Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 07, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 001-13349 | ||
Entity Registrant Name | BAR HARBOR BANKSHARES | ||
Entity Incorporation, State or Country Code | ME | ||
Entity Tax Identification Number | 01-0393663 | ||
Entity Address, Address Line One | PO Box 400 | ||
Entity Address, Address Line Two | 82 Main Street | ||
Entity Address, City or Town | Bar Harbor | ||
Entity Address, State or Province | ME | ||
Entity Address, Postal Zip Code | 04609-0400 | ||
City Area Code | 207 | ||
Local Phone Number | 669-6784 | ||
Title of 12(b) Security | Common Stock, par value $2.00 per share | ||
Trading Symbol | BHB | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 15,185,021 | ||
Entity Public Float | $ 385,509,568 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000743367 | ||
Amendment Flag | false | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Hartford, Connecticut | ||
Auditor Firm ID | 49 | ||
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 42,221 | $ 39,933 |
Interest-earning deposits with other banks | 52,621 | 52,362 |
Total cash and cash equivalents | 94,842 | 92,295 |
Securities: | ||
Securities available for sale | 534,574 | 559,516 |
Federal Home Loan Bank stock | 12,788 | 14,893 |
Total securities | 547,362 | 574,409 |
Loans held for sale | 2,189 | 0 |
Total loans | 2,999,049 | 2,902,690 |
Less: Allowance for credit losses | (28,142) | (25,860) |
Net loans | 2,970,907 | 2,876,830 |
Premises and equipment, net | 48,287 | 47,622 |
Goodwill | 119,477 | 119,477 |
Other intangible assets | 4,869 | 5,801 |
Cash surrender value of bank-owned life insurance | 80,037 | 81,197 |
Deferred tax assets, net | 22,979 | 24,443 |
Other assets | 79,936 | 87,729 |
Total assets | 3,970,885 | 3,909,803 |
Deposits: | ||
Demand | 569,714 | 676,350 |
NOW | 946,978 | 900,730 |
Savings | 553,963 | 664,514 |
Money market | 370,242 | 478,398 |
Time | 700,260 | 323,439 |
Total deposits | 3,141,157 | 3,043,431 |
Borrowings: | ||
Senior | 271,044 | 333,957 |
Subordinated | 60,461 | 60,289 |
Total borrowings | 331,505 | 394,246 |
Other liabilities | 66,164 | 78,676 |
Total liabilities | 3,538,826 | 3,516,353 |
Shareholders' equity | ||
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 shares; outstanding 15,172,131 shares and 15,082,688 shares at December 31, 2023 and December 31, 2022 respectively | 32,857 | 32,857 |
Additional paid-in capital | 193,114 | 191,922 |
Retained earnings | 272,101 | 243,815 |
Accumulated other comprehensive loss | (49,862) | (58,340) |
Less: 1,256,257 and 1,345,700 shares of treasury stock, at cost, at December 31, 2023 and December 31, 2022, respectively | (16,151) | (16,804) |
Total shareholders' equity | 432,059 | 393,450 |
Total liabilities and shareholders' equity | $ 3,970,885 | $ 3,909,803 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Capital stock, par value (in dollars per share) | $ 2 | $ 2 |
Capital stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Capital stock, shares issued (in shares) | 16,428,388 | 16,428,388 |
Capital stock, shares outstanding (in shares) | 15,172,131 | 15,082,688 |
Treasury stock (in shares) | 1,256,257 | 1,345,700 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income | |||
Loans | $ 149,420 | $ 107,797 | $ 95,236 |
Securities and other | 24,762 | 18,729 | 15,568 |
Total interest and dividend income | 174,182 | 126,526 | 110,804 |
Interest expense | |||
Deposits | 38,232 | 7,344 | 8,543 |
Borrowings | 18,275 | 5,501 | 6,688 |
Total interest expense | 56,507 | 12,845 | 15,231 |
Net interest income | 117,675 | 113,681 | 95,573 |
Provision for credit losses | 2,908 | 2,904 | (1,302) |
Net interest income after provision for credit losses | 114,767 | 110,777 | 96,875 |
Non-interest income | |||
Trust and investment management fee income | 14,283 | 14,573 | 15,179 |
Customer service fees | 15,168 | 14,791 | 13,212 |
Gain on sales of securities, net | 34 | 53 | 2,870 |
Mortgage banking income | 1,587 | 1,580 | 6,536 |
Bank-owned life insurance income | 2,699 | 2,000 | 2,179 |
Customer derivative income | 409 | 310 | 1,010 |
Other income | 1,649 | 2,014 | 1,275 |
Total non-interest income | 35,829 | 35,321 | 42,261 |
Non-interest expense | |||
Salaries and employee benefits | 52,516 | 48,657 | 47,117 |
Occupancy and equipment | 17,584 | 17,575 | 16,356 |
Loss on sales of premises and equipment, net | 182 | 10 | 378 |
Outside services | 1,671 | 1,578 | 1,943 |
Professional services | 1,586 | 1,612 | 1,756 |
Communication | 697 | 880 | 912 |
Marketing | 1,696 | 1,561 | 1,541 |
Amortization of intangible assets | 932 | 932 | 940 |
Loss on debt extinguishment | 2,851 | ||
Acquisition, conversion and other expenses | 283 | 266 | 1,667 |
Provision for unfunded commitments | (85) | 1,758 | 177 |
Other expenses | 16,417 | 16,424 | 14,870 |
Total non-interest expense | 93,479 | 91,253 | 90,508 |
Income before income taxes | 57,117 | 54,845 | 48,628 |
Income tax expense | 12,265 | 11,288 | 9,329 |
Net income | $ 44,852 | $ 43,557 | $ 39,299 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.96 | $ 2.90 | $ 2.63 |
Diluted (in dollars per share) | $ 2.95 | $ 2.88 | $ 2.61 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 15,142,188 | 15,040,162 | 14,968,973 |
Diluted (in shares) | 15,195,236 | 15,111,961 | 15,045,162 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Net income | $ 44,852 | $ 43,557 | $ 39,299 |
Other comprehensive income (loss), before tax: | |||
Changes in unrealized gain (loss) on securities available for sale | 9,481 | (74,412) | (10,489) |
Changes in unrealized gain (loss) on hedging derivatives | 1,011 | (3,463) | 3,562 |
Changes in unrealized gain (loss) on pension | 135 | (973) | 1,132 |
Income taxes related to other comprehensive income (loss): | |||
Changes in unrealized (gain) loss on securities available for sale | (1,884) | 17,181 | 2,451 |
Changes in unrealized (gain) loss on hedging derivatives | (227) | 799 | (827) |
Changes in unrealized (gain) loss on pension | (38) | 225 | (266) |
Total other comprehensive income (loss) | 8,478 | (60,643) | (4,437) |
Total comprehensive income (loss) | $ 53,330 | $ (17,086) | $ 34,862 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common stock amount | Additional paid-in capital | Retained earnings Impact of ASC 326 adoption | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Impact of ASC 326 adoption | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 32,857 | $ 190,084 | $ 195,607 | $ 6,740 | $ (18,223) | $ 407,065 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 39,299 | 39,299 | ||||||
Other comprehensive income (loss) | (4,437) | (4,437) | ||||||
Cash dividends declared | (14,072) | (14,072) | ||||||
Net issuance to employee stock plans, including related tax effects | (1,357) | 742 | (615) | |||||
Recognition of stock based compensation | 2,149 | 2,149 | ||||||
Balance at end of period at Dec. 31, 2021 | 32,857 | 190,876 | $ (5,242) | 215,592 | 2,303 | (17,481) | $ (5,242) | 424,147 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 43,557 | 43,557 | ||||||
Other comprehensive income (loss) | (60,643) | (60,643) | ||||||
Cash dividends declared | (15,334) | (15,334) | ||||||
Net issuance to employee stock plans, including related tax effects | (892) | 677 | (215) | |||||
Recognition of stock based compensation | 1,938 | 1,938 | ||||||
Balance at end of period at Dec. 31, 2022 | 32,857 | 191,922 | 243,815 | (58,340) | (16,804) | 393,450 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 44,852 | 44,852 | ||||||
Other comprehensive income (loss) | 8,478 | 8,478 | ||||||
Cash dividends declared | (16,566) | (16,566) | ||||||
Net issuance to employee stock plans, including related tax effects | (1,458) | 653 | (805) | |||||
Recognition of stock based compensation | 2,650 | 2,650 | ||||||
Balance at end of period at Dec. 31, 2023 | $ 32,857 | $ 193,114 | $ 272,101 | $ (49,862) | $ (16,151) | $ 432,059 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Cash dividends declared (in dollars per share) | $ 1.10 | $ 1.02 | $ 0.94 |
Net issuance (in shares) | 89,443 | 81,359 | 85,406 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 44,852 | $ 43,557 | $ 39,299 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net change in loans held for sale | (2,189) | 5,523 | 18,579 |
Provision for credit losses | 2,908 | 2,904 | (1,302) |
Net amortization of securities | 2,429 | 2,869 | 4,471 |
Deferred tax (benefit) expense | (686) | (707) | 427 |
Change in unamortized net loan costs and premiums | (145) | 170 | (1,354) |
Premises and equipment depreciation | 4,177 | 4,243 | 4,596 |
Stock-based compensation expense | 2,650 | 1,938 | 2,149 |
Accretion of purchase accounting entries, net | (2,274) | ||
Amortization of other intangibles | 932 | 932 | 940 |
Income from cash surrender value of bank-owned life insurance policies | (2,699) | (2,000) | (2,179) |
Gain on sales of securities, net | (34) | (53) | (2,870) |
Amortization of right-of-use lease assets | 1,204 | 1,196 | 1,064 |
Decrease in lease liabilities | (1,179) | (1,142) | (984) |
Gain on premises and equipment, net | 182 | 10 | 378 |
Net change in other assets and liabilities | (4,999) | (3,531) | (1,772) |
Net cash provided by operating activities | 47,403 | 55,909 | 59,168 |
Cash flows from investing activities: | |||
Proceeds from sales, maturities, calls and prepayments of securities available for sale | 42,184 | 80,870 | 204,275 |
Purchases of securities available for sale | (7,521) | (109,019) | (249,595) |
Net change in loans | (96,840) | (370,712) | 34,315 |
Purchase of Federal Home Loan Bank stock | (18,370) | (11,016) | (2,565) |
Proceeds from sale of Federal Home Loan Bank stock | 20,473 | 3,507 | 9,217 |
Purchase of premises and equipment, net | (6,533) | (2,518) | (1,716) |
Proceeds from sale of premises and equipment | 413 | ||
Proceeds from premises held for sale | 288 | ||
Proceeds from death benefit of bank-owned life insurance policy | 3,904 | 1,029 | |
Net cash used in investing activities | (62,290) | (408,888) | (4,752) |
Cash flows from financing activities: | |||
Net change in deposits | 97,726 | (5,113) | 142,329 |
Net change in short-term borrowings | (60,604) | 235,567 | 1,347 |
Repayments of long-term borrowings | (2,317) | (20,020) | (159,023) |
Net issuance to employee stock plans | (805) | (215) | (615) |
Cash dividends paid on common stock | (16,566) | (15,334) | (14,072) |
Net cash provided by financing activities | 17,434 | 194,885 | (30,034) |
Net change in cash and cash equivalents | 2,547 | (158,094) | 24,382 |
Cash and cash equivalents at beginning of year | 92,295 | 250,389 | 226,007 |
Cash and cash equivalents at end of period | 94,842 | 92,295 | 250,389 |
Supplemental cash flow information: | |||
Interest paid | 51,973 | 12,451 | 16,354 |
Income taxes paid, net | $ 15,026 | $ 10,598 | $ 8,859 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation: Consolidation: Reclassifications: Use of estimates: Subsequent Events: Cash and Cash Equivalents: Securities: Premiums and discounts on securities are amortized and accreted over the term or to first call of the securities using the level yield method. Municipal security premiums are accreted over full term straight-line and discounts are amortized over the call term on a straight light basis. Gains and losses on the sale of securities are recognized at the trade date using the specific-identification method and are shown separately in the Consolidated Statements of Income. Allowance for Credit Loss on AFS Debt Securities: municipality, agency, or organization associated with the underlying security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance on AFS debt securities is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. When assessing an AFS debt security for credit loss, securities with identical CUSIPs are pooled together to assess for impairment using the average cost basis. Any impairment that has not been recorded through an allowance is recognized in other comprehensive income. A change in the allowance on AFS debt securities may be in full or a portion thereof, is recorded as expense (credit) within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes an AFS debt security is uncollectible based on the above described analysis. As of December 31, 2023 and December 31, 2022, there were no allowances carried on AFS debt securities. Refer to Note 2 – Securities Available for Sale Federal Home Loan Bank Stock: FHLB stock is periodically evaluated for impairment based on the capital adequacy of the FHLB and its overall financial condition. Based on the capital adequacy, liquidity position and sustained profitability of the FHLB, there was no impairment related to the carrying amount of FHLB stock as of December 31, 2023 and 2022. Loans Held for Sale: Loans: For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. Purchase Credit Deteriorated (PCD) Loans: Non-performing loans: appropriate by management. Secured consumer other loans are written down to net realizable value and unsecured consumer loans are charged-off upon reaching 120 days past due. Commercial real estate loans and commercial and industrial loans that are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash, and the loan is in the process of collection. Commercial real estate and commercial and industrial loans may be placed on non-accrual status prior to the 90 days delinquency date if considered appropriate by management. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, a minimum of six months. Acquired loans that meet the criteria for non-accrual of interest prior to an acquisition are considered non-performing acquired loans that meet the criteria for non-accrual consistent with originated loans. Loan Modifications to Borrowers Experiencing Financial Difficulty: However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Allowance for Credit Losses: The allowance for credit losses is a valuation account that 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 allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on historical internal data. Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Individually Evaluated Loans : Accrued Interest Allowance for off-balance sheet credit exposures : Premises and Equipment: estimated useful lives of related assets; generally five three eight years Transfers of Financial Assets: Other Real Estate Owned: Goodwill: Other Intangibles: The fair values of these assets are generally determined based on appraisals and are subsequently amortized on a straight-line basis or an accelerated basis over their estimated lives. Management assesses the recoverability of these intangible assets at least annually or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount exceeds fair value, an impairment charge is recorded to income. Bank-Owned Life Insurance: Capitalized Servicing Right s : Capitalized servicing rights are initially recorded at fair value. Fair values are established by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Changes in the fair value of capitalized servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. However, these capitalized servicing rights are amortized in proportion to and over the period of estimated net servicing income, which includes prepayment assumptions. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the capitalized servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these capitalized servicing rights exceeds fair value. The capitalized servicing rights are included in other assets on the consolidated balance sheet. Derivative Financial Instruments: Changes in the fair value of derivative instruments that are highly effective and qualify as cash flow hedge are recorded in other comprehensive income (loss). Any ineffective portion is recorded in earnings. For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both recognized in earnings, with the differences (if any) representing hedge ineffectiveness. Management discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or determines that the designation of the derivative as a hedging instrument is no longer appropriate. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Net cash settlements on derivatives that do not quality for hedge accounting are reporting in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as cash flows of the items being hedged. Commitments to fund mortgage loans with borrowers (interest rate locks) and forward commitments for the future delivery of these mortgage loans for sale on the secondary market are classified as free standing derivatives. These derivatives are designed to hedge against inherent interest rate and pricing risk associated with selling loans. The commitments to lend generally terminate once the loan is funded, the lock period expires or the borrower decides not to contract for the loan. The forward commitments generally terminate once the loan is sold or the commitment period expires. These commitments are considered derivatives which are accounted for by recognizing their estimated fair value on the Consolidated Balance Sheet in either other assets or other liabilities. Senior and Subordinated Borrowings: Off-Balance Sheet Financial Instruments: Stock Based Compensation: Stock Based Compensation Plans o Employee Stock Purchase Plan: Post-retirement Plans: Employee Benefit Plans Pension Plan: Employee Benefit Plans Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. At the end of each year the Plans’ assets and obligations are examined to determine its funded status as of the end of the fiscal year and recognizes those changes in other comprehensive income, net of tax. The plans over or under funded status is recognized in the consolidated balance sheet as an asset or liability, respectively. 401(k) Plan : Income Taxes: Treasury Stock: Earnings Per Share: Revenue Recognition: Revenue from Contracts with Customers Wealth Management: and the resulting in monthly fee income, based on the daily accrual of the market value of the investment accounts and the applicable fee rate. Marketing Costs: Segment Reporting: Recent Accounting Pronouncements The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2023 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures The amendments in this update eliminate TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 The adoption of this ASU did not have a material impact on our consolidated financial statements. ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. December 15, 2023, including interim periods within the fiscal year The adoption of this ASU did not have a material impact on our consolidated financial statements. Standards Not Yet Adopted ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). For public business entities, the amendments in this update are effective for We do not expect adoption of this ASU to have a material impact on our consolidated financial statements. 1 |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES AVAILABLE FOR SALE | |
SECURITIES AVAILABLE FOR SALE | NOTE 2. SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale: Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2023 Debt securities: Obligations of US Government-sponsored enterprises $ 2,021 $ — $ (29) $ 1,992 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 223,602 12 (30,332) 193,282 US Government agency 85,005 145 (10,937) 74,213 Private label 60,888 18 (1,855) 59,051 Obligations of states and political subdivisions thereof 119,857 4,515 (14,204) 110,168 Corporate bonds 105,552 19 (9,703) 95,868 Total securities available for sale $ 596,925 $ 4,709 $ (67,060) $ 534,574 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2022 Debt securities: Obligations of US Government-sponsored enterprises $ 2,692 $ 5 $ (37) $ 2,660 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 249,838 14 (34,825) 215,027 US Government agency 90,318 16 (10,728) 79,606 Private label 64,056 34 (3,936) 60,154 Obligations of states and political subdivisions thereof 121,939 7,149 (21,351) 107,737 Corporate bonds 102,505 33 (8,206) 94,332 Total securities available for sale $ 631,348 $ 7,251 $ (79,083) $ 559,516 Credit Quality Information We monitor the credit quality of available for sale debt securities through credit ratings from various rating agencies and substantial price changes. In an effort to make informed decisions, we utilize credit ratings that express opinions about the credit quality of a security. Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, drops below investment-grade, or significant pricing changes. For securities without credit ratings, we utilize other financial information indicating the financial health of the underlying municipality, agency, or organization associated with the underlying security. As of December 31, 2023 and 2022, we carried no allowance on available for sale debt securities in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. The amortized cost and estimated fair value of available for sale securities segregated by contractual maturity at December 31, 2023 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 3,038 $ 3,017 Over 1 year to 5 years 50,471 47,138 Over 5 years to 10 years 45,706 44,887 Over 10 years 128,215 112,986 Total bonds and obligations 227,430 208,028 Mortgage-backed securities and collateralized mortgage obligations 369,495 326,546 Total securities available for sale $ 596,925 $ 534,574 The following table summarizes proceeds from the sale of AFS securities and realized gains and losses: Proceeds from Sale of Securities (in thousands) Available for Sale Realized Gains Realized Losses Net 2023 $ 2,000 $ 34 $ — $ 34 2022 7,130 151 (98) 53 2021 92,723 2,933 (63) 2,870 There were no sales of securities in 2023, the $2.0 million represents proceeds from a called security with a $34 thousand realized gain. Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2023 Debt securities: Obligations of US Government-sponsored enterprises $ 1 $ 1,084 $ 28 $ 907 $ 29 $ 1,991 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 10 3,439 30,322 188,611 30,332 192,050 US Government agency 2 120 10,935 68,891 10,937 69,011 Private label — 26 1,855 59,007 1,855 59,033 Obligations of states and political subdivisions thereof 26 3,099 14,178 101,036 14,204 104,135 Corporate bonds 156 4,913 9,547 84,950 9,703 89,863 Total securities available for sale $ 195 $ 12,681 $ 66,865 $ 503,402 $ 67,060 $ 516,083 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2022 Debt securities: Obligations of US Government-sponsored enterprises $ 32 $ 435 $ 6 $ 790 $ 38 $ 1,225 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 7,005 82,483 27,820 127,745 34,825 210,228 US Government agency 2,870 42,430 7,857 34,198 10,727 76,628 Private label 841 15,694 3,095 44,396 3,936 60,090 Obligations of states and political subdivisions thereof 7,990 48,799 13,361 55,702 21,351 104,501 Corporate bonds 4,733 65,279 3,473 25,027 8,206 90,306 Total securities available for sale $ 23,471 $ 255,120 $ 55,612 $ 287,858 $ 79,083 $ 542,978 A summary of securities pledged as collateral for certain deposits and borrowing arrangements for the years ended December 31, 2023 and 2022 is as follows: December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated (in thousands) Value Fair Value Value Fair Value Securities pledged for deposits $ 24,347 $ 21,341 $ 26,807 $ 23,430 Securities pledged for repurchase agreements 18,841 16,230 21,001 17,964 Securities pledged for borrowings (1) 113,775 95,318 40,686 33,962 Total securities pledged $ 156,963 $ 132,889 $ 88,494 $ 75,356 (1) The Bank pledged securities as collateral for certain borrowing arrangements with the Federal Home Loan Bank of Boston and Federal Reserve Bank of Boston. We expect to recover the amortized cost basis on all securities in our AFS portfolio. Furthermore, we do not intend to sell nor do we anticipate that we will be required to sell any securities in an unrealized loss position as of December 31, 2023, prior to this recovery. Our ability and intent to hold these securities until recovery is supported by our capital and liquidity positions as well as historically low portfolio turnover. The following summarizes, by investment security type, the impact of securities in an unrealized loss position at December 31, 2023: Obligations of US Government-sponsored enterprises 8 out of the total 8 securities in our portfolio of AFS obligations of US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 1.44% of the amortized cost of securities in unrealized loss positions. The US Small Business Administration guarantees the contractual cash flows of all of our obligations of US Government-sponsored enterprises. The securities are investment-grade rated and there were no material underlying credit downgrades during the quarter. US Government-sponsored enterprises 448 out of the total 493 securities in our portfolio of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 13.64% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation guarantee the contractual cash flows of all of our US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the year. US Government agency 130 out of the total 151 securities in our portfolio of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 13.68% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association guarantees the contractual cash flows of all of our US government agency securities. The securities are rated investment grade and there were no material underlying credit downgrades during the year. Private label 26 of the total 28 securities in our portfolio of AFS private label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 3.05% of the amortized cost of securities in unrealized loss positions. We expect to receive all of the future contractual cash flows related to the amortized cost on these securities. Obligations of states and political subdivisions thereof 52 of the total 69 securities in our portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 12.48% of the amortized cost of securities in unrealized loss positions. We continually monitor the municipal bond sector of the market carefully and periodically evaluate the appropriate level of exposure to the market. At this time, we believe the bonds in this portfolio carry minimal risk of default and we are appropriately compensated for that risk. There were no material underlying credit downgrades during the year. Corporate bonds 30 of the total 35 securities in our portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 9.75% of the amortized cost of securities in unrealized loss positions. We review the financial strength of all of these bonds and have concluded that the amortized cost remains supported by the expected future cash flows of these securities. The most recent review includes all bond issuers and their current credit ratings, financial performance and capitalization. |
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 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES We evaluate risk characteristics of loans based on regulatory call report code with segmentation based on the underlying collateral for certain loan types. The following is a summary of total loans by regulatory call report code segmentation based on underlying collateral for certain loan types: December 31, December 31, (in thousands) 2023 2022 Commercial construction $ 154,048 $ 117,577 Commercial real estate owner occupied 310,015 244,814 Commercial real estate non-owner occupied 1,144,566 1,146,674 Tax exempt 43,688 42,879 Commercial and industrial 310,883 297,112 Residential real estate 940,334 954,968 Home equity 87,683 90,865 Consumer other 7,832 7,801 Total loans 2,999,049 2,902,690 Allowance for credit losses 28,142 25,860 Net loans $ 2,970,907 $ 2,876,830 Total unamortized net costs and premiums included in loan totals were as follows: December 31, December 31, (in thousands) 2023 2022 Net unamortized loan origination costs $ 3,039 $ 3,184 Net unamortized fair value discount on acquired loans (2,891) (3,506) Total $ 148 $ (322) We exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of December 31, 2023 and 2022, accrued interest receivable for loans totaled $11.9 million and $10.7 million, respectively, and is included in the “other assets” line item on the Company’s consolidated balance sheets. Characteristics of each loan portfolio segment are as follows: Commercial construction Commercial real estate owner occupied and non-owner occupied Tax Exempt Commercial and industrial loans Residential real estate Home equity - Consumer other Allowance for Credit Losses The Allowance for Credit Losses (“ACL”) is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on our consolidated balance sheet. The level of the ACL represents management’s estimate of expected credit losses over the expected life of the loans at the consolidated balance sheet date. The ACL is a valuation account that 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 allowance 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 comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans. The activity in the allowance for credit losses for the periods ended are as follows: At or for the Year Ended December 31, 2023 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,579 $ — $ — $ 1,682 $ 4,261 Commercial real estate owner occupied 2,189 — 142 532 2,863 Commercial real estate non-owner occupied 9,341 — — 102 9,443 Tax exempt 93 — — 26 119 Commercial and industrial 3,493 (664) 149 281 3,259 Residential real estate 7,274 (8) 31 55 7,352 Home equity 811 (12) 6 (38) 767 Consumer other 80 (289) 19 268 78 Total $ 25,860 $ (973) $ 347 $ 2,908 $ 28,142 At or for the Year Ended December 31, 2022 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,111 $ — $ — $ 468 $ 2,579 Commercial real estate owner occupied 2,751 — 120 (682) 2,189 Commercial real estate non-owner occupied 5,650 — — 3,691 9,341 Tax exempt 86 — — 7 93 Commercial and industrial 5,369 (8) 341 (2,209) 3,493 Residential real estate 5,862 (84) 106 1,390 7,274 Home equity 814 (7) 25 (21) 811 Consumer other 75 (267) 12 260 80 Total $ 22,718 $ (366) $ 604 $ 2,904 $ 25,860 At or for the Year Ended December 31, 2021 Balance at Beginning of Impact of ASC Balance at (in thousands) Period 326 Charge Offs Recoveries Provision End of Period Commercial construction $ 824 $ 1,196 $ — $ 18 $ 73 $ 2,111 Commercial real estate owner occupied 1,783 708 (403) 290 373 2,751 Commercial real estate non-owner occupied 7,864 (2,008) — 4 (210) 5,650 Tax exempt 58 40 — — (12) 86 Commercial and industrial 3,137 2,996 (59) 77 (782) 5,369 Residential real estate 5,010 1,732 (77) 159 (962) 5,862 Home equity 285 603 (154) 51 29 814 Consumer other 121 (39) (205) 9 189 75 Total $ 19,082 $ 5,228 $ (898) $ 608 $ (1,302) $ 22,718 Unfunded Commitments The allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other non-interest expense in the consolidated statement of operations. The activity in the allowance for credit losses on unfunded commitments for the periods ended was as follows: At or for the Years Ended December 31, (in thousands) 2023 2022 2021 Beginning Balance $ 3,910 $ 2,152 $ 359 Impact of ASC 326 — — 1,616 Provision for credit losses (85) 1,758 177 Ending Balance $ 3,825 $ 3,910 $ 2,152 Loan Origination/Risk Management: Credit Quality Indicators: The following are the definitions of our credit quality indicators: Pass: Special Mention: Substandard: Doubtful: specific pending factors, which may work to the advantage and strengthening of the loan, its classification as loss is deferred until its more exact status is determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. The entire amount of the loan might not be classified as doubtful when collection of a specific portion appears highly probable. Loans are generally