 870 | $ 431 |
Stock based compensation | 238 | 310 |
Deferred compensation, and other accruals | 80 | 507 |
Employee benefit expense | 525 | 0 |
Non-accrual loan interest | 6 | 1 |
Unrealized loss on securities available for sale | 1,874 | 2,307 |
Other | 0 | 10 |
Total deferred tax assets | 3,593 | 3,566 |
Deferred tax liabilities | ||
Depreciation | (410) | (414) |
Deferred loan costs, net | (2) | (11) |
FHLB stock dividends | (60) | (182) |
Prepaid expenses | (55) | (68) |
Intangibles | (58) | (78) |
Employee benefit expense | (599) | (390) |
Total deferred tax liabilities | (1,184) | (1,143) |
Net deferred tax asset | $ 2,409 | $ 2,423 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) | ||
Net unrealized loss on securities available-for-sale | $ (8,922) | $ (10,984) |
Net unrealized loss for funded status of defined benefit plan liability | (543) | (835) |
Accumulated other comprehensive income (loss), before taxes, total | (9,465) | (11,819) |
Tax effect | 1,987 | 2,483 |
Net-of-tax amount | $ (7,478) | $ (9,336) |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Company's and Bank's Actual Capital Amounts and Ratios (Details) - Unified $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Capital (to Risk-Weighted Assets) | ||
Actual | $ 81,811 | $ 79,551 |
For Capital Adequacy Purposes | 46,975 | 44,778 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 58,719 | 55,973 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual | 77,893 | 77,499 |
For Capital Adequacy Purposes | 26,424 | 25,188 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 38,167 | 36,383 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual | 77,893 | 77,499 |
For Capital Adequacy Purposes | 35,231 | 33,584 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 46,975 | 44,778 |
Tier I Capital (to Average Assets) | ||
Actual | 77,893 | 77,499 |
For Capital Adequacy Purposes | 32,302 | 30,617 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 40,378 | $ 38,272 |
Total Capital (to Risk-Weighted Assets), Ratio | ||
Actual, Ratio | 0.139 | 0.142 |
For Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Actual, Ratio | 0.133 | 0.139 |
For Capital Adequacy Purposes, Ratio | 0.045% | 0.045% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065% | 0.065% |
Actual, Ratio | 0.133 | 0.139 |
For Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Tier I Capital (to Average Assets), Ratio | ||
Actual, Ratio | 0.097 | 0.101 |
For Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Beginning balance | $ 20,041 | $ 20,347 |
New loans | 4,394 | 1,726 |
Repayments | (2,212) | (2,032) |
Ending balance | $ 22,223 | $ 20,041 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions | ||
Related party deposit liabilities | $ 5.9 | $ 3.3 |
Purchase contract amount | $ 2.8 |
Benefit Plans - Information Abo
Benefit Plans - Information About the Plan's Funded Status and Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in benefit obligation | ||
Beginning of year | $ (5,078) | $ (7,558) |
Service cost | (302) | (519) |
Interest cost | $ (311) | (274) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | |
Actuarial gain (loss) | $ (229) | 2,991 |
Benefits paid | 441 | 282 |
End of year | (5,479) | (5,078) |
Change in fair value of plan assets | ||
Beginning of year | 6,988 | 7,744 |
Actual return on plan assets | 1,092 | (1,217) |
Employer contribution | 742 | 744 |
Benefits paid | (441) | (283) |
End of year | 8,381 | 6,988 |
Funded status at end of year | $ 2,902 | $ 1,910 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Benefit Plans | ||
Unamortized net loss | $ 770 | $ 1,150 |
Unamortized prior service | (227) | (315) |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ 543 | $ 835 |
Benefit Plans - Information For
Benefit Plans - Information For the Pension Plan With Respect To Accumulated Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Benefit Plans | ||
Projected benefit obligation | $ 5,479 | $ 5,078 |
Accumulated benefit obligation | 4,695 | 4,421 |
Fair value of plan assets | $ 8,381 | $ 6,988 |
Benefit Plans - Pension Expense
Benefit Plans - Pension Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Components of net periodic benefit cost | |||
Service cost | $ 302 | $ 519 | |
Interest cost | $ 311 | 274 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | ||
Expected return on plan assets | $ (530) | (575) | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income Loss Change In funded Status Of Defined Benefit Plan Liability Net of Tax | ||
Amortization of prior service credit | $ (89) | (89) | |
Defined Benefit Plan Net Periodic Benefit Cost Credit Amortization Of Prior Service Cost Credit Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | true | ||
Amortization of net loss | $ 48 | $ 183 | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | OtherComprehensiveIncomeLossAmortizationAdjustmentFromAociPensionAndOtherPostRetirementBenefitPlansOfNetPriorServiceCostCreditNetOfTax | OtherComprehensiveIncomeLossAmortizationAdjustmentFromAociPensionAndOtherPostRetirementBenefitPlansOfNetPriorServiceCostCreditNetOfTax | |
Net periodic benefit cost | $ 42 | $ 312 |
Benefit Plans - Summary of Sign
Benefit Plans - Summary of Significant Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Weighted-average assumptions used to determine benefit obligation: | ||
Discount rate | 3.75% | 3.75% |
Rate of compensation increase | 3.50% | 3.50% |
Weighted-average assumptions used to determine benefit cost: | ||
Discount rate | 3.75% | 3.75% |
Expected return on plan assets | 7% | 7% |
Rate of compensation increase | 3.50% | 3.50% |
Benefit Plans - Summary of Bene
Benefit Plans - Summary of Benefit Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Benefit Plans | |
2024 | $ 316 |
2025 | 339 |
2026 | 312 |
2027 | 635 |
2028 | 529 |
2029-2033 | 5,104 |
Total | $ 7,235 |
Benefit Plans - Target Asset Al
Benefit Plans - Target Asset Allocation Percentages (Details) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Benefit Plan | ||
Actuarial long term rate on plan assets | 7% | |
Large-Cap stocks | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 68% | |
Small-Cap stocks | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 23% | |
Mid-Cap stocks | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 23% | |
International equity securities | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 30% | |
Fixed income investments | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 35% | |
Alternative investments | ||
Benefit Plan | ||
Defined Benefit Plan, Target Allocation Percentage | Not to exceed 19% |
Benefit Plans - Investment of F
Benefit Plans - Investment of Fair Value of Plan Assets as a Percentage of the Total (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Benefit Plan | ||
Fair value of plan assets as a percentage of the total was invested | 100% | 100% |
Equity securities | ||
Benefit Plan | ||
Fair value of plan assets as a percentage of the total was invested | 69.20% | 70% |
Debt securities | ||
Benefit Plan | ||
Fair value of plan assets as a percentage of the total was invested | 27.50% | 27.80% |
Cash and cash equivalents | ||
Benefit Plan | ||
Fair value of plan assets as a percentage of the total was invested | 3.30% | 2.20% |
Benefit Plans - Fair Values of
Benefit Plans - Fair Values of Company's Pension Plan By Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 8,381 | $ 6,988 | $ 7,744 |
Estimate of Fair Value Measurement [Member] | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,381 | 6,988 | |
Estimate of Fair Value Measurement [Member] | Mutual money market | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 279 | 154 | |
Estimate of Fair Value Measurement [Member] | ETF mutual funds | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,283 | 4,445 | |
Estimate of Fair Value Measurement [Member] | Large and small Cap | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 159 | 142 | |
Estimate of Fair Value Measurement [Member] | International | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 356 | 301 | |
Estimate of Fair Value Measurement [Member] | Fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,559 | 1,348 | |