not classified doubtful for an extended period of time (i.e., over a year). Loss: The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2023: (in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial construction Risk rating: Pass $ 14,040 $ 99,115 $ 35,978 $ 3,992 $ — $ 923 $ 154,048 Special mention — — — — — — — Substandard — — — — — — — Total $ 14,040 $ 99,115 $ 35,978 $ 3,992 $ — $ 923 $ 154,048 Current period gross write-offs — — — — — — — Commercial real estate owner occupied Risk rating: Pass $ 57,603 $ 61,015 $ 43,228 $ 20,209 $ 20,462 $ 91,187 $ 293,704 Special mention 160 387 7,488 1,596 — 3,066 12,697 Substandard — — — — — 3,497 3,497 Doubtful — — — — — 117 117 Total $ 57,763 $ 61,402 $ 50,716 $ 21,805 $ 20,462 $ 97,867 $ 310,015 Current period gross write-offs — — — — — — — Commercial real estate non-owner occupied Risk rating: Pass $ 41,270 $ 353,613 $ 199,311 $ 127,231 $ 78,759 $ 238,973 $ 1,039,157 Special mention 7,809 — 14,134 37,249 15,246 17,108 91,546 Substandard — — — — — 13,863 13,863 Doubtful — — — — — — — Total $ 49,079 $ 353,613 $ 213,445 $ 164,480 $ 94,005 $ 269,944 $ 1,144,566 Current period gross write-offs — — — — — — — Tax exempt Risk rating: Pass $ 6,340 $ 8,468 $ 787 $ 208 $ 590 $ 27,295 $ 43,688 Special mention — — — — — — — Substandard — — — — — — — Total $ 6,340 $ 8,468 $ 787 $ 208 $ 590 $ 27,295 $ 43,688 Current period gross write-offs — — — — — — — Commercial and industrial Risk rating: Pass $ 80,942 $ 69,402 $ 22,205 $ 38,824 $ 14,739 $ 77,273 $ 303,385 Special mention 364 1,446 — 776 28 3,588 6,202 Substandard 58 94 186 109 95 532 1,074 Doubtful — — — — 87 135 222 Total $ 81,364 $ 70,942 $ 22,391 $ 39,709 $ 14,949 $ 81,528 $ 310,883 Current period gross write-offs — — — — 5 659 664 (in thousands) 2023 2022 2021 2020 2019 Prior Total Residential real estate Performing $ 72,395 $ 194,109 $ 165,434 $ 96,016 $ 62,648 $ 345,823 $ 936,425 Nonperforming — — 41 — 234 3,634 3,909 Total $ 72,395 $ 194,109 $ 165,475 $ 96,016 $ 62,882 $ 349,457 $ 940,334 Current period gross write-offs — — — — — 8 8 Home equity Performing $ 15,582 $ 15,334 $ 7,873 $ 6,633 $ 4,800 $ 36,652 $ 86,874 Nonperforming — — — — — 809 809 Total $ 15,582 $ 15,334 $ 7,873 $ 6,633 $ 4,800 $ 37,461 $ 87,683 Current period gross write-offs — — — — — 12 12 Consumer other Performing $ 4,128 $ 1,787 $ 696 $ 301 $ 51 $ 864 $ 7,827 Nonperforming — — 4 1 — — 5 Total $ 4,128 $ 1,787 $ 700 $ 302 $ 51 $ 864 $ 7,832 Current period gross write-offs — 52 18 5 — 214 289 Total Loans $ 300,691 $ 804,770 $ 497,365 $ 333,145 $ 197,739 $ 865,339 $ 2,999,049 The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022: (in thousands) 2022 2021 2020 2019 2018 Prior Total Commercial construction Risk rating: Pass $ 49,722 $ 38,837 $ 2,865 $ 1,011 $ 964 $ — $ 93,399 Special mention — — 24,178 — — — 24,178 Substandard — — — — — — — Total $ 49,722 $ 38,837 $ 27,043 $ 1,011 $ 964 $ — $ 117,577 Commercial real estate owner occupied Risk rating: Pass $ 22,371 $ 11,290 $ 23,014 $ 31,352 $ 46,398 $ 103,295 $ 237,720 Special mention — — 243 666 173 1,870 2,952 Substandard — — — — 77 3,924 4,001 Doubtful — — — — — 141 141 Total $ 22,371 $ 11,290 $ 23,257 $ 32,018 $ 46,648 $ 109,230 $ 244,814 Commercial real estate non-owner occupied Risk rating: Pass $ 370,856 $ 228,414 $ 145,096 $ 88,111 $ 35,213 $ 238,395 $ 1,106,085 Special mention — 21,390 — 127 911 16,612 39,040 Substandard — — — — — 1,404 1,404 Doubtful — — — — — 145 145 Total $ 370,856 $ 249,804 $ 145,096 $ 88,238 $ 36,124 $ 256,556 $ 1,146,674 Tax exempt Risk rating: Pass $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Special mention — — — — — — — Substandard — — — — — — — Total $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Commercial and industrial Risk rating: Pass $ 83,151 $ 26,948 $ 62,835 $ 27,491 $ 9,511 $ 81,316 $ 291,252 Special mention 1,450 — 53 803 201 619 3,126 Substandard — 113 111 65 299 2,106 2,694 Doubtful — — — — — 40 40 Total $ 84,601 $ 27,061 $ 62,999 $ 28,359 $ 10,011 $ 84,081 $ 297,112 (in thousands) 2022 2021 2020 2019 2018 Prior Total Residential real estate Performing $ 195,320 $ 177,480 $ 111,021 $ 69,170 $ 47,797 $ 349,795 $ 950,583 Nonperforming — 45 — 49 641 3,650 4,385 Total $ 195,320 $ 177,525 $ 111,021 $ 69,219 $ 48,438 $ 353,445 $ 954,968 Home equity Performing $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 40,191 $ 89,902 Nonperforming — — — — — 963 963 Total $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 41,154 $ 90,865 Consumer other Performing $ 4,321 $ 1,341 $ 863 $ 265 $ 64 $ 942 $ 7,796 Nonperforming — — 5 — — — 5 Total $ 4,321 $ 1,341 $ 868 $ 265 $ 64 $ 942 $ 7,801 Total Loans $ 752,984 $ 517,516 $ 378,675 $ 226,712 $ 162,477 $ 864,326 $ 2,902,690 Past Dues The following is a summary of past due loans for the periods ended: December 31, 2023 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 154,048 $ 154,048 Commercial real estate owner occupied — — — — 310,015 310,015 Commercial real estate non-owner occupied — — 103 103 1,144,463 1,144,566 Tax exempt — — — — 43,688 43,688 Commercial and industrial 465 59 330 854 310,029 310,883 Residential real estate 1,520 627 1,999 4,146 936,188 940,334 Home equity 600 — 337 937 86,746 87,683 Consumer other 10 2 — 12 7,820 7,832 Total $ 2,595 $ 688 $ 2,769 $ 6,052 $ 2,992,997 $ 2,999,049 December 31, 2022 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 117,577 $ 117,577 Commercial real estate owner occupied 385 — — 385 244,429 244,814 Commercial real estate non-owner occupied 45 145 139 329 1,146,345 1,146,674 Tax exempt — — — — 42,879 42,879 Commercial and industrial 169 — 9 178 296,934 297,112 Residential real estate 803 348 2,029 3,180 951,788 954,968 Home equity 216 160 246 622 90,243 90,865 Consumer other 41 8 — 49 7,752 7,801 Total $ 1,659 $ 661 $ 2,423 $ 4,743 $ 2,897,947 $ 2,902,690 Non-Accrual Loans The following is a summary of non-accrual loans for the periods ended: December 31, 2023 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 103 44 — Commercial real estate non-owner occupied 340 224 — Tax exempt — — — Commercial and industrial 363 6 — Residential real estate 3,908 1,131 118 Home equity 809 1 22 Consumer other 5 — — Total $ 5,528 $ 1,406 $ 140 December 31, 2022 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 439 360 — Commercial real estate non-owner occupied 550 411 — Tax exempt — — — Commercial and industrial 207 145 — Residential real estate 4,385 1,361 202 Home equity 963 57 14 Consumer other 5 — — Total $ 6,549 $ 2,334 $ 216 Our policy is to reverse previously recorded interest income when a loan is placed on non-accrual, as such, the Company did not record any interest income on its non-accrual for the year ended December 31, 2023 and 2022. Collateral Dependent Loans Loans that do not share risk characteristics are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where we have determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and we expect repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment for the periods ended. December 31, 2023 December 31, 2022 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ — $ — Commercial real estate owner occupied 104 — 439 — Commercial real estate non-owner occupied 340 — 550 — Tax exempt — — — — Commercial and industrial 229 134 91 116 Residential real estate 3,908 — 4,385 — Home equity 808 — 963 — Consumer other 5 — 5 — Total $ 5,394 $ 134 $ 6,433 $ 116 Loan Modifications to Borrowers Experiencing Financial Difficulty In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance for 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, we are no longer required to establish a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective category and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL. These modifications typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. There were no qualifying modifications for the twelve months ended December 31, 2022. The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2023, by class and by type of modification. (in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Interest Rate Reduction and Term Extension % of Total Class of Loans Twelve Months Ended December 31, 2023 Commercial construction $ — $ — $ — $ — $ — — % Commercial real estate owner occupied — — — — — — Commercial real estate non-owner occupied — — — — — — Tax exempt — — — — — — Commercial and industrial — 65 184 — — 0.08 Residential real estate — — — 99 — 0.01 Home equity — — — — — — Consumer other — — — — — — Total $ — $ 65 $ 184 $ 99 $ — 0.01 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023. (in thousands) Weighted-Average Months of Payment Delay Weighted-Average Months of Term Extension Weighted-Average Interest Rate Reduction Twelve Months Ended December 31, 2023 Commercial construction — — — % Commercial real estate owner occupied — — — Commercial real estate non-owner occupied — — — Tax exempt — — — Commercial and industrial 3.00 13.45 — Residential real estate — — 1.38 Home equity — — — Consumer other — — — Total 3.00 13.45 1.38 % Foreclosure Residential mortgage loans collateralized by real estate that are in the process of foreclosure as of December 31, 2023 and December 31, 2022 totaled $430 thousand and $253 thousand, respectively. Loan Concentrations Loan concentrations in specific industries may occasionally emerge as a result of economic conditions, changes in local demands, natural loan growth and runoff. At December 31, 2023, the largest industry concentration outside of commercial real estate was the hospitality industry which represents 11% or $334.8 million of the Company’s total loan portfolio, compared with 12% or $336.4 million at December 31, 2022. Loans to Related Parties In the ordinary course of business, the Bank has made loans at prevailing rates and terms to directors, officers and other related parties. In management’s opinion, such loans do not present more than the normal risk of collectability or incorporate other unfavorable features, and were made under terms that are consistent with the Bank’s lending policies. Loan to related parties at December 31, 2023 and December 31, 2022 are summarized below: (in thousands) 2023 2022 Beginning balance $ 4,763 $ 3,379 Changes in composition (1) — 112 New loans — 1,576 Less: repayments (718) (304) Ending balance $ 4,045 $ 4,763 (1) Adjustments to reflect changes in status of directors and officers for each year presented. Mortgage Banking Loans sold For the years ended December 31, 2023 and 2022, we sold $38.8 million and $38.6 million, respectively, of residential mortgage loans on the secondary market, which resulted in a net gain on sale of loans (net of costs, including direct and indirect origination costs) of $192 thousand and $161 thousand, respectively. Loans Held for Sale We had $2.2 million of loans held for sale as of December 31, 2023, there no loans held for sale as of December 31, 2022. Loans held for sale at December 31, 2023 had an unpaid principal balance of $2.1 million, respectively. The interest rate exposure on loans held for sale is mitigated through forward delivery commitments with certain approved secondary market investors. Forward sale commitments had a notional amount of $5.0 million at December 31, 2023, and we had no open forward sale commitments at December 31, 2022. Refer to Note 10 for further discussion of forward delivery commitments. Servicing Assets The Bank sells loans in the secondary market and retains the ability to service many of these loans. The Bank earns fees for the servicing provided. At year end 2023 and 2022, the Bank was servicing loans for participants totaling $595.2 million and $616.0 million, respectively. Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. Contractually-specified servicing fees were $1.6 million for the year ended 2023 and 2022, and are included as a component of other income within non-interest income. Servicing rights activity during 2023 and 2022, included in other assets, was as follows: At or for the Twelve Months Ended December 31, (in thousands) 2023 2022 Balance at beginning of year $ 3,383 $ 3,673 Additions 338 421 Amortization (560) (711) Balance at end of year $ 3,161 $ 3,383 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | Premises and equipment at December 31, 2023 and December 31, 2022 are summarized as follows: Estimated Useful (in thousands, except years) 2023 2022 Life Land $ 3,882 $ 4,934 N/A Buildings and improvements 60,168 56,239 5-39 years Furniture and equipment 17,630 16,225 3-8 years Premises and equipment, gross 81,680 77,398 Accumulated depreciation (33,393) (29,776) Premises and equipment, net $ 48,287 $ 47,622 Depreciation expense for the years ended December 31, 2023 and 2022 amounted to $4.2 million, and was $4.6 million for the year ended December 31, 2021. Premises held for sale for the years ended December 31, 2023, 2022 and 2021 were $1.2 million, $252 thousand and $226 thousand, respectively, and are included in other assets. We measure premises held for sale at the lower of amortized cost or estimated fair value less 6% selling costs. We did not sell any premises held for sale in 2023 or 2022. We sold $579 thousand of premises held for sale in 2021 for a net loss of $291 thousand. There were no impairment charges recognized in 2023 and 2022. There were $157 thousand of impairment charges recognized in 2021 due to the demolition of a building. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLES | |
GOODWILL AND OTHER INTANGIBLES | NOTE 5. GOODWILL AND OTHER INTANGIBLES The activity impacting goodwill in 2023 and 2022 is as follows: (in thousands) 2023 2022 Balance at beginning of year $ 119,477 $ 119,477 Acquisition — — Balance at end of year $ 119,477 $ 119,477 In the fourth quarter of 2023, we completed annual goodwill impairment testing using balance sheet and market data as of September 30, 2023. The analysis was performed at the consolidated Bank level, which is considered the smallest reporting unit carrying goodwill. No goodwill impairment was recognized for the years ended December 31, 2023, 2022 and 2021. The components of other intangible assets in 2023 and 2022 are as follows: 2023 Gross Accumulated Net Intangible (in thousands) Intangible Assets Amortization Assets Core deposit intangible (non-maturity deposits) $ 9,483 $ (5,686) $ 3,797 Customer list and other intangibles 2,118 (1,046) 1,072 Total $ 11,601 $ (6,732) $ 4,869 2022 Gross Accumulated Net Intangible (in thousands) Intangible Assets Amortization Assets Core deposit intangible (non-maturity deposits) $ 9,483 $ (4,948) $ 4,535 Customer list and other intangibles 2,118 (852) 1,266 Total $ 11,601 $ (5,800) $ 5,801 Other intangible assets are amortized on a straight-line basis over their estimated lives, which range from five years to 11 years. Amortization expenses related to intangibles totaled $932 thousand in 2023, $932 thousand in 2022 and $940 thousand in 2021. The estimated aggregate future amortization expense for other intangible assets remaining at year end 2023 is as follows: Other Intangible (in thousands) Assets 2024 $ 932 2025 932 2026 932 2027 932 2028 959 and thereafter 182 Total $ 4,869 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS. | |
DEPOSITS | NOTE 6. DEPOSITS A summary of time deposits at December 31, 2023 and December 31, 2022 are as follows: (in thousands) December 31, 2023 December 31, 2022 Time less than $100,000 $ 381,902 $ 157,263 Time $100,000 through $250,000 163,933 118,655 Time $250,000 or more 154,425 47,521 Total $ 700,260 $ 323,439 At December 31, 2023 and December 31, 2022, the scheduled maturities by year for time deposits are as follows: (in thousands) December 31, 2023 December 31, 2022 Within 1 year $ 670,961 $ 262,338 Over 1 year to 2 years 17,000 37,937 Over 2 years to 3 years 6,932 12,936 Over 3 years to 4 years 3,434 5,410 Over 4 years to 5 years 1,795 4,319 Over 5 years 138 499 Total $ 700,260 $ 323,439 Included in time deposits are brokered deposits of $219.6 million and $15.1 million at December 31, 2023 and December 31, 2022, respectively. Also included in time deposits are reciprocal deposits of $43.3 million and $27.4 million at December 31, 2023 and December 31, 2022, respectively. |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2023 | |
BORROWED FUNDS | |
BORROWED FUNDS | NOTE 7. BORROWED FUNDS Borrowed funds at December 31, 2023 and December 31, 2022 are summarized, as follows: December 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 232,300 5.46 % $ 318,000 3.84 % Advances from the FRB BTFP 30,000 4.90 — — Other borrowings 8,465 0.13 13,369 0.13 Total short-term borrowings 270,765 2.88 331,369 2.20 Long-term borrowings Advances from the FHLB 279 4.39 2,588 0.48 Subordinated borrowings 60,461 6.22 60,289 4.95 Total long-term borrowings 60,740 6.21 62,877 4.76 Total $ 331,505 3.24 % $ 394,246 2.45 % Short-term debt includes FHLB advances with a remaining maturity of less than one year. We also maintain a $1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the years ended December 31, 2023 and 2022. We also have capacity to borrow funds on a secured basis utilizing the Federal Reserve Discount Window and the Bank Term Funding Program (“BTFP”). As of December 31, 2023, our available secured line of credit at the FRB was $156.6 million versus $90.4 million in 2022. The BTFP enables depository institutions to pledge eligible investment securities to the Federal Reserve with borrowing capacity based upon the par value of the collateral. During the fourth quarter of 2023, we entered into the Bank Term Funding Program for $30 million at a fixed rate of 4.85% for a period of one year. The BTFP allows us to manage borrowing costs while obtaining favorable prepayment terms, as we may prepay at any time without penalty. There were no borrowings with the FRB at December 31, 2022. We maintain an unused unsecured federal funds line of credit with a correspondent bank that has an aggregate overnight borrowing capacity of $50 million as of December 31, 2023 and December 31, 2022. There was no outstanding balance on the line of credit as of December 31, 2023 and December 31, 2022. Long-term FHLB advances consist of advances with a remaining maturity of more than one year. The advances outstanding at December 31, 2023 include $279 thousand and $288 thousand in 2022 of amortizing advances. There were no callable advances in 2023 and 2022. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of December 31, 2023 is as follows: Weighted Average (in thousands, except rates) Amount Rate 2024 $ 232,300 5.46 % 2025 — — 2026 — — 2027 — — 2028 — — Thereafter 279 4.39 Total FHLB advances $ 232,579 5.46 % We executed a Subordinated Note Purchase Agreement with an aggregate of $40.0 million of subordinated notes (the “Notes”) to accredited investors on November 26, 2019. The Notes have a maturity date of December 1, 2029 and bear a fixed interest rate of 4.63% through December 1, 2024 payable semi-annually in arrears. From December 1, 2024 and thereafter the interest rate shall be reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 3.27%. We have the option beginning with the interest payment date of December 1, 2024, and on any scheduled payment date thereafter, to redeem the Notes, in whole or in part upon prior approval of the Federal Reserve. The transaction included debt issuance costs of $158 thousand and $331 thousand net of amortization as of December 31, 2023 and 2022 respectively, which are netted against the subordinated debt. We also have $20.6 million in floating Junior Subordinated Deferrable Interest Debentures (“Debentures”) issued by NHTB Capital Trust II (“Trust II”) and NHTB Capital Trust III (“Trust III”), which are both Connecticut statutory trusts. The Debentures were issued on March 30, 2004, carry a variable interest rate of three-month SOFR plus 2.79%, and mature in 2034. The debt is callable by the Company at the time when any interest payment is made. Trust II and Trust III are considered variable interest entities for which we are not the primary beneficiary. Accordingly, Trust II and Trust III are not consolidated into our financial statements. Repurchase Agreements We can raise additional liquidity by entering into repurchase agreements at our discretion. In a security repurchase agreement transaction, we will generally sell a security, agreeing to repurchase either the same or substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense on the consolidated statements of income. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions do not meet the criteria to be classified as sales, and are therefore considered secured borrowing transactions for accounting purposes. Payments on such borrowings are interest only until the scheduled repurchase date. In a repurchase agreement, we are subject to the risk that the purchaser may default at maturity and not return the securities underlying the agreements. In order to minimize this potential risk, we either deal with established firms when entering into these transactions or with customers whose agreements stipulate that the securities underlying the agreement are not delivered to the customer and instead are held in segregated safekeeping accounts by our safekeeping agents. Our repurchase agreements accounted for as secured borrowings, as of December 31, 2023 and December 31, 2022 are as follows: (in thousands) December 31, 2023 December 31, 2022 Customer Repurchase Agreements US Government-sponsored enterprises $ 8,465 $ 13,369 Total $ 8,465 $ 13,369 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | NOTE 8. EMPLOYEE BENEFIT PLANS Pension Plans We maintain a legacy, employer-sponsored defined benefit pension plan (the “Plan”) for which participation and benefit accruals were frozen on January 13, 2017. Accordingly, no employees are permitted to commence participation in the Plan and future salary increases and years of credited service are not considered when computing an employee’s benefits under the Plan. As of December 31, 2023, all minimum Employee Retirement Income Security Act (“ERISA”) funding requirements have been met. The following tables set forth information about the plan for the year ended December 31, 2023 and 2022: (in thousands) 2023 2022 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,245 $ 8,601 Interest cost 318 236 Actuarial Gain/(loss) 119 (2,114) Benefits paid (317) (326) Settlements — (152) Projected benefit obligation at end of year 6,365 6,245 Change in fair value of plan assets: Fair value of plan assets at beginning of year 9,044 12,422 Expected return on plan assets 622 (2,900) Benefits paid (317) (326) Settlements — (152) Fair value of plan assets at end of year 9,349 9,044 Overfunded status $ (2,984) $ (2,799) Amounts recognized in consolidated balance sheet: Other assets $ 2,984 $ 2,799 Net periodic pension cost/(benefit) is comprised of the following for the years ended December 31, 2023 and 2022: (in thousands) 2023 2022 Interest cost $ 318 $ 236 Expected return on plan assets (355) (612) Unrecognized loss 53 — Net periodic pension benefit $ 16 $ (376) Amounts recognized in other comprehensive income for the years ended December 31, 2023 and 2022 included: (in thousands) 2023 2022 Net actuarial loss (gain) $ (148) $ 1,391 Recognized loss (53) — Net period pension benefit (credit) 16 (376) Total recognized in other comprehensive income $ (185) $ 1,015 Change in plan assets and benefit obligations recognized in accumulated other comprehensive income as of December 31, 2023 and 2022 are as follows: (in thousands) 2023 2022 Net actuarial (gain) loss $ (148) $ 1,391 Recognized loss (53) — Prior service cost — — Amounts Recognized in accumulated other comprehensive (gain) loss (pre-tax) $ (201) $ 1,391 The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic pension cost, related to the Plan are a net loss of $1.2 million. We expect to make no cash contributions to the pension trust during the 2024 fiscal year. The amount expected to be amortized from accumulated other comprehensive loss into net periodic pension cost over the next fiscal year is zero. The principal actuarial assumptions used at December 31, 2023 and 2022 were as follows: 2023 2022 Projected benefit obligation Discount rate 5.00 % 5.23 % Net periodic pension cost Discount rate 5.23 % 2.80 % Long-term rate of return on plan assets 4.00 5.00 The discount rate that is used in the measurement of the pension obligation is determined by comparing the expected future retirement payment cash flows of the plan to the Citigroup Above Median Double-A Curve as of the measurement date. The expected long-term rate of return on Plan assets reflects expectations of future returns as applied to the plan’s target allocation of asset classes. In estimating that rate, appropriate consideration was given to historical returns earned by equities and fixed income securities. Our overall investment strategy with respect to the Plan’s assets is to maintain assets at a level that will sufficiently cover future beneficiary obligations while achieving long term growth in assets. The Plan’s targeted asset allocation is 20% equity securities and 80% fixed-income securities primarily consisting of long-term products. The fair values for investment securities are determined by quoted prices in active markets, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair value of the Plan’s assets by category and level within fair value hierarchy are as follows at December 31, 2023 and 2022: 2023 (in thousands) Total Level 1 Level 2 Equity mutual funds: Large-cap $ 680 $ 680 $ — Mid-cap 195 195 — Small-cap 199 199 — International 391 391 — Fixed income funds: Fixed-income - core plus — — — Intermediate duration — — — Long duration 6,698 6,698 — Common stock 663 663 — Common/collective trusts - large-cap 180 — 180 Cash equivalents - money market 343 343 — Total $ 9,349 $ 9,169 $ 180 2022 (in thousands) Total Level 1 Level 2 Equity mutual funds: Large-cap $ 660 $ 660 $ — Mid-cap 210 210 — Small-cap 214 214 — International 420 420 — Fixed income funds: Long duration 6,294 6,294 — Common stock 724 724 — Common/collective trusts - large-cap 206 — 206 Cash equivalents - money market 316 316 — Total $ 9,044 $ 8,838 $ 206 The Plan did not hold any assets classified as Level 3, and there were no transfers between levels during 2023 and 2022. Estimated benefit payments under our pension plan over the next 10 years at December 31, 2023 are as follows: (in thousands) Payments 2024 $ 342 2025 337 2026 402 2027 404 2028 423 2029-2033 2,233 Total $ 4,141 Non-qualified Supplemental Executive Retirement Plan We have non-qualified supplemental executive retirement agreements with certain retired officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death. This agreement provides a stream of future payments in accordance with individually defined vesting schedules upon retirement, termination, or in the event that the participating executive leaves the Company following a change of control event. The following table sets forth changes in benefit obligation, changes in plan assets, and the funded status of the plan as of and for the years ended December 31, 2023 and December 31, 2022: (in thousands) 2023 2022 Change in benefit obligation: Projected benefit obligation at beginning of year $ 2,093 $ 2,606 Service cost — — Interest cost 97 54 Actuarial (gain) loss (5) (307) Benefits paid (260) (260) Projected benefit obligation at end of year $ 1,925 $ 2,093 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Expected return on plan assets — — Contributions by employer 260 260 Benefits paid (260) (260) Fair value of plan assets at end of year $ — $ — Underfunded status $ 1,925 $ 2,093 Amounts recognized in consolidated balance sheet Other liabilities $ 1,925 $ 2,093 Net periodic benefit cost is comprised of the following for the years ended December 31, 2023 and 2022: (in thousands) 2023 2022 Interest cost $ 97 $ 54 Expected return on plan assets — — Amortization of unrecognized actuarial loss 7 37 Net periodic benefit cost $ 104 $ 91 Amounts recognized in other comprehensive income for the years ended December 31, 2023 and 2022 included: (in thousands) 2023 2022 Net actuarial loss (gain) $ 100 $ (382) Amortization of unrecognized actuarial loss (7) (37) Total recognized in other comprehensive loss (gain) $ 93 $ (419) Change in plan assets and benefit obligations recognized in accumulated other comprehensive income in 2023 and 2022 are as follows: (in thousands) 2023 2022 Accumulated other comprehensive loss at beginning of the year (pre-tax) 180 599 Actuarial loss (gain) 100 (382) Amortization of actuarial loss (7) (37) Accumulated other comprehensive loss at end of year (pre-tax) $ 273 $ 180 The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic benefit cost, related to the non-qualified supplemental executive retirement agreements are a net loss of $204 thousand. The amount expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $10 thousand. The principal actuarial assumptions used at December 31, 2023 and December 31, 2022 were as follows: 2023 2022 Discount rate beginning of year 4.92 % 2.12 % Discount rate end of year 4.72 4.92 The discount rate used in the measurement of the non-qualified supplemental executive retirement plan obligation is determined by comparing the expected future retirement payment cash flows to the Citigroup Above Median Double- A Curve as of the measurement date. We expect to contribute the following amounts to fund benefit payments under the supplemental executive retirement plans: (in thousands) Payments 2024 $ 260 2025 231 2026 221 2027 221 2028 221 2029-2033 1,104 Total $ 2,258 401(k) Plan We maintain a Section 401(k) savings plan for substantially all of its employees. Employees are eligible to participate in the 401(k) Plan on the first day of any quarter following their date of hire and attainment of age 21½ . Under the plan, we make a matching contribution of a portion of the amount contributed by each participating employee, up to a percentage of the employee’s annual salary. The plan allows for supplementary profit sharing contributions by Bar Harbor, at its discretion, for the benefit of participating employees. The total expense for this plan in 2023, 2022, and 2021 was $1.2 million. Other Plans As a result of the acquisition of a business combination in 2017, we assumed salary continuation agreements for supplemental retirement income with certain prior executives and senior officers along with an executive indexed supplemental retirement plan for one prior executive. The total liability for these agreements included in other liabilities was $6.3 million at December 31, 2023 and $6.5 million at December 31, 2022. Expense recorded in 2023 was $255 thousand compared to Income recorded in 2022 was $1.2 million. We recorded income in 2021 under these agreements of $312 thousand. We also assumed split-dollar life insurance agreements from the 2017 business combination with an accrued liability of $709 thousand at December 31, 2023 and $679 thousand at December 31, 2022. We recorded expense for the split-dollar life insurance agreements of $30 thousand in 2023 and income of $197 thousand in 2022. We recorded expense of $22 thousand in 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 9. INCOME TAXES The following table summarizes the current and deferred components of income tax expense (benefit) for each of the years ended December 31, 2023, 2022 and 2021: (in thousands) 2023 2022 2021 Current: Federal tax expense $ 10,704 $ 10,444 $ 7,796 State tax expense 2,247 1,551 1,106 Total current tax expense 12,951 11,995 8,902 Deferred tax (benefit) expense (686) (707) 427 Total income tax expense $ 12,265 $ 11,288 $ 9,329 The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 21%) to recorded income tax expense for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 (in thousands, except ratios) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 11,995 21.00 % $ 11,517 21.00 % $ 10,210 21.00 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,539 2.69 1,477 2.69 1,280 2.63 Tax exempt interest (1,042) (1.82) (1,003) (1.83) (1,240) (2.55) Federal tax credits (471) (0.82) (241) (0.44) (582) (1.20) Officers' life insurance (578) (1.01) (498) (0.91) (466) (0.96) Gain on disposal of low income housing tax credit investments — — — — — — Stock-based compensation plans 17 0.03 (16) (0.03) (73) (0.15) Other 805 1.40 52 0.10 200 0.42 Effective tax rate $ 12,265 21.47 % $ 11,288 20.58 % $ 9,329 19.19 % The net deferred tax asset was $23.0 million at December 31, 2023 and $24.4 million at December 31, 2022. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are summarized below: 2023 2022 (in thousands) Assets Liabilities Assets Liabilities Allowance for credit losses $ 6,593 $ — $ 5,964 $ — Deferred compensation 3,678 — 3,812 — Unrealized gain or loss on securities available for sale 14,702 — 16,586 — Unrealized gain or loss on derivatives 312 — 539 — Depreciation — 1,101 — 1,723 Deferred loan origination fees, net — 129 129 — Non-accrual interest 632 — 600 — Branch acquisition costs and goodwill — 1,987 — 1,644 Core deposit intangible — 689 — 806 Acquisition fair value adjustments 232 — 213 — Prepaid expenses — 297 — 271 Mortgage servicing rights — 741 — 780 Equity compensation 1,016 — 736 — Prepaid pension — 669 — 616 Contract incentives 564 — 766 — Right of use asset — 1,611 — 1,863 Lease liability 1,716 — 1,961 — Other 758 — 840 — Total $ 30,203 $ 7,224 $ 32,146 $ 7,703 We have determined that a valuation allowance is not required for its net deferred tax asset since it is more likely than not that this asset is realizable principally through future taxable income and future reversal of existing temporary differences. GAAP requires the measurement of unrecorded tax benefits related to uncertain tax positions. An unrecorded tax benefit is the difference between the tax benefit of a position taken, or expected to be taken, on a tax return and the benefit recorded for accounting purposes. At December 31, 2023 and 2022, we had no unrecorded tax benefits and do not expect our position to significantly change within the next 12 months. We are subject to income tax in the U.S. federal jurisdiction and also in the states of Maine, New Hampshire and Massachusetts. We are no longer subject to examination by taxing authorities for years before 2020. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 10. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES We use derivative instruments to minimize fluctuations in earnings and cash flows caused by interest rate volatility. Our interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so the changes in interest rates do not have a significant effect on net interest income. Thus, all of our derivative contracts are considered to be interest rate contracts. We recognize our derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, we designate whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). We formally document relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking hedge transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. We offer derivative products in the form of interest rate swaps, to commercial loan customers to facilitate their risk management strategies. These instruments are executed through Master Netting Arrangements (“MNA”) with financial institution counterparties or Risk Participation Agreements (“RPA”) with commercial bank counterparties, for which we assume a pro rata share of the credit exposure associated with a borrower's performance related to the derivative contract with the counterparty. Information about derivative assets and liabilities at December 31, 2023 and December 31, 2022, follows: December 31, 2023 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale funding $ 75,000 1.0 $ 2,803 Other assets Interest rate swap on variable rate loans 50,000 2.2 (3,459) Other liabilities Total cash flow hedges 125,000 (656) Fair value hedges: Interest rate swap on securities 37,190 5.6 3,844 Other assets Total fair value hedges 37,190 3,844 Economic hedges: Forward sale commitments 5,000 — (20) Other liabilities Customer Loan Swaps-MNA Counterparty 184,826 5.0 (14,842) Other liabilities Customer Loan Swaps-RPA Counterparty 142,199 4.9 (286) Other liabilities Customer Loan Swaps-Customer 327,025 4.9 15,128 Other assets Total economic hedges 659,050 (20) Non-hedging derivatives: Interest rate lock commitments 3,153 0.1 63 Other assets Total non-hedging derivatives 3,153 63 Total $ 824,393 $ 3,231 December 31, 2022 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale funding $ 75,000 2.0 $ 4,978 Other assets Interest rate swap on variable rate loans 50,000 3.2 (4,941) Other liabilities Total cash flow hedges 125,000 37 Fair value hedges: Interest rate swap on securities 37,190 6.6 4,774 Other assets Total fair value hedges 37,190 4,774 Economic hedges: Forward sale commitments — — — Other assets Customer Loan Swaps-MNA Counterparty 191,987 5.8 (20,287) Other liabilities Customer Loan Swaps-RPA Counterparty 113,928 6.0 — Other liabilities Customer Loan Swaps-Customer 305,914 5.9 20,287 Other assets Total economic hedges 611,829 — Non-hedging derivatives: Interest rate lock commitments — — — Other assets Total non-hedging derivatives — — Total $ 774,019 $ 4,811 As of December 31, 2023, and 2022, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount December 31, 2023 Interest rate swap on securities Securities available for sale $ 32,680 $ (4,510) December 31, 2022 Interest rate swap on securities Securities available for sale $ 30,045 $ (7,145) Information about derivative assets and liabilities for December 31, 2023 and December 31, 2022, follows: Year Ended December 31, 2023 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (1,687) Interest expense $ — Interest expense $ 3,062 Interest rate swap on variable rate loans 1,157 Interest income — Interest income (2,167) Total cash flow hedges (530) — 895 Fair value hedges: Interest rate swap on securities 1,314 Interest income — Interest income 1,359 Total fair value hedges 1,314 — 1,359 Economic hedges: Forward commitments — Other income — Mortgage banking income (20) Total economic hedges — — (20) Non-hedging derivatives: Interest rate lock commitments — Other expense — Mortgage banking income (20) Total non-hedging derivatives — — (20) Total $ 784 $ — $ 2,214 (1) As of December 31, 2023, we do not expect any gains or losses from accumulated other comprehensive income into earnings within the next 12 months. Year Ended December 31, 2022 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ 3,922 Interest expense $ — Interest expense $ 475 Interest rate swap on variable rate loans (3,218) Interest income — Interest income (601) Total cash flow hedges 704 — (126) Fair value hedges: Interest rate swap on securities — Interest income — Interest income 140 Total economic hedges — — 140 Economic hedges: Forward commitments — Other income — Mortgage banking income (15) Total economic hedges — — (15) Non-hedging derivatives: Interest rate lock commitments — Other income — Mortgage banking income (283) Total non-hedging derivatives — — (283) Total $ 704 $ — $ (284) The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 149,420 $ 24,762 $ 38,232 $ 18,275 $ 35,829 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 3,062 — Interest rate swap on variable rate loans (2,167) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 1,359 — — — Year Ended December 31, 2022 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 107,797 $ 18,729 $ 7,344 $ 5,501 $ 35,321 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 475 — Interest rate swap on variable rate loans (601) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 140 — — — Cash flow hedges Interest rate swaps on wholesale funding As of December 31, 2023, we have two interest rate swaps on wholesale borrowings (the “Swaps”) to limit its exposure to rising interest rates over a five year term on 3-month FHLB borrowings or brokered certificates, or a combination thereof at each maturity date. The first of the two agreements was entered in November 2019 with a $50.0 million notional amount and pays a fixed interest rate of 1.53%. A second agreement was entered in April 2020 with a $25.0 million notional amount and pays a fixed rate of 0.59%. The financial institution counterparty pays us interest on the daily SOFR rate plus 26 basis points. We designated the Swaps as cash flow hedges. Interest rate swap on variable rate loans We have an interest rate swap that effectively fixes our interest rate on $50 million at the daily SOFR rate plus 11 basis points of based loan assets at 0.806% plus the credit spread on the loans that reprices on weighted average basis. The instrument is specifically designed to hedge the risk of changes in its cash flows from interest receipts attributable to changes in a contractually specified interest rate, on an amount of our variable rate loan assets equal to $50 million. We designated the swap as a cash flow hedge. Fair value hedges For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. We utilize interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to SOFR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. During 2019, we entered into eight swap transactions with a notional amount of $37.2 million designated as fair value hedges. These derivatives are intended to protect against the effects of changing interest rates on the fair values of fixed rate securities. The fixed rates on the transactions have a weighted average of 1.696%. Economic hedges Forward sale commitments We utilize forward sale commitments on residential mortgage loans to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives. We typically use a combination of best efforts and mandatory delivery contracts. The contracts are loan sale agreements where we commit to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, we enter into contracts just prior to the loan closing with a customer. Customer loan derivatives We enter into customer loan derivatives to facilitate the risk management strategies for commercial banking customers. We mitigate this risk by entering into equal and offsetting loan swap agreements with highly rated third-party financial institutions. The loan swap agreements are free standing derivatives and are recorded at fair value in our consolidated balance sheet. We are party to master netting arrangements with our financial institutional counterparties; however, we do not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all loan swap agreements, as well as collateral or cash funds, in the event of default on, or termination of, any one contract. Collateral is provided by cash or securities received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. The below table describes the potential effect of master netting arrangements on the consolidated balance sheet and the financial collateral pledged for these arrangements: Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2023 Customer Loan Derivatives: MNA counterparty $ (14,842) $ 14,842 $ — $ — RPA counterparty (286) 286 — — Total $ (15,128) $ 15,128 $ — $ — Non-hedging derivatives Interest rate lock commitments We enter into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit us to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs relate to the origination of residential mortgage loans that are held for sale and are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose us to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free standing derivatives, which are carried at fair value with changes recorded in non-interest income in our Consolidated Statements of Income. Changes in the fair value of IRLCs subsequent to inception are based on (i) changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and (ii) changes in the probability when the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. |
OTHER COMMITMENTS, CONTINGENCIE
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | |
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | NOTE 11. OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES Customer Obligations We are a party to financial instruments in the normal course of business to meet financing needs of our customers. These financial instruments include commitments to extend credit, unused or unadvanced loan funds, and letters of credit. We use the same lending policies and procedures to make such commitments as we use for other lending products. Customer’s creditworthiness is evaluated on a case-by-case basis. Commitments to originate loans, including unused or unadvanced loan funds, are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require customer payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by us. Typically these letters of credit expire if unused; therefore the total amounts do not necessarily represent future cash requirements. The following table summarizes the contractual amounts of commitments and contingent liabilities to customers as of December 31, 2023 and December 31, 2022: (in thousands) 2023 2022 Commitments to originate new loans $ 55,163 $ 51,371 Unused funds on commercial and other lines of credit 202,516 265,587 Unadvanced funds on home equity lines of credit 118,794 122,295 Unadvanced funds on construction and real estate loans 188,794 247,382 Commercial and standby letters of credit 4,217 4,370 Letters of credit securing municipal deposits 232,500 228,900 Total $ 801,984 $ 919,905 Legal Claims Various legal claims arise from time to time in the normal course of business. As of December 31, 2023, neither the Company nor its subsidiaries were involved in any pending legal proceedings believed by management to be material to our financial condition or results of operations. Periodically, there have been various claims and lawsuits involving the Company, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans, and other issues incident in the normal course of our business. However, neither the Company nor its subsidiaries are a party to any pending legal proceedings that it believes, either individually or in the aggregate, would have a material adverse effect on our financial condition or operations. Additionally, future, probable losses cannot be estimated as of December 31, 2023. |
SHAREHOLDERS' EQUITY AND EARNIN
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | |
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | NOTE 12. SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE The actual and required capital ratios at December 31, 2023 and December 31, 2022 were as follows: December 31, 2023 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 450,160 14.24 % $ 252,888 8.00 % Common equity tier 1 capital to risk-weighted assets 357,574 11.31 142,249 4.50 Tier 1 capital to risk-weighted assets 378,194 11.96 189,666 6.00 Tier 1 capital to average assets (leverage ratio) 378,194 9.70 156,022 4.00 Bank Total capital to risk-weighted assets $ 441,278 13.97 % $ 252,642 8.00 % Common equity tier 1 capital to risk-weighted assets 409,312 12.96 142,111 4.50 Tier 1 capital to risk-weighted assets 409,312 12.96 189,482 6.00 Tier 1 capital to average assets (leverage ratio) 409,312 10.50 155,908 4.00 December 31, 2022 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 416,900 13.50 % $ 247,041 8.00 % Common equity tier 1 capital to risk-weighted assets 326,513 10.57 138,960 4.50 Tier 1 capital to risk-weighted assets 347,133 11.24 185,281 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.21 150,772 4.00 Bank Total capital to risk-weighted assets $ 410,053 13.29 % $ 246,812 8.00 % Common equity tier 1 capital to risk-weighted assets 380,286 12.33 138,832 4.50 Tier 1 capital to risk-weighted assets 380,286 12.33 185,110 6.00 Tier 1 capital to average assets (leverage ratio) 380,286 10.10 150,655 4.00 In order to be classified as “well-capitalized” under the relevant regulatory framework, the Company must, on a consolidated basis, maintain a total risk-based capital ratio of 10.00% or greater and a Tier 1 risk-based capital ratio of 6.00% or greater, and the Bank must maintain a total risk-based capital ratio of 10.00% or greater, a Tier 1 risk-based capital ratio of 8.00% or greater, a common equity Tier 1 capital ratio of 6.50% or greater, and a leverage ratio of 5.00% or greater. At each date shown in the tables above, the Company and the Bank met the conditions to be classified as “well-capitalized” under the relevant regulatory framework. Accumulated Other Comprehensive Income Components of accumulated other comprehensive income at December 31, 2023 and December 31, 2022 are as follows: (in thousands) December 31, 2023 December 31, 2022 Accumulated other comprehensive loss, before tax: Net unrealized loss on AFS securities $ (62,351) $ (71,832) Net unrealized loss on hedging derivatives (1,322) (2,333) Net unrealized loss on post-retirement plans (1,540) (1,691) Income taxes related to items of accumulated other comprehensive loss: Net unrealized loss on AFS securities 14,702 16,586 Net unrealized loss on hedging derivatives 312 539 Net unrealized loss on post-retirement plans 337 391 Accumulated other comprehensive loss $ (49,862) $ (58,340) The following table presents the components of other comprehensive income in 2023, 2022 and 2021: (in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2023 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 9,515 $ (1,892) $ 7,623 Less: reclassification adjustment for gains realized in net income 34 (8) 26 Net unrealized gain on AFS securities 9,481 (1,884) 7,597 Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 1,011 (227) 784 Less: reclassification adjustment for gains realized in net income — — — Net unrealized gain on hedging derivatives 1,011 (227) 784 Net unrealized gain on post-retirement plans: Net unrealized gain arising during the period 135 (38) 97 Less: reclassification adjustment for gains realized in net income — — — Net unrealized gain on post-retirement plans 135 (38) 97 Other comprehensive income $ 10,627 $ (2,149) $ 8,478 Year Ended December 31, 2022 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (74,359) $ 17,169 $ (57,190) Less: reclassification adjustment for gains realized in net income 53 (12) 41 Net unrealized loss on AFS securities (74,412) 17,181 (57,231) Net unrealized loss on hedging derivatives: Net unrealized loss arising during the period (3,463) 799 (2,664) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on hedging derivatives (3,463) 799 (2,664) Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period (973) 225 (748) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans (973) 225 (748) Other comprehensive loss $ (78,848) $ 18,205 $ (60,643) 2021 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (7,619) $ 1,779 $ (5,840) Less: reclassification adjustment for gains realized in net income 2,870 (672) 2,198 Net unrealized loss on AFS securities (10,489) 2,451 (8,038) Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 3,562 (827) 2,735 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 3,562 (827) 2,735 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period 1,132 (266) 866 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans 1,132 (266) 866 Other comprehensive loss $ (5,795) $ 1,358 $ (4,437) The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2023, 2022 and 2021: Net unrealized Net gain (loss) on Net unrealized gain (loss) effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Year Ended December 31, 2023 Balance at beginning of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Other comprehensive gain before reclassifications 7,623 784 97 8,504 Less: amounts reclassified from accumulated other comprehensive income 26 — — 26 Total other comprehensive income 7,597 784 97 8,478 Balance at end of period $ (47,649) $ (1,010) $ (1,203) $ (49,862) Year Ended December 31, 2022 Balance at beginning of period $ 1,985 $ 870 $ (552) $ 2,303 Other comprehensive loss before reclassifications (57,190) (2,664) (748) (60,602) Less: amounts reclassified from accumulated other comprehensive income 41 — — 41 Total other comprehensive loss (57,231) (2,664) (748) (60,643) Balance at end of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Year Ended December 31, 2021 Balance at beginning of period $ 10,023 $ (1,865) $ (1,418) $ 6,740 Other comprehensive loss before reclassifications (5,840) 2,735 866 (2,239) Less: amounts reclassified from accumulated other comprehensive income 2,198 — — 2,198 Total other comprehensive loss (8,038) 2,735 866 (4,437) Balance at end of period $ 1,985 $ 870 $ (552) $ 2,303 The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2023, 2022 and 2021: Affected Line Item where (in thousands) 2023 2022 2021 Net Income is Presented Net realized gains on AFS securities: Before tax $ 34 $ 53 $ 2,870 Non-interest income Tax effect (8) (12) (672) Tax expense Total reclassifications for the period $ 26 $ 41 $ 2,198 Earnings per Share Earnings per share have been computed based on the following: (in thousands, except per share and share data) 2023 2022 2021 Net income $ 44,852 $ 43,557 $ 39,299 Average number of basic common shares outstanding 15,142,188 15,040,162 14,968,973 Plus: dilutive effect of stock options and awards outstanding 53,048 71,799 76,189 Average number of diluted common shares outstanding (1) 15,195,236 15,111,961 15,045,162 Earnings per share: Basic $ 2.96 $ 2.90 $ 2.63 Diluted $ 2.95 $ 2.88 $ 2.61 (1) Average diluted shares outstanding are computed using the treasury stock method. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | NOTE 13. STOCK-BASED COMPENSATION PLANS We have several stock-based compensation plans that allow for grants of restricted stock, restricted shares, performance share units, performance shares and restricted stock units to our employees and non-employee directors. Our stock-based compensation plans are administered by the Compensation Committee of the Board of Directors. For the years ended December 31, 2023, 2022 and 2021, all common stock issuances in connection with stock-based compensation arrangements were issued from unissued shares. As of December 31, 2023, total shares authorized under the stock-based compensation 2019 plan for employees and directors were 500,000 shares, of which 217,435 shares were available for future grants. Compensation expense recognized in connection with the stock-based compensation plans are presented in the following table for the years ended December 31, 2023, 2022, and 2021: (in thousands) 2023 2022 2021 Stock options $ — $ — $ — Restricted stock awards 868 578 357 Performance stock units 857 181 317 Restricted stock units 800 1,098 1,391 Total compensation expense $ 2,525 $ 1,857 $ 2,065 Tax benefits recognized from stock-based compensation plans for the years ended December 31, 2023, 2022, and 2021 are, as follows: (in thousands) 2023 2022 2021 Stock options (1) $ 17 $ 22 $ 77 Restricted stock awards 201 136 84 Performance stock units 204 43 79 Restricted stock units 193 274 344 Total tax benefit $ 615 $ 475 $ 584 (1) Stock Options A summary of stock options as of December 31, 2023 and 2022, and changes during the year then ended is presented below: Number of Weighted Aggregate Stock Options Average Intrinsic Value Stock Options Outstanding Exercise Price (in thousands) Outstanding at January 1, 2023 47,327 $ 21.47 Granted — — Exercised (8,166) 20.64 Forfeited — — Expired (3,323) 16.99 Outstanding at December 31, 2023 35,838 $ 22.08 $ 261 Ending vested and expected to vest December 31, 2023 35,838 $ 22.08 $ 261 Exercisable at December 31, 2023 35,838 22.08 261 Number of Weighted Aggregate Stock Options Average Intrinsic Value Stock Options Outstanding Exercise Price (in thousands) Outstanding at January 1, 2022 57,964 $ 20.89 Granted — — Exercised (10,637) 18.29 Forfeited — — Expired — — Outstanding at December 31, 2022 47,327 $ 21.47 $ 500 Ending vested and expected to vest December 31, 2022 47,327 $ 21.47 $ 500 Exercisable at December 31, 2022 47,327 21.47 500 All outstanding options were fully vested with no unrecognized compensation cost as of December 31, 2021. The intrinsic value of the options exercised for the years ended December 31, 2023, 2022, and 2021, was approximately $74 thousand, $94 thousand and $331 thousand, respectively. The weighted average remaining contractual term of outstanding options is approximately 1.6 years. Restricted Stock Awards Restricted stock awards (“RSAs”) are granted to certain directors and executive officers and vest immediately. A summary of RSAs as of December 31, 2023 and 2022, and changes during the year then ended is presented below: Number of Restricted Stock Weighted Average Awards Grant Date Fair Restricted Stock Awards Outstanding Value Outstanding at January 1, 2023 24,824 $ 28.49 Awarded 39,585 29.16 Vested (23,235) 27.36 Forfeited — — Outstanding at December 31, 2023 41,174 $ 29.78 Number of Restricted Stock Weighted Average Awards Grant Date Fair Restricted Stock Awards Outstanding Value Outstanding at January 1, 2022 — $ — Awarded 39,267 29.21 Vested (14,443) 30.46 Forfeited — — Outstanding at December 31, 2022 24,824 $ 28.49 Unrecognized expense for non-vested RSAs totaled $370 thousand as of December 31, 2023, which is expected to be recognized over the weighted average remaining contractual maturity term of 3.0 years. Performance Stock Units We have a long-term incentive plan where performance unit awards (“PSUs”) are granted to certain executive officers providing the opportunity to earn shares of common stock of the Company based on our performance compared to peers. Participants in the plan were collectively granted PSUs ranging from zero to 43,247 in 2023 and from zero to 43,800 in 2022. The PSUs granted will vest only if the performance measures are achieved over a three year performance period. Failure to achieve the performance measures will result in all or a portion of shares being forfeited. On the grant dates in 2023 and 2022, PSUs had a weighted average fair value per share of $30.64 and $28.49, respectively. Expense is recognized over the performance period and is adjusted for changes in probability of the Company achieving profitability metrics. The following table summarizes PSUs at target as of December 31, 2023 and 2022: Number of Weighted Average Performance Stock Grant Date Fair Performance Stock Units Units Outstanding Value Nonvested at January 1, 2023 78,435 $ 25.70 Awarded 28,831 30.64 Vested and exercised (15,601) 25.29 Forfeited (6,750) 25.30 Nonvested at December 31, 2023 84,915 $ 27.53 Number of Weighted Average Performance Stock Grant Date Fair Performance Stock Units Units Outstanding Value Nonvested at January 1, 2022 70,465 $ 23.88 Awarded 29,200 28.49 Vested and exercised — — Forfeited (21,230) 23.35 Nonvested at December 31, 2022 78,435 $ 25.70 Unrecognized expense for non-vested PSUs totaled $1.3 million as of December 31, 2023, which is expected to be recognized over the weighted average remaining contractual maturity term of 2.8 years. PSUs do not carry an exercise price and therefore have no intrinsic value as of December 31, 2023. Restricted Stock Units During 2023 and 2022, restricted stock units (“RSUs”) were granted to certain executive officers and senior vice presidents. Awards to executives vest annually over 3 years while awards to senior vice presidents cliff vest at the end of three years. The RSUs granted were valued The following table summarizes RSUs activity in 2023 and 2022: Number of Weighted Average Restricted Stock Grant Date Fair Units Outstanding Value Outstanding at January 1, 2023 115,816 $ 25.25 Granted 36,354 26.12 Vested and exercised (43,341) 21.77 Forfeited (6,134) 25.84 Outstanding at December 31, 2023 102,695 $ 27.07 Number of Weighted Average Restricted Stock Grant Date Fair Units Outstanding Value Outstanding at January 1, 2022 133,617 $ 23.48 Granted 36,468 28.51 Vested and exercised (43,059) 22.88 Forfeited (11,210) 23.46 Outstanding at December 31, 2022 115,816 $ 25.25 RSUs include cash-based restricted stock units (“CRSUs”), total CRSUs vested and exercised during 2023 and 2022 were 29,043 and 24,232 shares, respectively. Unrecognized expense for non-vested RSUs totaled $1.5 million as of December 31, 2023, which is expected to be recognized over the weighted average remaining contractual maturity term of 3.0 years. Employee Stock Purchase Plan We maintain an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company’s common stock. The purchase price is 92% of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares; however, as of December 31, 2023, December 31, 2022 and December 31, 2021, there were 177,415, 179,079 and 167,502 shares available for issuance under the ESPP, respectively. Participants may not purchase more than 400 shares during any offering period and, in any event, no more than $25 thousand worth of common stock in any calendar year. The ESPP has been determined to be non-compensatory in nature. As a result, we expect that expenses related to the ESPP will not be material. During the years ended December 31, 2023, 2022 and 2021, there were 22,585, 20,921 and 19,481 shares of common stock issued under the ESPP, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 14. FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Obligations of US Government-sponsored enterprises $ — $ 1,992 $ — $ 1,992 Mortgage-backed securities: US Government-sponsored enterprises — 193,282 — 193,282 US Government agency — 74,213 — 74,213 Private label — 59,051 — 59,051 Obligations of states and political subdivisions thereof — 110,168 — 110,168 Corporate bonds — 95,868 — 95,868 Loans held for sale — 2,189 — 2,189 Derivative assets — 21,775 63 21,838 Derivative liabilities — (18,587) (20) (18,607) December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Obligations of US Government-sponsored enterprises $ — $ 2,660 $ — $ 2,660 Mortgage-backed securities: US Government-sponsored enterprises — 215,027 — 215,027 US Government agency — 79,606 — 79,606 Private label — 60,154 — 60,154 Obligations of states and political subdivisions thereof — 107,737 — 107,737 Corporate bonds — 94,332 — 94,332 Loans held for sale — — — — Derivative assets — 30,039 — 30,039 Derivative liabilities — (25,228) — (25,228) Securities Available for Sale: Loans Held for Sale: Derivative Assets and Liabilities Cash Flow Hedges. Interest Rate Lock Commitments. Forward Sale Commitments . Customer Loan Derivatives. Although we have determined that the majority of the inputs used to value customer loan derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and counterparties. However, as of December 31, 2023, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we determined that the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis in 2023 and 2022. Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Year Ended December 31, 2023 Balance at beginning of period $ — $ — Realized gain recognized in non-interest income 63 — Balance at end of period $ 63 $ — Year Ended December 31, 2022 Balance at beginning of period $ 283 $ 15 Realized loss recognized in non-interest income (283) (7) Balance at end of period $ — $ 8 Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value (in thousands, December 31, Valuation Unobservable Unobservable except ratios) 2023 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 63 Pull-through Rate Analysis Closing Ratio 95 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Total $ 63 Fair Value Significant December 31, Valuation Unobservable Unobservable (in thousands, except ratios) 2022 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 283 Pull-through Rate Analysis Closing Ratio 85 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Forward Commitments 15 Quoted prices for similar loans in active markets Freddie Mac pricing system $99.8 to $103.2 Total $ 298 There were no level 3 assets and liabilities that were measured at fair value on a recurring basis in 2023 and 2022. Non-Recurring Fair Value Measurements We are required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with U.S. GAAP. The following is a summary of applicable non-recurring fair value measurements. Fair Value Measurement Date as of Dec 31, 2023 Dec 31, 2022 December 31, 2023 December 31, 2023 Level 3 Level 3 Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Inputs Assets Individually evaluated loans $ 3,500 $ 16,477 $ (12,977) December 2023 Capitalized servicing rights 6,764 6,845 (81) December 2023 Premises held for sale 1,154 252 902 December 2023 Total $ 11,418 $ 23,574 $ (12,156) Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2023 and December 31, 2022 is as follows: (in thousands, except ratios) Fair Value December 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 2,437 Fair value of collateral-appraised value Loss severity 10% to 43% Appraised value $80 to $965 Individually evaluated loans 1,063 Discount cash flow Discount rate 3.25% to 7.13% Cash flows $2 to $520 Capitalized servicing rights 6,764 Discounted cash flow Constant prepayment rate 7.20% Discount rate 10.06% Premises held for sale 1,154 Fair value of asset less selling costs Appraised value $1,223 Selling Costs 6% Total $ 11,418 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. (in thousands, except ratios) Fair Value December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 13,587 Fair value of collateral-appraised value Loss severity 1% to 40% Appraised value $80 to $3,859 Individually evaluated loans 2,890 Discount cash flow Discount rate 3.63% to 6.38% Cash flows $100 to $539 Capitalized servicing rights 6,845 Discounted cash flow Constant prepayment rate 7.29% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 23,574 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. There were no Level 1 or Level 2 non-recurring fair value measurements for the periods ended December 31, 2023 and December 31, 2022. Individually evaluated loans. Capitalized loan servicing rights . Other real estate owned or OREO. Premises held for sale. Summary of Estimated Fair Values of Financial Instruments The estimated fair values, and related carrying amounts, of our financial instruments are included in the table below. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. December 31, 2023 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 94,842 $ 94,842 $ 94,842 $ — $ — Securities available for sale 534,574 534,574 — 534,574 — FHLB stock 14,834 14,834 — 14,834 — Loans held for sale 2,189 2,189 — 2,189 — Net loans 2,999,049 2,832,173 — — 2,832,173 Accrued interest receivable 4,921 4,921 — 4,921 — Cash surrender value of bank-owned life insurance policies 80,037 80,037 — 80,037 — Derivative assets 21,838 21,838 — 21,775 63 Financial Liabilities Non-maturity deposits $ 2,482,012 $ 2,325,307 $ — $ 2,325,307 $ — Time deposits 658,482 651,855 — 651,855 — Securities sold under agreements to repurchase 38,504 38,504 — 38,504 — FHLB advances 232,579 232,375 — 232,375 — Subordinated borrowings 60,422 67,635 — 67,635 — Derivative liabilities 15,607 15,607 — 15,587 20 December 31, 2022 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities available for sale 559,516 559,516 — 559,516 — FHLB stock 14,893 14,893 — 14,893 — Loans held for sale — — — — — Net loans 2,902,690 2,774,863 — — 2,774,863 Accrued interest receivable 4,257 4,257 — 4,257 — Cash surrender value of bank-owned life insurance policies 81,197 81,197 — 81,197 — Derivative assets 30,039 30,039 — 30,039 — Financial Liabilities Non-maturity deposits $ 2,719,992 $ 2,309,555 $ — $ 2,309,555 $ — Time deposits 323,439 315,180 — 315,180 — Securities sold under agreements to repurchase 13,369 13,369 — 13,369 — FHLB advances 320,588 320,244 — 320,244 — Subordinated borrowings 60,289 66,846 — 66,846 — Derivative liabilities 25,228 25,228 — 25,228 — |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 15. REVENUE FROM CONTRACTS WITH CUSTOMERS We have accounted for the various non-interest revenue streams and related contracts under ASC 606. Disaggregation of Revenue The following tables present disaggregation of our non-interest revenue by major business line and timing of revenue recognition for the transfer of products or services: Year Ended December 31, (in thousands) 2023 2022 Non-interest income within the scope of ASC 606: Trust management fees $ 12,766 $ 13,022 Financial services fees 1,517 1,551 Interchange fees 7,845 7,736 Customer deposit fees 6,280 5,935 Other customer service fees 1,043 1,120 Total non-interest income within the scope of ASC 606 29,451 29,364 Total non-interest income not within the scope of ASC 606 6,378 5,957 Total non-interest income $ 35,829 $ 35,321 Year Ended December 31, (in thousands) 2023 2022 Timing of Revenue Recognition Products and services transferred at a point in time $ 15,751 $ 15,552 Products and services transferred over time 13,700 13,812 Total $ 29,451 $ 29,364 Trust Management Fees The trust management business generates revenue through a range of fiduciary services including trust and estate administration, financial advice, and investment management to individuals, businesses, not-for-profit organizations, and municipalities. These fees are primarily earned over time as we charge our customers on a monthly or quarterly basis in accordance with investment advisory agreements. Fees are generally assessed based on a tiered scale of the market value of AUM at month end. Certain fees, such as bill paying fees, distribution fees, real estate sale fees, and supplemental tax service fees, are recorded as revenue at a point in time upon the completion of the service. Financial Services Fees Bar Harbor Financial Services is a branch office of Osaic, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries. We have a revenue sharing agreement with Osaic for any financial service fee income generated. Financial services fees are recognized at a point in time upon the completion of service requirements. Interchange Fees We earn interchange fees from transaction fees that merchants pay whenever a customer uses a debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs and the risk involved in approving the payment. Interchange fees are generally recognized as revenue at a point in time upon the completion of a debit card transaction. Customer Deposit Fees The customer deposit business offers a variety of deposit accounts with a range of interest rates, fee schedules and other terms, which are designed to meet the customer's financial needs. Additional depositor-related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management services which include remote deposit capture, ACH origination, and wire transfers. These customer deposit fees are generally recognized at a point in time upon the completion of the service. Other Customer Service Fees We have certain incentive and referral fee arrangements with independent third parties in which fees are earned for new account activity, product sales, or transaction volume generated for the respective third parties. We also earn a percentage of the fees generated from third-party credit card plans promoted through the Bank. Revenue from these incentive and referral fee arrangements is recognized over time using the right to invoice measure of progress. Contract Balances with Customers The following table provides information about contract assets or receivables and contract liabilities or deferred revenues from contracts with customers: (in thousands) December 31, 2023 December 31, 2022 Balances from contracts with customers only: Other Assets $ 1,178 $ 1,211 Other Liabilities 1,769 2,345 The timing of revenue recognition, billings and cash collections results in contract assets or receivables and contract liabilities or deferred revenue on the consolidated balance sheets. For most customer contracts, fees are deducted directly from customer accounts and, therefore, there is no associated impact on the accounts receivable balance. For certain types of service contracts, we have an unconditional right to consideration under the service contract and an accounts receivable balance is recorded for services completed. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain and Fulfill a Contract We currently expense contract costs for processing and administrative fees for debit card transactions. We also expense custody fees and transactional costs associated with securities transactions as well as third party tax preparation fees. We have elected the practical expedient in ASC 340-40-25-4, whereby we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets we otherwise would have recognized is one year or less. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | NOTE 16. LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Most of our leases are for branches, ATM locations, and office space and have terms extending through 2040. All leases are classified as operating leases, and are recognized on the consolidated balance sheets as a right-of-use (“ROU”) asset with a corresponding lease liability. The following table presents the consolidated statements of condition classification of the ROU assets and lease liabilities: (in thousands) Classification December 31, 2023 December 31, 2022 Lease Right-of-Use Assets Operating lease right-of-use assets Other assets $ 6,874 $ 8,078 Lease Liabilities Operating lease liabilities Other liabilities 7,322 8,501 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used for the present value of the minimum lease payments. The lease agreements often include one or more options to renew at our discretion. If at lease inception, we consider the exercising of a renewal option to be reasonably certain, we will include the extended term in the calculation of the ROU asset and lease liability. The following table presents the weighted average lease term and discount rate of the leases: December 31, 2023 December 31, 2022 Weighted-average remaining lease term (in years) Operating leases 6.28 7.17 Weighted-average discount rate Operating leases 3.10 % 3.09 % The following table represents lease costs and other lease information. As we have elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as real estate taxes, common area maintenance and utilities. Year Ended (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Lease Costs Operating lease cost $ 1,343 $ 1,344 $ 1,295 Variable lease cost 485 402 229 Total lease cost $ 1,828 $ 1,746 $ 1,524 Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2023 are, as follows: (in thousands) Payments Twelve Months Ended: December 31, 2024 $ 1,316 December 31, 2025 1,092 December 31, 2026 987 December 31, 2027 864 December 31, 2028 726 Thereafter 2,484 Total future minimum lease payments 7,469 Amounts representing interest (147) Present value of net future minimum lease payments $ 7,322 |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2023 | |
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | |
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | NOTE 17. CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The condensed balance sheets of Bar Harbor Bankshares as of December 31, 2023 and 2022, and the condensed statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021 are presented below: CONDENSED BALANCE SHEETS December 31, (in thousands) 2023 2022 Assets Cash $ 7,850 $ 7,350 Investment in subsidiaries 484,574 447,937 Premises and equipment 785 765 Other assets 5,070 3,130 Total assets $ 498,279 $ 459,182 Liabilities and Shareholders’ Equity Subordinated notes $ 60,461 $ 60,289 Accrued expenses 5,759 5,443 Shareholders’ equity 432,059 393,450 Total liabilities and shareholders’ equity $ 498,279 $ 459,182 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (in thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 23,156 $ 20,682 $ 15,557 Other income 1,142 976 740 Total income 24,298 21,658 16,297 Interest expense 3,691 2,981 2,632 Non-interest expense 5,834 5,183 5,455 Total expense 9,525 8,164 8,087 Income before taxes and equity in undistributed income of subsidiaries 14,773 13,493 8,210 Income tax benefit (1,985) (1,709) (1,741) Income before equity in undistributed income of subsidiaries 16,758 15,202 9,951 Equity in undistributed income of subsidiaries 28,094 28,355 29,348 Net income $ 44,852 $ 43,557 $ 39,299 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 44,852 $ 43,557 $ 39,299 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (28,094) (28,355) (29,348) Other, net (1,537) 3,187 (5,582) Net cash provided by operating activities 15,221 18,389 4,369 Cash flows from investing activities: Acquisitions, net of cash paid — — — Purchase of securities — — — Capital contribution to subsidiary — — — Net cash (used in) investing activities — — — Cash flows from financing activities: Proceeds from issuance of subordinated debt — — — Repayment of subordinated debt — — — Net proceeds from common stock 1,845 1,723 1,534 Net proceeds from reissuance of treasury stock — — — Common stock cash dividends paid (16,566) (15,334) (14,072) Net cash used in financing activities (14,721) (13,611) (12,538) Net change in cash and cash equivalents 500 4,778 (8,169) Cash and cash equivalents at beginning of year 7,350 2,572 10,741 Cash and cash equivalents at end of year $ 7,850 $ 7,350 $ 2,572 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 18. SUBSEQUENT EVENTS There were no significant subsequent events between December 31, 2023 and through the date the financial statements are issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation: |
Consolidation | Consolidation: |
Reclassifications | Reclassifications: |
Use of estimates | Use of estimates: |
Subsequent Events | Subsequent Events: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Securities | Securities: Premiums and discounts on securities are amortized and accreted over the term or to first call of the securities using the level yield method. Municipal security premiums are accreted over full term straight-line and discounts are amortized over the call term on a straight light basis. Gains and losses on the sale of securities are recognized at the trade date using the specific-identification method and are shown separately in the Consolidated Statements of Income. |
Allowance for Credit Loss on AFS Debt Securities | Allowance for Credit Loss on AFS Debt Securities: municipality, agency, or organization associated with the underlying security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance on AFS debt securities is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. When assessing an AFS debt security for credit loss, securities with identical CUSIPs are pooled together to assess for impairment using the average cost basis. Any impairment that has not been recorded through an allowance is recognized in other comprehensive income. A change in the allowance on AFS debt securities may be in full or a portion thereof, is recorded as expense (credit) within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes an AFS debt security is uncollectible based on the above described analysis. As of December 31, 2023 and December 31, 2022, there were no allowances carried on AFS debt securities. Refer to Note 2 – Securities Available for Sale |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock: FHLB stock is periodically evaluated for impairment based on the capital adequacy of the FHLB and its overall financial condition. Based on the capital adequacy, liquidity position and sustained profitability of the FHLB, there was no impairment related to the carrying amount of FHLB stock as of December 31, 2023 and 2022. |
Loans Held for Sale | Loans Held for Sale: |
Loans | Loans: For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. |
Purchase Credit Deteriorated (PCD) Loans | Purchase Credit Deteriorated (PCD) Loans: |
Non-performing loans | Non-performing loans: appropriate by management. Secured consumer other loans are written down to net realizable value and unsecured consumer loans are charged-off upon reaching 120 days past due. Commercial real estate loans and commercial and industrial loans that are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash, and the loan is in the process of collection. Commercial real estate and commercial and industrial loans may be placed on non-accrual status prior to the 90 days delinquency date if considered appropriate by management. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, a minimum of six months. Acquired loans that meet the criteria for non-accrual of interest prior to an acquisition are considered non-performing acquired loans that meet the criteria for non-accrual consistent with originated loans. |
Loan Modifications to Borrowers Experiencing Financial Difficulty | Loan Modifications to Borrowers Experiencing Financial Difficulty: However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. |
Allowance for Credit Losses | Allowance for Credit Losses: The allowance for credit losses is a valuation account that 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 allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on historical internal data. Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. |
Individually Evaluated Loans | Individually Evaluated Loans : |
Accrued Interest | Accrued Interest |
Allowance for off-balance sheet credit exposures | Allowance for off-balance sheet credit exposures : |
Premises and Equipment | Premises and Equipment: estimated useful lives of related assets; generally five three eight years |
Transfers of Financial Assets | Transfers of Financial Assets: |
Other Real Estate Owned | Other Real Estate Owned: |
Goodwill and Other Intangible Assets | Goodwill: Other Intangibles: The fair values of these assets are generally determined based on appraisals and are subsequently amortized on a straight-line basis or an accelerated basis over their estimated lives. Management assesses the recoverability of these intangible assets at least annually or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount exceeds fair value, an impairment charge is recorded to income. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance: |
Capitalized Servicing Rights | Capitalized Servicing Right s : Capitalized servicing rights are initially recorded at fair value. Fair values are established by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Changes in the fair value of capitalized servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. However, these capitalized servicing rights are amortized in proportion to and over the period of estimated net servicing income, which includes prepayment assumptions. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the capitalized servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these capitalized servicing rights exceeds fair value. The capitalized servicing rights are included in other assets on the consolidated balance sheet. |
Derivative Financial Instruments | Derivative Financial Instruments: Changes in the fair value of derivative instruments that are highly effective and qualify as cash flow hedge are recorded in other comprehensive income (loss). Any ineffective portion is recorded in earnings. For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both recognized in earnings, with the differences (if any) representing hedge ineffectiveness. Management discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or determines that the designation of the derivative as a hedging instrument is no longer appropriate. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Net cash settlements on derivatives that do not quality for hedge accounting are reporting in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as cash flows of the items being hedged. Commitments to fund mortgage loans with borrowers (interest rate locks) and forward commitments for the future delivery of these mortgage loans for sale on the secondary market are classified as free standing derivatives. These derivatives are designed to hedge against inherent interest rate and pricing risk associated with selling loans. The commitments to lend generally terminate once the loan is funded, the lock period expires or the borrower decides not to contract for the loan. The forward commitments generally terminate once the loan is sold or the commitment period expires. These commitments are considered derivatives which are accounted for by recognizing their estimated fair value on the Consolidated Balance Sheet in either other assets or other liabilities. |
Senior and Subordinated Borrowings | Senior and Subordinated Borrowings: |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments: |
Stock Based Compensation | Stock Based Compensation: Stock Based Compensation Plans o |
Employee Stock Purchase Plan | Employee Stock Purchase Plan: |
Post-retirement Plans | Post-retirement Plans: Employee Benefit Plans |
Pension Plan | Pension Plan: Employee Benefit Plans Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. At the end of each year the Plans’ assets and obligations are examined to determine its funded status as of the end of the fiscal year and recognizes those changes in other comprehensive income, net of tax. The plans over or under funded status is recognized in the consolidated balance sheet as an asset or liability, respectively. |
401(k) Plan | 401(k) Plan : |
Income Taxes | Income Taxes: |
Treasury Stock | Treasury Stock: |
Earnings Per Share | Earnings Per Share: |
Revenue Recognition | Revenue Recognition: Revenue from Contracts with Customers |
Wealth Management | Wealth Management: and the resulting in monthly fee income, based on the daily accrual of the market value of the investment accounts and the applicable fee rate. |
Marketing Costs | Marketing Costs: |
Segment Reporting | Segment Reporting: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2023 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures The amendments in this update eliminate TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 The adoption of this ASU did not have a material impact on our consolidated financial statements. ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. December 15, 2023, including interim periods within the fiscal year The adoption of this ASU did not have a material impact on our consolidated financial statements. Standards Not Yet Adopted ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). For public business entities, the amendments in this update are effective for We do not expect adoption of this ASU to have a material impact on our consolidated financial statements. |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES AVAILABLE FOR SALE | |
Summary of Securities Available for Sale | Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2023 Debt securities: Obligations of US Government-sponsored enterprises $ 2,021 $ — $ (29) $ 1,992 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 223,602 12 (30,332) 193,282 US Government agency 85,005 145 (10,937) 74,213 Private label 60,888 18 (1,855) 59,051 Obligations of states and political subdivisions thereof 119,857 4,515 (14,204) 110,168 Corporate bonds 105,552 19 (9,703) 95,868 Total securities available for sale $ 596,925 $ 4,709 $ (67,060) $ 534,574 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2022 Debt securities: Obligations of US Government-sponsored enterprises $ 2,692 $ 5 $ (37) $ 2,660 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 249,838 14 (34,825) 215,027 US Government agency 90,318 16 (10,728) 79,606 Private label 64,056 34 (3,936) 60,154 Obligations of states and political subdivisions thereof 121,939 7,149 (21,351) 107,737 Corporate bonds 102,505 33 (8,206) 94,332 Total securities available for sale $ 631,348 $ 7,251 $ (79,083) $ 559,516 |
Schedule of Amortized Cost and Estimated Fair Value of Available for Sale (AFS) Securities, Segregated by Contractual Maturity | Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 3,038 $ 3,017 Over 1 year to 5 years 50,471 47,138 Over 5 years to 10 years 45,706 44,887 Over 10 years 128,215 112,986 Total bonds and obligations 227,430 208,028 Mortgage-backed securities and collateralized mortgage obligations 369,495 326,546 Total securities available for sale $ 596,925 $ 534,574 |
Schedule of Gains and Losses from Sale of AFS Securities | Proceeds from Sale of Securities (in thousands) Available for Sale Realized Gains Realized Losses Net 2023 $ 2,000 $ 34 $ — $ 34 2022 7,130 151 (98) 53 2021 92,723 2,933 (63) 2,870 |
Schedule of Securities with Unrealized Losses, Segregated by the Duration of Continuous Unrealized Loss Positions | Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2023 Debt securities: Obligations of US Government-sponsored enterprises $ 1 $ 1,084 $ 28 $ 907 $ 29 $ 1,991 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 10 3,439 30,322 188,611 30,332 192,050 US Government agency 2 120 10,935 68,891 10,937 69,011 Private label — 26 1,855 59,007 1,855 59,033 Obligations of states and political subdivisions thereof 26 3,099 14,178 101,036 14,204 104,135 Corporate bonds 156 4,913 9,547 84,950 9,703 89,863 Total securities available for sale $ 195 $ 12,681 $ 66,865 $ 503,402 $ 67,060 $ 516,083 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2022 Debt securities: Obligations of US Government-sponsored enterprises $ 32 $ 435 $ 6 $ 790 $ 38 $ 1,225 Mortgage-backed securities and collateralized mortgage obligations: US Government-sponsored enterprises 7,005 82,483 27,820 127,745 34,825 210,228 US Government agency 2,870 42,430 7,857 34,198 10,727 76,628 Private label 841 15,694 3,095 44,396 3,936 60,090 Obligations of states and political subdivisions thereof 7,990 48,799 13,361 55,702 21,351 104,501 Corporate bonds 4,733 65,279 3,473 25,027 8,206 90,306 Total securities available for sale $ 23,471 $ 255,120 $ 55,612 $ 287,858 $ 79,083 $ 542,978 |
Summary of Securities Pledged as Collateral | December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated (in thousands) Value Fair Value Value Fair Value Securities pledged for deposits $ 24,347 $ 21,341 $ 26,807 $ 23,430 Securities pledged for repurchase agreements 18,841 16,230 21,001 17,964 Securities pledged for borrowings (1) 113,775 95,318 40,686 33,962 Total securities pledged $ 156,963 $ 132,889 $ 88,494 $ 75,356 (1) The Bank pledged securities as collateral for certain borrowing arrangements with the Federal Home Loan Bank of Boston and Federal Reserve Bank of Boston. |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Loans | December 31, December 31, (in thousands) 2023 2022 Commercial construction $ 154,048 $ 117,577 Commercial real estate owner occupied 310,015 244,814 Commercial real estate non-owner occupied 1,144,566 1,146,674 Tax exempt 43,688 42,879 Commercial and industrial 310,883 297,112 Residential real estate 940,334 954,968 Home equity 87,683 90,865 Consumer other 7,832 7,801 Total loans 2,999,049 2,902,690 Allowance for credit losses 28,142 25,860 Net loans $ 2,970,907 $ 2,876,830 |
Summary of Unamortized Net Costs and Premiums | December 31, December 31, (in thousands) 2023 2022 Net unamortized loan origination costs $ 3,039 $ 3,184 Net unamortized fair value discount on acquired loans (2,891) (3,506) Total $ 148 $ (322) |
Schedule of Activity in the Allowance for Credit Losses | At or for the Year Ended December 31, 2023 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,579 $ — $ — $ 1,682 $ 4,261 Commercial real estate owner occupied 2,189 — 142 532 2,863 Commercial real estate non-owner occupied 9,341 — — 102 9,443 Tax exempt 93 — — 26 119 Commercial and industrial 3,493 (664) 149 281 3,259 Residential real estate 7,274 (8) 31 55 7,352 Home equity 811 (12) 6 (38) 767 Consumer other 80 (289) 19 268 78 Total $ 25,860 $ (973) $ 347 $ 2,908 $ 28,142 At or for the Year Ended December 31, 2022 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,111 $ — $ — $ 468 $ 2,579 Commercial real estate owner occupied 2,751 — 120 (682) 2,189 Commercial real estate non-owner occupied 5,650 — — 3,691 9,341 Tax exempt 86 — — 7 93 Commercial and industrial 5,369 (8) 341 (2,209) 3,493 Residential real estate 5,862 (84) 106 1,390 7,274 Home equity 814 (7) 25 (21) 811 Consumer other 75 (267) 12 260 80 Total $ 22,718 $ (366) $ 604 $ 2,904 $ 25,860 At or for the Year Ended December 31, 2021 Balance at Beginning of Impact of ASC Balance at (in thousands) Period 326 Charge Offs Recoveries Provision End of Period Commercial construction $ 824 $ 1,196 $ — $ 18 $ 73 $ 2,111 Commercial real estate owner occupied 1,783 708 (403) 290 373 2,751 Commercial real estate non-owner occupied 7,864 (2,008) — 4 (210) 5,650 Tax exempt 58 40 — — (12) 86 Commercial and industrial 3,137 2,996 (59) 77 (782) 5,369 Residential real estate 5,010 1,732 (77) 159 (962) 5,862 Home equity 285 603 (154) 51 29 814 Consumer other 121 (39) (205) 9 189 75 Total $ 19,082 $ 5,228 $ (898) $ 608 $ (1,302) $ 22,718 |
Schedule of Loans by Risk Rating | The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2023: (in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial construction Risk rating: Pass $ 14,040 $ 99,115 $ 35,978 $ 3,992 $ — $ 923 $ 154,048 Special mention — — — — — — — Substandard — — — — — — — Total $ 14,040 $ 99,115 $ 35,978 $ 3,992 $ — $ 923 $ 154,048 Current period gross write-offs — — — — — — — Commercial real estate owner occupied Risk rating: Pass $ 57,603 $ 61,015 $ 43,228 $ 20,209 $ 20,462 $ 91,187 $ 293,704 Special mention 160 387 7,488 1,596 — 3,066 12,697 Substandard — — — — — 3,497 3,497 Doubtful — — — — — 117 117 Total $ 57,763 $ 61,402 $ 50,716 $ 21,805 $ 20,462 $ 97,867 $ 310,015 Current period gross write-offs — — — — — — — Commercial real estate non-owner occupied Risk rating: Pass $ 41,270 $ 353,613 $ 199,311 $ 127,231 $ 78,759 $ 238,973 $ 1,039,157 Special mention 7,809 — 14,134 37,249 15,246 17,108 91,546 Substandard — — — — — 13,863 13,863 Doubtful — — — — — — — Total $ 49,079 $ 353,613 $ 213,445 $ 164,480 $ 94,005 $ 269,944 $ 1,144,566 Current period gross write-offs — — — — — — — Tax exempt Risk rating: Pass $ 6,340 $ 8,468 $ 787 $ 208 $ 590 $ 27,295 $ 43,688 Special mention — — — — — — — Substandard — — — — — — — Total $ 6,340 $ 8,468 $ 787 $ 208 $ 590 $ 27,295 $ 43,688 Current period gross write-offs — — — — — — — Commercial and industrial Risk rating: Pass $ 80,942 $ 69,402 $ 22,205 $ 38,824 $ 14,739 $ 77,273 $ 303,385 Special mention 364 1,446 — 776 28 3,588 6,202 Substandard 58 94 186 109 95 532 1,074 Doubtful — — — — 87 135 222 Total $ 81,364 $ 70,942 $ 22,391 $ 39,709 $ 14,949 $ 81,528 $ 310,883 Current period gross write-offs — — — — 5 659 664 (in thousands) 2023 2022 2021 2020 2019 Prior Total Residential real estate Performing $ 72,395 $ 194,109 $ 165,434 $ 96,016 $ 62,648 $ 345,823 $ 936,425 Nonperforming — — 41 — 234 3,634 3,909 Total $ 72,395 $ 194,109 $ 165,475 $ 96,016 $ 62,882 $ 349,457 $ 940,334 Current period gross write-offs — — — — — 8 8 Home equity Performing $ 15,582 $ 15,334 $ 7,873 $ 6,633 $ 4,800 $ 36,652 $ 86,874 Nonperforming — — — — — 809 809 Total $ 15,582 $ 15,334 $ 7,873 $ 6,633 $ 4,800 $ 37,461 $ 87,683 Current period gross write-offs — — — — — 12 12 Consumer other Performing $ 4,128 $ 1,787 $ 696 $ 301 $ 51 $ 864 $ 7,827 Nonperforming — — 4 1 — — 5 Total $ 4,128 $ 1,787 $ 700 $ 302 $ 51 $ 864 $ 7,832 Current period gross write-offs — 52 18 5 — 214 289 Total Loans $ 300,691 $ 804,770 $ 497,365 $ 333,145 $ 197,739 $ 865,339 $ 2,999,049 The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022: (in thousands) 2022 2021 2020 2019 2018 Prior Total Commercial construction Risk rating: Pass $ 49,722 $ 38,837 $ 2,865 $ 1,011 $ 964 $ — $ 93,399 Special mention — — 24,178 — — — 24,178 Substandard — — — — — — — Total $ 49,722 $ 38,837 $ 27,043 $ 1,011 $ 964 $ — $ 117,577 Commercial real estate owner occupied Risk rating: Pass $ 22,371 $ 11,290 $ 23,014 $ 31,352 $ 46,398 $ 103,295 $ 237,720 Special mention — — 243 666 173 1,870 2,952 Substandard — — — — 77 3,924 4,001 Doubtful — — — — — 141 141 Total $ 22,371 $ 11,290 $ 23,257 $ 32,018 $ 46,648 $ 109,230 $ 244,814 Commercial real estate non-owner occupied Risk rating: Pass $ 370,856 $ 228,414 $ 145,096 $ 88,111 $ 35,213 $ 238,395 $ 1,106,085 Special mention — 21,390 — 127 911 16,612 39,040 Substandard — — — — — 1,404 1,404 Doubtful — — — — — 145 145 Total $ 370,856 $ 249,804 $ 145,096 $ 88,238 $ 36,124 $ 256,556 $ 1,146,674 Tax exempt Risk rating: Pass $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Special mention — — — — — — — Substandard — — — — — — — Total $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Commercial and industrial Risk rating: Pass $ 83,151 $ 26,948 $ 62,835 $ 27,491 $ 9,511 $ 81,316 $ 291,252 Special mention 1,450 — 53 803 201 619 3,126 Substandard — 113 111 65 299 2,106 2,694 Doubtful — — — — — 40 40 Total $ 84,601 $ 27,061 $ 62,999 $ 28,359 $ 10,011 $ 84,081 $ 297,112 (in thousands) 2022 2021 2020 2019 2018 Prior Total Residential real estate Performing $ 195,320 $ 177,480 $ 111,021 $ 69,170 $ 47,797 $ 349,795 $ 950,583 Nonperforming — 45 — 49 641 3,650 4,385 Total $ 195,320 $ 177,525 $ 111,021 $ 69,219 $ 48,438 $ 353,445 $ 954,968 Home equity Performing $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 40,191 $ 89,902 Nonperforming — — — — — 963 963 Total $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 41,154 $ 90,865 Consumer other Performing $ 4,321 $ 1,341 $ 863 $ 265 $ 64 $ 942 $ 7,796 Nonperforming — — 5 — — — 5 Total $ 4,321 $ 1,341 $ 868 $ 265 $ 64 $ 942 $ 7,801 Total Loans $ 752,984 $ 517,516 $ 378,675 $ 226,712 $ 162,477 $ 864,326 $ 2,902,690 |