Estimate of Fair Value Measurement [Member] | ETF fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 745 | 598 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,381 | 6,988 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual money market | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 279 | 154 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ETF mutual funds | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,283 | 4,445 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Large and small Cap | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 159 | 142 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 356 | 301 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,559 | 1,348 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ETF fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 745 | 598 | |
Significant Other Observable Inputs (Level 2) | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual money market | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | ETF mutual funds | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Large and small Cap | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | ETF fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual money market | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | ETF mutual funds | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Large and small Cap | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | ETF fixed income | |||
Benefit Plan | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Benefit Plans - Share Informati
Benefit Plans - Share Information for the ESOP (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Benefit Plans | ||
Allocated shares at beginning of the year | 384,404 | 398,104 |
Net shares distributed due to retirement/diversification | (6,534) | (13,700) |
Total ESOP shares | 377,870 | 384,404 |
Fair value of unearned shares at December 31st | $ 0 | $ 0 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit Plan | |||
Expense related to share-based compensation plans and ESOP | $ 142,000 | $ 141,000 | |
Fair value of shares held by the ESOP | 377,870 | 384,404 | 398,104 |
Employer contribution | $ 742,000 | $ 744,000 | |
Unearned ESOP shares amount | 0 | 0 | |
Accumulated benefit obligation for the defined benefit pension plan | 4,695,000 | $ 4,421,000 | |
Present value of defined benefit future plan | $ 383,000 | ||
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term Rate of return on plan assets, decrease | 50% | 6% | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | $ 89,000 | ||
Employee Stock Option [Member] | |||
Benefit Plan | |||
Employer contribution | 4,852,000 | ||
Postretirement Life Insurance [Member] | |||
Benefit Plan | |||
Accumulated benefit obligation | 2,000,000 | $ 1,900,000 | |
Employer contribution | $ 672,000 |
Restricted Stock Plan - Summari
Restricted Stock Plan - Summarized status of Company's nonvested restricted shares (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Nonvested, beginning of year | shares | 257,500 |
Granted | shares | 20,000 |
Vested | shares | (50,000) |
Forfeited | shares | 0 |
Nonvested, end of year | shares | 227,500 |
Weighted - Average Grant-Date Fair Value | |
Nonvested, beginning of year | $ / shares | $ 11.86 |
Granted | $ / shares | 12.03 |
Vested | $ / shares | 12.19 |
Forfeited | $ / shares | 0 |
Nonvested, end of year | $ / shares | $ 11.79 |
Restricted Stock Plan - Additio
Restricted Stock Plan - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2008 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Plan | ||||
Share based compensation arrangement by share based payment award contractual period | 9 years 6 months | |||
Maximum number of shares shares base stock option award granted to per employee | 25,000 | 25,000 | ||
Stock option awards vest period | 9 years 6 months | |||
Allocated share-based compensation expense | $ 658,000 | $ 1,006,000 | ||
Employee service share-based compensation, tax benefit from compensation expense | 138,000 | 211,000 | ||
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan | $ 1,253,000 | $ 1,549,000 | ||
Total unrecognized compensation cost related to nonvested share-based compensation cost is expected to be recognized over a weighted-average period | 3 years 9 months 18 days | |||
Restricted Stock | ||||
Restricted Stock Plan | ||||
Share based compensation arrangement by share based payment award contractual period | 9 years 6 months | |||
Stock Incentive Plan | ||||
Restricted Stock Plan | ||||
Number of shares authorized under plan | 500,000 | 500,000 | ||
Number of shares issued under plan | 162,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share | ||||||||||
Net income | $ 2,390 | $ 2,392 | $ 2,280 | $ 1,888 | $ 2,306 | $ 2,303 | $ 2,297 | $ 1,751 | $ 8,950 | $ 8,657 |
Less allocated earnings on non-vested restricted stock | (167) | (185) | ||||||||
Less allocated dividends on non-vested restricted stock | (190) | (203) | ||||||||
Net income allocated to common stockholders | $ 8,593 | $ 8,269 | ||||||||
Weighted Average Shares Outstanding, Basic | 5,490,488 | 5,483,305 | ||||||||
Weighted Average Shares Outstanding, Diluted | 5,490,488 | 5,483,305 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.40 | $ 0.33 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.30 | $ 1.57 | $ 1.50 |
Diluted earnings per share (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.40 | $ 0.33 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.30 | $ 1.57 | $ 1.50 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities- Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | $ 44,268 | $ 44,032 |
Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 24,300 | 28,094 |
State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 174,192 | 145,498 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 44,268 | 44,032 |
Significant Other Observable Inputs (Level 2) | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 24,300 | 28,094 |
Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 174,192 | $ 145,498 |
Significant Unobservable Inputs (Level 3) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of asset, recurring basis | $ 0 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities - Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | $ 0 | $ 9 |
Foreclosed assets held for sale | 3,273 | 3,519 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 0 | 9 |
Foreclosed assets held for sale | $ 3,273 | $ 3,519 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities - Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collateral-dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value | $ 0 | $ 9 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Comparability adjustments | Comparability adjustments |
Collateral-dependent loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Range | 5% | 5% |
Collateral-dependent loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Range | 10% | 10% |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value | $ 3,273 | $ 3,519 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Marketability discount | Marketability discount |
Foreclosed assets held for sale | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Range | 10% | 10% |
Foreclosed assets held for sale | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Range | 35% | 35% |
Disclosures about Fair Value _6
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities - Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Cash and cash equivalents | $ 40,770 | $ 30,080 |
Loans, net of allowance | 479,318 | |
Loans, net of allowance | 458,823 | |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Accrued interest receivable | 4,098 | 3,403 |
Financial liabilities | ||
Deposits | 621,459 | 649,913 |
Securities sold under agreements to repurchase | 26,781 | 18,106 |
Federal Home Loan Bank Advances | 75,000 | 0 |
Subordinated debentures | 23,787 | 23,726 |
Interest payable | 579 | 304 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and cash equivalents | 40,770 | 30,080 |
Loans, net of allowance | 0 | |
Loans, net of allowance | 0 | |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Federal Home Loan Bank Advances | 0 | |
Subordinated debentures | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 0 | |
Loans, net of allowance | 0 | |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Accrued interest receivable | 4,098 | 3,403 |
Financial liabilities | ||
Deposits | 623,813 | 646,455 |
Securities sold under agreements to repurchase | 26,781 | 18,106 |
Federal Home Loan Bank Advances | 74,911 | |
Subordinated debentures | 22,146 | 24,454 |
Interest payable | 579 | 304 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 459,759 | |