Summary of Past Due Loans | December 31, 2023 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 154,048 $ 154,048 Commercial real estate owner occupied — — — — 310,015 310,015 Commercial real estate non-owner occupied — — 103 103 1,144,463 1,144,566 Tax exempt — — — — 43,688 43,688 Commercial and industrial 465 59 330 854 310,029 310,883 Residential real estate 1,520 627 1,999 4,146 936,188 940,334 Home equity 600 — 337 937 86,746 87,683 Consumer other 10 2 — 12 7,820 7,832 Total $ 2,595 $ 688 $ 2,769 $ 6,052 $ 2,992,997 $ 2,999,049 December 31, 2022 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 117,577 $ 117,577 Commercial real estate owner occupied 385 — — 385 244,429 244,814 Commercial real estate non-owner occupied 45 145 139 329 1,146,345 1,146,674 Tax exempt — — — — 42,879 42,879 Commercial and industrial 169 — 9 178 296,934 297,112 Residential real estate 803 348 2,029 3,180 951,788 954,968 Home equity 216 160 246 622 90,243 90,865 Consumer other 41 8 — 49 7,752 7,801 Total $ 1,659 $ 661 $ 2,423 $ 4,743 $ 2,897,947 $ 2,902,690 |
Summary of Non-Accrual Loans | December 31, 2023 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 103 44 — Commercial real estate non-owner occupied 340 224 — Tax exempt — — — Commercial and industrial 363 6 — Residential real estate 3,908 1,131 118 Home equity 809 1 22 Consumer other 5 — — Total $ 5,528 $ 1,406 $ 140 December 31, 2022 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 439 360 — Commercial real estate non-owner occupied 550 411 — Tax exempt — — — Commercial and industrial 207 145 — Residential real estate 4,385 1,361 202 Home equity 963 57 14 Consumer other 5 — — Total $ 6,549 $ 2,334 $ 216 |
Schedule of amortized cost basis of collateral-dependent loans | December 31, 2023 December 31, 2022 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ — $ — Commercial real estate owner occupied 104 — 439 — Commercial real estate non-owner occupied 340 — 550 — Tax exempt — — — — Commercial and industrial 229 134 91 116 Residential real estate 3,908 — 4,385 — Home equity 808 — 963 — Consumer other 5 — 5 — Total $ 5,394 $ 134 $ 6,433 $ 116 |
Schedule of amortized cost basis of of loans experiencing financial difficulty and modification | (in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Interest Rate Reduction and Term Extension % of Total Class of Loans Twelve Months Ended December 31, 2023 Commercial construction $ — $ — $ — $ — $ — — % Commercial real estate owner occupied — — — — — — Commercial real estate non-owner occupied — — — — — — Tax exempt — — — — — — Commercial and industrial — 65 184 — — 0.08 Residential real estate — — — 99 — 0.01 Home equity — — — — — — Consumer other — — — — — — Total $ — $ 65 $ 184 $ 99 $ — 0.01 % |
Schedule of Financial Effect Loan Modifications | (in thousands) Weighted-Average Months of Payment Delay Weighted-Average Months of Term Extension Weighted-Average Interest Rate Reduction Twelve Months Ended December 31, 2023 Commercial construction — — — % Commercial real estate owner occupied — — — Commercial real estate non-owner occupied — — — Tax exempt — — — Commercial and industrial 3.00 13.45 — Residential real estate — — 1.38 Home equity — — — Consumer other — — — Total 3.00 13.45 1.38 % |
Schedule of Loans to Related Parties | (in thousands) 2023 2022 Beginning balance $ 4,763 $ 3,379 Changes in composition (1) — 112 New loans — 1,576 Less: repayments (718) (304) Ending balance $ 4,045 $ 4,763 (1) Adjustments to reflect changes in status of directors and officers for each year presented. |
Schedule of Servicing Rights Activity | At or for the Twelve Months Ended December 31, (in thousands) 2023 2022 Balance at beginning of year $ 3,383 $ 3,673 Additions 338 421 Amortization (560) (711) Balance at end of year $ 3,161 $ 3,383 |
Unfunded Loan Commitment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Activity in the Allowance for Credit Losses | At or for the Years Ended December 31, (in thousands) 2023 2022 2021 Beginning Balance $ 3,910 $ 2,152 $ 359 Impact of ASC 326 — — 1,616 Provision for credit losses (85) 1,758 177 Ending Balance $ 3,825 $ 3,910 $ 2,152 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
Premises and Equipment | Estimated Useful (in thousands, except years) 2023 2022 Life Land $ 3,882 $ 4,934 N/A Buildings and improvements 60,168 56,239 5-39 years Furniture and equipment 17,630 16,225 3-8 years Premises and equipment, gross 81,680 77,398 Accumulated depreciation (33,393) (29,776) Premises and equipment, net $ 48,287 $ 47,622 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLES | |
Schedule of Goodwill | (in thousands) 2023 2022 Balance at beginning of year $ 119,477 $ 119,477 Acquisition — — Balance at end of year $ 119,477 $ 119,477 |
Schedule of Finite-Lived Intangible Assets | 2023 Gross Accumulated Net Intangible (in thousands) Intangible Assets Amortization Assets Core deposit intangible (non-maturity deposits) $ 9,483 $ (5,686) $ 3,797 Customer list and other intangibles 2,118 (1,046) 1,072 Total $ 11,601 $ (6,732) $ 4,869 2022 Gross Accumulated Net Intangible (in thousands) Intangible Assets Amortization Assets Core deposit intangible (non-maturity deposits) $ 9,483 $ (4,948) $ 4,535 Customer list and other intangibles 2,118 (852) 1,266 Total $ 11,601 $ (5,800) $ 5,801 |
Schedule of Future Amortization Expense | Other Intangible (in thousands) Assets 2024 $ 932 2025 932 2026 932 2027 932 2028 959 and thereafter 182 Total $ 4,869 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS. | |
Summary of Time Deposits | (in thousands) December 31, 2023 December 31, 2022 Time less than $100,000 $ 381,902 $ 157,263 Time $100,000 through $250,000 163,933 118,655 Time $250,000 or more 154,425 47,521 Total $ 700,260 $ 323,439 |
Time Deposit Maturities | (in thousands) December 31, 2023 December 31, 2022 Within 1 year $ 670,961 $ 262,338 Over 1 year to 2 years 17,000 37,937 Over 2 years to 3 years 6,932 12,936 Over 3 years to 4 years 3,434 5,410 Over 4 years to 5 years 1,795 4,319 Over 5 years 138 499 Total $ 700,260 $ 323,439 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BORROWED FUNDS | |
Schedule of Borrowed Funds | December 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 232,300 5.46 % $ 318,000 3.84 % Advances from the FRB BTFP 30,000 4.90 — — Other borrowings 8,465 0.13 13,369 0.13 Total short-term borrowings 270,765 2.88 331,369 2.20 Long-term borrowings Advances from the FHLB 279 4.39 2,588 0.48 Subordinated borrowings 60,461 6.22 60,289 4.95 Total long-term borrowings 60,740 6.21 62,877 4.76 Total $ 331,505 3.24 % $ 394,246 2.45 % |
Summary of Maturities of FHLB Advances | Weighted Average (in thousands, except rates) Amount Rate 2024 $ 232,300 5.46 % 2025 — — 2026 — — 2027 — — 2028 — — Thereafter 279 4.39 Total FHLB advances $ 232,579 5.46 % |
Schedule of Repurchase Agreements | (in thousands) December 31, 2023 December 31, 2022 Customer Repurchase Agreements US Government-sponsored enterprises $ 8,465 $ 13,369 Total $ 8,465 $ 13,369 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | (in thousands) 2023 2022 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,245 $ 8,601 Interest cost 318 236 Actuarial Gain/(loss) 119 (2,114) Benefits paid (317) (326) Settlements — (152) Projected benefit obligation at end of year 6,365 6,245 Change in fair value of plan assets: Fair value of plan assets at beginning of year 9,044 12,422 Expected return on plan assets 622 (2,900) Benefits paid (317) (326) Settlements — (152) Fair value of plan assets at end of year 9,349 9,044 Overfunded status $ (2,984) $ (2,799) Amounts recognized in consolidated balance sheet: Other assets $ 2,984 $ 2,799 |
Schedule of Net Benefit Costs | (in thousands) 2023 2022 Interest cost $ 318 $ 236 Expected return on plan assets (355) (612) Unrecognized loss 53 — Net periodic pension benefit $ 16 $ (376) Amounts recognized in other comprehensive income for the years ended December 31, 2023 and 2022 included: (in thousands) 2023 2022 Net actuarial loss (gain) $ (148) $ 1,391 Recognized loss (53) — Net period pension benefit (credit) 16 (376) Total recognized in other comprehensive income $ (185) $ 1,015 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | (in thousands) 2023 2022 Net actuarial (gain) loss $ (148) $ 1,391 Recognized loss (53) — Prior service cost — — Amounts Recognized in accumulated other comprehensive (gain) loss (pre-tax) $ (201) $ 1,391 |
Schedule of Assumptions Used | 2023 2022 Projected benefit obligation Discount rate 5.00 % 5.23 % Net periodic pension cost Discount rate 5.23 % 2.80 % Long-term rate of return on plan assets 4.00 5.00 |
Schedule of Allocation of Plan Assets | 2023 (in thousands) Total Level 1 Level 2 Equity mutual funds: Large-cap $ 680 $ 680 $ — Mid-cap 195 195 — Small-cap 199 199 — International 391 391 — Fixed income funds: Fixed-income - core plus — — — Intermediate duration — — — Long duration 6,698 6,698 — Common stock 663 663 — Common/collective trusts - large-cap 180 — 180 Cash equivalents - money market 343 343 — Total $ 9,349 $ 9,169 $ 180 2022 (in thousands) Total Level 1 Level 2 Equity mutual funds: Large-cap $ 660 $ 660 $ — Mid-cap 210 210 — Small-cap 214 214 — International 420 420 — Fixed income funds: Long duration 6,294 6,294 — Common stock 724 724 — Common/collective trusts - large-cap 206 — 206 Cash equivalents - money market 316 316 — Total $ 9,044 $ 8,838 $ 206 |
Schedule of Expected Benefit Payments | (in thousands) Payments 2024 $ 342 2025 337 2026 402 2027 404 2028 423 2029-2033 2,233 Total $ 4,141 |
Non-qualified Supplemental Executive Retirement Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | (in thousands) 2023 2022 Change in benefit obligation: Projected benefit obligation at beginning of year $ 2,093 $ 2,606 Service cost — — Interest cost 97 54 Actuarial (gain) loss (5) (307) Benefits paid (260) (260) Projected benefit obligation at end of year $ 1,925 $ 2,093 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Expected return on plan assets — — Contributions by employer 260 260 Benefits paid (260) (260) Fair value of plan assets at end of year $ — $ — Underfunded status $ 1,925 $ 2,093 Amounts recognized in consolidated balance sheet Other liabilities $ 1,925 $ 2,093 |
Schedule of Net Benefit Costs | (in thousands) 2023 2022 Interest cost $ 97 $ 54 Expected return on plan assets — — Amortization of unrecognized actuarial loss 7 37 Net periodic benefit cost $ 104 $ 91 Amounts recognized in other comprehensive income for the years ended December 31, 2023 and 2022 included: (in thousands) 2023 2022 Net actuarial loss (gain) $ 100 $ (382) Amortization of unrecognized actuarial loss (7) (37) Total recognized in other comprehensive loss (gain) $ 93 $ (419) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | (in thousands) 2023 2022 Accumulated other comprehensive loss at beginning of the year (pre-tax) 180 599 Actuarial loss (gain) 100 (382) Amortization of actuarial loss (7) (37) Accumulated other comprehensive loss at end of year (pre-tax) $ 273 $ 180 |
Schedule of Assumptions Used | 2023 2022 Discount rate beginning of year 4.92 % 2.12 % Discount rate end of year 4.72 4.92 |
Schedule of Expected Benefit Payments | (in thousands) Payments 2024 $ 260 2025 231 2026 221 2027 221 2028 221 2029-2033 1,104 Total $ 2,258 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of Components of Income Tax Expense (Benefit) | (in thousands) 2023 2022 2021 Current: Federal tax expense $ 10,704 $ 10,444 $ 7,796 State tax expense 2,247 1,551 1,106 Total current tax expense 12,951 11,995 8,902 Deferred tax (benefit) expense (686) (707) 427 Total income tax expense $ 12,265 $ 11,288 $ 9,329 |
Schedule of Effective Income Tax Rate Reconciliation | 2023 2022 2021 (in thousands, except ratios) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 11,995 21.00 % $ 11,517 21.00 % $ 10,210 21.00 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,539 2.69 1,477 2.69 1,280 2.63 Tax exempt interest (1,042) (1.82) (1,003) (1.83) (1,240) (2.55) Federal tax credits (471) (0.82) (241) (0.44) (582) (1.20) Officers' life insurance (578) (1.01) (498) (0.91) (466) (0.96) Gain on disposal of low income housing tax credit investments — — — — — — Stock-based compensation plans 17 0.03 (16) (0.03) (73) (0.15) Other 805 1.40 52 0.10 200 0.42 Effective tax rate $ 12,265 21.47 % $ 11,288 20.58 % $ 9,329 19.19 % |
Schedule of Deferred Tax Assets and Liabilities | 2023 2022 (in thousands) Assets Liabilities Assets Liabilities Allowance for credit losses $ 6,593 $ — $ 5,964 $ — Deferred compensation 3,678 — 3,812 — Unrealized gain or loss on securities available for sale 14,702 — 16,586 — Unrealized gain or loss on derivatives 312 — 539 — Depreciation — 1,101 — 1,723 Deferred loan origination fees, net — 129 129 — Non-accrual interest 632 — 600 — Branch acquisition costs and goodwill — 1,987 — 1,644 Core deposit intangible — 689 — 806 Acquisition fair value adjustments 232 — 213 — Prepaid expenses — 297 — 271 Mortgage servicing rights — 741 — 780 Equity compensation 1,016 — 736 — Prepaid pension — 669 — 616 Contract incentives 564 — 766 — Right of use asset — 1,611 — 1,863 Lease liability 1,716 — 1,961 — Other 758 — 840 — Total $ 30,203 $ 7,224 $ 32,146 $ 7,703 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |
Schedule of Information About Derivative Assets and Liabilities | December 31, 2023 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale funding $ 75,000 1.0 $ 2,803 Other assets Interest rate swap on variable rate loans 50,000 2.2 (3,459) Other liabilities Total cash flow hedges 125,000 (656) Fair value hedges: Interest rate swap on securities 37,190 5.6 3,844 Other assets Total fair value hedges 37,190 3,844 Economic hedges: Forward sale commitments 5,000 — (20) Other liabilities Customer Loan Swaps-MNA Counterparty 184,826 5.0 (14,842) Other liabilities Customer Loan Swaps-RPA Counterparty 142,199 4.9 (286) Other liabilities Customer Loan Swaps-Customer 327,025 4.9 15,128 Other assets Total economic hedges 659,050 (20) Non-hedging derivatives: Interest rate lock commitments 3,153 0.1 63 Other assets Total non-hedging derivatives 3,153 63 Total $ 824,393 $ 3,231 December 31, 2022 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale funding $ 75,000 2.0 $ 4,978 Other assets Interest rate swap on variable rate loans 50,000 3.2 (4,941) Other liabilities Total cash flow hedges 125,000 37 Fair value hedges: Interest rate swap on securities 37,190 6.6 4,774 Other assets Total fair value hedges 37,190 4,774 Economic hedges: Forward sale commitments — — — Other assets Customer Loan Swaps-MNA Counterparty 191,987 5.8 (20,287) Other liabilities Customer Loan Swaps-RPA Counterparty 113,928 6.0 — Other liabilities Customer Loan Swaps-Customer 305,914 5.9 20,287 Other assets Total economic hedges 611,829 — Non-hedging derivatives: Interest rate lock commitments — — — Other assets Total non-hedging derivatives — — Total $ 774,019 $ 4,811 |
Schedule of Amounts Recorded On The Balance Sheet | Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount December 31, 2023 Interest rate swap on securities Securities available for sale $ 32,680 $ (4,510) December 31, 2022 Interest rate swap on securities Securities available for sale $ 30,045 $ (7,145) |
Schedule of Derivative Instruments Gain (Loss) | Year Ended December 31, 2023 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (1,687) Interest expense $ — Interest expense $ 3,062 Interest rate swap on variable rate loans 1,157 Interest income — Interest income (2,167) Total cash flow hedges (530) — 895 Fair value hedges: Interest rate swap on securities 1,314 Interest income — Interest income 1,359 Total fair value hedges 1,314 — 1,359 Economic hedges: Forward commitments — Other income — Mortgage banking income (20) Total economic hedges — — (20) Non-hedging derivatives: Interest rate lock commitments — Other expense — Mortgage banking income (20) Total non-hedging derivatives — — (20) Total $ 784 $ — $ 2,214 (1) As of December 31, 2023, we do not expect any gains or losses from accumulated other comprehensive income into earnings within the next 12 months. Year Ended December 31, 2022 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ 3,922 Interest expense $ — Interest expense $ 475 Interest rate swap on variable rate loans (3,218) Interest income — Interest income (601) Total cash flow hedges 704 — (126) Fair value hedges: Interest rate swap on securities — Interest income — Interest income 140 Total economic hedges — — 140 Economic hedges: Forward commitments — Other income — Mortgage banking income (15) Total economic hedges — — (15) Non-hedging derivatives: Interest rate lock commitments — Other income — Mortgage banking income (283) Total non-hedging derivatives — — (283) Total $ 704 $ — $ (284) |
Schedule of Gain Loss in Statement of Income | Year Ended December 31, 2023 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 149,420 $ 24,762 $ 38,232 $ 18,275 $ 35,829 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 3,062 — Interest rate swap on variable rate loans (2,167) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 1,359 — — — Year Ended December 31, 2022 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 107,797 $ 18,729 $ 7,344 $ 5,501 $ 35,321 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 475 — Interest rate swap on variable rate loans (601) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 140 — — — |
Schedule of Offsetting Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2023 Customer Loan Derivatives: MNA counterparty $ (14,842) $ 14,842 $ — $ — RPA counterparty (286) 286 — — Total $ (15,128) $ 15,128 $ — $ — |
OTHER COMMITMENTS, CONTINGENC_2
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | |
Schedule of Loss Contingencies by Contingency | (in thousands) 2023 2022 Commitments to originate new loans $ 55,163 $ 51,371 Unused funds on commercial and other lines of credit 202,516 265,587 Unadvanced funds on home equity lines of credit 118,794 122,295 Unadvanced funds on construction and real estate loans 188,794 247,382 Commercial and standby letters of credit 4,217 4,370 Letters of credit securing municipal deposits 232,500 228,900 Total $ 801,984 $ 919,905 |
SHAREHOLDERS' EQUITY AND EARN_2
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | |
Schedule of Actual and Required Capital Ratios | December 31, 2023 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 450,160 14.24 % $ 252,888 8.00 % Common equity tier 1 capital to risk-weighted assets 357,574 11.31 142,249 4.50 Tier 1 capital to risk-weighted assets 378,194 11.96 189,666 6.00 Tier 1 capital to average assets (leverage ratio) 378,194 9.70 156,022 4.00 Bank Total capital to risk-weighted assets $ 441,278 13.97 % $ 252,642 8.00 % Common equity tier 1 capital to risk-weighted assets 409,312 12.96 142,111 4.50 Tier 1 capital to risk-weighted assets 409,312 12.96 189,482 6.00 Tier 1 capital to average assets (leverage ratio) 409,312 10.50 155,908 4.00 December 31, 2022 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 416,900 13.50 % $ 247,041 8.00 % Common equity tier 1 capital to risk-weighted assets 326,513 10.57 138,960 4.50 Tier 1 capital to risk-weighted assets 347,133 11.24 185,281 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.21 150,772 4.00 Bank Total capital to risk-weighted assets $ 410,053 13.29 % $ 246,812 8.00 % Common equity tier 1 capital to risk-weighted assets 380,286 12.33 138,832 4.50 Tier 1 capital to risk-weighted assets 380,286 12.33 185,110 6.00 Tier 1 capital to average assets (leverage ratio) 380,286 10.10 150,655 4.00 |
Schedule of Components of Accumulated Other Comprehensive Loss | (in thousands) December 31, 2023 December 31, 2022 Accumulated other comprehensive loss, before tax: Net unrealized loss on AFS securities $ (62,351) $ (71,832) Net unrealized loss on hedging derivatives (1,322) (2,333) Net unrealized loss on post-retirement plans (1,540) (1,691) Income taxes related to items of accumulated other comprehensive loss: Net unrealized loss on AFS securities 14,702 16,586 Net unrealized loss on hedging derivatives 312 539 Net unrealized loss on post-retirement plans 337 391 Accumulated other comprehensive loss $ (49,862) $ (58,340) |
Schedule of Components of Other Comprehensive Income (Loss) | (in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2023 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 9,515 $ (1,892) $ 7,623 Less: reclassification adjustment for gains realized in net income 34 (8) 26 Net unrealized gain on AFS securities 9,481 (1,884) 7,597 Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 1,011 (227) 784 Less: reclassification adjustment for gains realized in net income — — — Net unrealized gain on hedging derivatives 1,011 (227) 784 Net unrealized gain on post-retirement plans: Net unrealized gain arising during the period 135 (38) 97 Less: reclassification adjustment for gains realized in net income — — — Net unrealized gain on post-retirement plans 135 (38) 97 Other comprehensive income $ 10,627 $ (2,149) $ 8,478 Year Ended December 31, 2022 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (74,359) $ 17,169 $ (57,190) Less: reclassification adjustment for gains realized in net income 53 (12) 41 Net unrealized loss on AFS securities (74,412) 17,181 (57,231) Net unrealized loss on hedging derivatives: Net unrealized loss arising during the period (3,463) 799 (2,664) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on hedging derivatives (3,463) 799 (2,664) Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period (973) 225 (748) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans (973) 225 (748) Other comprehensive loss $ (78,848) $ 18,205 $ (60,643) 2021 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (7,619) $ 1,779 $ (5,840) Less: reclassification adjustment for gains realized in net income 2,870 (672) 2,198 Net unrealized loss on AFS securities (10,489) 2,451 (8,038) Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 3,562 (827) 2,735 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 3,562 (827) 2,735 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period 1,132 (266) 866 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans 1,132 (266) 866 Other comprehensive loss $ (5,795) $ 1,358 $ (4,437) |
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss) | Net unrealized Net gain (loss) on Net unrealized gain (loss) effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Year Ended December 31, 2023 Balance at beginning of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Other comprehensive gain before reclassifications 7,623 784 97 8,504 Less: amounts reclassified from accumulated other comprehensive income 26 — — 26 Total other comprehensive income 7,597 784 97 8,478 Balance at end of period $ (47,649) $ (1,010) $ (1,203) $ (49,862) Year Ended December 31, 2022 Balance at beginning of period $ 1,985 $ 870 $ (552) $ 2,303 Other comprehensive loss before reclassifications (57,190) (2,664) (748) (60,602) Less: amounts reclassified from accumulated other comprehensive income 41 — — 41 Total other comprehensive loss (57,231) (2,664) (748) (60,643) Balance at end of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Year Ended December 31, 2021 Balance at beginning of period $ 10,023 $ (1,865) $ (1,418) $ 6,740 Other comprehensive loss before reclassifications (5,840) 2,735 866 (2,239) Less: amounts reclassified from accumulated other comprehensive income 2,198 — — 2,198 Total other comprehensive loss (8,038) 2,735 866 (4,437) Balance at end of period $ 1,985 $ 870 $ (552) $ 2,303 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Affected Line Item where (in thousands) 2023 2022 2021 Net Income is Presented Net realized gains on AFS securities: Before tax $ 34 $ 53 $ 2,870 Non-interest income Tax effect (8) (12) (672) Tax expense Total reclassifications for the period $ 26 $ 41 $ 2,198 |
Schedule of Earnings Per Share | (in thousands, except per share and share data) 2023 2022 2021 Net income $ 44,852 $ 43,557 $ 39,299 Average number of basic common shares outstanding 15,142,188 15,040,162 14,968,973 Plus: dilutive effect of stock options and awards outstanding 53,048 71,799 76,189 Average number of diluted common shares outstanding (1) 15,195,236 15,111,961 15,045,162 Earnings per share: Basic $ 2.96 $ 2.90 $ 2.63 Diluted $ 2.95 $ 2.88 $ 2.61 (1) Average diluted shares outstanding are computed using the treasury stock method. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Allocation of Recognized Compensation Expense | (in thousands) 2023 2022 2021 Stock options $ — $ — $ — Restricted stock awards 868 578 357 Performance stock units 857 181 317 Restricted stock units 800 1,098 1,391 Total compensation expense $ 2,525 $ 1,857 $ 2,065 |
Schedule of Tax Benefits Recognized | (in thousands) 2023 2022 2021 Stock options (1) $ 17 $ 22 $ 77 Restricted stock awards 201 136 84 Performance stock units 204 43 79 Restricted stock units 193 274 344 Total tax benefit $ 615 $ 475 $ 584 (1) |
Summary of Stock Option Activity | Number of Weighted Aggregate Stock Options Average Intrinsic Value Stock Options Outstanding Exercise Price (in thousands) Outstanding at January 1, 2023 47,327 $ 21.47 Granted — — Exercised (8,166) 20.64 Forfeited — — Expired (3,323) 16.99 Outstanding at December 31, 2023 35,838 $ 22.08 $ 261 Ending vested and expected to vest December 31, 2023 35,838 $ 22.08 $ 261 Exercisable at December 31, 2023 35,838 22.08 261 Number of Weighted Aggregate Stock Options Average Intrinsic Value Stock Options Outstanding Exercise Price (in thousands) Outstanding at January 1, 2022 57,964 $ 20.89 Granted — — Exercised (10,637) 18.29 Forfeited — — Expired — — Outstanding at December 31, 2022 47,327 $ 21.47 $ 500 Ending vested and expected to vest December 31, 2022 47,327 $ 21.47 $ 500 Exercisable at December 31, 2022 47,327 21.47 500 |
Summary of Restricted Stock Awards Activity | Number of Restricted Stock Weighted Average Awards Grant Date Fair Restricted Stock Awards Outstanding Value Outstanding at January 1, 2023 24,824 $ 28.49 Awarded 39,585 29.16 Vested (23,235) 27.36 Forfeited — — Outstanding at December 31, 2023 41,174 $ 29.78 Number of Restricted Stock Weighted Average Awards Grant Date Fair Restricted Stock Awards Outstanding Value Outstanding at January 1, 2022 — $ — Awarded 39,267 29.21 Vested (14,443) 30.46 Forfeited — — Outstanding at December 31, 2022 24,824 $ 28.49 |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Units Activity | Number of Weighted Average Performance Stock Grant Date Fair Performance Stock Units Units Outstanding Value Nonvested at January 1, 2023 78,435 $ 25.70 Awarded 28,831 30.64 Vested and exercised (15,601) 25.29 Forfeited (6,750) 25.30 Nonvested at December 31, 2023 84,915 $ 27.53 Number of Weighted Average Performance Stock Grant Date Fair Performance Stock Units Units Outstanding Value Nonvested at January 1, 2022 70,465 $ 23.88 Awarded 29,200 28.49 Vested and exercised — — Forfeited (21,230) 23.35 Nonvested at December 31, 2022 78,435 $ 25.70 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Units Activity | Number of Weighted Average Restricted Stock Grant Date Fair Units Outstanding Value Outstanding at January 1, 2023 115,816 $ 25.25 Granted 36,354 26.12 Vested and exercised (43,341) 21.77 Forfeited (6,134) 25.84 Outstanding at December 31, 2023 102,695 $ 27.07 Number of Weighted Average Restricted Stock Grant Date Fair Units Outstanding Value Outstanding at January 1, 2022 133,617 $ 23.48 Granted 36,468 28.51 Vested and exercised (43,059) 22.88 Forfeited (11,210) 23.46 Outstanding at December 31, 2022 115,816 $ 25.25 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Obligations of US Government-sponsored enterprises $ — $ 1,992 $ — $ 1,992 Mortgage-backed securities: US Government-sponsored enterprises — 193,282 — 193,282 US Government agency — 74,213 — 74,213 Private label — 59,051 — 59,051 Obligations of states and political subdivisions thereof — 110,168 — 110,168 Corporate bonds — 95,868 — 95,868 Loans held for sale — 2,189 — 2,189 Derivative assets — 21,775 63 21,838 Derivative liabilities — (18,587) (20) (18,607) December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Obligations of US Government-sponsored enterprises $ — $ 2,660 $ — $ 2,660 Mortgage-backed securities: US Government-sponsored enterprises — 215,027 — 215,027 US Government agency — 79,606 — 79,606 Private label — 60,154 — 60,154 Obligations of states and political subdivisions thereof — 107,737 — 107,737 Corporate bonds — 94,332 — 94,332 Loans held for sale — — — — Derivative assets — 30,039 — 30,039 Derivative liabilities — (25,228) — (25,228) |
Schedule of Changes in Level 3 Assets Measured on a Recurring Basis | Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Year Ended December 31, 2023 Balance at beginning of period $ — $ — Realized gain recognized in non-interest income 63 — Balance at end of period $ 63 $ — Year Ended December 31, 2022 Balance at beginning of period $ 283 $ 15 Realized loss recognized in non-interest income (283) (7) Balance at end of period $ — $ 8 |
Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis | Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Year Ended December 31, 2023 Balance at beginning of period $ — $ — Realized gain recognized in non-interest income 63 — Balance at end of period $ 63 $ — Year Ended December 31, 2022 Balance at beginning of period $ 283 $ 15 Realized loss recognized in non-interest income (283) (7) Balance at end of period $ — $ 8 |
Schedule of Quantitative Information, Valuation, Recurring | Fair Value (in thousands, December 31, Valuation Unobservable Unobservable except ratios) 2023 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 63 Pull-through Rate Analysis Closing Ratio 95 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Total $ 63 Fair Value Significant December 31, Valuation Unobservable Unobservable (in thousands, except ratios) 2022 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 283 Pull-through Rate Analysis Closing Ratio 85 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Forward Commitments 15 Quoted prices for similar loans in active markets Freddie Mac pricing system $99.8 to $103.2 Total $ 298 |
Summary of Applicable Non-Recurring Fair Value Measurements | Fair Value Measurement Date as of Dec 31, 2023 Dec 31, 2022 December 31, 2023 December 31, 2023 Level 3 Level 3 Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Inputs Assets Individually evaluated loans $ 3,500 $ 16,477 $ (12,977) December 2023 Capitalized servicing rights 6,764 6,845 (81) December 2023 Premises held for sale 1,154 252 902 December 2023 Total $ 11,418 $ 23,574 $ (12,156) |
Schedule of Quantitative Information, Valuation, Non-recurring | (in thousands, except ratios) Fair Value December 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 2,437 Fair value of collateral-appraised value Loss severity 10% to 43% Appraised value $80 to $965 Individually evaluated loans 1,063 Discount cash flow Discount rate 3.25% to 7.13% Cash flows $2 to $520 Capitalized servicing rights 6,764 Discounted cash flow Constant prepayment rate 7.20% Discount rate 10.06% Premises held for sale 1,154 Fair value of asset less selling costs Appraised value $1,223 Selling Costs 6% Total $ 11,418 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. (in thousands, except ratios) Fair Value December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 13,587 Fair value of collateral-appraised value Loss severity 1% to 40% Appraised value $80 to $3,859 Individually evaluated loans 2,890 Discount cash flow Discount rate 3.63% to 6.38% Cash flows $100 to $539 Capitalized servicing rights 6,845 Discounted cash flow Constant prepayment rate 7.29% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 23,574 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | December 31, 2023 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 94,842 $ 94,842 $ 94,842 $ — $ — Securities available for sale 534,574 534,574 — 534,574 — FHLB stock 14,834 14,834 — 14,834 — Loans held for sale 2,189 2,189 — 2,189 — Net loans 2,999,049 2,832,173 — — 2,832,173 Accrued interest receivable 4,921 4,921 — 4,921 — Cash surrender value of bank-owned life insurance policies 80,037 80,037 — 80,037 — Derivative assets 21,838 21,838 — 21,775 63 Financial Liabilities Non-maturity deposits $ 2,482,012 $ 2,325,307 $ — $ 2,325,307 $ — Time deposits 658,482 651,855 — 651,855 — Securities sold under agreements to repurchase 38,504 38,504 — 38,504 — FHLB advances 232,579 232,375 — 232,375 — Subordinated borrowings 60,422 67,635 — 67,635 — Derivative liabilities 15,607 15,607 — 15,587 20 December 31, 2022 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities available for sale 559,516 559,516 — 559,516 — FHLB stock 14,893 14,893 — 14,893 — Loans held for sale — — — — — Net loans 2,902,690 2,774,863 — — 2,774,863 Accrued interest receivable 4,257 4,257 — 4,257 — Cash surrender value of bank-owned life insurance policies 81,197 81,197 — 81,197 — Derivative assets 30,039 30,039 — 30,039 — Financial Liabilities Non-maturity deposits $ 2,719,992 $ 2,309,555 $ — $ 2,309,555 $ — Time deposits 323,439 315,180 — 315,180 — Securities sold under agreements to repurchase 13,369 13,369 — 13,369 — FHLB advances 320,588 320,244 — 320,244 — Subordinated borrowings 60,289 66,846 — 66,846 — Derivative liabilities 25,228 25,228 — 25,228 — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Disaggregation of Revenue | Year Ended December 31, (in thousands) 2023 2022 Non-interest income within the scope of ASC 606: Trust management fees $ 12,766 $ 13,022 Financial services fees 1,517 1,551 Interchange fees 7,845 7,736 Customer deposit fees 6,280 5,935 Other customer service fees 1,043 1,120 Total non-interest income within the scope of ASC 606 29,451 29,364 Total non-interest income not within the scope of ASC 606 6,378 5,957 Total non-interest income $ 35,829 $ 35,321 Year Ended December 31, (in thousands) 2023 2022 Timing of Revenue Recognition Products and services transferred at a point in time $ 15,751 $ 15,552 Products and services transferred over time 13,700 13,812 Total $ 29,451 $ 29,364 |
Contract Balances from Contracts with Customers | (in thousands) December 31, 2023 December 31, 2022 Balances from contracts with customers only: Other Assets $ 1,178 $ 1,211 Other Liabilities 1,769 2,345 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
ROU Assets and Liabilities | (in thousands) Classification December 31, 2023 December 31, 2022 Lease Right-of-Use Assets Operating lease right-of-use assets Other assets $ 6,874 $ 8,078 Lease Liabilities Operating lease liabilities Other liabilities 7,322 8,501 |
Weighted average lease term and discount rate | December 31, 2023 December 31, 2022 Weighted-average remaining lease term (in years) Operating leases 6.28 7.17 Weighted-average discount rate Operating leases 3.10 % 3.09 % |
Additional Information Regarding Leases | Year Ended (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Lease Costs Operating lease cost $ 1,343 $ 1,344 $ 1,295 Variable lease cost 485 402 229 Total lease cost $ 1,828 $ 1,746 $ 1,524 |
Future Minimum Payments for Leases | (in thousands) Payments Twelve Months Ended: December 31, 2024 $ 1,316 December 31, 2025 1,092 December 31, 2026 987 December 31, 2027 864 December 31, 2028 726 Thereafter 2,484 Total future minimum lease payments 7,469 Amounts representing interest (147) Present value of net future minimum lease payments $ 7,322 |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | |
Condensed Balance Sheets | December 31, (in thousands) 2023 2022 Assets Cash $ 7,850 $ 7,350 Investment in subsidiaries 484,574 447,937 Premises and equipment 785 765 Other assets 5,070 3,130 Total assets $ 498,279 $ 459,182 Liabilities and Shareholders’ Equity Subordinated notes $ 60,461 $ 60,289 Accrued expenses 5,759 5,443 Shareholders’ equity 432,059 393,450 Total liabilities and shareholders’ equity $ 498,279 $ 459,182 |
Condensed Income Statement | Years Ended December 31, (in thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 23,156 $ 20,682 $ 15,557 Other income 1,142 976 740 Total income 24,298 21,658 16,297 Interest expense 3,691 2,981 2,632 Non-interest expense 5,834 5,183 5,455 Total expense 9,525 8,164 8,087 Income before taxes and equity in undistributed income of subsidiaries 14,773 13,493 8,210 Income tax benefit (1,985) (1,709) (1,741) Income before equity in undistributed income of subsidiaries 16,758 15,202 9,951 Equity in undistributed income of subsidiaries 28,094 28,355 29,348 Net income $ 44,852 $ 43,557 $ 39,299 |
Condensed Cash Flow Statement | Years Ended December 31, (in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 44,852 $ 43,557 $ 39,299 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (28,094) (28,355) (29,348) Other, net (1,537) 3,187 (5,582) Net cash provided by operating activities 15,221 18,389 4,369 Cash flows from investing activities: Acquisitions, net of cash paid — — — Purchase of securities — — — Capital contribution to subsidiary — — — Net cash (used in) investing activities — — — Cash flows from financing activities: Proceeds from issuance of subordinated debt — — — Repayment of subordinated debt — — — Net proceeds from common stock 1,845 1,723 1,534 Net proceeds from reissuance of treasury stock — — — Common stock cash dividends paid (16,566) (15,334) (14,072) Net cash used in financing activities (14,721) (13,611) (12,538) Net change in cash and cash equivalents 500 4,778 (8,169) Cash and cash equivalents at beginning of year 7,350 2,572 10,741 Cash and cash equivalents at end of year $ 7,850 $ 7,350 $ 2,572 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance on AFS debt securities | $ 0 | $ 0 |
Period of performance for return to accrual status | 6 months | |
Enrollment term of employee stock purchase plan | 6 months | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net actuarial gain or loss amortized (percentage) | 10% | |
Premises | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated useful live of premises and equipment | 5 years | |
Premises | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated useful live of premises and equipment | 39 years | |
Furniture and equipment | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated useful live of premises and equipment | 3 years | |
Furniture and equipment | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated useful live of premises and equipment | 8 years |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 596,925 | |
Fair Value | 534,574 | $ 559,516 |
Debt securities | Obligations of US Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 2,021 | 2,692 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (29) | (37) |
Fair Value | 1,992 | 2,660 |
Mortgage-backed securities and collateralized mortgage obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 596,925 | 631,348 |
Gross Unrealized Gains | 4,709 | 7,251 |
Gross Unrealized Losses | (67,060) | (79,083) |
Fair Value | 534,574 | 559,516 |
Mortgage-backed securities and collateralized mortgage obligations | US Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 223,602 | 249,838 |
Gross Unrealized Gains | 12 | 14 |
Gross Unrealized Losses | (30,332) | (34,825) |
Fair Value | 193,282 | 215,027 |
Mortgage-backed securities and collateralized mortgage obligations | US Government agency | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 85,005 | 90,318 |
Gross Unrealized Gains | 145 | 16 |
Gross Unrealized Losses | (10,937) | (10,728) |
Fair Value | 74,213 | 79,606 |
Mortgage-backed securities and collateralized mortgage obligations | Private label | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 60,888 | 64,056 |
Gross Unrealized Gains | 18 | 34 |
Gross Unrealized Losses | (1,855) | (3,936) |
Fair Value | 59,051 | 60,154 |
Mortgage-backed securities and collateralized mortgage obligations | Obligations of states and political subdivisions thereof | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 119,857 | 121,939 |
Gross Unrealized Gains | 4,515 | 7,149 |
Gross Unrealized Losses | (14,204) | (21,351) |
Fair Value | 110,168 | 107,737 |
Mortgage-backed securities and collateralized mortgage obligations | Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 105,552 | 102,505 |
Gross Unrealized Gains | 19 | 33 |
Gross Unrealized Losses | (9,703) | (8,206) |
Fair Value | $ 95,868 | $ 94,332 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE - Maturity of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within 1 year | $ 3,038 | |
Over 1 year to 5 years | 50,471 | |
Over 5 years to 10 years | 45,706 | |
Over 10 years | 128,215 | |
Total bonds and obligations | 227,430 | |
Mortgage-backed securities | 369,495 | |
Amortized Cost | 596,925 | |
Fair Value | ||
Within 1 year | 3,017 | |
Over 1 year to 5 years | 47,138 | |
Over 5 years to 10 years | 44,887 | |
Over 10 years | 112,986 | |
Total bonds and obligations | 208,028 | |
Mortgage-backed securities and collateralized mortgage obligations | 326,546 | |
Total securities available for sale | $ 534,574 | $ 559,516 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE - Proceeds from the Sale of Securities and Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SECURITIES AVAILABLE FOR SALE | |||
Proceeds from Sale of Securities Available for Sale | $ 2,000 | $ 7,130 | $ 92,723 |
Realized Gains | 34 | 151 | 2,933 |
Realized Losses | (98) | (63) | |
Net | 34 | 53 | 2,870 |
Available for sale securities | 0 | ||
Proceeds from sales, maturities, calls and prepayments of securities available for sale | $ 42,184 | $ 80,870 | $ 204,275 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Gross Unrealized Losses | ||
Less Than Twelve Months | $ 195 | $ 23,471 |
Over Twelve Months | 66,865 | 55,612 |
Total | 67,060 | 79,083 |
Fair Value | ||
Less Than Twelve Months | 12,681 | 255,120 |
Over Twelve Months | 503,402 | 287,858 |
Total | 516,083 | 542,978 |
US Government-sponsored Enterprises Debt Securities | Debt securities | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 1 | 32 |
Over Twelve Months | 28 | 6 |
Total | 29 | 38 |
Fair Value | ||
Less Than Twelve Months | 1,084 | 435 |
Over Twelve Months | 907 | 790 |
Total | 1,991 | 1,225 |
US Government-sponsored enterprises | Mortgage-backed securities and collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 10 | 7,005 |
Over Twelve Months | 30,322 | 27,820 |
Total | 30,332 | 34,825 |
Fair Value | ||
Less Than Twelve Months | 3,439 | 82,483 |
Over Twelve Months | 188,611 | 127,745 |
Total | 192,050 | 210,228 |
US Government agency | Mortgage-backed securities and collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 2 | 2,870 |
Over Twelve Months | 10,935 | 7,857 |
Total | 10,937 | 10,727 |
Fair Value | ||
Less Than Twelve Months | 120 | 42,430 |
Over Twelve Months | 68,891 | 34,198 |
Total | 69,011 | 76,628 |
Private label | Mortgage-backed securities and collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 841 | |
Over Twelve Months | 1,855 | 3,095 |
Total | 1,855 | 3,936 |
Fair Value | ||
Less Than Twelve Months | 26 | 15,694 |
Over Twelve Months | 59,007 | 44,396 |
Total | 59,033 | 60,090 |
Obligations of states and political subdivisions thereof | Mortgage-backed securities and collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 26 | 7,990 |
Over Twelve Months | 14,178 | 13,361 |
Total | 14,204 | 21,351 |
Fair Value | ||
Less Than Twelve Months | 3,099 | 48,799 |
Over Twelve Months | 101,036 | 55,702 |
Total | 104,135 | 104,501 |
Corporate bonds | Mortgage-backed securities and collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 156 | 4,733 |
Over Twelve Months | 9,547 | 3,473 |
Total | 9,703 | 8,206 |
Fair Value | ||
Less Than Twelve Months | 4,913 | 65,279 |
Over Twelve Months | 84,950 | 25,027 |
Total | $ 89,863 | $ 90,306 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE - Basis for Impairment Conclusion (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | ||
Allowance on AFS debt securities | $ | $ 0 | $ 0 |
Obligations of US Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 8 | |
Available for sale securities portfolio, number of securities (security) | 8 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 1.44% | |
US Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 448 | |
Available for sale securities portfolio, number of securities (security) | 493 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 13.64% | |
US Government agency | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 130 | |
Available for sale securities portfolio, number of securities (security) | 151 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 13.68% | |
Private label | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 26 | |
Available for sale securities portfolio, number of securities (security) | 28 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 3.05% | |
Obligations of states and political subdivisions thereof | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 52 | |
Available for sale securities portfolio, number of securities (security) | 69 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 12.48% | |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 30 | |
Available for sale securities portfolio, number of securities (security) | 35 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 9.75% |
SECURITIES AVAILABLE FOR SALE_6
SECURITIES AVAILABLE FOR SALE - Securities Pledged for Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged for deposits | $ 24,347 | $ 26,807 |
Securities pledged for repurchase agreements | 18,841 | 21,001 |
Securities pledged for borrowings | 113,775 | 40,686 |
Total securities pledged | 156,963 | 88,494 |
Fair Value | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged for deposits | 21,341 | 23,430 |
Securities pledged for repurchase agreements | 16,230 | 17,964 |
Securities pledged for borrowings | 95,318 | 33,962 |
Total securities pledged | $ 132,889 | $ 75,356 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,999,049 | $ 2,902,690 | ||
Allowance for credit losses | 28,142 | 25,860 | $ 22,718 | $ 19,082 |
Net loans | 2,970,907 | 2,876,830 | ||
Accrued interest receivable for loans | 11,900 | 10,700 | ||
Tax exempt | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 43,688 | 42,879 | ||
Allowance for credit losses | 119 | 93 | 86 | 58 |
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 87,683 | 90,865 | ||
Allowance for credit losses | 767 | 811 | 814 | 285 |
Total commercial loans | Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 154,048 | 117,577 | ||
Allowance for credit losses | 4,261 | 2,579 | 2,111 | 824 |
Total commercial real estate | Commercial real estate owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 310,015 | 244,814 | ||
Allowance for credit losses | 2,863 | 2,189 | 2,751 | 1,783 |
Total commercial real estate | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,144,566 | 1,146,674 | ||
Allowance for credit losses | 9,443 | 9,341 | 5,650 | 7,864 |
Total commercial and industrial | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,144,566 | |||
Total commercial and industrial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 310,883 | 297,112 | ||
Allowance for credit losses | 3,259 | 3,493 | 5,369 | 3,137 |
Total residential real estate | Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 940,334 | 954,968 | ||
Allowance for credit losses | 7,352 | 7,274 | 5,862 | 5,010 |
Total consumer | Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 7,832 | 7,801 | ||
Allowance for credit losses | $ 78 | $ 80 | $ 75 | $ 121 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Unamortized Net Costs and Premiums (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Net unamortized loan origination costs | $ 3,039 | $ 3,184 |
Net unamortized fair value discount on acquired loans | (2,891) | (3,506) |
Total | $ 148 | $ (322) |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 25,860 | $ 22,718 | $ 19,082 |
Charge Offs | (973) | (366) | (898) |
Recoveries | 347 | 604 | 608 |
Provision | 2,908 | 2,904 | (1,302) |
Balance at end of period | 28,142 | 25,860 | 22,718 |
impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 5,228 | ||
Balance at end of period | 5,228 | ||
Construction and land development | Total commercial loans | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 2,579 | 2,111 | 824 |
Recoveries | 18 | ||
Provision | 1,682 | 468 | 73 |
Balance at end of period | 4,261 | 2,579 | 2,111 |
Construction and land development | Total commercial loans | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,196 | ||
Balance at end of period | 1,196 | ||
Commercial real estate owner occupied | Total commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 2,189 | 2,751 | 1,783 |
Charge Offs | (403) | ||
Recoveries | 142 | 120 | 290 |
Provision | 532 | (682) | 373 |
Balance at end of period | 2,863 | 2,189 | 2,751 |
Commercial real estate owner occupied | Total commercial real estate | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 708 | ||
Balance at end of period | 708 | ||
Commercial real estate non-owner occupied | Total commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 9,341 | 5,650 | 7,864 |
Recoveries | 4 | ||
Provision | 102 | 3,691 | (210) |
Balance at end of period | 9,443 | 9,341 | 5,650 |
Commercial real estate non-owner occupied | Total commercial real estate | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (2,008) | ||
Balance at end of period | (2,008) | ||
Tax exempt | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 93 | 86 | 58 |
Provision | 26 | 7 | (12) |
Balance at end of period | 119 | 93 | 86 |
Tax exempt | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 40 | ||
Balance at end of period | 40 | ||
Commercial and industrial | Total commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 3,493 | 5,369 | 3,137 |
Charge Offs | (664) | (8) | (59) |
Recoveries | 149 | 341 | 77 |
Provision | 281 | (2,209) | (782) |
Balance at end of period | 3,259 | 3,493 | 5,369 |
Commercial and industrial | Total commercial and industrial | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 2,996 | ||
Balance at end of period | 2,996 | ||
Residential mortgages | Total residential real estate | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 7,274 | 5,862 | 5,010 |
Charge Offs | (8) | (84) | (77) |
Recoveries | 31 | 106 | 159 |
Provision | 55 | 1,390 | (962) |
Balance at end of period | 7,352 | 7,274 | 5,862 |
Residential mortgages | Total residential real estate | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,732 | ||
Balance at end of period | 1,732 | ||
Home equity | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 811 | 814 | 285 |
Charge Offs | (12) | (7) | (154) |
Recoveries | 6 | 25 | 51 |
Provision | (38) | (21) | 29 |
Balance at end of period | 767 | 811 | 814 |
Home equity | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 603 | ||
Balance at end of period | 603 | ||
Other consumer | Total consumer | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 80 | 75 | 121 |
Charge Offs | (289) | (267) | (205) |
Recoveries | 19 | 12 | 9 |
Provision | 268 | 260 | 189 |
Balance at end of period | 78 | 80 | 75 |
Other consumer | Total consumer | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (39) | ||
Balance at end of period | (39) | ||
Unfunded Loan Commitment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 3,910 | 2,152 | 359 |
Provision | (85) | 1,758 | 177 |
Balance at end of period | $ 3,825 | 3,910 | 2,152 |
Unfunded Loan Commitment | impact of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 1,616 | ||
Balance at end of period | $ 1,616 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans by Year of Origination, Loan Segmentation and Risk Indicator (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit quality information | |||
2023 | $ 300,691 | $ 752,984 | |
2022 | 804,770 | 517,516 | |
2021 | 497,365 | 378,675 | |
2020 | 333,145 | 226,712 | |
2019 | 197,739 | 162,477 | |
Prior | 865,339 | 864,326 | |
Total loans | 2,999,049 | 2,902,690 | |
Current period gross write-offs | |||
Total | 973 | 366 | $ 898 |
Construction and land development | Total commercial loans | |||
Credit quality information | |||
2023 | 14,040 | 49,722 | |
2022 | 99,115 | 38,837 | |
2021 | 35,978 | 27,043 | |
2020 | 3,992 | 1,011 | |
2019 | 964 | ||
Prior | 923 | ||
Total loans | 154,048 | 117,577 | |
Construction and land development | Pass | Total commercial loans | |||
Credit quality information | |||
2023 | 14,040 | 49,722 | |
2022 | 99,115 | 38,837 | |
2021 | 35,978 | 2,865 | |
2020 | 3,992 | 1,011 | |
2019 | 964 | ||
Prior | 923 | ||
Total loans | 154,048 | 93,399 | |
Construction and land development | Special mention | Total commercial loans | |||
Credit quality information | |||
2021 | 24,178 | ||
Total loans | 24,178 | ||
Commercial real estate owner occupied | Total commercial real estate | |||
Credit quality information | |||
2023 | 57,763 | 22,371 | |
2022 | 61,402 | 11,290 | |
2021 | 50,716 | 23,257 | |
2020 | 21,805 | 32,018 | |
2019 | 20,462 | 46,648 | |
Prior | 97,867 | 109,230 | |
Total loans | 310,015 | 244,814 | |
Current period gross write-offs | |||
Total | 403 | ||
Commercial real estate owner occupied | Pass | Total commercial real estate | |||
Credit quality information | |||
2023 | 57,603 | 22,371 | |
2022 | 61,015 | 11,290 | |
2021 | 43,228 | 23,014 | |
2020 | 20,209 | 31,352 | |
2019 | 20,462 | 46,398 | |
Prior | 91,187 | 103,295 | |
Total loans | 293,704 | 237,720 | |
Commercial real estate owner occupied | Special mention | Total commercial real estate | |||
Credit quality information | |||
2023 | 160 | ||
2022 | 387 | ||
2021 | 7,488 | 243 | |
2020 | 1,596 | 666 | |
2019 | 173 | ||
Prior | 3,066 | 1,870 | |
Total loans | 12,697 | 2,952 | |
Commercial real estate owner occupied | Substandard | Total commercial real estate | |||
Credit quality information | |||
2019 | 77 | ||
Prior | 3,497 | 3,924 | |
Total loans | 3,497 | 4,001 | |
Commercial real estate owner occupied | Doubtful | Total commercial real estate | |||
Credit quality information | |||
Prior | 117 | 141 | |
Total loans | 117 | 141 | |
Commercial real estate non-owner occupied | Total commercial real estate | |||
Credit quality information | |||
2023 | 49,079 | 370,856 | |
2022 | 353,613 | 249,804 | |
2021 | 213,445 | 145,096 | |
2020 | 164,480 | 88,238 | |
2019 | 94,005 | 36,124 | |
Prior | 269,944 | 256,556 | |
Total loans | 1,144,566 | 1,146,674 | |
Commercial real estate non-owner occupied | Total commercial and industrial | |||
Credit quality information | |||
Total loans | 1,144,566 | ||
Commercial real estate non-owner occupied | Pass | Total commercial real estate | |||
Credit quality information | |||
2023 | 41,270 | 370,856 | |
2022 | 353,613 | 228,414 | |
2021 | 199,311 | 145,096 | |
2020 | 127,231 | 88,111 | |
2019 | 78,759 | 35,213 | |
Prior | 238,973 | 238,395 | |
Total loans | 1,039,157 | 1,106,085 | |
Commercial real estate non-owner occupied | Special mention | Total commercial real estate | |||
Credit quality information | |||
2023 | 7,809 | ||
2022 | 21,390 | ||
2021 | 14,134 | ||
2020 | 37,249 | 127 | |
2019 | 15,246 | 911 | |
Prior | 17,108 | 16,612 | |
Total loans | 91,546 | 39,040 | |
Commercial real estate non-owner occupied | Substandard | Total commercial real estate | |||
Credit quality information | |||
Prior | 13,863 | 1,404 | |
Total loans | 13,863 | 1,404 | |
Commercial real estate non-owner occupied | Doubtful | Total commercial real estate | |||
Credit quality information | |||
Prior | 145 | ||
Total loans | 145 | ||
Tax exempt | |||
Credit quality information | |||
2023 | 6,340 | 8,686 | |
2022 | 8,468 | 1,020 | |
2021 | 787 | 252 | |
2020 | 208 | 772 | |
2019 | 590 | 13,231 | |
Prior | 27,295 | 18,918 | |
Total loans | 43,688 | 42,879 | |
Tax exempt | Pass | |||
Credit quality information | |||
2023 | 6,340 | 8,686 | |
2022 | 8,468 | 1,020 | |
2021 | 787 | 252 | |
2020 | 208 | 772 | |
2019 | 590 | 13,231 | |
Prior | 27,295 | 18,918 | |
Total loans | 43,688 | 42,879 | |
Commercial and industrial | Total commercial and industrial | |||
Credit quality information | |||
2023 | 81,364 | 84,601 | |
2022 | 70,942 | 27,061 | |
2021 | 22,391 | 62,999 | |
2020 | 39,709 | 28,359 | |
2019 | 14,949 | 10,011 | |
Prior | 81,528 | 84,081 | |
Total loans | 310,883 | 297,112 | |
Current period gross write-offs | |||
2019 | 5 | ||
Prior | 659 | ||
Total | 664 | 8 | 59 |
Commercial and industrial | Pass | Total commercial and industrial | |||
Credit quality information | |||
2023 | 80,942 | 83,151 | |
2022 | 69,402 | 26,948 | |
2021 | 22,205 | 62,835 | |
2020 | 38,824 | 27,491 | |
2019 | 14,739 | 9,511 | |
Prior | 77,273 | 81,316 | |
Total loans | 303,385 | 291,252 | |
Commercial and industrial | Special mention | Total commercial and industrial | |||
Credit quality information | |||
2023 | 364 | 1,450 | |
2022 | 1,446 | ||
2021 | 53 | ||
2020 | 776 | 803 | |
2019 | 28 | 201 | |
Prior | 3,588 | 619 | |
Total loans | 6,202 | 3,126 | |
Commercial and industrial | Substandard | Total commercial and industrial | |||
Credit quality information | |||
2023 | 58 | ||
2022 | 94 | 113 | |
2021 | 186 | 111 | |
2020 | 109 | 65 | |
2019 | 95 | 299 | |
Prior | 532 | 2,106 | |
Total loans | 1,074 | 2,694 | |
Commercial and industrial | Doubtful | Total commercial and industrial | |||
Credit quality information | |||
2019 | 87 | ||
Prior | 135 | 40 | |
Total loans | 222 | 40 | |
Residential mortgages | Residential real estate | |||
Credit quality information | |||
2023 | 72,395 | 195,320 | |
2022 | 194,109 | 177,525 | |
2021 | 165,475 | 111,021 | |
2020 | 96,016 | 69,219 | |
2019 | 62,882 | 48,438 | |
Prior | 349,457 | 353,445 | |
Total loans | 940,334 | 954,968 | |
Current period gross write-offs | |||
Prior | 8 | ||
Total | 8 | ||
Residential mortgages | Performing | Residential real estate | |||
Credit quality information | |||
2023 | 72,395 | 195,320 | |
2022 | 194,109 | 177,480 | |
2021 | 165,434 | 111,021 | |
2020 | 96,016 | 69,170 | |
2019 | 62,648 | 47,797 | |
Prior | 345,823 | 349,795 | |
Total loans | 936,425 | 950,583 | |
Residential mortgages | Nonperforming | Residential real estate | |||
Credit quality information | |||
2022 | 45 | ||
2021 | 41 | ||
2020 | 49 | ||
2019 | 234 | 641 | |
Prior | 3,634 | 3,650 | |
Total loans | 3,909 | 4,385 | |
Home equity | |||
Credit quality information | |||
2023 | 15,582 | 17,107 | |
2022 | 15,334 | 10,638 | |
2021 | 7,873 | 8,139 | |
2020 | 6,633 | 6,830 | |
2019 | 4,800 | 6,997 | |
Prior | 37,461 | 41,154 | |
Total loans | 87,683 | 90,865 | |
Current period gross write-offs | |||
Prior | 12 | ||
Total | 12 | 7 | $ 154 |
Home equity | Performing | |||
Credit quality information | |||
2023 | 15,582 | 17,107 | |
2022 | 15,334 | 10,638 | |
2021 | 7,873 | 8,139 | |
2020 | 6,633 | 6,830 | |
2019 | 4,800 | 6,997 | |
Prior | 36,652 | 40,191 | |
Total loans | 86,874 | 89,902 | |
Home equity | Nonperforming | |||
Credit quality information | |||
Prior | 809 | 963 | |
Total loans | 809 | 963 | |
Other consumer | Consumer | |||
Credit quality information | |||
2023 | 4,128 | 4,321 | |
2022 | 1,787 | 1,341 | |
2021 | 700 | 868 | |
2020 | 302 | 265 | |
2019 | 51 | 64 | |
Prior | 864 | 942 | |
Total loans | 7,832 | 7,801 | |
Current period gross write-offs | |||
2022 | 52 | ||
2021 | 18 | ||
2020 | 5 | ||
Prior | 214 | ||
Total | 289 | ||
Other consumer | Performing | Consumer | |||
Credit quality information | |||
2023 | 4,128 | 4,321 | |
2022 | 1,787 | 1,341 | |
2021 | 696 | 863 | |
2020 | 301 | 265 | |
2019 | 51 | 64 | |
Prior | 864 | 942 | |
Total loans | 7,827 | 7,796 | |
Other consumer | Nonperforming | Consumer | |||
Credit quality information | |||
2021 | 4 | 5 | |
2020 | 1 | ||
Total loans | $ 5 | $ 5 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 2,999,049 | $ 2,902,690 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,595 | 1,659 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 688 | 661 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,769 | 2,423 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,052 | 4,743 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,992,997 | 2,897,947 |
Construction and land development | Total commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 154,048 | 117,577 |
Construction and land development | Total commercial loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 154,048 | 117,577 |
Commercial real estate owner occupied | Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 310,015 | 244,814 |
Commercial real estate owner occupied | Total commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 385 | |
Commercial real estate owner occupied | Total commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 385 | |
Commercial real estate owner occupied | Total commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 310,015 | 244,429 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,144,566 | 1,146,674 |
Commercial real estate non-owner occupied | Total commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45 | |
Commercial real estate non-owner occupied | Total commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 145 | |
Commercial real estate non-owner occupied | Total commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 139 | |
Commercial real estate non-owner occupied | Total commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 329 | |
Commercial real estate non-owner occupied | Total commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,146,345 | |
Commercial real estate non-owner occupied | Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,144,566 | |
Commercial real estate non-owner occupied | Total commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 103 | |
Commercial real estate non-owner occupied | Total commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 103 | |
Commercial real estate non-owner occupied | Total commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,144,463 | |
Tax exempt | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 43,688 | 42,879 |
Tax exempt | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 43,688 | 42,879 |
Commercial and industrial | Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 310,883 | 297,112 |
Commercial and industrial | Total commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 465 | 169 |
Commercial and industrial | Total commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 59 | |
Commercial and industrial | Total commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 330 | 9 |
Commercial and industrial | Total commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 854 | 178 |
Commercial and industrial | Total commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 310,029 | 296,934 |
Residential mortgages | Total residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 940,334 | 954,968 |
Residential mortgages | Total residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,520 | 803 |
Residential mortgages | Total residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 627 | 348 |
Residential mortgages | Total residential real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,999 | 2,029 |
Residential mortgages | Total residential real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,146 | 3,180 |
Residential mortgages | Total residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 936,188 | 951,788 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 87,683 | 90,865 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 600 | 216 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 160 | |
Home equity | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 337 | 246 |
Home equity | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 937 | 622 |
Home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 86,746 | 90,243 |
Other consumer | Total consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,832 | 7,801 |
Other consumer | Total consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 10 | 41 |
Other consumer | Total consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2 | 8 |
Other consumer | Total consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12 | 49 |
Other consumer | Total consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 7,820 | $ 7,752 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-accrual loans | ||
Nonaccrual | $ 5,528 | $ 6,549 |
Nonaccrual With No Related Allowance | 1,406 | 2,334 |
Nonaccrual, Past Due 90 days and Accruing | 140 | 216 |
Commercial real estate owner occupied | Total commercial real estate | ||
Non-accrual loans | ||
Nonaccrual | 103 | 439 |
Nonaccrual With No Related Allowance | 44 | 360 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Non-accrual loans | ||
Nonaccrual | 340 | 550 |
Nonaccrual With No Related Allowance | 224 | 411 |
Commercial and industrial | Total commercial and industrial | ||
Non-accrual loans | ||
Nonaccrual | 363 | 207 |
Nonaccrual With No Related Allowance | 6 | 145 |
Residential mortgages | Total residential real estate | ||
Non-accrual loans | ||
Nonaccrual | 3,908 | 4,385 |
Nonaccrual With No Related Allowance | 1,131 | 1,361 |
Nonaccrual, Past Due 90 days and Accruing | 118 | 202 |
Home equity | ||
Non-accrual loans | ||
Nonaccrual | 809 | 963 |
Nonaccrual With No Related Allowance | 1 | 57 |
Nonaccrual, Past Due 90 days and Accruing | 22 | 14 |
Other consumer | Total consumer | ||
Non-accrual loans | ||
Nonaccrual | $ 5 | $ 5 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for loan losses | ||
Total loans | $ 2,999,049 | $ 2,902,690 |
Real Estate | ||
Allowance for loan losses | ||
Total loans | 5,394 | 6,433 |
Other Collateral Loans | ||
Allowance for loan losses | ||
Total loans | 134 | 116 |
Construction and land development | Total commercial loans | ||
Allowance for loan losses | ||
Total loans | 154,048 | 117,577 |
Commercial real estate owner occupied | Total commercial real estate | ||
Allowance for loan losses | ||
Total loans | 310,015 | 244,814 |
Commercial real estate owner occupied | Total commercial real estate | Real Estate | ||
Allowance for loan losses | ||
Total loans | 104 | 439 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Allowance for loan losses | ||
Total loans | 1,144,566 | 1,146,674 |
Commercial real estate non-owner occupied | Total commercial real estate | Real Estate | ||
Allowance for loan losses | ||
Total loans | 340 | 550 |
Commercial real estate non-owner occupied | Total commercial and industrial | ||
Allowance for loan losses | ||
Total loans | 1,144,566 | |
Tax exempt | ||
Allowance for loan losses | ||
Total loans | 43,688 | 42,879 |
Commercial and industrial | Total commercial and industrial | ||
Allowance for loan losses | ||
Total loans | 310,883 | 297,112 |
Commercial and industrial | Total commercial and industrial | Real Estate | ||
Allowance for loan losses | ||
Total loans | 229 | 91 |
Commercial and industrial | Total commercial and industrial | Other Collateral Loans | ||
Allowance for loan losses | ||
Total loans | 134 | 116 |
Residential mortgages | Total residential real estate | ||
Allowance for loan losses | ||
Total loans | 940,334 | 954,968 |
Residential mortgages | Total residential real estate | Real Estate | ||
Allowance for loan losses | ||
Total loans | 3,908 | 4,385 |
Home equity | ||
Allowance for loan losses | ||
Total loans | 87,683 | 90,865 |
Home equity | Real Estate | ||
Allowance for loan losses | ||
Total loans | 808 | 963 |
Other consumer | Total consumer | ||
Allowance for loan losses | ||
Total loans | 7,832 | 7,801 |
Other consumer | Total consumer | Real Estate | ||
Allowance for loan losses | ||
Total loans | $ 5 | $ 5 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR, Recorded Investment and Number of Modifications (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total residential real estate | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential mortgage loans collateralized by real estate property in the process of foreclosure | $ 430 | $ 253 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Concentrations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,999,049 | $ 2,902,690 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Major Customer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loan portfolio | 11% | 12% |
Total loans | $ 334,800 | $ 336,400 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Mortgage Banking (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Servicing loans for participants | $ 595,200 | $ 616,000 |
Contractually specified servicing fees | 1,600 | 1,600 |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of year | 3,383 | 3,673 |
Additions | 338 | 421 |
Amortization | (560) | (711) |
Balance at end of year | 3,161 | 3,383 |
Loans held for sale | 2,189 | 0 |
Loans held for sale, unpaid principal balance | 2,100 | |
Residential mortgages | Total residential real estate | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Forward delivery commitments | 5,000 | 0 |
Sale of loans | 38,800 | 38,600 |
Net gains (losses) on sales of loans | $ 192 | $ 161,000 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 4,763 | $ 3,379 |
Changes in composition | 112 | |
New loans | 1,576 | |
Less: repayments | (718) | (304) |
Ending balance | $ 4,045 | $ 4,763 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Modifications (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
% of Total Class of Loans | 0.01% |
Weighted-Average Months of Payment Delay | 3 months |
Weighted-Average Months of Term Extension | 13 months 13 days |
Weighted-Average Interest Rate Reduction | 1.38% |
Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average Months of Payment Delay | 3 months |
Weighted-Average Months of Term Extension | 13 months 13 days |
Residential real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average Interest Rate Reduction | 1.38% |
Total commercial and industrial | Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
% of Total Class of Loans | 0.08% |
Total residential real estate | Residential real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
% of Total Class of Loans | 0.01% |
Payment Delay | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | $ 65 |
Payment Delay | Total commercial and industrial | Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | 65 |
Term Extension | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | 184 |
Term Extension | Total commercial and industrial | Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | 184 |
Interest Rate Reduction | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | 99 |
Interest Rate Reduction | Total residential real estate | Residential real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loan modifications | $ 99 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 81,680 | $ 77,398 | |
Accumulated depreciation | (33,393) | (29,776) | |
Premises and equipment, net | 48,287 | 47,622 | |
Depreciation expense | $ 4,200 | 4,600 | |
Estimated selling costs, as a percent | 6% | ||
Premises held for sale | $ 413 | ||
Gain (Loss) on Sale of Properties | $ (291) | ||
Impairment charges | 0 | 0 | 157 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 3,882 | 4,934 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 60,168 | 56,239 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 5 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 39 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 17,630 | 16,225 | |
Furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 3 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 8 years | ||
Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Premises held for sale, carrying value | $ 1,200 | $ 252 | 226 |
Premises | |||
Property, Plant and Equipment [Line Items] | |||
Premises held for sale | $ 579 | ||
Premises | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 5 years | ||
Premises | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 39 years |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 119,477 | $ 119,477 | |
Goodwill, Ending Balance | 119,477 | 119,477 | $ 119,477 |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | $ 11,601 | $ 11,601 | |
Accumulated Amortization | (6,732) | (5,800) | |
Net Intangible Assets | 4,869 | 5,801 | |
Amortization of intangible assets | 932 | 932 | $ 940 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2024 | 932 | ||
2025 | 932 | ||
2026 | 932 | ||
2027 | 932 | ||
2028 | 959 | ||
and thereafter | $ 182 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 11 years | ||
Core deposit intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | $ 9,483 | 9,483 | |
Accumulated Amortization | (5,686) | (4,948) | |
Net Intangible Assets | 3,797 | 4,535 | |
Customer list and other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | 2,118 | 2,118 | |
Accumulated Amortization | (1,046) | (852) | |
Net Intangible Assets | $ 1,072 | $ 1,266 |
DEPOSITS - Components (Details)
DEPOSITS - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS. | ||
Time less than $100,000 | $ 381,902 | $ 157,263 |
Time $100,000 through $250,000 | 163,933 | 118,655 |
Time $250,000 or more | 154,425 | 47,521 |
Total | $ 700,260 | $ 323,439 |
DEPOSITS - Maturities, Brokered
DEPOSITS - Maturities, Brokered, Reciprocal (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Within 1 year | $ 670,961 | $ 262,338 |
Over 1 year to 2 years | 17,000 | 37,937 |
Over 2 years to 3 years | 6,932 | 12,936 |
Over 3 years to 4 years | 3,434 | 5,410 |
Over 4 years to 5 years | 1,795 | 4,319 |
Over 5 years | 138 | 499 |
Total | 700,260 | 323,439 |
Brokered deposits | 219,600 | 15,100 |
Reciprocal deposits | $ 43,300 | $ 27,400 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term borrowings | ||
Carrying Value | $ 270,765 | $ 331,369 |
Weighted Average Rate | 2.88% | 2.20% |
Long-term borrowings | ||
Carrying Value | $ 60,740 | $ 62,877 |
Weighted Average Rate | 6.21% | 4.76% |
Total borrowings | $ 331,505 | $ 394,246 |
Weighted Average Rate | 3.24% | 2.45% |
Advances from the FHLB | ||
Short-term borrowings | ||
Carrying Value | $ 232,300 | $ 318,000 |
Weighted Average Rate | 5.46% | 3.84% |
Long-term borrowings | ||
Carrying Value | $ 279 | $ 2,588 |
Weighted Average Rate | 4.39% | 0.48% |
Advances from the FRB BTFP | ||
Short-term borrowings | ||
Carrying Value | $ 30,000 | $ 0 |
Weighted Average Rate | 4.90% | |
Other borrowings | ||
Short-term borrowings | ||
Carrying Value | $ 8,465 | $ 13,369 |
Weighted Average Rate | 0.13% | 0.13% |
Subordinated borrowings | ||
Long-term borrowings | ||
Carrying Value | $ 60,461 | $ 60,289 |
Weighted Average Rate | 6.22% | 4.95% |
BORROWED FUNDS - Additional Inf
BORROWED FUNDS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2004 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Outstanding advances of FRB | $ 270,765 | $ 331,369 | |
Outstanding amount | 60,740 | 62,877 | |
Financial Guarantee | NHTB Capital Trust II and NHTB Capital Trust III | |||
Debt Instrument [Line Items] | |||
Debentures issued by variable interest entities | $ 20,600 | ||
SOFR | Financial Guarantee | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2.79% | ||
Callable Advances | |||
Debt Instrument [Line Items] | |||
Outstanding amount | 0 | 0 | |
Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Outstanding amount | 288 | ||
FHLB advances | |||
Debt Instrument [Line Items] | |||
Outstanding amount | 279 | ||
Advances from the FHLB | |||
Debt Instrument [Line Items] | |||
Outstanding advances of FRB | 232,300 | 318,000 | |
Outstanding amount | 279 | 2,588 | |
Credit Facility, Secured, FHLB | |||
Debt Instrument [Line Items] | |||
Line of credit maintained | 1,000 | ||
Line of credit outstanding | $ 0 | 0 | |
Federal Reserve Bank Advances | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.85% | ||
Principal amount of debt issued | $ 30,000 | ||
Maturity period | 1 year | ||
Outstanding advances of FRB | $ 30,000 | 0 | |
Credit Facility, Secured, FRB | |||
Debt Instrument [Line Items] | |||
Line of credit maintained | 156,600 | 90,400 | |
Credit Facility, Unsecured, Federal Funds | |||
Debt Instrument [Line Items] | |||
Line of credit maintained | 50,000 | 50,000 | |
Line of credit outstanding | $ 0 | $ 0 |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of FHLB Advances (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Amount | |
2024 | $ 232,300 |
Thereafter | 279 |
Total FHLB advances | $ 232,579 |
Weighted Average Rate | |
2024 | 5.46% |
Thereafter | 4.39% |
Total FHLB advances | 5.46% |
BORROWED FUNDS - Subordinated a
BORROWED FUNDS - Subordinated and Junior Subordinated Borrowings (Details) - USD ($) $ in Thousands | Nov. 26, 2019 | Dec. 31, 2023 | Dec. 31, 2022 |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 331 | ||
Subordinated borrowings private placement | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | $ 40,000 | ||
Fixed interest rate | 4.63% | ||
Debt issuance costs | $ 158 | ||
Subordinated borrowings private placement | SOFR | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 3.27% |
BORROWED FUNDS - Repurchase Agr
BORROWED FUNDS - Repurchase Agreements (Details) - Customer Repurchase Agreements - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total secured borrowings | $ 8,465 | $ 13,369 |
US Government sponsored enterprises | ||
Debt Instrument [Line Items] | ||
Total secured borrowings | $ 8,465 | $ 13,369 |
EMPLOYEE BENEFIT PLANS - Inform
EMPLOYEE BENEFIT PLANS - Information about the plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension Plans | ||
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | $ 6,245 | $ 8,601 |
Interest cost | 318 | 236 |
Actuarial Gain/(loss) | 119 | (2,114) |
Benefits paid | (317) | (326) |
Settlements | (152) | |
Projected benefit obligation at end of year | 6,365 | 6,245 |
Change in fair value of plan assets: | ||
Fair value of plan assets at beginning of year | 9,044 | 12,422 |
Expected return on plan assets | 622 | (2,900) |
Benefits paid | (317) | (326) |
Settlements | (152) | |
Fair value of plan assets at end of year | 9,349 | 9,044 |
Underfunded (Overfunded) status | (2,984) | (2,799) |
Amounts recognized in consolidated balance sheet: Other assets or liabilities | 2,984 | 2,799 |
Non-qualified Supplemental Executive Retirement Plan | ||
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | 2,093 | 2,606 |
Interest cost | 97 | 54 |
Actuarial Gain/(loss) | (5) | (307) |
Benefits paid | (260) | (260) |
Projected benefit obligation at end of year | 1,925 | 2,093 |
Change in fair value of plan assets: | ||
Contributions by employer | 260 | 260 |
Benefits paid | (260) | (260) |
Underfunded (Overfunded) status | 1,925 | 2,093 |
Amounts recognized in consolidated balance sheet: Other assets or liabilities | $ 1,925 | $ 2,093 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 318 | $ 236 |
Expected return on plan assets | (355) | (612) |
Unrecognized loss | 53 | |
Recognized loss | (53) | |
Net periodic pension benefit (credit) | 16 | (376) |
Total recognized in other comprehensive loss (gain) | (185) | 1,015 |
Non-qualified Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 97 | 54 |
Unrecognized loss | 7 | 37 |
Net periodic pension benefit (credit) | 104 | 91 |
Total recognized in other comprehensive loss (gain) | $ 93 | $ (419) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (135) | $ 973 | $ (1,132) |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (148) | 1,391 | |
Recognized loss | (53) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 16 | (376) | |
Total recognized in other comprehensive income | (185) | 1,015 | |
Amounts Recognized in accumulated other comprehensive (gain) loss (pre-tax) | (201) | 1,391 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Amortization of actuarial loss | (53) | ||
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | 1,200 | ||
Expected cash contributions | 0 | ||
Expected amortization from accumulated other comprehensive loss into net periodic pension cost | 0 | ||
Non-qualified Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 100 | (382) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 104 | 91 | |
Total recognized in other comprehensive income | 93 | (419) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accumulated other comprehensive loss at beginning of the year (pre-tax) | 180 | 599 | |
Actuarial (gain) loss | 100 | (382) | |
Amortization of actuarial loss | (7) | (37) | |
Accumulated other comprehensive loss at end of year (pre-tax) | 273 | $ 180 | $ 599 |
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | 204 | ||
Expected amortization from accumulated other comprehensive loss into net periodic pension cost | $ 10 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net periodic pension cost | |||
Transfer into Level 3, Asset | $ 0 | $ 0 | |
Transfer out of Level 3, Asset | 0 | 0 | |
Transfer into level 3, Liability | 0 | 0 | |
Transfer out of level 3, Liability | $ 0 | $ 0 | |
Pension Plans | |||
Projected benefit obligation | |||
Discount rate, obligation | 5% | 5.23% | |
Net periodic pension cost | |||
Discount rate, periodic cost | 5.23% | 2.80% | |
Long-term rate of return on plan assets | 4% | 5% | |
Pension Plans | Common stock | |||
Net periodic pension cost | |||
Target asset allocation | 20% | ||
Pension Plans | Fixed-income securities | |||
Net periodic pension cost | |||
Target asset allocation | 80% | ||
Non-qualified Supplemental Executive Retirement Plan | |||
Projected benefit obligation | |||
Discount rate, obligation | 4.72% | 4.92% | 2.12% |
EMPLOYEE BENEFIT PLANS - Alloca
EMPLOYEE BENEFIT PLANS - Allocation of Plan Assets (Details) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 9,349 | $ 9,044 | $ 12,422 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 9,349 | 9,044 | |
Recurring | Large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 680 | 660 | |
Recurring | Mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 195 | 210 | |
Recurring | Small-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 199 | 214 | |
Recurring | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 391 | 420 | |
Recurring | Long duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,698 | 6,294 | |
Recurring | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 663 | 724 | |
Recurring | Common/collective trusts - large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 180 | 206 | |
Recurring | Cash equivalents - money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 343 | 316 | |
Level 1 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 9,169 | 8,838 | |
Level 1 | Recurring | Large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 680 | 660 | |
Level 1 | Recurring | Mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 195 | 210 | |
Level 1 | Recurring | Small-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 199 | 214 | |
Level 1 | Recurring | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 391 | 420 | |
Level 1 | Recurring | Long duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,698 | 6,294 | |
Level 1 | Recurring | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 663 | 724 | |
Level 1 | Recurring | Cash equivalents - money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 343 | 316 | |
Level 2 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 180 | 206 | |
Level 2 | Recurring | Common/collective trusts - large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 180 | $ 206 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Benefit Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 342 |
2024 | 337 |
2025 | 402 |
2026 | 404 |
2027 | 423 |
2028-2032 | 2,233 |
Total | 4,141 |
Non-qualified Supplemental Executive Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 260 |
2024 | 231 |
2025 | 221 |
2026 | 221 |
2027 | 221 |
2028-2032 | 1,104 |
Total | $ 2,258 |
EMPLOYEE BENEFIT PLANS - 401(k)
EMPLOYEE BENEFIT PLANS - 401(k) and Other plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total 401(k) expense | $ 1,200 | $ 1,200 | $ 1,200 |
Number of executives | item | 1 | ||
Salary continuation agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued liability | $ 6,300 | 6,500 | |
Benefit expense | 255 | 1,200 | 312 |
Split-dollar life insurance agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued liability | 709 | 679 | |
Benefit expense | $ 30 | $ 197 | $ 22 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal tax expense | $ 10,704 | $ 10,444 | $ 7,796 |
State tax expense | 2,247 | 1,551 | 1,106 |
Total current tax expense | 12,951 | 11,995 | 8,902 |
Deferred tax (benefit) expense | (686) | (707) | 427 |
Total income tax expense | $ 12,265 | $ 11,288 | $ 9,329 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amount | |||
Statutory tax rate | $ 11,995 | $ 11,517 | $ 10,210 |
Increase (decrease) resulting from: | |||
State taxes, net of federal benefit | 1,539 | 1,477 | 1,280 |
Tax exempt interest | (1,042) | (1,003) | (1,240) |
Federal tax credits | (471) | (241) | (582) |
Officers' life insurance | (578) | (498) | (466) |
Stock-based compensation plans | 17 | (16) | (73) |
Other | 805 | 52 | 200 |
Total income tax expense | $ 12,265 | $ 11,288 | $ 9,329 |
Rate | |||
Statutory tax rate | 21% | 21% | 21% |
Increase (decrease) resulting from: | |||
State taxes, net of federal benefit | 2.69% | 2.69% | 2.63% |
Tax exempt interest | (1.82%) | (1.83%) | (2.55%) |
Federal tax credits | (0.82%) | (0.44%) | (1.20%) |
Officers' life insurance | (1.01%) | (0.91%) | (0.96%) |
Stock-based compensation plans | 0.03% | (0.03%) | (0.15%) |
Other | 1.40% | 0.10% | 0.42% |
Effective tax rate | 21.47% | 20.58% | 19.19% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Deferred tax assets, net | $ 22,979 | $ 24,443 |
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for credit losses | 6,593 | 5,964 |
Deferred compensation | 3,678 | 3,812 |
Unrealized gain or loss on securities available for sale | 14,702 | 16,586 |
Unrealized gain or loss on derivatives | 312 | 539 |
Deferred loan origination fees, net | 129 | |
Non-accrual interest | 632 | 600 |
Acquisition fair value adjustments | 232 | 213 |
Equity compensation | 1,016 | 736 |
Contract incentives | 564 | 766 |
Lease liability | 1,716 | 1,961 |
Other | 758 | 840 |
Total | 30,203 | 32,146 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Depreciation | 1,101 | 1,723 |
Deferred loan origination fees, net | 129 | |
Branch acquisition costs and goodwill | 1,987 | 1,644 |
Core deposit intangible | 689 | 806 |
Prepaid expenses | 297 | 271 |
Mortgage servicing rights | 741 | 780 |
Prepaid pension | 669 | 616 |
Right of use asset | 1,611 | 1,863 |
Total | $ 7,224 | $ 7,703 |
INCOME TAXES - Tax Cuts and Job
INCOME TAXES - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Unrecognized tax benefits | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Apr. 30, 2020 | Nov. 30, 2019 | |
Derivative [Line Items] | |||||
Notional Amount | $ 824,393 | $ 774,019 | |||
Fair Value Asset (Liability) | 3,231 | 4,811 | |||
Designated as hedging instrument | Cash flow hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 125,000 | 125,000 | |||
Fair Value Asset (Liability) | (656) | 37 | |||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on wholesale funding | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 75,000 | $ 75,000 | $ 25,000 | $ 50,000 | |
Weighted Average Maturity (in years) | 1 year | 2 years | |||
Fair Value Asset (Liability) | $ 2,803 | $ 4,978 | |||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 50,000 | $ 50,000 | |||
Weighted Average Maturity (in years) | 2 years 2 months 12 days | 3 years 2 months 12 days | |||
Fair Value Asset (Liability) | $ (3,459) | $ (4,941) | |||
Designated as hedging instrument | Fair Value Hedging | |||||
Derivative [Line Items] | |||||
Notional Amount | 37,190 | 37,190 | |||
Fair Value Asset (Liability) | 3,844 | 4,774 | |||
Designated as hedging instrument | Fair Value Hedging | Interest rate swap on deposits | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 37,190 | $ 37,190 | $ 37,200 | ||
Weighted Average Maturity (in years) | 5 years 7 months 6 days | 6 years 7 months 6 days | |||
Fair Value Asset (Liability) | $ 3,844 | $ 4,774 | |||
Carrying Amount of Hedged Assets | 32,680 | 30,045 | |||
Cumulative Amount of Fair Value Hedging Adjustment in Carrying Amount | (4,510) | (7,145) | |||
Designated as hedging instrument | Economic hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 659,050 | 611,829 | |||
Fair Value Asset (Liability) | (20) | ||||
Designated as hedging instrument | Economic hedges | Forward sale commitments | |||||
Derivative [Line Items] | |||||
Notional Amount | 5,000 | ||||
Fair Value Asset (Liability) | (20) | ||||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | MNA counterparty | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 184,826 | $ 191,987 | |||
Weighted Average Maturity (in years) | 5 years | 5 years 9 months 18 days | |||
Fair Value Asset (Liability) | $ (14,842) | $ (20,287) | |||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | RPA counterparty | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 142,199 | $ 113,928 | |||
Weighted Average Maturity (in years) | 4 years 10 months 24 days | 6 years | |||
Fair Value Asset (Liability) | $ (286) | ||||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | Customer | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 327,025 | $ 305,914 | |||
Weighted Average Maturity (in years) | 4 years 10 months 24 days | 5 years 10 months 24 days | |||
Fair Value Asset (Liability) | $ 15,128 | $ 20,287 | |||
Not designated as hedging instrument | |||||
Derivative [Line Items] | |||||
Notional Amount | 3,153 | ||||
Fair Value Asset (Liability) | 63 | ||||
Not designated as hedging instrument | Interest Rate Lock Commitment | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 3,153 | ||||
Weighted Average Maturity (in years) | 1 month 6 days | ||||
Fair Value Asset (Liability) | $ 63 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amount of Gain (Loss) recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ 784 | $ 704 |
Amount of Gain (Loss) Recognized in Income | $ 2,214 | $ (284) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and Dividend Income, Operating, Interest Expense., Profit (Loss) from Real Estate Operations | Interest and Dividend Income, Operating, Interest Expense., Profit (Loss) from Real Estate Operations |
Designated as hedging instrument | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ (530) | $ 704 |
Amount of Gain (Loss) Recognized in Income | 895 | (126) |
Designated as hedging instrument | Cash flow hedges | Interest rate swap on wholesale funding | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | (1,687) | 3,922 |
Amount of Gain (Loss) Recognized in Income | 3,062 | 475 |
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1,157 | (3,218) |
Amount of Gain (Loss) Recognized in Income | (2,167) | (601) |
Designated as hedging instrument | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1,314 | |
Amount of Gain (Loss) Recognized in Income | 1,359 | 140 |
Designated as hedging instrument | Fair Value Hedging | Interest rate swap on deposits | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1,314 | |
Amount of Gain (Loss) Recognized in Income | 1,359 | 140 |
Designated as hedging instrument | Economic hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (20) | (15) |
Designated as hedging instrument | Economic hedges | Forward sale commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (20) | (15) |
Not designated as hedging instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | (20) | (283) |
Not designated as hedging instrument | Interest Rate Lock Commitment | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ (20) | $ (283) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Effect of cash flow hedging and fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income and expense line items presented in the consolidated statements of income | $ 149,420 | $ 107,797 |
Securities and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income and expense line items presented in the consolidated statements of income | 24,762 | 18,729 |
Deposits | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income and expense line items presented in the consolidated statements of income | 38,232 | 7,344 |
Borrowings | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income and expense line items presented in the consolidated statements of income | 18,275 | 5,501 |
Non-interest Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income and expense line items presented in the consolidated statements of income | 35,829 | 35,321 |
Interest rate swap on wholesale funding | Cash flow hedges | Borrowings | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on cash flow hedges: | 3,062 | 475 |
Interest rate swap on variable rate loans | Cash flow hedges | Loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on cash flow hedges: | (2,167) | (601) |
Interest rate swap on securities | Fair Value Hedging | Securities and other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on fair value hedges: | $ 1,359 | $ 140 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) item | Apr. 30, 2020 USD ($) | Nov. 30, 2019 USD ($) | |
Derivative [Line Items] | ||||||
Acquisition, conversion and other expenses | $ 283 | $ 266 | $ 1,667 | |||
Notional amount of interest rate swap | 824,393 | 774,019 | ||||
Designated as hedging instrument | Cash flow hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount of interest rate swap | 125,000 | 125,000 | ||||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | ||||||
Derivative [Line Items] | ||||||
Variable rate loan assets | 50,000 | |||||
Notional amount of interest rate swap | $ 50,000 | 50,000 | ||||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | London Interbank Offered Rate Less Two Days | ||||||
Derivative [Line Items] | ||||||
Variable interest rate | 0.806% | |||||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | SOFR | ||||||
Derivative [Line Items] | ||||||
Interest rate margin | 0.11% | |||||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on wholesale funding | ||||||
Derivative [Line Items] | ||||||
Derivative, Number of Instruments Held | item | 2 | |||||
Term of interest rate swap | 5 years | |||||
Fixed rate of interest rate swap | 0.59% | 1.53% | ||||
Notional amount of interest rate swap | $ 75,000 | 75,000 | $ 25,000 | $ 50,000 | ||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on wholesale funding | SOFR | ||||||
Derivative [Line Items] | ||||||
Interest rate margin | 0.26% | |||||
Designated as hedging instrument | Fair Value Hedging | ||||||
Derivative [Line Items] | ||||||
Notional amount of interest rate swap | $ 37,190 | 37,190 | ||||
Designated as hedging instrument | Fair Value Hedging | Interest rate swap on deposits | ||||||
Derivative [Line Items] | ||||||
Derivative, Number of Instruments Held | item | 8 | |||||
Notional amount of interest rate swap | 37,190 | 37,190 | $ 37,200 | |||
Fixed interest rate, weighted average | 1.696% | |||||
Designated as hedging instrument | Economic hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount of interest rate swap | $ 659,050 | $ 611,829 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Assets and Liabilities (Details) - Designated as hedging instrument - Economic hedges $ in Thousands | Dec. 31, 2023 USD ($) |
Derivative [Line Items] | |
Net Amount | |
MNA counterparty | |
Derivative [Line Items] | |
Net Amount | |
RPA counterparty | |
Derivative [Line Items] | |
Net Amount | |
Customer loan derivative liability | |
Derivative [Line Items] | |
Derivative Liabilities | (15,128) |
Customer loan derivative liability | MNA counterparty | |
Derivative [Line Items] | |
Derivative Liabilities | (14,842) |
Customer loan derivative liability | RPA counterparty | |
Derivative [Line Items] | |
Derivative Liabilities | (286) |
Customer loan derivative asset | |
Derivative [Line Items] | |
Derivative Assets | 15,128 |
Customer loan derivative asset | MNA counterparty | |
Derivative [Line Items] | |
Derivative Assets | 14,842 |
Customer loan derivative asset | RPA counterparty | |
Derivative [Line Items] | |
Derivative Assets | $ 286 |
OTHER COMMITMENTS, CONTINGENC_3
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Total | $ 801,984 | $ 919,905 |
Commitments to originate new loans | ||
Loss Contingencies [Line Items] | ||
Total | 55,163 | 51,371 |
Unused funds on commercial and other lines of credit | ||
Loss Contingencies [Line Items] | ||
Total | 202,516 | 265,587 |
Unadvanced funds on home equity lines of credit | ||
Loss Contingencies [Line Items] | ||
Total | 118,794 | 122,295 |
Unadvanced funds on construction and real estate loans | ||
Loss Contingencies [Line Items] | ||
Total | 188,794 | 247,382 |
Commercial and standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total | 4,217 | 4,370 |
Letters of credit securing municipal deposits | ||
Loss Contingencies [Line Items] | ||
Total | $ 232,500 | $ 228,900 |
SHAREHOLDERS' EQUITY AND EARN_3
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Actual and Required Capital Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Actual | ||
Total capital to risk-weighted assets | $ 450,160 | $ 416,900 |
Common equity tier 1 capital to risk-weighted assets | 357,574 | 326,513 |
Tier 1 capital to risk-weighted assets | 378,194 | 347,133 |
Tier 1 capital to average assets | $ 378,194 | $ 347,133 |
Total capital to risk-weighted assets, ratio | 0.1424 | 0.1350 |
Common equity tier 1 capital to risk-weighted assets, ratio | 0.1131 | 0.1057 |
Tier 1 capital to risk-weighted assets, ratio | 0.1196 | 0.1124 |
Tier 1 capital to average assets (leverage ratio) | 0.0970 | 0.0921 |
Minimum Regulatory Capital Requirements | ||
Total capital to risk-weighted assets | $ 252,888 | $ 247,041 |
Common equity tier 1 capital to risk-weighted assets | 142,249 | 138,960 |
Tier 1 capital to risk-weighted assets | 189,666 | 185,281 |
Tier 1 capital to average assets | $ 156,022 | $ 150,772 |
Minimum regulatory capital requirements, Total capital to risk-weighted assets, ratio | 0.0800 | 0.0800 |
Minimum regulatory capital requirements, Common equity tier 1 capital to risk-weighted assets, ratio | 0.045% | 0.045% |
Minimum regulatory capital requirements, Tier 1 capital to risk-weighted assets, ratio | 0.0600 | 0.0600 |
Minimum regulatory capital requirements, Tier 1 capital to average assets, (leverage ratio) | 0.0400 | 0.0400 |
Bank | ||
Actual | ||
Total capital to risk-weighted assets | $ 441,278 | $ 410,053 |
Common equity tier 1 capital to risk-weighted assets | 409,312 | 380,286 |
Tier 1 capital to risk-weighted assets | 409,312 | 380,286 |
Tier 1 capital to average assets | $ 409,312 | $ 380,286 |
Total capital to risk-weighted assets, ratio | 0.1397 | 0.1329 |
Common equity tier 1 capital to risk-weighted assets, ratio | 0.1296 | 0.1233 |
Tier 1 capital to risk-weighted assets, ratio | 0.1296 | 0.1233 |
Tier 1 capital to average assets (leverage ratio) | 0.1050 | 0.1010 |
Minimum Regulatory Capital Requirements | ||
Total capital to risk-weighted assets | $ 252,642 | $ 246,812 |
Common equity tier 1 capital to risk-weighted assets | 142,111 | 138,832 |
Tier 1 capital to risk-weighted assets | 189,482 | 185,110 |
Tier 1 capital to average assets | $ 155,908 | $ 150,655 |
Minimum regulatory capital requirements, Total capital to risk-weighted assets, ratio | 0.0800 | 0.0800 |
Minimum regulatory capital requirements, Common equity tier 1 capital to risk-weighted assets, ratio | 0.045% | 0.045% |
Minimum regulatory capital requirements, Tier 1 capital to risk-weighted assets, ratio | 0.0600 | 0.0600 |
Minimum regulatory capital requirements, Tier 1 capital to average assets, (leverage ratio) | 0.0400 | 0.0400 |
SHAREHOLDERS' EQUITY AND EARN_4
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Components of AOCL (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (49,862) | $ (58,340) | ||
Net unrealized gain (loss) on AFS securities: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, before tax: | (62,351) | (71,832) | ||
Income taxes related to items of accumulated other comprehensive loss: | 14,702 | 16,586 | ||
Accumulated other comprehensive loss | (47,649) | (55,246) | $ 1,985 | $ 10,023 |
Net unrealized gain (loss) on hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, before tax: | (1,322) | (2,333) | ||
Income taxes related to items of accumulated other comprehensive loss: | 312 | 539 | ||
Accumulated other comprehensive loss | (1,010) | (1,794) | 870 | (1,865) |
Net unrealized gain (loss) on post-retirement plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, before tax: | (1,540) | (1,691) | ||
Income taxes related to items of accumulated other comprehensive loss: | 337 | 391 | ||
Accumulated other comprehensive loss | $ (1,203) | $ (1,300) | $ (552) | $ (1,418) |
SHAREHOLDERS' EQUITY AND EARN_5
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Components of OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net unrealized loss arising during the period | |||
Before Tax | $ 784 | $ 704 | |
Other comprehensive (loss) income | |||
Before Tax | 10,627 | (78,848) | $ (5,795) |
Tax Effect | (2,149) | 18,205 | 1,358 |
Total other comprehensive income (loss) | 8,478 | (60,643) | (4,437) |
Net unrealized gain (loss) on AFS securities: | |||
Net unrealized loss arising during the period | |||
Before Tax | 9,515 | (74,359) | (7,619) |
Tax Effect | (1,892) | 17,169 | 1,779 |
Net of Tax | 7,623 | (57,190) | (5,840) |
Less: reclassification adjustment for gains (losses) realized in net income | |||
Before Tax | 34 | 53 | 2,870 |
Tax Effect | (8) | (12) | (672) |
Net of Tax | 26 | 41 | 2,198 |
Other comprehensive (loss) income | |||
Before Tax | 9,481 | (74,412) | (10,489) |
Tax Effect | (1,884) | 17,181 | 2,451 |
Total other comprehensive income (loss) | 7,597 | (57,231) | (8,038) |
Net unrealized gain (loss) on hedging derivatives | |||
Net unrealized loss arising during the period | |||
Before Tax | 1,011 | (3,463) | 3,562 |
Tax Effect | (227) | 799 | (827) |
Net of Tax | 784 | (2,664) | 2,735 |
Other comprehensive (loss) income | |||
Before Tax | 1,011 | (3,463) | 3,562 |
Tax Effect | (227) | 799 | (827) |
Total other comprehensive income (loss) | 784 | (2,664) | 2,735 |
Net unrealized gain (loss) on post-retirement plans | |||
Net unrealized loss arising during the period | |||
Before Tax | 135 | (973) | 1,132 |
Tax Effect | (38) | 225 | (266) |
Net of Tax | 97 | (748) | 866 |
Other comprehensive (loss) income | |||
Before Tax | 135 | (973) | 1,132 |
Tax Effect | (38) | 225 | (266) |
Total other comprehensive income (loss) | $ 97 | $ (748) | $ 866 |
SHAREHOLDERS' EQUITY AND EARN_6
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning accumulated other comprehensive income | $ (58,340) | ||
Total other comprehensive income (loss) | 8,478 | $ (60,643) | $ (4,437) |
Ending accumulated other comprehensive income | (49,862) | (58,340) | |
Net unrealized gain (loss) on AFS securities: | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning accumulated other comprehensive income | (55,246) | 1,985 | 10,023 |
Other comprehensive gain (loss) before reclassifications | 7,623 | (57,190) | (5,840) |
Less: amounts reclassified from accumulated other comprehensive income | 26 | 41 | 2,198 |
Total other comprehensive income (loss) | 7,597 | (57,231) | (8,038) |
Ending accumulated other comprehensive income | (47,649) | (55,246) | 1,985 |
Net gain (loss) on effective cash flow hedging derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning accumulated other comprehensive income | (1,794) | 870 | (1,865) |
Other comprehensive gain (loss) before reclassifications | 784 | (2,664) | 2,735 |
Total other comprehensive income (loss) | 784 | (2,664) | 2,735 |
Ending accumulated other comprehensive income | (1,010) | (1,794) | 870 |
Net unrealized gain (loss) on post-retirement plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning accumulated other comprehensive income | (1,300) | (552) | (1,418) |
Other comprehensive gain (loss) before reclassifications | 97 | (748) | 866 |
Total other comprehensive income (loss) | 97 | (748) | 866 |
Ending accumulated other comprehensive income | (1,203) | (1,300) | (552) |
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning accumulated other comprehensive income | (58,340) | 2,303 | 6,740 |
Other comprehensive gain (loss) before reclassifications | 8,504 | (60,602) | (2,239) |
Less: amounts reclassified from accumulated other comprehensive income | 26 | 41 | 2,198 |
Total other comprehensive income (loss) | 8,478 | (60,643) | (4,437) |
Ending accumulated other comprehensive income | $ (49,862) | $ (58,340) | $ 2,303 |
SHAREHOLDERS' EQUITY AND EARN_7
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-interest income | $ 35,829 | $ 35,321 | $ 42,261 |
Non-interest expense | 93,479 | 91,253 | 90,508 |
Tax expense | (12,265) | (11,288) | (9,329) |
Realized Gains | 34 | 151 | 2,933 |
Realized Losses | (98) | (63) | |
Reclassification out of AOCI | Available-for-sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-interest income | 34 | 53 | 2,870 |
Tax expense | (8) | (12) | (672) |
Net of tax | $ 26 | $ 41 | $ 2,198 |
SHAREHOLDERS' EQUITY AND EARN_8
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | |||
Net Income (Loss) | $ 44,852 | $ 43,557 | $ 39,299 |
Average number of basic common shares outstanding (in shares) | 15,142,188 | 15,040,162 | 14,968,973 |
Plus: dilutive effect of stock options and awards outstanding (in shares) | 53,048 | 71,799 | 76,189 |
Average number of diluted common shares outstanding (in shares) | 15,195,236 | 15,111,961 | 15,045,162 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.96 | $ 2.90 | $ 2.63 |
Diluted (in dollars per share) | $ 2.95 | $ 2.88 | $ 2.61 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - (Details) - 2019 Plan | Dec. 31, 2023 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance | 500,000 |
Shares available for grant under this plan | 217,435 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 2,525 | $ 1,857 | $ 2,065 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 868 | 578 | 357 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 857 | 181 | 317 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 800 | $ 1,098 | $ 1,391 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | $ 615 | $ 475 | $ 584 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | 17 | 22 | 77 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | 201 | 136 | 84 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | 204 | 43 | 79 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | $ 193 | $ 274 | $ 344 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Stock Options Outstanding | ||
Beginning balance (in shares) | 47,327 | 57,964 |
Exercised (in shares) | (8,166) | (10,637) |
Expired (in shares) | (3,323) | |
Ending balance (in shares) | 35,838 | 47,327 |
Ending vested and expected to vest (in shares) | 35,838 | 47,327 |
Exercisable, outstanding (in shares) | 35,838 | 47,327 |
Weighted Average Exercise Price | ||
Beginning balance (usd per share) | $ 21.47 | $ 20.89 |
Exercised (usd per share) | 20.64 | 18.29 |
Expired (usd per share) | 16.99 | |
Ending balance (usd per share) | 22.08 | 21.47 |
Ending vested and expected to vest (usd per share) | 22.08 | 21.47 |
Exercisable (usd per share) | $ 22.08 | $ 21.47 |
Aggregate Intrinsic Value (in thousands) | ||
Value of ending outstanding balance | $ 261 | $ 500 |
Ending vested and expected to vest | 261 | 500 |
Exercisable, aggregate intrinsic value | $ 261 | $ 500 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Restricted Stock Award Activity (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Awards Outstanding | ||
Beginning balance (in shares) | 24,824 | |
Awarded (in shares) | 39,585 | 39,267 |
Vested (in shares) | (23,235) | (14,443) |
Ending balance (in shares) | 41,174 | 24,824 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 28.49 | |
Granted (usd per share) | 29.16 | $ 29.21 |
Vested (usd per share) | 27.36 | 30.46 |
Ending balance (usd per share) | $ 29.78 | $ 28.49 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS - Intrinsic value, Unrecognized compensation and Contractual term (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 | ||
Intrinsic value of options exercised | $ 74 | $ 94 | $ 331 |
Weighted average remaining contractual term (in years) | 1 year 7 months 6 days | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 370 | ||
Weighted average remaining maturity (in years) | 3 years | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,300 | ||
Weighted average remaining maturity (in years) | 2 years 9 months 18 days | ||
Intrinsic value | $ 0 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,500 | ||
Weighted average remaining maturity (in years) | 3 years |
STOCK-BASED COMPENSATION PLAN_8
STOCK-BASED COMPENSATION PLANS - Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period (in years) | 3 years | |
Units vested and exercised | 28,831 | 29,200 |
Number of Units Outstanding | ||
Beginning balance (in shares) | 78,435 | 70,465 |
Awarded (in shares) | 28,831 | 29,200 |
Vested (in shares) | (15,601) | |
Forfeited (in shares) | (6,750) | (21,230) |
Ending balance (in shares) | 84,915 | 78,435 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 25.70 | $ 23.88 |
Granted (usd per share) | 30.64 | 28.49 |
Vested (usd per share) | 25.29 | |
Forfeited (usd per share) | 25.30 | 23.35 |
Ending balance (usd per share) | $ 27.53 | $ 25.70 |
Performance stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant under this plan | 0 | 0 |
Performance stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant under this plan | 43,247 | 43,800 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Units vested and exercised | 36,354 | 36,468 |
Number of Units Outstanding | ||
Beginning balance (in shares) | 115,816 | 133,617 |
Awarded (in shares) | 36,354 | 36,468 |
Vested (in shares) | (43,341) | (43,059) |
Forfeited (in shares) | (6,134) | (11,210) |
Ending balance (in shares) | 102,695 | 115,816 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 25.25 | $ 23.48 |
Granted (usd per share) | 26.12 | 28.51 |
Vested (usd per share) | 21.77 | 22.88 |
Forfeited (usd per share) | 25.84 | 23.46 |
Ending balance (usd per share) | $ 27.07 | 25.25 |
Restricted stock units | Executive officers | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Weighted Average Grant Date Fair Value | ||
Granted (usd per share) | $ 29.36 | 28.49 |
Restricted stock units | Senior vice presidents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Weighted Average Grant Date Fair Value | ||
Granted (usd per share) | $ 29.36 | $ 29.34 |
Cash based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units vested and exercised | 29,043 | 24,232 |
Number of Units Outstanding | ||
Awarded (in shares) | 29,043 | 24,232 |
STOCK-BASED COMPENSATION PLAN_9
STOCK-BASED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price as percent of trading value | 92% | ||
Maximum shares available for issuance | 200,000 | ||
Threshold limit for shares to be purchased | 400 | ||
Value of shares purchased for issuance | $ 25 | ||
Common stock issued | 22,585 | 20,921 | 19,481 |
Shares available for issuance | 177,415 | 179,079 | 167,502 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 534,574 | $ 559,516 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,189 | |
Derivative assets | 21,838 | 30,039 |
Derivative Liabilities | (18,607) | (25,228) |
Recurring | Obligations of US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,992 | 2,660 |
Recurring | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 193,282 | 215,027 |
Recurring | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 74,213 | 79,606 |
Recurring | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 59,051 | 60,154 |
Recurring | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 110,168 | 107,737 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 95,868 | 94,332 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Derivative assets | 0 | |
Derivative Liabilities | 0 | |
Recurring | Level 1 | Obligations of US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 1 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,189 | |
Derivative assets | 21,775 | 30,039 |
Derivative Liabilities | (18,587) | (25,228) |
Recurring | Level 2 | Obligations of US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,992 | 2,660 |
Recurring | Level 2 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 193,282 | 215,027 |
Recurring | Level 2 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 74,213 | 79,606 |
Recurring | Level 2 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 59,051 | 60,154 |
Recurring | Level 2 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 110,168 | 107,737 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 95,868 | $ 94,332 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Derivative assets | 63 | |
Derivative Liabilities | (20) | |
Recurring | Level 3 | Obligations of US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 3 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Net Derivative Asset (Liability), Gain (Loss), Statement of Income [Extensible List] | Noninterest Income | Noninterest Income |
Interest Rate Lock Commitment | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | $ 283 | |
Realized gain (loss) recognized in non-interest income | $ 63 | (283) |
Ending balance | 63 | |
Forward Commitments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | $ 8 | 15 |
Realized gain (loss) recognized in non-interest income | (7) | |
Ending balance | $ 8 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | $ 3,231,000 | $ 4,811,000 |
Level 3 fair value measurement recurring basis on asset | 0 | 0 |
Fair value asset level 1 to level 2 | 0 | 0 |
Fair value asset level 2 to level 1 | 0 | 0 |
Fair value liabilities level 1 to level 2 | 0 | 0 |
Fair value liabilities level 2 to level 1 | 0 | 0 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Total | 63,000 | 298,000 |
Recurring | Level 3 | Forward Commitments | Quoted prices for similar loans in active markets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | 15,000 | |
Recurring | Level 3 | Interest Rate Lock Commitment | Pull-through Rate Analysis | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | $ 63,000 | $ 283,000 |
Closing Ratio | 95% | 85% |
Recurring | Level 3 | Interest Rate Lock Commitment | Pricing Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Origination Costs, per loan | $ 1,700 | $ 1,700 |
Recurring | Level 3 | Interest Rate Lock Commitment | Discount Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability) net, measurement input | 0.010 | 0.010 |
Recurring | Level 3 | Forward Commitments | Quoted prices for similar loans in active markets | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability) net, measurement input | 99.8 | |
Recurring | Level 3 | Forward Commitments | Quoted prices for similar loans in active markets | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability) net, measurement input | 103.2 |
FAIR VALUE MEASUREMENTS - Mea_2
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income | Noninterest Income |
Non-recurring | Level 3 | ||
Assets | ||
Individually evaluated loans | $ 3,500 | $ 16,477 |
Capitalized servicing rights | 6,764 | 6,845 |
Premises held for sale | 1,154 | 252 |
Total | 11,418 | $ 23,574 |
Total Gains (Losses) | (12,156) | |
Non-recurring | Level 3 | Impaired loans | ||
Assets | ||
Total Gains (Losses) | (12,977) | |
Non-recurring | Level 3 | Capitalized servicing rights | ||
Assets | ||
Total Gains (Losses) | (81) | |
Non-recurring | Level 3 | Assets held for sale | ||
Assets | ||
Total Gains (Losses) | $ 902 |
FAIR VALUE MEASUREMENTS - Uno_2
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | $ 3,500 | $ 16,477 |
Capitalized servicing rights | 6,764 | 6,845 |
Premises held for sale | 1,154 | 252 |
Total | 11,418 | 23,574 |
Quoted prices for similar loans in active markets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | 2,437 | 13,587 |
Discount Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | $ 1,063 | $ 2,890 |
Impaired loans | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Loss severity | 10% | 0.01% |
Appraised value | $ 80 | $ 80 |
Cash flows | $ 2 | $ 100 |
Discount rate | 3.25% | 3.63% |
Impaired loans | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Loss severity | 43% | 0.40% |
Appraised value | $ 965 | $ 3,859 |
Cash flows | $ 520 | $ 539 |
Discount rate | 7.13% | 6.38% |
Capitalized servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Constant prepayment rate | 7.20% | 7.29% |
Discount rate | 10.06% | 9.54% |
Assets held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Appraised value | $ 1,223 | |
Selling Costs | 6% | 6% |
Assets held for sale | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Appraised value | $ 267 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Securities available for sale | $ 534,574 | $ 559,516 |
Financial Liabilities | ||
Time deposits | 700,260 | 323,439 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 94,842 | 92,295 |
Securities available for sale | 534,574 | 559,516 |
FHLB stock | 14,834 | 14,893 |
Loans held for sale | 2,189 | |
Net loans | 2,999,049 | 2,902,690 |
Accrued interest receivable | 4,921 | 4,257 |
Cash surrender value of bank-owned life insurance policies | 80,037 | 81,197 |
Derivative assets | 21,838 | 30,039 |
Financial Liabilities | ||
Non-maturity deposits | 2,482,012 | 2,719,992 |
Time deposits | 658,482 | 323,439 |
Securities sold under agreements to repurchase | 38,504 | 13,369 |
FHLB advances | 232,579 | 320,588 |
Subordinated borrowings | 60,422 | 60,289 |
Derivative liabilities | 15,607 | 25,228 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 94,842 | 92,295 |
Securities available for sale | 534,574 | 559,516 |
FHLB stock | 14,834 | 14,893 |
Loans held for sale | 2,189 | |
Net loans | 2,832,173 | 2,774,863 |
Accrued interest receivable | 4,921 | 4,257 |
Cash surrender value of bank-owned life insurance policies | 80,037 | 81,197 |
Derivative assets | 21,838 | 30,039 |
Financial Liabilities | ||
Non-maturity deposits | 2,325,307 | 2,309,555 |
Time deposits | 651,855 | 315,180 |
Securities sold under agreements to repurchase | 38,504 | 13,369 |
FHLB advances | 232,375 | 320,244 |
Subordinated borrowings | 67,635 | 66,846 |
Derivative liabilities | 15,607 | 25,228 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 94,842 | 92,295 |
Fair Value | Level 2 | ||
Financial Assets | ||
Securities available for sale | 534,574 | 559,516 |
FHLB stock | 14,834 | 14,893 |
Loans held for sale | 2,189 | |
Accrued interest receivable | 4,921 | 4,257 |
Cash surrender value of bank-owned life insurance policies | 80,037 | 81,197 |
Derivative assets | 21,775 | 30,039 |
Financial Liabilities | ||
Non-maturity deposits | 2,325,307 | 2,309,555 |
Time deposits | 651,855 | 315,180 |
Securities sold under agreements to repurchase | 38,504 | 13,369 |
FHLB advances | 232,375 | 320,244 |
Subordinated borrowings | 67,635 | 66,846 |
Derivative liabilities | 15,587 | 25,228 |
Fair Value | Level 3 | ||
Financial Assets | ||
Net loans | 2,832,173 | $ 2,774,863 |
Derivative assets | 63 | |
Financial Liabilities | ||
Derivative liabilities | $ 20 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | $ 35,829 | $ 35,321 | $ 42,261 |
Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 29,451 | 29,364 | |
Not within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 6,378 | 5,957 | |
Products and services transferred at a point in time | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 15,751 | 15,552 | |
Products and services transferred over time | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 13,700 | 13,812 | |
Non-interest Income | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 29,451 | 29,364 | |
Trust management fees | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 12,766 | 13,022 | |
Financial services fees | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 1,517 | 1,551 | |
Interchange fees | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 7,845 | 7,736 | |
Customer deposit fees | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | 6,280 | 5,935 | |
Other customer service fees | Within the scope of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total non-interest income | $ 1,043 | $ 1,120 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balances from contracts with customers only: | ||
Other Assets | $ 1,178 | $ 1,211 |
Other Liabilities | $ 1,769 | $ 2,345 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true |
LEASES - Assets and liabilities
LEASES - Assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LEASES | ||
Operating lease right-of-use assets | $ 6,874 | $ 8,078 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Asset | Other Asset |
Operating lease liabilities | $ 7,322 | $ 8,501 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
LEASES - Lease Term and Cost (D
LEASES - Lease Term and Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
LEASES | |||
Weighted-average remaining lease term (in years) | 6 years 3 months 10 days | 7 years 2 months 1 day | |
Weighted-average discount rate | 3.10% | 3.09% | |
Operating lease cost | $ 1,343 | $ 1,344 | $ 1,295 |
Variable lease cost | 485 | 402 | 229 |
Total lease cost | $ 1,828 | $ 1,746 | $ 1,524 |
LEASES - Future Minimum Payment
LEASES - Future Minimum Payments for Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
December 31, 2024 | $ 1,316 | |
December 31, 2025 | 1,092 | |
December 31, 2026 | 987 | |
December 31, 2027 | 864 | |
December 31, 2028 | 726 | |
Thereafter | 2,484 | |
Total future minimum lease payments | 7,469 | |
Amounts representing interest | (147) | |
Operating lease liabilities | $ 7,322 | $ 8,501 |
CONDENSED FINANCIAL STATEMENT_3
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash | $ 42,221 | $ 39,933 | ||
Premises and equipment | 48,287 | 47,622 | ||
Other assets | 79,936 | 87,729 | ||
Total assets | 3,970,885 | 3,909,803 | ||
Liabilities and Shareholders Equity | ||||
Shareholders' equity | 432,059 | 393,450 | $ 424,147 | $ 407,065 |
Total liabilities and shareholders' equity | 3,970,885 | 3,909,803 | ||
Parent Company | ||||
Assets | ||||
Cash | 7,850 | 7,350 | ||
Investment in subsidiaries | 484,574 | 447,937 | ||
Premises and equipment | 785 | 765 | ||
Other assets | 5,070 | 3,130 | ||
Total assets | 498,279 | 459,182 | ||
Liabilities and Shareholders Equity | ||||
Subordinated notes | 60,461 | 60,289 | ||
Accrued expenses | 5,759 | 5,443 | ||
Shareholders' equity | 432,059 | 393,450 | ||
Total liabilities and shareholders' equity | $ 498,279 | $ 459,182 |
CONDENSED FINANCIAL STATEMENT_4
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest expense | $ 56,507 | $ 12,845 | $ 15,231 |
Non-interest expense | 93,479 | 91,253 | 90,508 |
Income tax benefit | 12,265 | 11,288 | 9,329 |
Net income | 44,852 | 43,557 | 39,299 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries | 23,156 | 20,682 | 15,557 |
Other income | 1,142 | 976 | 740 |
Total income | 24,298 | 21,658 | 16,297 |
Interest expense | 3,691 | 2,981 | 2,632 |
Non-interest expense | 5,834 | 5,183 | 5,455 |
Total expense | 9,525 | 8,164 | 8,087 |
Income before taxes and equity in undistributed income of subsidiaries | 14,773 | 13,493 | 8,210 |
Income tax benefit | (1,985) | (1,709) | (1,741) |
Income before equity in undistributed income of subsidiaries | 16,758 | 15,202 | 9,951 |
Equity in undistributed income of subsidiaries | 28,094 | 28,355 | 29,348 |
Net income | $ 44,852 | $ 43,557 | $ 39,299 |
CONDENSED FINANCIAL STATEMENT_5
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net Income (Loss) | $ 44,852 | $ 43,557 | $ 39,299 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Net cash provided by operating activities | 47,403 | 55,909 | 59,168 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (62,290) | (408,888) | (4,752) |
Cash flows from financing activities: | |||
Net cash provided by financing activities | 17,434 | 194,885 | (30,034) |
Net change in cash and cash equivalents | 2,547 | (158,094) | 24,382 |
Cash and cash equivalents at beginning of year | 92,295 | 250,389 | 226,007 |
Cash and cash equivalents at end of period | 94,842 | 92,295 | 250,389 |
Parent Company | |||
Cash flows from operating activities: | |||
Net Income (Loss) | 44,852 | 43,557 | 39,299 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed income of subsidiaries | (28,094) | (28,355) | (29,348) |
Other, net | (1,537) | 3,187 | (5,582) |
Net cash provided by operating activities | 15,221 | 18,389 | 4,369 |
Cash flows from financing activities: | |||
Net proceeds from common stock | 1,845 | 1,723 | 1,534 |
Common stock cash dividends paid | (16,566) | (15,334) | (14,072) |
Net cash provided by financing activities | (14,721) | (13,611) | (12,538) |
Net change in cash and cash equivalents | 500 | 4,778 | (8,169) |
Cash and cash equivalents at beginning of year | 7,350 | 2,572 | 10,741 |
Cash and cash equivalents at end of period | $ 7,850 | $ 7,350 | $ 2,572 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 44,852 | $ 43,557 | $ 39,299 |
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 |