Loans, net of allowance | 444,704 | |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Federal Home Loan Bank Advances | 0 | |
Subordinated debentures | 0 | 0 |
Interest payable | $ 0 | $ 0 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Credit Risk | ||
Deposits with Federal Reserve Bank of Cleveland | $ 33,400,000 | $ 21,500,000 |
Loans and Leases Receivable, Commitments, Variable Rates | $ 91,700,000 | 77,900,000 |
Majority commitments disbursement term | 1 year | |
Deferred revenue standby letter of credit | $ 0 | 0 |
Standby lines of credit | ||
Commitments and Credit Risk | ||
Outstanding standby letters of credit | $ 136,000 | $ 136,000 |
Minimum | ||
Commitments and Credit Risk | ||
Time to fund mortgage loan | 60 days | |
Maximum | ||
Commitments and Credit Risk | ||
Time to fund mortgage loan | 90 days | |
Installment | ||
Commitments and Credit Risk | ||
Concentration risk percentage credit risk loan products | 1.40% | 1.30% |
Real Estate Loans | ||
Commitments and Credit Risk | ||
Concentration risk percentage credit risk loan products | 19.30% | 20.40% |
Commercial Line | ||
Commitments and Credit Risk | ||
Lines Of credit granted | $ 93,700,000 | $ 79,700,000 |
Consumer Lines | ||
Commitments and Credit Risk | ||
Lines Of credit granted | $ 37,000,000 | $ 37,600,000 |
Commercial Real Estate Other Receivable | ||
Commitments and Credit Risk | ||
Concentration risk percentage credit risk loan products | 79.30% | 78.30% |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Cash and cash equivalents | $ 40,770 | $ 30,080 | |
Other assets | 7,389 | 6,793 | |
Total assets | 819,449 | 757,400 | |
Liabilities and Stockholders' Equity | |||
Subordinated debentures | 23,787 | 23,726 | |
Stockholders' equity | 63,593 | 59,737 | $ 71,701 |
Total liabilities and stockholders' equity | 819,449 | 757,400 | |
Parent Company | |||
Assets | |||
Cash and cash equivalents | 12,094 | 11,273 | |
Investment in the Bank | 71,787 | 69,914 | |
Other assets | 4,078 | 3,110 | |
Total assets | 87,959 | 84,297 | |
Liabilities and Stockholders' Equity | |||
Subordinated debentures | 23,787 | 23,726 | |
Other liabilities | 579 | 834 | |
Stockholders' equity | 63,593 | 59,737 | |
Total liabilities and stockholders' equity | $ 87,959 | $ 84,297 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Income | ||||||||||
Income (Loss) Before Income Taxes and Equity in Undistributed Income of Subsidiary | $ 2,592 | $ 2,450 | $ 2,448 | $ 2,001 | $ 2,539 | $ 2,518 | $ 2,592 | $ 1,887 | $ 9,491 | $ 9,536 |
Income Tax Benefits | 202 | 58 | 168 | 113 | 233 | 215 | 295 | 136 | 541 | 879 |
Net Income | $ 2,390 | $ 2,392 | $ 2,280 | $ 1,888 | $ 2,306 | $ 2,303 | $ 2,297 | $ 1,751 | 8,950 | 8,657 |
Comprehensive income (loss) | 10,808 | (7,643) | ||||||||
Parent Company | ||||||||||
Operating Income | ||||||||||
Dividends from subsidiary | 12,103 | 10,779 | ||||||||
Interest and dividend income from securities and federal funds | 9 | 0 | ||||||||
Total operating income | 12,112 | 10,779 | ||||||||
General, Administrative and Other Expenses | 4,390 | 4,498 | ||||||||
Income (Loss) Before Income Taxes and Equity in Undistributed Income of Subsidiary | 7,722 | 6,281 | ||||||||
Income Tax Benefits | 983 | 1,095 | ||||||||
Income (Loss) Before Equity in Undistributed Income of Subsidiary | 8,705 | 7,376 | ||||||||
Equity in Undistributed Income of Subsidiary | 245 | 1,281 | ||||||||
Net Income | 8,950 | 8,657 | ||||||||
Comprehensive income (loss) | $ 10,808 | $ (7,643) |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities | ||||||||||
Net income | $ 2,390 | $ 2,392 | $ 2,280 | $ 1,888 | $ 2,306 | $ 2,303 | $ 2,297 | $ 1,751 | $ 8,950 | $ 8,657 |
Items not requiring (providing) cash | ||||||||||
Amortization of share-based compensation plans | 658 | 1,005 | ||||||||
Net cash provided by operating activities | 9,463 | 8,481 | ||||||||
Investing Activities | ||||||||||
Net cash used in investing activities | (48,472) | (103,256) | ||||||||
Financing Activities | ||||||||||
Repurchase of common stock | (733) | (767) | ||||||||
Cash dividends paid | (4,789) | (4,559) | ||||||||
Net cash used in financing activities | 49,699 | 41,856 | ||||||||
Cash and Cash Equivalents, Beginning of Year | 30,080 | 82,999 | 30,080 | 82,999 | ||||||
Cash and Cash Equivalents, End of Year | 40,770 | 30,080 | 40,770 | 30,080 | ||||||
Parent Company | ||||||||||
Operating Activities | ||||||||||
Net income | 8,950 | 8,657 | ||||||||
Items not requiring (providing) cash | ||||||||||
Equity in undistributed income of subsidiary | (245) | (1,281) | ||||||||
Amortization of share-based compensation plans | 658 | 1,005 | ||||||||
Net change in other assets and other liabilities | (3,021) | (874) | ||||||||
Net cash provided by operating activities | 6,342 | 7,507 | ||||||||
Financing Activities | ||||||||||
Repurchase of common stock | (733) | (767) | ||||||||
Cash dividends paid | (4,788) | (4,559) | ||||||||
Net cash used in financing activities | (5,521) | (5,326) | ||||||||
Net Change in Cash and Cash Equivalents | 821 | 2,181 | ||||||||
Cash and Cash Equivalents, Beginning of Year | $ 11,273 | $ 9,092 | 11,273 | 9,092 | ||||||
Cash and Cash Equivalents, End of Year | $ 12,094 | $ 11,273 | $ 12,094 | $ 11,273 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Quarterly Financial Data (Unaudited) | ||||||||||
Total interest income | $ 9,704 | $ 9,651 | $ 9,286 | $ 8,208 | $ 7,922 | $ 7,297 | $ 6,445 | $ 5,997 | ||
Total interest expense | 3,203 | 3,085 | 2,941 | 1,785 | 1,381 | 928 | 477 | 487 | $ 11,014 | $ 3,273 |
Net interest income | 6,501 | 6,566 | 6,345 | 6,423 | 6,541 | 6,369 | 5,968 | 5,510 | 25,835 | 24,388 |
Provision for (reversal of ) Credit Losses | (154) | (154) | (146) | (454) | ||||||
Provision for (reversal of) credit loss expense | 15 | 15 | (485) | (500) | (955) | |||||
Noninterest income | 1,029 | 963 | 1,046 | 1,016 | 1,065 | 1,043 | 988 | 987 | ||
Noninterest expense | 5,092 | 5,233 | 5,089 | 5,438 | 5,052 | 4,879 | 4,849 | 5,110 | 20,852 | 19,890 |
Income before income taxes | 2,592 | 2,450 | 2,448 | 2,001 | 2,539 | 2,518 | 2,592 | 1,887 | 9,491 | 9,536 |
Provision for Federal Income Taxes | 202 | 58 | 168 | 113 | 233 | 215 | 295 | 136 | 541 | 879 |
Net Income (Loss) | $ 2,390 | $ 2,392 | $ 2,280 | $ 1,888 | $ 2,306 | $ 2,303 | $ 2,297 | $ 1,751 | $ 8,950 | $ 8,657 |
Earnings per share | ||||||||||
Basic Earnings Per Share | $ 0.42 | $ 0.42 | $ 0.40 | $ 0.33 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.30 | $ 1.57 | $ 1.50 |
Diluted Earnings Per Share | $ 0.42 | $ 0.42 | $ 0.40 | $ 0.33 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.30 | $ 1.57 | $ 1.50 |
Goodwill and Core Deposits (Det
Goodwill and Core Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the carrying amount of goodwill | ||
Balance beginning of year | $ 682 | $ 682 |
Additions from acquisition | 0 | 0 |
Balance, end of period | $ 682 | $ 682 |
Goodwill and Core Deposits - In
Goodwill and Core Deposits - Intangible assets (Details) - Core deposit intangibles - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets | ||
Gross Intangible Assets | $ 1,041 | $ 1,041 |
Accumulated Amortization | 781 | 631 |
Net Intangible Assets | $ 260 | $ 410 |
Goodwill and Core Deposits - Fu
Goodwill and Core Deposits - Future amortization expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Estimated aggregate future amortization expense | |
2024 | $ 150 |
2025 | $ 110 |
Finance Lease (Details)
Finance Lease (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) item | |
Finance Lease | |
Finance lease term | 40 years |
Number of additional extension terms | item | 2 |
Renewal term | 10 years |
Discount rate | 6.86% |
Right of use asset | $ 2,764,000 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net |
Lease liability | $ 2,764,000 |
Remaining lease term | 439 months |
Finance Lease - Maturities of t
Finance Lease - Maturities of the Finance Lease Liability (Details) | Dec. 31, 2023 USD ($) |
Maturities of the finance lease liability | |
2024 | $ 93,000 |
2025 | 130,000 |
2026 | 210,000 |
2027 | 210,000 |
2028 | 207,000 |
Thereafter | 8,760,000 |
Total lease payments | 9,610,000 |
Interest | (6,846,000) |
Lease Liability | $ 2,764,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||||||||
Net Income (Loss) | $ 2,390 | $ 2,392 | $ 2,280 | $ 1,888 | $ 2,306 | $ 2,303 | $ 2,297 | $ 1,751 | $ 8,950 | $ 8,657 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |