Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CHEMUNG FINANCIAL CORP | |
Entity Central Index Key | 0000763563 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,827,049 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from financial institutions | $ 27,522 | $ 25,203 |
Interest-earning deposits in other financial institutions | 116,936 | 96,701 |
Total cash and cash equivalents | 144,458 | 121,904 |
Equity investments, at estimated fair value | 1,999 | 2,174 |
Securities available for sale, at estimated fair value | 299,075 | 284,090 |
Securities held to maturity, estimated fair value of $3,024 at March 31, 2020 and $3,139 at December 31, 2019 | 3,001 | 3,115 |
FHLBNY and FRBNY Stock, at cost | 3,099 | 3,099 |
Loans, net of deferred loan fees | 1,320,461 | 1,309,219 |
Allowance for loan losses | (26,233) | (23,478) |
Loans, net | 1,294,228 | 1,285,741 |
Loans held for sale | 801 | 1,185 |
Premises and equipment, net | 21,781 | 22,417 |
Operating lease right-of-use assets | 7,826 | 8,001 |
Goodwill | 21,824 | 21,824 |
Other intangible assets, net | 610 | 742 |
Bank-owned life insurance | 3,017 | 3,111 |
Accrued interest receivable and other assets | 39,610 | 30,424 |
Total assets | 1,841,329 | 1,787,827 |
Deposits: | ||
Non-interest-bearing | 469,535 | 468,238 |
Interest-bearing | 1,138,568 | 1,103,900 |
Total deposits | 1,608,103 | 1,572,138 |
Long term finance lease obligation | 4,028 | 4,085 |
Operating lease liabilities | 7,919 | 8,084 |
Dividends payable | 1,266 | 1,263 |
Accrued interest payable and other liabilities | 29,566 | 19,630 |
Total liabilities | 1,650,882 | 1,605,200 |
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at March 31, 2020 and December 31, 2019 | 53 | 53 |
Additional paid-in capital | 46,754 | 46,382 |
Retained earnings | 154,926 | 153,701 |
Treasury stock, at cost; 432,257 shares at March 31, 2020 and 452,641 shares at December 31, 2019 | (11,204) | (11,710) |
Accumulated other comprehensive loss | (82) | (5,799) |
Total shareholders' equity | 190,447 | 182,627 |
Total liabilities and shareholders' equity | $ 1,841,329 | $ 1,787,827 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Securities held to maturity, estimated fair value | $ 3,024 | $ 3,139 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,310,076 | 5,310,076 |
Treasury stock, at cost (in shares) | 432,257 | 452,641 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Loans, including fees | $ 14,228 | $ 14,489 |
Taxable securities | 1,487 | 1,195 |
Tax exempt securities | 271 | 273 |
Interest-earning deposits | 398 | 708 |
Total interest and dividend income | 16,384 | 16,665 |
Interest expense: | ||
Deposits | 1,286 | 1,461 |
Borrowed funds | 36 | 37 |
Total interest expense | 1,322 | 1,498 |
Net interest income | 15,062 | 15,167 |
Provision for loan losses | 3,050 | 1,093 |
Net interest income after provision for loan losses | 12,012 | 14,074 |
Non-interest income: | ||
Changes in fair value of equity investments | (246) | 89 |
Net gains on sales of loans held for sale | 75 | 48 |
Net gains (losses) on sales of other real estate owned | (29) | (83) |
Income from bank-owned life insurance | 119 | 15 |
Other | 667 | 445 |
Total non-interest income | 4,730 | 4,925 |
Non-interest expenses: | ||
Salaries and wages | 5,768 | 5,721 |
Pension and other employee benefits | 1,516 | 1,545 |
Other components of net periodic pension and postretirement benefits | (265) | (141) |
Net occupancy | 1,522 | 1,567 |
Furniture and equipment | 475 | 528 |
Data processing | 1,914 | 1,727 |
Professional services | 329 | 405 |
Amortization of intangible assets | 132 | 163 |
Marketing and advertising | 324 | 268 |
Other real estate owned | 29 | 31 |
FDIC insurance | 250 | 265 |
Loan expense | 310 | 196 |
Other | 1,445 | 1,222 |
Total non-interest expenses | 13,749 | 13,497 |
Income before income tax expense | 2,993 | 5,502 |
Income tax expense | 502 | 1,034 |
Net income | $ 2,491 | $ 4,468 |
Weighted average shares outstanding (in shares) | 4,895 | 4,860 |
Basic and diluted earnings per share (in dollars per share) | $ 0.51 | $ 0.92 |
WMG fee income | ||
Non-interest income: | ||
Revenue from contract with customer, excluding assessed tax | $ 2,229 | $ 2,276 |
Service charges on deposit accounts | ||
Non-interest income: | ||
Revenue from contract with customer, excluding assessed tax | 990 | 1,104 |
Interchange revenue from debit card transactions | ||
Non-interest income: | ||
Revenue from contract with customer, excluding assessed tax | $ 925 | $ 1,031 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,491 | $ 4,468 |
Other comprehensive income | ||
Unrealized holding gains on securities available for sale | 7,646 | 3,430 |
Tax effect | 1,950 | 874 |
Net of tax amount | 5,696 | 2,556 |
Change in funded status of defined benefit pension plan and other benefit plans: | ||
Reclassification adjustment for amortization of prior service costs | (55) | (55) |
Reclassification adjustment for amortization of net actuarial loss | 77 | 73 |
Total before tax effect | 22 | 18 |
Tax effect | 1 | 5 |
Net of tax amount | 21 | 13 |
Total other comprehensive income | 5,717 | 2,569 |
Comprehensive income | $ 8,208 | $ 7,037 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |
Beginning balances at Dec. 31, 2018 | $ 165,029 | $ 53 | $ 45,820 | $ 143,129 | $ (12,562) | $ (11,411) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 4,468 | 4,468 | |||||
Other comprehensive income | 2,569 | 2,569 | |||||
Restricted stock awards | 101 | 101 | |||||
Restricted stock units for directors' deferred compensation plan | 11 | 11 | |||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 11 | 11 | |||||
Cash dividends declared | (1,257) | (1,257) | |||||
Operating lease liabilities | 357 | 139 | 218 | ||||
Distribution of shares of treasury stock for employee stock compensation | 100 | 39 | 61 | ||||
Repurchase of common stock | (13) | (13) | |||||
Sale of treasury stock | [1] | 158 | 64 | 94 | |||
Ending balances at Mar. 31, 2019 | 171,534 | 53 | 46,174 | 146,340 | (12,191) | (8,842) | |
Beginning balances at Dec. 31, 2019 | 182,627 | 53 | 46,382 | 153,701 | (11,710) | (5,799) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 2,491 | 2,491 | |||||
Other comprehensive income | 5,717 | 5,717 | |||||
Restricted stock awards | 125 | 125 | |||||
Restricted stock units for directors' deferred compensation plan | 11 | 11 | |||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (7) | 7 | ||||
Cash dividends declared | (1,266) | (1,266) | |||||
Operating lease liabilities | 350 | 144 | 206 | ||||
Distribution of shares of treasury stock for employee stock compensation | 100 | 41 | 59 | ||||
Repurchase of common stock | (128) | (128) | |||||
Sale of treasury stock | [1] | 420 | 53 | 367 | |||
Forfeiture of shares of restricted stock awards | 0 | 5 | (5) | ||||
Ending balances at Mar. 31, 2020 | $ 190,447 | $ 53 | $ 46,754 | $ 154,926 | $ (11,204) | $ (82) | |
[1] | All treasury stock sales were completed at the prevailing market price with the Chemung Canal Trust Company Profit Sharing, Savings, and Investment Plan which is a defined contribution plan sponsored by the Bank. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.26 | $ 0.26 |
Distribution of shares of treasury stock for directors' compensation (in shares) | 7,923 | 8,465 |
Distribution of shares of treasury stock for employee stock compensation (in shares) | 2,274 | 2,373 |
Distribution of shares of treasury stock grants for employee restricted stock awards (in shares) | 255 | 439 |
Sale of shares of treasury stock (in shares) | 14,185 | 3,665 |
Forfeitures of shares of restricted stock awards (in shares) | 112 | |
Purchase of shares of treasury stock (in shares) | 4,141 | 272 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 2,491,000 | $ 4,468,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of right-of-use assets | 175,000 | 159,000 | |
Amortization of intangible assets | 132,000 | 163,000 | |
Provision for loan losses | 3,050,000 | 1,093,000 | |
Loss on disposal of fixed assets | 0 | 9,000 | |
Depreciation and amortization of fixed assets | 757,000 | 816,000 | |
Amortization of premiums on securities, net | 237,000 | 236,000 | |
Gain on sales of loans held for sale, net | (75,000) | (48,000) | |
Proceeds from sales of loans held for sale | 2,416,000 | ||
Loans originated and held for sale | (2,630,000) | (2,524,000) | |
Net losses on sale of other real estate owned | 29,000 | 83,000 | |
Write-downs on other real estate owned | 8,000 | 0 | |
Net change in fair value of equity investments | 246,000 | (89,000) | |
Purchase of equity investments | (34,000) | ||
Increase in other assets and accrued interest receivable | (9,322,000) | (1,147,000) | |
(Decrease) increase in accrued interest payable | (6,000) | 47,000 | |
Expense related to restricted stock units for directors' deferred compensation plan | 11,000 | 11,000 | |
Expense related to employee stock compensation | 101,000 | 100,000 | |
Expense related to employee restricted stock awards | 125,000 | 101,000 | |
Payments on operating leases | (165,000) | (151,000) | |
Increase in other liabilities | 8,231,000 | 1,550,000 | |
Income from bank owned life insurance | (119,000) | (15,000) | |
Net cash provided by operating activities | 7,244,000 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities, calls, and principal paydowns on securities available for sale | 8,882,000 | 8,198,000 | |
Proceeds from maturities and principal collected on securities held to maturity | 114,000 | 1,074,000 | |
Purchases of securities available for sale | (16,458,000) | (29,467,000) | |
Purchases of securities held to maturity | 0 | (60,000) | |
Purchase of FHLBNY and FRBNY stock | 0 | (5,000) | |
Purchases of premises and equipment | (121,000) | (124,000) | |
Proceeds from sale of other real estate owned | 101,000 | 313,000 | |
Proceeds from bank owned life insurance | 213,000 | 0 | |
Net (increase) decrease in loans | (11,537,000) | 12,550,000 | |
Net cash used in investing activities | (7,521,000) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase (decrease) in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts | 30,880,000 | (9,502,000) | |
Increase in time deposits | 5,086,000 | 6,767,000 | |
Payments made on capital lease | (57,000) | (54,000) | |
Sale of treasury stock | 420,000 | 158,000 | |
Cash dividends paid | (1,263,000) | (1,254,000) | |
Net cash provided by (used in) financing activities | (3,885,000) | ||
Net increase (decrease) in cash and cash equivalents | (4,162,000) | ||
Cash and cash equivalents, beginning of period | 121,904,000 | 129,972,000 | $ 129,972,000 |
Cash and cash equivalents, end of period | 125,810,000 | 121,904,000 | |
Cash paid for: | |||
Interest | 1,328,000 | 1,451,000 | |
Supplemental disclosure of non-cash activity: | |||
Transfer of loans to other real estate owned | 0 | 27,000 | |
Dividends declared, not yet paid | 1,266,000 | 1,257,000 | $ 1,263,000 |
Repurchase of common stock in lieu of employee payroll taxes | (37) | 0 | |
Distribution of treasury stock for directors' compensation | $ 350,000 | $ 357,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Corporation, which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The unaudited consolidated financial statements should be read in conjunction with the Corporation's 2019 Annual Report on Form 10-K for the year ended December 31, 2019 . The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period. Reclassifications Amounts in the prior year financial statements are reclassified whenever necessary to conform to the current year's presentation. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal years beginning after December 15, 2018. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a smaller reporting company, the Corporation is eligible for the proposed delay and has elected to defer implementation until January 1, 2023. The Corporation anticipates that the adoption of the CECL model will result in an increase to the Corporation's allowance for loan losses. The Corporation has established a committee to oversee the implementation of CECL and has selected a vendor to assist in the implementation process. In 2018, the committee began establishing parameters which will be used in the CECL model with the selected vendor. The Corporation is running its current incurred loss model and a CECL model concurrently. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law. The CARES Act provides banking organizations which previously adopted for fiscal years beginning after December 15, 2019, temporary relief from complying with CECL. Section 4013 of the CARES Act gives entities temporary relief from the accounting and disclosure requirements for troubled debt restructurings (TDRs) under ASC 310-40, Receivables: Troubled Debt Restructurings by Creditors, in certain situations. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. All loan modifications made by the Corporation in response to the COLVID-19 pandemic have been in accordance with Section 4013 of the CARES Act. Adoption of New Accounting Standards On January 1, 2020, the Corporation adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. On January 1, 2019, the Corporation adopted ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The Corporation adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements , allowing entities to continue to apply the legacy guidance in ASC 840, Leases , to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted. In addition, the Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of operating lease right-of-use assets and operating lease liabilities of approximately $8.6 million as of January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. On January 1, 2019, the Corporation adopted ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The objective of the ASU is to align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The amendment requires that the premium be amortized to the earliest call date, but does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. Risks and Uncertainties - COVID19 The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments have ordered non-essential businesses to close and residents to shelter in place at home. This has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment. Since the COVID-19 pandemic, more than 30 million people have filed claims for unemployment, and stock markets have declined in value and in particular bank stocks have significantly declined in value. Certain industries have been particularly hard-hit, including the travel and hospitality industry, the restaurant industry and the retail industry. Finally, the spread of the coronavirus has caused us to modify our business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences. We have many employees working remotely and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. The Corporation's consolidated financial statements reflect estimates and assumptions that affect the reported amounts of assets and liabilities, including the amount of the allowances for credit losses established. Management evaluated the potential impact of the COVID-19 pandemic as it related to the loan portfolio and as part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. Certain allowance qualitative factors were increased based on an assessment of the impact of the current pandemic on local, national and global economic conditions as well as the perceived risks inherent in specific industries and credit characteristics. Management has taken actions to identify and assess additional possible credit exposure due to the COVID-19 pandemic based upon the industry types within the current loan portfolio. As of March 31, 2020, "highly impacted" industries total $199.4 million , or 22.3% of the Bank's commercial loan portfolio as of March 31, 2020. |
EARNING PER COMMON SHARE
EARNING PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNING PER COMMON SHARE | EARNING PER COMMON SHARE (shares in thousands) Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. Earnings per share were computed by dividing net income by 4,895 and 4,860 weighted average shares outstanding for the three -month periods ended March 31, 2020 and 2019 , respectively. There were no common stock equivalents during the three -month periods ended March 31, 2020 or 2019 . |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential $ 227,180 $ 8,025 $ 206 $ 234,999 Obligations of states and political subdivisions 40,984 1,641 — 42,625 Corporate bonds and notes 250 — — 250 SBA loan pools 21,181 91 71 21,201 Total $ 289,595 $ 9,757 $ 277 $ 299,075 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential 225,029 1,471 1,266 225,234 Obligations of states and political subdivisions 41,265 1,580 — 42,845 Corporate bonds and notes 250 — — 250 SBA loan pools 15,712 95 46 15,761 Total $ 282,256 $ 3,146 $ 1,312 $ 284,090 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2020 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 931 $ — $ — $ 931 Time deposits with other financial institutions 2,070 23 — 2,093 Total $ 3,001 $ 23 $ — $ 3,024 December 31, 2019 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,045 $ — $ — $ 1,045 Time deposits with other financial institutions 2,070 24 — 2,094 Total $ 3,115 $ 24 $ — $ 3,139 The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): March 31, 2020 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 475 $ 475 $ 1,480 $ 1,484 After one, but within five years 10,439 10,779 1,521 1,540 After five, but within ten years 29,271 30,541 — — After ten years 1,049 1,080 — — 41,234 42,875 3,001 3,024 Mortgage-backed securities, residential 227,180 234,999 — — SBA loan pools 21,181 21,201 — — Total $ 289,595 $ 299,075 $ 3,001 $ 3,024 There were no proceeds from sales of securities resulting in gains or losses for the three months ended March 31, 2020 and 2019 . The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2020 and December 31, 2019 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total March 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential $ 5,168 $ 114 $ 3,875 $ 92 $ 9,043 $ 206 SBA loan pools 6,009 37 1,338 34 7,347 71 Total temporarily impaired securities $ 11,177 $ 151 $ 5,213 $ 126 $ 16,390 $ 277 Less than 12 months 12 months or longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential 71,506 791 54,343 475 125,849 1,266 SBA loan pools 3,014 9 1,405 37 4,419 46 Total temporarily impaired securities $ 74,520 $ 800 $ 55,748 $ 512 $ 130,268 $ 1,312 Other-Than-Temporary Impairment As of March 31, 2020 , the majority of the Corporation’s unrealized losses in the investment securities portfolio related to mortgage-backed securities. At March 31, 2020 , all of the unrealized losses related to mortgage-backed securities were issued by U.S. government sponsored entities, Fannie Mae and Freddie Mac. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because it is not likely that the Corporation will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at March 31, 2020 . |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, December 31, Commercial and agricultural: Commercial and industrial $ 235,690 $ 230,018 Agricultural 289 274 Commercial mortgages: Construction 40,957 43,962 Commercial mortgages, other 618,831 604,832 Residential mortgages 192,722 188,338 Consumer loans: Credit cards — — Home equity lines and loans 88,149 91,784 Indirect consumer loans 129,473 134,973 Direct consumer loans 14,350 15,038 Total loans, net of deferred origination fees and costs 1,320,461 1,309,219 Interest receivable on loans 3,759 3,684 Total recorded investment in loans $ 1,324,220 $ 1,312,903 The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above. The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 Charge-offs (30 ) — — (403 ) (433 ) Recoveries 4 1 — 135 140 Net recoveries (charge-offs) (26 ) — — (268 ) (294 ) Provision 990 1,603 169 288 3,050 Ending balance $ 11,191 $ 10,472 $ 1,421 $ 3,149 $ 26,233 Three Months Ended March 31, 2019 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 5,383 $ 8,184 $ 1,226 $ 4,151 $ 18,944 Charge-offs (7 ) — (2 ) (439 ) (448 ) Recoveries 11 1 — 144 156 Net recoveries (charge-offs) 4 1 (2 ) (295 ) (292 ) Provision 42 1,289 (9 ) (229 ) 1,093 Ending balance $ 5,429 $ 9,474 $ 1,215 $ 3,627 $ 19,745 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5,851 $ 2,058 $ — $ — $ 7,909 Collectively evaluated for impairment 5,340 8,414 1,421 3,149 18,324 Total ending allowance balance $ 11,191 $ 10,472 $ 1,421 $ 3,149 $ 26,233 December 31, 2019 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,000 $ 2,097 $ — $ — $ 8,097 Collectively evaluated for impairment 4,227 6,772 1,252 3,130 15,381 Total ending allowance balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 March 31, 2020 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 5,952 $ 8,478 $ 518 $ 149 $ 15,097 Loans collectively evaluated for impairment 230,698 653,183 192,751 232,491 1,309,123 Total ending loans balance $ 236,650 $ 661,661 $ 193,269 $ 232,640 $ 1,324,220 December 31, 2019 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 6,147 $ 8,844 $ 525 $ 149 $ 15,665 Loans collectively evaluated for impairment 224,775 641,726 188,349 242,388 1,297,238 Total ending loans balance $ 230,922 $ 650,570 $ 188,874 $ 242,537 $ 1,312,903 The following table presents loans individually evaluated for impairment recognized by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 105 $ 106 $ — $ 133 $ 133 $ — Commercial mortgages: Construction 231 232 — 247 247 — Commercial mortgages, other 3,219 3,220 — 3,501 3,503 — Residential mortgages 547 518 — 554 525 — Consumer loans: Home equity lines and loans 171 149 — 171 149 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,845 5,846 5,851 6,013 6,014 6,000 Commercial mortgages: Commercial mortgages, other 5,025 5,026 2,058 5,093 5,094 2,097 Total $ 15,143 $ 15,097 $ 7,909 $ 15,712 $ 15,665 $ 8,097 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three -month periods ended March 31, 2020 and 2019 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 120 $ — $ 325 $ 1 Commercial mortgages: Construction 239 2 301 2 Commercial mortgages, other 3,362 — 3,889 5 Residential mortgages 521 5 397 2 Consumer loans: Home equity lines & loans 149 2 111 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,930 — 1,807 — Commercial mortgages: Commercial mortgages, other 5,060 — 3,523 — Total $ 15,381 $ 9 $ 10,353 $ 11 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Commercial and agricultural: Commercial and industrial $ 5,951 $ 6,147 $ 8 $ 7 Commercial mortgages: Construction 73 80 — — Commercial mortgages, other 8,247 8,407 — — Residential mortgages 2,265 2,155 — — Consumer loans: Credit cards — — — — Home equity lines and loans 638 641 — — Indirect consumer loans 767 571 — — Direct consumer loans 7 7 — — Total $ 17,948 $ 18,008 $ 8 $ 7 The following tables present the aging of the recorded investment in loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 347 $ 1,373 $ 4,264 $ 5,984 $ 230,376 $ 236,360 Agricultural — — — — 290 290 Commercial mortgages: Construction — — — — 41,073 41,073 Commercial mortgages, other 2,385 1,211 2,297 5,893 614,695 620,588 Residential mortgages 1,432 286 1,131 2,849 190,420 193,269 Consumer loans: Home equity lines and loans 368 174 95 637 87,784 88,421 Indirect consumer loans 1,050 216 376 1,642 128,167 129,809 Direct consumer loans 33 21 6 60 14,350 14,410 Total $ 5,615 $ 3,281 $ 8,169 $ 17,065 $ 1,307,155 $ 1,324,220 December 31, 2019 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,285 $ 49 $ 4,398 $ 5,732 $ 224,916 $ 230,648 Agricultural — — — — 274 274 Commercial mortgages: Construction — — — — 44,082 44,082 Commercial mortgages, other 440 277 2,165 2,883 603,605 606,488 Residential mortgages 1,016 804 956 2,775 186,099 188,874 Consumer loans: Credit cards — — — — — — Home equity lines and loans 353 151 149 653 91,412 92,065 Indirect consumer loans 1,546 377 355 2,278 133,088 135,366 Direct consumer loans 32 10 6 49 15,057 15,106 Total $ 4,672 $ 1,668 $ 8,029 $ 14,370 $ 1,298,533 $ 1,312,903 Troubled Debt Restructurings: A modification of a loan may result in classification as a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Corporation offers various types of modifications which may involve a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, substituting or adding a new borrower or guarantor, a permanent reduction of the recorded investment in the loan or a permanent reduction of the interest on the loan. Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 related modifications and therefore will not be treated as TDRs. As of March 31, 2020, in conformance with Section 4013 of the CARES Act, the Corporation modified a total of 444 commercial and consumer loans represented by a total loan balance of $56.6 million . As of March 31, 2020 and December 31, 2019 , the Corporation has a recorded investment in TDRs of $8.7 million and $9.0 million , respectively. There were specific reserves of $2.3 million allocated for TDRs at both March 31, 2020 and December 31, 2019 , respectively. As of March 31, 2020 , TDRs totaling $0.8 million were accruing interest under the modified terms and $7.9 million were on non-accrual status. As of December 31, 2019 , TDRs totaling $0.9 million were accruing interest under the modified terms and $8.1 million were on non-accrual status. The Corporation had committed no additional amounts as of both March 31, 2020 and December 31, 2019 , to customers with outstanding loans that are classified as TDRs. During the three month period ended March 31, 2020, no loans were modified as TDRs. During the three-month period ended March 31, 2019, the terms of certain loans were modified as TDRs. The modification of the terms of one home equity loan during the three months ended March 31, 2019 included a reduction in the stated interest rate for the remaining life of the loan, an extension of the maturity date for approximately three years , and a reduction of the scheduled amortized payment of the loan for greater than a three month period. The following table present loans by class modified as TDRs that occurred during the three months ended March 31, 2019 (dollars in thousands): March 31, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Consumer loans: Home equity lines and loans 1 $ 137 $ 137 Total 1 $ 137 $ 137 The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the three-month period ended March 31, 2019. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on any loans previously modified as TDRs within twelve months following the modification during the three -month periods ended March 31, 2020 and 2019 . Credit Quality Indicators The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually. For the retail loans, which include residential mortgages, indirect and direct consumer loans, home equity lines and loans, and credit cards, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines): Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes. Based on the analyses performed as of March 31, 2020 and December 31, 2019 , the risk category of the recorded investment of loans by class of loans is as follows (in thousands): March 31, 2020 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 214,801 $ 5,852 $ 9,926 $ 5,781 $ 236,360 Agricultural — 290 — — — 290 Commercial mortgages: Construction — 37,123 398 3,552 — 41,073 Commercial mortgages — 593,742 11,483 11,008 4,355 620,588 Residential mortgages 191,004 — — 2,265 — 193,269 Consumer loans: Home equity lines and loans 87,783 — — 638 — 88,421 Indirect consumer loans 129,042 — — 767 — 129,809 Direct consumer loans 14,403 — — 7 — 14,410 Total $ 422,232 $ 845,956 $ 17,733 $ 28,163 $ 10,136 $ 1,324,220 December 31, 2019 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 208,552 $ 5,915 $ 10,361 $ 5,820 $ 230,648 Agricultural — 274 — — — 274 Commercial mortgages: Construction — 40,304 168 3,610 — 44,082 Commercial mortgages — 577,266 12,451 12,356 4,415 606,488 Residential mortgages 186,719 — — 2,155 — 188,874 Consumer loans: Credit cards — — — — — — Home equity lines and loans 91,424 — — 641 — 92,065 Indirect consumer loans 134,795 — — 571 — 135,366 Direct consumer loans 15,099 — — 7 — 15,106 Total $ 428,037 $ 826,396 $ 18,534 $ 29,701 $ 10,235 $ 1,312,903 The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in residential and consumer loans based on payment activity as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 191,004 $ — $ 87,783 $ 129,042 $ 14,403 Non-Performing 2,265 — 638 767 7 $ 193,269 $ — $ 88,421 $ 129,809 $ 14,410 December 31, 2019 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 186,719 $ — $ 91,424 $ 134,795 $ 15,099 Non-Performing 2,155 — 641 571 7 $ 188,874 $ — $ 92,065 $ 135,366 $ 15,106 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). 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 inputs). Equity Investments: Securities that are held to fund a deferred compensation plan and securities that have a readily determinable fair market value, are recorded at fair value with changes in fair value included in earnings. The fair values of equity investments are determined by quoted market prices (Level 1 inputs). Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Mortgage-backed securities, residential $ 234,999 $ — $ 234,999 $ — Obligations of states and political subdivisions 42,625 — 42,625 — Corporate bonds and notes 250 — 250 — SBA loan pools 21,201 — 21,201 — Total available for sale securities $ 299,075 $ — $ 299,075 $ — Equity investments, at fair value $ 1,274 $ 1,274 $ — $ — Derivative assets 16,343 — 16,343 — Financial Liabilities: Derivative liabilities $ 16,773 $ — $ 16,343 $ 430 There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2020 . Fair Value Measurement at December 31, 2019 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Mortgage-backed securities, residential 225,234 — 225,234 — Obligations of states and political subdivisions 42,845 — 42,845 — Corporate bonds and notes 250 — 250 — SBA loan pools 15,761 — 15,761 — Total available for sale securities $ 284,090 $ — $ 284,090 $ — Equity investments, at fair value $ 1,442 $ 1,442 $ — $ — Derivative assets 6,466 — 6,466 — Financial Liabilities: Derivative liabilities $ 6,831 $ — $ 6,466 $ 365 There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2019 . The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2020 and 2019 (in thousands): Assets (Liabilities) Derivative Liabilities March 31, 2020 March 31, 2019 Balance of recurring Level 3 assets at January 1 $ (365 ) $ (140 ) Derivative instruments entered into (9 ) (24 ) Total gains or losses for the period: Included in earnings - other non-interest income (56 ) (66 ) Included in other comprehensive income — — Transfers out of Level 3 — — Balance of recurring Level 3 assets at March 31, $ (430 ) $ (230 ) The following table presents information related to Level 3 recurring fair value measurements at March 31, 2020 and December 31, 2019 (in thousands): Description Fair Value at Valuation Technique Unobservable Inputs Range Derivative liabilities $ 430 Historical trend Credit default rate 12.86% - 20.75% Description Fair Value at Valuation Technique Unobservable Inputs Range Derivative liabilities $ 365 Historical trend Credit default rate 7.30% - 7.30% Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Impaired Loans: Commercial mortgages: Commercial mortgages $ 1,554 $ — $ — $ 1,554 $ (1,429 ) Total impaired loans $ 1,554 $ — $ — $ 1,554 $ (1,429 ) Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 $ — Residential mortgages 178 — — 178 — Consumer loans: Home equity lines and loans 91 — — 91 — Total other real estate owned, net $ 380 $ — $ — $ 380 $ — Fair Value Measurement at December 31, 2019 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Impaired Loans: Commercial mortgages: Commercial mortgages $ 1,554 $ — $ — $ 1,554 $ (1,597 ) Total impaired loans $ 1,554 $ — $ — $ 1,554 $ (1,597 ) Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 $ — Residential mortgages 284 — — 284 (12 ) Consumer loans: Home equity lines and loans 122 — — 122 — Total other real estate owned, net $ 517 $ — $ — $ 517 $ (12 ) The following tables present information related to Level 3 non-recurring fair value measurement at March 31, 2020 and December 31, 2019 (in thousands): Description Fair Value at March 31, 2020 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages $ 1,554 Sales comparison Discount to appraised value 10.31% - 10.31% $ 1,554 OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% Residential mortgages 178 Sales comparison Discount to appraised value 0.00% -0.00% Consumer loans: Home equity lines and loans 91 Sales comparison Discount to appraised value 27.49% - 27.49% $ 380 Description Fair Value at December 31, 2019 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages 1,554 Sales comparison Discount to appraised value 10.00% - 10.00% Consumer loans: $ 1,554 OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% Residential mortgages 284 Sales comparison Discount to appraised value 20.80% - 35.29% Consumer loans: Home equity lines and loans 122 Sales comparison Discount to appraised value 20.80% - 20.80% $ 517 FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of other financial instruments, at March 31, 2020 and December 31, 2019 , are as follows (in thousands): March 31, 2020 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 27,522 $ 27,522 $ — $ — $ 27,522 Interest-earning deposits in other financial institutions 116,936 116,936 — — 116,936 Equity investments 1,999 1,999 — — 1,999 Securities held to maturity 3,001 — 2,093 931 3,024 FHLBNY and FRBNY stock 3,099 — — — N/A Loans, net and loans held for sale 1,295,029 — — 1,298,475 1,298,475 Accrued interest receivable 4,786 39 988 3,759 4,786 Derivative Assets 16,343 — 16,343 — 16,343 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,441,841 $ 1,441,841 $ — $ — $ 1,441,841 Time deposits 166,262 — 169,803 — 169,803 Accrued interest payable 293 11 282 — 293 Derivative Liabilities 16,773 — 16,343 430 16,773 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2019 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 25,203 $ 25,203 $ — $ — $ 25,203 Interest-earning deposits in other financial institutions 96,701 96,701 — — 96,701 Equity investments 2,174 2,174 — — 2,174 Securities available for sale 284,090 — 284,090 — 284,090 Securities held to maturity 3,115 — 2,094 1,045 3,139 FHLBNY and FRBNY stock 3,099 — — — N/A Loans, net and loans held for sale 1,286,926 — — 1,285,215 1,285,215 Accrued interest receivable 4,633 63 885 3,685 4,633 Derivative Asset 6,466 — 6,466 — 6,466 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,410,962 $ 1,410,962 $ — $ — $ 1,410,962 Time deposits 161,176 — 163,761 — 163,761 Accrued interest payable 299 27 272 — 299 Derivative Liabilities 6,831 — 6,466 365 6,831 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2020, the weighted average remaining lease term was 9.0 years with a weighted average discount rate of 3.27% . Rent expense was $0.2 million for the three months ended March 31, 2020 . Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Leased branch properties at March 31, 2020 and December 31, 2019 consist of the following (in thousands): March 31, 2020 December 31, 2019 Operating lease right-of-use asset $ 8,713 $ 8,713 Less: accumulated amortization (887 ) (712 ) Operating lease right-of-use-assets, net $ 7,826 $ 8,001 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2020 (in thousands): Year Amount 2020 $ 700 2021 930 2022 869 2023 889 2024 880 2025 and thereafter 5,347 Total minimum lease payments 9,615 Less: amount representing interest (1,696 ) Present value of net minimum lease payments $ 7,919 As of March 31, 2020 , the Corporation had no operating leases that were signed, but had not yet commenced. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of March 31, 2020 , the weighted average remaining lease term was 12.8 years with a weighted average discount rate of 3.35% . The Corporation has included these leases in premises and equipment as of March 31, 2020 and December 31, 2019 as follows (in thousands): March 31, 202 0 December 31, 2019 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (1,625 ) (1,541 ) Net book value $ 3,947 $ 4,031 The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of March 31, 2020 (in thousands): Year Amount 2020 $ 284 2021 388 2022 391 2023 391 2024 391 2025 and thereafter 3,248 Total minimum lease payments 5,093 Less: amount representing interest (1,065 ) Present value of net minimum lease payments $ 4,028 As of March 31, 2020 , the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2022 from a member of the Corporation's Board of Directors with monthly rent expense totaling $4 thousand per month. Rent paid to this Board of Directors member totaled $12 thousand and $12 thousand for the three month periods ended March 31, 2020 and 2019 , respectively. The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February 2033 from a member of the Corporation's Board of Directors with monthly rent expense totaling $8 thousand per month. Rent paid to this Board of Directors member totaled $24 thousand and $24 thousand for the three month periods ended March 31, 2020 and 2019 , respectively. |
LEASES | LEASES Operating Leases The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2020, the weighted average remaining lease term was 9.0 years with a weighted average discount rate of 3.27% . Rent expense was $0.2 million for the three months ended March 31, 2020 . Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Leased branch properties at March 31, 2020 and December 31, 2019 consist of the following (in thousands): March 31, 2020 December 31, 2019 Operating lease right-of-use asset $ 8,713 $ 8,713 Less: accumulated amortization (887 ) (712 ) Operating lease right-of-use-assets, net $ 7,826 $ 8,001 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2020 (in thousands): Year Amount 2020 $ 700 2021 930 2022 869 2023 889 2024 880 2025 and thereafter 5,347 Total minimum lease payments 9,615 Less: amount representing interest (1,696 ) Present value of net minimum lease payments $ 7,919 As of March 31, 2020 , the Corporation had no operating leases that were signed, but had not yet commenced. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of March 31, 2020 , the weighted average remaining lease term was 12.8 years with a weighted average discount rate of 3.35% . The Corporation has included these leases in premises and equipment as of March 31, 2020 and December 31, 2019 as follows (in thousands): March 31, 202 0 December 31, 2019 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (1,625 ) (1,541 ) Net book value $ 3,947 $ 4,031 The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of March 31, 2020 (in thousands): Year Amount 2020 $ 284 2021 388 2022 391 2023 391 2024 391 2025 and thereafter 3,248 Total minimum lease payments 5,093 Less: amount representing interest (1,065 ) Present value of net minimum lease payments $ 4,028 As of March 31, 2020 , the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2022 from a member of the Corporation's Board of Directors with monthly rent expense totaling $4 thousand per month. Rent paid to this Board of Directors member totaled $12 thousand and $12 thousand for the three month periods ended March 31, 2020 and 2019 , respectively. The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February 2033 from a member of the Corporation's Board of Directors with monthly rent expense totaling $8 thousand per month. Rent paid to this Board of Directors member totaled $24 thousand and $24 thousand for the three month periods ended March 31, 2020 and 2019 , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The changes in goodwill included in the core banking segment during the three month periods ended March 31, 2020 and 2019 were as follows (in thousands): 2020 2019 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 Acquired intangible assets were as follows at March 31, 2020 and December 31, 2019 (in thousands): At March 31, 2020 At December 31, 2019 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,875 $ 5,975 $ 5,832 Other customer relationship intangibles 5,633 5,123 5,633 5,034 Total $ 11,608 $ 10,998 $ 11,608 $ 10,866 Aggregate amortization expense was $0.1 million and $0.2 million for the three month periods ended March 31, 2020 and 2019 , respectively. The remaining estimated aggregate amortization expense at March 31, 2020 is listed below (in thousands): Year Estimated Expense 2020 $ 352 2021 258 2022 2023 — 2024 — Total $ 610 The amount of goodwill reflected in the Corporation's Unaudited Consolidated Financial Statements is required to be tested by management for impairment on at least an annual basis. The test for impairment of goodwill on the identified reporting unit is considered a critical accounting estimate because it requires judgment on the part of management and the use of estimates related to the growth assumptions and market multiples used in the valuation model. The goodwill impairment testing is performed annually as of December 31 and no impairment charges were incurred. Changes in the macroeconomic environment resulting from the COVID-19 pandemic created a triggering event in the three month period ended March 31, 2020 and the Corporation performed an interim impairment test. The impairment test performed for the quarter ended March 31, 2020 determined no additional impairment was required. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Corporation is a party to certain financial instruments with off-balance sheet risk such as commitments under standby letters of credit, unused portions of lines of credit, overdraft protection and commitments to fund new loans. In accordance with GAAP, these financial instruments are not recorded in the financial statements. The Corporation's policy is to record such instruments when funded. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are generally used by the Corporation to manage clients' requests for funding and other client needs. The following table lists the contractual amounts of financial instruments with off-balance sheet risk at March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 22,930 $ 24,160 $ 15,560 $ 25,233 Unused lines of credit 2,213 234,343 1,062 229,137 Standby letters of credit — 16,022 — 16,272 On February 4, 2020, the Corporation filed a lawsuit against Pioneer Bank, Albany, New York, in the Supreme Court of the State of New York in the County of Albany. As disclosed in the Corporation’s September 12, 2019 Current Report on Form 8-K, the Bank owns a participating interest totaling $4.2 million in an approximately $36.0 million commercial credit facility on which the borrower defaulted due to fraudulent activity. The Bank’s complaint alleges that Pioneer Bank, as lead bank, breached the participation agreement and engaged in fraud and negligent misrepresentation. The Bank seeks to recover $4.2 million and additional damages as a result of purchasing the participation interest. On April 23, 2020 the Corporation received payment of $461,309 from Pioneer Bank related to its obligation under the participation agreements. This event was not considered material in nature and thus did not result in an adjustment to the financial statements. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. As of March 31, 2020 , we believe that we are not a party to any additional pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on our financial results or liquidity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss represents the net unrealized holding gains or losses on securities available for sale and the funded status of the Corporation's defined benefit pension plan and other benefit plans, as of the consolidated balance sheet dates, net of the related tax effect. The following is a summary of the changes in accumulated other comprehensive loss by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2020 $ 1,368 $ (7,167 ) $ (5,799 ) Other comprehensive income before reclassification 5,696 — 5,696 Amounts reclassified from accumulated other comprehensive income — 21 21 Net current period other comprehensive income 5,696 21 5,717 Balance at March 31, 2020 $ 7,064 $ (7,146 ) $ (82 ) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2019 $ (4,646 ) $ (6,765 ) $ (11,411 ) Other comprehensive loss before reclassification 2,556 — 2,556 Amounts reclassified from accumulated other comprehensive income — 13 13 Net current period other comprehensive income 2,556 13 2,569 Balance at March 31, 2019 $ (2,090 ) $ (6,752 ) $ (8,842 ) The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended Affected Line Item 2020 2019 Prior service costs (a) $ (55 ) $ (55 ) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 77 73 Other components of net periodic pension and postretirement benefits Tax effect (1 ) (5 ) Income tax expense Net of tax 21 13 Total reclassification for the period, net of tax $ 21 $ 13 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following tables present the Corporation's non-interest income by revenue stream and reportable segment for the three months ended March 31, 2020 and 2019 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 805 $ — $ — $ 805 Other 185 — — 185 Interchange revenue from debit card transactions 925 — — 925 WMG fee income — 2,229 — 2,229 CFS fee and commission income — — 177 177 Net gains (losses) on sales of OREO (29 ) — — (29 ) Net gains on sales of loans (a) 75 — — 75 Loan servicing fees (a) 27 — — 27 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) (167 ) — (79 ) (246 ) Other (a) 543 — 39 582 Total non-interest income (loss) $ 2,364 $ 2,229 $ 137 $ 4,730 Three Months Ended March 31, 2019 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 888 $ — $ — $ 888 Other 216 — — 216 Interchange revenue from debit card transactions 1,031 — — 1,031 WMG fee income — 2,276 — 2,276 CFS fee and commission income — — 168 168 Net gains (losses) on sales of OREO (83 ) — — (83 ) Net gains on sales of loans (a) 48 — — 48 Loan servicing fees (a) 35 — — 35 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) 73 — 16 89 Other (a) 257 — — 257 Total non-interest income $ 2,465 $ 2,276 $ 184 $ 4,925 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. A description of the Corporation's revenue streams accounted for under ASC 606 follows: Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which included services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are recognized at the time the maintenance occurs. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income from Debit Card Transactions: The Corporation earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to cardholder. WMG Fee Income (Gross): The Corporation earns wealth management fees from its contracts with customers to manage assets for investment, and/or to conduct transactions on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at quarter-end. CFS Fee and Commission Income (Net): The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The Corporation (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers. Investment brokerage fees are presented net of related costs. The Corporation also earns fees from tax services provided to its customers. Net Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. |
COMPONENTS OF QUARTERLY AND YEA
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended 2020 2019 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 322 379 Expected return on plan assets (610 ) (554 ) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 49 49 Net periodic pension benefit $ (239 ) $ (126 ) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 10 13 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 3 1 Net periodic supplemental pension cost $ 13 $ 14 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 2 3 Expected return on plan assets — — Amortization of unrecognized prior service cost (55 ) (55 ) Amortization of unrecognized net loss 25 23 Net periodic postretirement, medical and life benefit $ (28 ) $ (29 ) |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients. Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2019 Annual Report on Form 10-K, which was filed with the SEC on March 12, 2020. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,367 $ — $ 17 $ 16,384 Interest expense 1,322 — — 1,322 Net interest income 15,045 — 17 15,062 Provision for loan losses 3,050 — — 3,050 Net interest income after provision for loan losses 11,995 — 17 12,012 Other non-interest income 2,364 2,229 137 4,730 Other non-interest expenses 11,882 1,602 265 13,749 Income (loss) before income tax expense (benefit) 2,477 627 (111 ) 2,993 Income tax expense (benefit) 390 161 (49 ) 502 Segment net income (loss) $ 2,087 $ 466 $ (62 ) $ 2,491 Segment assets $ 1,833,135 $ 3,281 $ 4,913 $ 1,841,329 Three months ended March 31, 2019 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,652 $ — $ 13 $ 16,665 Interest expense 1,498 — — 1,498 Net interest income 15,154 — 13 15,167 Provision for loan losses 1,093 — — 1,093 Net interest income after provision for loan losses 14,061 — 13 14,074 Other non-interest income 2,465 2,276 184 4,925 Legal accruals and settlements — — — — Other non-interest expenses 11,625 1,575 297 13,497 Income (loss) before income tax expense (benefit) 4,901 701 (100 ) 5,502 Income tax expense (benefit) 889 179 (34 ) 1,034 Segment net income (loss) $ 4,012 $ 522 $ (66 ) $ 4,468 Segment assets $ 1,758,795 $ 3,697 $ 7,080 $ 1,769,572 |
STOCK COMPENSATION
STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION Board of Directors' Stock Compensation Pursuant to the Corporation's Directors' Compensation Plan, members of the Board of Directors receive common shares of the Corporation based on fees individually earned during the previous year for service as a director. The common shares are distributed to the Corporation's individual board members from treasury shares of the Corporation on or about January 15 following the calendar year of service. Additionally, the Chief Executive Officer of the Corporation, who does not receive cash compensation as a member of the Board of Directors, is awarded common shares equal in value to the average of those awarded to board members not employed by the Corporation who have served for 12 months during the prior year. During January 2020 and 2019 , 7,923 and 8,465 shares, respectively, were re-issued from treasury to fund the stock component of directors' compensation. An expense of $89 thousand and $93 thousand related to this compensation was recognized during the three month periods ended March 31, 2020 and 2019 , respectively. This expense is accrued as shares are earned. Restricted Stock Plan Pursuant to the Corporation’s Restricted Stock Plan, the Corporation may make discretionary grants of restricted stock to officers other than the Corporation's Chief Executive Officer. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. A summary of restricted stock activity for the three month period ended March 31, 2020 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2020 33,575 $ 43.24 Granted 255 39.35 Vested (2,350 ) 41.52 Forfeited or cancelled (112 ) 44.72 Nonvested at March 31, 2020 31,368 $ 43.33 As of March 31, 2020 , there was $1.2 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.38 years. The total fair value of shares vested was $97 thousand and $32 thousand for the three month periods ended March 31, 2020 and 2019 , respectively. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTS On April 23, 2020 the Corporation received payment of $461,309 from Pioneer Bank related to its obligation under the participation agreements in place related to a participating interest totaling $4.2 million in an approximately $36.0 million commercial credit facility on which the borrower defaulted due to fraudulent activity. This event was not considered material in nature and thus did not result in an adjustment to the financial statements. On April 27, 2020, the Corporation filed a Form S-3 Registration Statement under the Securities Act of 1933. The Corporation's Board of Directors approved the filing with the SEC of a Shelf Registration Statement to register for sale from time to time up to $50 million of the following securities: (i) shares of common stock; (ii) unsecured debt securities, which may consist of notes, debentures or other evidences of indebtedness; (iii) warrants; (iv) purchase contracts; (v) units consisting of any combination of the foregoing; and (vi) subscription rights to purchase shares of common stock or debt securities. The SEC declared the registration statement effective on May 7, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Corporation, which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The unaudited consolidated financial statements should be read in conjunction with the Corporation's 2019 Annual Report on Form 10-K for the year ended December 31, 2019 . The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period. |
Reclassifications | Reclassifications |
Recent Accounting Pronouncements and Adoption of New Accounting Standards | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal years beginning after December 15, 2018. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a smaller reporting company, the Corporation is eligible for the proposed delay and has elected to defer implementation until January 1, 2023. The Corporation anticipates that the adoption of the CECL model will result in an increase to the Corporation's allowance for loan losses. The Corporation has established a committee to oversee the implementation of CECL and has selected a vendor to assist in the implementation process. In 2018, the committee began establishing parameters which will be used in the CECL model with the selected vendor. The Corporation is running its current incurred loss model and a CECL model concurrently. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law. The CARES Act provides banking organizations which previously adopted for fiscal years beginning after December 15, 2019, temporary relief from complying with CECL. Section 4013 of the CARES Act gives entities temporary relief from the accounting and disclosure requirements for troubled debt restructurings (TDRs) under ASC 310-40, Receivables: Troubled Debt Restructurings by Creditors, in certain situations. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. All loan modifications made by the Corporation in response to the COLVID-19 pandemic have been in accordance with Section 4013 of the CARES Act. Adoption of New Accounting Standards On January 1, 2020, the Corporation adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. On January 1, 2019, the Corporation adopted ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The Corporation adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements , allowing entities to continue to apply the legacy guidance in ASC 840, Leases , to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted. In addition, the Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of operating lease right-of-use assets and operating lease liabilities of approximately $8.6 million as of January 1, 2019. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. On January 1, 2019, the Corporation adopted ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The objective of the ASU is to align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The amendment requires that the premium be amortized to the earliest call date, but does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. Risks and Uncertainties - COVID19 The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments have ordered non-essential businesses to close and residents to shelter in place at home. This has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment. Since the COVID-19 pandemic, more than 30 million people have filed claims for unemployment, and stock markets have declined in value and in particular bank stocks have significantly declined in value. Certain industries have been particularly hard-hit, including the travel and hospitality industry, the restaurant industry and the retail industry. Finally, the spread of the coronavirus has caused us to modify our business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences. We have many employees working remotely and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. The Corporation's consolidated financial statements reflect estimates and assumptions that affect the reported amounts of assets and liabilities, including the amount of the allowances for credit losses established. Management evaluated the potential impact of the COVID-19 pandemic as it related to the loan portfolio and as part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. Certain allowance qualitative factors were increased based on an assessment of the impact of the current pandemic on local, national and global economic conditions as well as the perceived risks inherent in specific industries and credit characteristics. Management has taken actions to identify and assess additional possible credit exposure due to the COVID-19 pandemic based upon the industry types within the current loan portfolio. As of March 31, 2020, "highly impacted" industries total $199.4 million , or 22.3% of the Bank's commercial loan portfolio as of March 31, 2020. |
Earnings Per Common Share | Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. |
Fair Value Measurement | Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). 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 inputs). Equity Investments: Securities that are held to fund a deferred compensation plan and securities that have a readily determinable fair market value, are recorded at fair value with changes in fair value included in earnings. The fair values of equity investments are determined by quoted market prices (Level 1 inputs). Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and estimated fair value of securities available for sale | Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential $ 227,180 $ 8,025 $ 206 $ 234,999 Obligations of states and political subdivisions 40,984 1,641 — 42,625 Corporate bonds and notes 250 — — 250 SBA loan pools 21,181 91 71 21,201 Total $ 289,595 $ 9,757 $ 277 $ 299,075 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential 225,029 1,471 1,266 225,234 Obligations of states and political subdivisions 41,265 1,580 — 42,845 Corporate bonds and notes 250 — — 250 SBA loan pools 15,712 95 46 15,761 Total $ 282,256 $ 3,146 $ 1,312 $ 284,090 |
Amortized cost and estimated fair value of securities held to maturity | Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2020 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 931 $ — $ — $ 931 Time deposits with other financial institutions 2,070 23 — 2,093 Total $ 3,001 $ 23 $ — $ 3,024 December 31, 2019 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,045 $ — $ — $ 1,045 Time deposits with other financial institutions 2,070 24 — 2,094 Total $ 3,115 $ 24 $ — $ 3,139 |
Amortized cost and estimated fair value of debt securities by contractual maturity | The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): March 31, 2020 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 475 $ 475 $ 1,480 $ 1,484 After one, but within five years 10,439 10,779 1,521 1,540 After five, but within ten years 29,271 30,541 — — After ten years 1,049 1,080 — — 41,234 42,875 3,001 3,024 Mortgage-backed securities, residential 227,180 234,999 — — SBA loan pools 21,181 21,201 — — Total $ 289,595 $ 299,075 $ 3,001 $ 3,024 |
Investment securities available for sale in an unrealized loss position | he following tables summarize the investment securities available for sale with unrealized losses at March 31, 2020 and December 31, 2019 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total March 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential $ 5,168 $ 114 $ 3,875 $ 92 $ 9,043 $ 206 SBA loan pools 6,009 37 1,338 34 7,347 71 Total temporarily impaired securities $ 11,177 $ 151 $ 5,213 $ 126 $ 16,390 $ 277 Less than 12 months 12 months or longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential 71,506 791 54,343 475 125,849 1,266 SBA loan pools 3,014 9 1,405 37 4,419 46 Total temporarily impaired securities $ 74,520 $ 800 $ 55,748 $ 512 $ 130,268 $ 1,312 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of the loan portfolio by type | The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, December 31, Commercial and agricultural: Commercial and industrial $ 235,690 $ 230,018 Agricultural 289 274 Commercial mortgages: Construction 40,957 43,962 Commercial mortgages, other 618,831 604,832 Residential mortgages 192,722 188,338 Consumer loans: Credit cards — — Home equity lines and loans 88,149 91,784 Indirect consumer loans 129,473 134,973 Direct consumer loans 14,350 15,038 Total loans, net of deferred origination fees and costs 1,320,461 1,309,219 Interest receivable on loans 3,759 3,684 Total recorded investment in loans $ 1,324,220 $ 1,312,903 |
Allowance for loan losses by portfolio segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 Charge-offs (30 ) — — (403 ) (433 ) Recoveries 4 1 — 135 140 Net recoveries (charge-offs) (26 ) — — (268 ) (294 ) Provision 990 1,603 169 288 3,050 Ending balance $ 11,191 $ 10,472 $ 1,421 $ 3,149 $ 26,233 Three Months Ended March 31, 2019 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 5,383 $ 8,184 $ 1,226 $ 4,151 $ 18,944 Charge-offs (7 ) — (2 ) (439 ) (448 ) Recoveries 11 1 — 144 156 Net recoveries (charge-offs) 4 1 (2 ) (295 ) (292 ) Provision 42 1,289 (9 ) (229 ) 1,093 Ending balance $ 5,429 $ 9,474 $ 1,215 $ 3,627 $ 19,745 |
Allowance for loan losses and the recorded investment in loans based on impairment method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5,851 $ 2,058 $ — $ — $ 7,909 Collectively evaluated for impairment 5,340 8,414 1,421 3,149 18,324 Total ending allowance balance $ 11,191 $ 10,472 $ 1,421 $ 3,149 $ 26,233 December 31, 2019 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,000 $ 2,097 $ — $ — $ 8,097 Collectively evaluated for impairment 4,227 6,772 1,252 3,130 15,381 Total ending allowance balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 March 31, 2020 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 5,952 $ 8,478 $ 518 $ 149 $ 15,097 Loans collectively evaluated for impairment 230,698 653,183 192,751 232,491 1,309,123 Total ending loans balance $ 236,650 $ 661,661 $ 193,269 $ 232,640 $ 1,324,220 December 31, 2019 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 6,147 $ 8,844 $ 525 $ 149 $ 15,665 Loans collectively evaluated for impairment 224,775 641,726 188,349 242,388 1,297,238 Total ending loans balance $ 230,922 $ 650,570 $ 188,874 $ 242,537 $ 1,312,903 |
Summary of impaired financing receivables | The following table presents loans individually evaluated for impairment recognized by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 105 $ 106 $ — $ 133 $ 133 $ — Commercial mortgages: Construction 231 232 — 247 247 — Commercial mortgages, other 3,219 3,220 — 3,501 3,503 — Residential mortgages 547 518 — 554 525 — Consumer loans: Home equity lines and loans 171 149 — 171 149 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,845 5,846 5,851 6,013 6,014 6,000 Commercial mortgages: Commercial mortgages, other 5,025 5,026 2,058 5,093 5,094 2,097 Total $ 15,143 $ 15,097 $ 7,909 $ 15,712 $ 15,665 $ 8,097 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three -month periods ended March 31, 2020 and 2019 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 120 $ — $ 325 $ 1 Commercial mortgages: Construction 239 2 301 2 Commercial mortgages, other 3,362 — 3,889 5 Residential mortgages 521 5 397 2 Consumer loans: Home equity lines & loans 149 2 111 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,930 — 1,807 — Commercial mortgages: Commercial mortgages, other 5,060 — 3,523 — Total $ 15,381 $ 9 $ 10,353 $ 11 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Commercial and agricultural: Commercial and industrial $ 5,951 $ 6,147 $ 8 $ 7 Commercial mortgages: Construction 73 80 — — Commercial mortgages, other 8,247 8,407 — — Residential mortgages 2,265 2,155 — — Consumer loans: Credit cards — — — — Home equity lines and loans 638 641 — — Indirect consumer loans 767 571 — — Direct consumer loans 7 7 — — Total $ 17,948 $ 18,008 $ 8 $ 7 |
Recorded investment in past due and non-accrual status by class of loans | The following tables present the aging of the recorded investment in loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 347 $ 1,373 $ 4,264 $ 5,984 $ 230,376 $ 236,360 Agricultural — — — — 290 290 Commercial mortgages: Construction — — — — 41,073 41,073 Commercial mortgages, other 2,385 1,211 2,297 5,893 614,695 620,588 Residential mortgages 1,432 286 1,131 2,849 190,420 193,269 Consumer loans: Home equity lines and loans 368 174 95 637 87,784 88,421 Indirect consumer loans 1,050 216 376 1,642 128,167 129,809 Direct consumer loans 33 21 6 60 14,350 14,410 Total $ 5,615 $ 3,281 $ 8,169 $ 17,065 $ 1,307,155 $ 1,324,220 December 31, 2019 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,285 $ 49 $ 4,398 $ 5,732 $ 224,916 $ 230,648 Agricultural — — — — 274 274 Commercial mortgages: Construction — — — — 44,082 44,082 Commercial mortgages, other 440 277 2,165 2,883 603,605 606,488 Residential mortgages 1,016 804 956 2,775 186,099 188,874 Consumer loans: Credit cards — — — — — — Home equity lines and loans 353 151 149 653 91,412 92,065 Indirect consumer loans 1,546 377 355 2,278 133,088 135,366 Direct consumer loans 32 10 6 49 15,057 15,106 Total $ 4,672 $ 1,668 $ 8,029 $ 14,370 $ 1,298,533 $ 1,312,903 |
Loans by class modified as troubled debt restructurings | The following table present loans by class modified as TDRs that occurred during the three months ended March 31, 2019 (dollars in thousands): March 31, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Consumer loans: Home equity lines and loans 1 $ 137 $ 137 Total 1 $ 137 $ 137 The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the three-month period ended March 31, 2019. |
Risk category of the recorded investment of loans by class of loans | Based on the analyses performed as of March 31, 2020 and December 31, 2019 , the risk category of the recorded investment of loans by class of loans is as follows (in thousands): March 31, 2020 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 214,801 $ 5,852 $ 9,926 $ 5,781 $ 236,360 Agricultural — 290 — — — 290 Commercial mortgages: Construction — 37,123 398 3,552 — 41,073 Commercial mortgages — 593,742 11,483 11,008 4,355 620,588 Residential mortgages 191,004 — — 2,265 — 193,269 Consumer loans: Home equity lines and loans 87,783 — — 638 — 88,421 Indirect consumer loans 129,042 — — 767 — 129,809 Direct consumer loans 14,403 — — 7 — 14,410 Total $ 422,232 $ 845,956 $ 17,733 $ 28,163 $ 10,136 $ 1,324,220 December 31, 2019 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 208,552 $ 5,915 $ 10,361 $ 5,820 $ 230,648 Agricultural — 274 — — — 274 Commercial mortgages: Construction — 40,304 168 3,610 — 44,082 Commercial mortgages — 577,266 12,451 12,356 4,415 606,488 Residential mortgages 186,719 — — 2,155 — 188,874 Consumer loans: Credit cards — — — — — — Home equity lines and loans 91,424 — — 641 — 92,065 Indirect consumer loans 134,795 — — 571 — 135,366 Direct consumer loans 15,099 — — 7 — 15,106 Total $ 428,037 $ 826,396 $ 18,534 $ 29,701 $ 10,235 $ 1,312,903 |
Recorded investment in residential and consumer loans based on payment activity | The following tables present the recorded investment in residential and consumer loans based on payment activity as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 191,004 $ — $ 87,783 $ 129,042 $ 14,403 Non-Performing 2,265 — 638 767 7 $ 193,269 $ — $ 88,421 $ 129,809 $ 14,410 December 31, 2019 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 186,719 $ — $ 91,424 $ 134,795 $ 15,099 Non-Performing 2,155 — 641 571 7 $ 188,874 $ — $ 92,065 $ 135,366 $ 15,106 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Mortgage-backed securities, residential $ 234,999 $ — $ 234,999 $ — Obligations of states and political subdivisions 42,625 — 42,625 — Corporate bonds and notes 250 — 250 — SBA loan pools 21,201 — 21,201 — Total available for sale securities $ 299,075 $ — $ 299,075 $ — Equity investments, at fair value $ 1,274 $ 1,274 $ — $ — Derivative assets 16,343 — 16,343 — Financial Liabilities: Derivative liabilities $ 16,773 $ — $ 16,343 $ 430 There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2020 . Fair Value Measurement at December 31, 2019 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Mortgage-backed securities, residential 225,234 — 225,234 — Obligations of states and political subdivisions 42,845 — 42,845 — Corporate bonds and notes 250 — 250 — SBA loan pools 15,761 — 15,761 — Total available for sale securities $ 284,090 $ — $ 284,090 $ — Equity investments, at fair value $ 1,442 $ 1,442 $ — $ — Derivative assets 6,466 — 6,466 — Financial Liabilities: Derivative liabilities $ 6,831 $ — $ 6,466 $ 365 |
Reconciliation of all assets measured at fair value | The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2020 and 2019 (in thousands): Assets (Liabilities) Derivative Liabilities March 31, 2020 March 31, 2019 Balance of recurring Level 3 assets at January 1 $ (365 ) $ (140 ) Derivative instruments entered into (9 ) (24 ) Total gains or losses for the period: Included in earnings - other non-interest income (56 ) (66 ) Included in other comprehensive income — — Transfers out of Level 3 — — Balance of recurring Level 3 assets at March 31, $ (430 ) $ (230 ) |
Reconciliation of liabilities measured at fair value | The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2020 and 2019 (in thousands): Assets (Liabilities) Derivative Liabilities March 31, 2020 March 31, 2019 Balance of recurring Level 3 assets at January 1 $ (365 ) $ (140 ) Derivative instruments entered into (9 ) (24 ) Total gains or losses for the period: Included in earnings - other non-interest income (56 ) (66 ) Included in other comprehensive income — — Transfers out of Level 3 — — Balance of recurring Level 3 assets at March 31, $ (430 ) $ (230 ) |
Summary of assets and liabilities measured at fair value on a non-recurring basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Impaired Loans: Commercial mortgages: Commercial mortgages $ 1,554 $ — $ — $ 1,554 $ (1,429 ) Total impaired loans $ 1,554 $ — $ — $ 1,554 $ (1,429 ) Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 $ — Residential mortgages 178 — — 178 — Consumer loans: Home equity lines and loans 91 — — 91 — Total other real estate owned, net $ 380 $ — $ — $ 380 $ — Fair Value Measurement at December 31, 2019 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Impaired Loans: Commercial mortgages: Commercial mortgages $ 1,554 $ — $ — $ 1,554 $ (1,597 ) Total impaired loans $ 1,554 $ — $ — $ 1,554 $ (1,597 ) Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 $ — Residential mortgages 284 — — 284 (12 ) Consumer loans: Home equity lines and loans 122 — — 122 — Total other real estate owned, net $ 517 $ — $ — $ 517 $ (12 ) |
Nonrecurring fair value measurement, valuation techniques | The following table presents information related to Level 3 recurring fair value measurements at March 31, 2020 and December 31, 2019 (in thousands): Description Fair Value at Valuation Technique Unobservable Inputs Range Derivative liabilities $ 430 Historical trend Credit default rate 12.86% - 20.75% Description Fair Value at Valuation Technique Unobservable Inputs Range Derivative liabilities $ 365 Historical trend Credit default rate 7.30% - 7.30% The following tables present information related to Level 3 non-recurring fair value measurement at March 31, 2020 and December 31, 2019 (in thousands): Description Fair Value at March 31, 2020 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages $ 1,554 Sales comparison Discount to appraised value 10.31% - 10.31% $ 1,554 OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% Residential mortgages 178 Sales comparison Discount to appraised value 0.00% -0.00% Consumer loans: Home equity lines and loans 91 Sales comparison Discount to appraised value 27.49% - 27.49% $ 380 Description Fair Value at December 31, 2019 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages 1,554 Sales comparison Discount to appraised value 10.00% - 10.00% Consumer loans: $ 1,554 OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% Residential mortgages 284 Sales comparison Discount to appraised value 20.80% - 35.29% Consumer loans: Home equity lines and loans 122 Sales comparison Discount to appraised value 20.80% - 20.80% $ 517 |
Carrying value and estimated fair value of financial instruments | The carrying amounts and estimated fair values of other financial instruments, at March 31, 2020 and December 31, 2019 , are as follows (in thousands): March 31, 2020 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 27,522 $ 27,522 $ — $ — $ 27,522 Interest-earning deposits in other financial institutions 116,936 116,936 — — 116,936 Equity investments 1,999 1,999 — — 1,999 Securities held to maturity 3,001 — 2,093 931 3,024 FHLBNY and FRBNY stock 3,099 — — — N/A Loans, net and loans held for sale 1,295,029 — — 1,298,475 1,298,475 Accrued interest receivable 4,786 39 988 3,759 4,786 Derivative Assets 16,343 — 16,343 — 16,343 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,441,841 $ 1,441,841 $ — $ — $ 1,441,841 Time deposits 166,262 — 169,803 — 169,803 Accrued interest payable 293 11 282 — 293 Derivative Liabilities 16,773 — 16,343 430 16,773 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2019 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 25,203 $ 25,203 $ — $ — $ 25,203 Interest-earning deposits in other financial institutions 96,701 96,701 — — 96,701 Equity investments 2,174 2,174 — — 2,174 Securities available for sale 284,090 — 284,090 — 284,090 Securities held to maturity 3,115 — 2,094 1,045 3,139 FHLBNY and FRBNY stock 3,099 — — — N/A Loans, net and loans held for sale 1,286,926 — — 1,285,215 1,285,215 Accrued interest receivable 4,633 63 885 3,685 4,633 Derivative Asset 6,466 — 6,466 — 6,466 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,410,962 $ 1,410,962 $ — $ — $ 1,410,962 Time deposits 161,176 — 163,761 — 163,761 Accrued interest payable 299 27 272 — 299 Derivative Liabilities 6,831 — 6,466 365 6,831 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Leased branch properties at March 31, 2020 and December 31, 2019 consist of the following (in thousands): March 31, 2020 December 31, 2019 Operating lease right-of-use asset $ 8,713 $ 8,713 Less: accumulated amortization (887 ) (712 ) Operating lease right-of-use-assets, net $ 7,826 $ 8,001 |
Lessee, Operating Lease, Liability, Maturity | The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2020 (in thousands): Year Amount 2020 $ 700 2021 930 2022 869 2023 889 2024 880 2025 and thereafter 5,347 Total minimum lease payments 9,615 Less: amount representing interest (1,696 ) Present value of net minimum lease payments $ 7,919 |
Property, Plant and Equipment | The Corporation has included these leases in premises and equipment as of March 31, 2020 and December 31, 2019 as follows (in thousands): March 31, 202 0 December 31, 2019 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (1,625 ) (1,541 ) Net book value $ 3,947 $ 4,031 |
Finance Lease, Liability, Maturity | The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of March 31, 2020 (in thousands): Year Amount 2020 $ 284 2021 388 2022 391 2023 391 2024 391 2025 and thereafter 3,248 Total minimum lease payments 5,093 Less: amount representing interest (1,065 ) Present value of net minimum lease payments $ 4,028 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The changes in goodwill included in the core banking segment during the three month periods ended March 31, 2020 and 2019 were as follows (in thousands): 2020 2019 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 |
Schedule of acquired finite-lived intangible assets by major class | Acquired intangible assets were as follows at March 31, 2020 and December 31, 2019 (in thousands): At March 31, 2020 At December 31, 2019 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,875 $ 5,975 $ 5,832 Other customer relationship intangibles 5,633 5,123 5,633 5,034 Total $ 11,608 $ 10,998 $ 11,608 $ 10,866 |
Schedule of expected amortization expense | The remaining estimated aggregate amortization expense at March 31, 2020 is listed below (in thousands): Year Estimated Expense 2020 $ 352 2021 258 2022 2023 — 2024 — Total $ 610 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual amounts of financial instruments with off-balance sheet risk | The following table lists the contractual amounts of financial instruments with off-balance sheet risk at March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 22,930 $ 24,160 $ 15,560 $ 25,233 Unused lines of credit 2,213 234,343 1,062 229,137 Standby letters of credit — 16,022 — 16,272 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (loss) | The following is a summary of the changes in accumulated other comprehensive loss by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2020 $ 1,368 $ (7,167 ) $ (5,799 ) Other comprehensive income before reclassification 5,696 — 5,696 Amounts reclassified from accumulated other comprehensive income — 21 21 Net current period other comprehensive income 5,696 21 5,717 Balance at March 31, 2020 $ 7,064 $ (7,146 ) $ (82 ) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2019 $ (4,646 ) $ (6,765 ) $ (11,411 ) Other comprehensive loss before reclassification 2,556 — 2,556 Amounts reclassified from accumulated other comprehensive income — 13 13 Net current period other comprehensive income 2,556 13 2,569 Balance at March 31, 2019 $ (2,090 ) $ (6,752 ) $ (8,842 ) |
Reclassification out of accumulated other comprehensive income | The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended Affected Line Item 2020 2019 Prior service costs (a) $ (55 ) $ (55 ) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 77 73 Other components of net periodic pension and postretirement benefits Tax effect (1 ) (5 ) Income tax expense Net of tax 21 13 Total reclassification for the period, net of tax $ 21 $ 13 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Corporation's non-interest income by revenue stream and reportable segment for the three months ended March 31, 2020 and 2019 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 805 $ — $ — $ 805 Other 185 — — 185 Interchange revenue from debit card transactions 925 — — 925 WMG fee income — 2,229 — 2,229 CFS fee and commission income — — 177 177 Net gains (losses) on sales of OREO (29 ) — — (29 ) Net gains on sales of loans (a) 75 — — 75 Loan servicing fees (a) 27 — — 27 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) (167 ) — (79 ) (246 ) Other (a) 543 — 39 582 Total non-interest income (loss) $ 2,364 $ 2,229 $ 137 $ 4,730 Three Months Ended March 31, 2019 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 888 $ — $ — $ 888 Other 216 — — 216 Interchange revenue from debit card transactions 1,031 — — 1,031 WMG fee income — 2,276 — 2,276 CFS fee and commission income — — 168 168 Net gains (losses) on sales of OREO (83 ) — — (83 ) Net gains on sales of loans (a) 48 — — 48 Loan servicing fees (a) 35 — — 35 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) 73 — 16 89 Other (a) 257 — — 257 Total non-interest income $ 2,465 $ 2,276 $ 184 $ 4,925 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. |
COMPONENTS OF QUARTERLY AND Y_2
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit costs | The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended 2020 2019 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 322 379 Expected return on plan assets (610 ) (554 ) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 49 49 Net periodic pension benefit $ (239 ) $ (126 ) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 10 13 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 3 1 Net periodic supplemental pension cost $ 13 $ 14 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 2 3 Expected return on plan assets — — Amortization of unrecognized prior service cost (55 ) (55 ) Amortization of unrecognized net loss 25 23 Net periodic postretirement, medical and life benefit $ (28 ) $ (29 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized financial information showing reconciliation of segment net income loss and assets to consolidated results | The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,367 $ — $ 17 $ 16,384 Interest expense 1,322 — — 1,322 Net interest income 15,045 — 17 15,062 Provision for loan losses 3,050 — — 3,050 Net interest income after provision for loan losses 11,995 — 17 12,012 Other non-interest income 2,364 2,229 137 4,730 Other non-interest expenses 11,882 1,602 265 13,749 Income (loss) before income tax expense (benefit) 2,477 627 (111 ) 2,993 Income tax expense (benefit) 390 161 (49 ) 502 Segment net income (loss) $ 2,087 $ 466 $ (62 ) $ 2,491 Segment assets $ 1,833,135 $ 3,281 $ 4,913 $ 1,841,329 Three months ended March 31, 2019 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,652 $ — $ 13 $ 16,665 Interest expense 1,498 — — 1,498 Net interest income 15,154 — 13 15,167 Provision for loan losses 1,093 — — 1,093 Net interest income after provision for loan losses 14,061 — 13 14,074 Other non-interest income 2,465 2,276 184 4,925 Legal accruals and settlements — — — — Other non-interest expenses 11,625 1,575 297 13,497 Income (loss) before income tax expense (benefit) 4,901 701 (100 ) 5,502 Income tax expense (benefit) 889 179 (34 ) 1,034 Segment net income (loss) $ 4,012 $ 522 $ (66 ) $ 4,468 Segment assets $ 1,758,795 $ 3,697 $ 7,080 $ 1,769,572 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted stock activity | A summary of restricted stock activity for the three month period ended March 31, 2020 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2020 33,575 $ 43.24 Granted 255 39.35 Vested (2,350 ) 41.52 Forfeited or cancelled (112 ) 44.72 Nonvested at March 31, 2020 31,368 $ 43.33 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | $ 7,826 | $ 8,001 | ||
Operating lease liabilities | 7,919 | $ 8,084 | ||
Provision for loan losses | 3,050 | $ 1,093 | ||
Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | $ 8,600 | |||
Operating lease liabilities | $ 8,600 | |||
Commercial loan portfolio | ||||
Property, Plant and Equipment [Line Items] | ||||
Provision for loan losses | 1,603 | $ 1,289 | ||
COVID-19 | Commercial loan portfolio | ||||
Property, Plant and Equipment [Line Items] | ||||
Provision for loan losses | $ 199,400 | |||
Provision for loan losses, percent | 22.30% |
EARNING PER COMMON SHARE (Detai
EARNING PER COMMON SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted average number of shares outstanding (in shares) | 4,895,000 | 4,860,000 |
Dilutive common stock equivalents (in shares) | 0 | 0 |
SECURITIES - Securities Availab
SECURITIES - Securities Available for Sale (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | $ 289,595,000 | $ 282,256,000 | |
Unrealized Gains | 9,757,000 | 3,146,000 | |
Unrealized Losses | 277,000 | 1,312,000 | |
Estimated Fair Value | 299,075,000 | 284,090,000 | |
Amortized Cost [Abstract] | |||
Within one year | 475,000 | ||
After one, but within five years | 10,439,000 | ||
After five, but within ten years | 29,271,000 | ||
After ten years | 1,049,000 | ||
Total | 41,234,000 | ||
Amortized Cost | 289,595,000 | 282,256,000 | |
Fair Value [Abstract] | |||
Within one year | 475,000 | ||
After one, but within five years | 10,779,000 | ||
After five, but within ten years | 30,541,000 | ||
After ten years | 1,080,000 | ||
Total | 42,875,000 | ||
Estimated Fair Value | 299,075,000 | 284,090,000 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||
Proceeds form sale of securities resulting in gain (loss) | 0 | $ 0 | |
Mortgage-backed securities, residential | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 227,180,000 | 225,029,000 | |
Unrealized Gains | 8,025,000 | 1,471,000 | |
Unrealized Losses | 206,000 | 1,266,000 | |
Estimated Fair Value | 234,999,000 | 225,234,000 | |
Amortized Cost [Abstract] | |||
Without single maturity date | 227,180,000 | ||
Amortized Cost | 227,180,000 | 225,029,000 | |
Fair Value [Abstract] | |||
Without single maturity date | 234,999,000 | ||
Estimated Fair Value | 234,999,000 | 225,234,000 | |
Obligations of states and political subdivisions | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 40,984,000 | 41,265,000 | |
Unrealized Gains | 1,641,000 | 1,580,000 | |
Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 42,625,000 | 42,845,000 | |
Amortized Cost [Abstract] | |||
Amortized Cost | 40,984,000 | 41,265,000 | |
Fair Value [Abstract] | |||
Estimated Fair Value | 42,625,000 | 42,845,000 | |
Corporate bonds and notes | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 250,000 | 250,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 250,000 | 250,000 | |
Amortized Cost [Abstract] | |||
Amortized Cost | 250,000 | 250,000 | |
Fair Value [Abstract] | |||
Estimated Fair Value | 250,000 | 250,000 | |
SBA loan pools | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 21,181,000 | 15,712,000 | |
Unrealized Gains | 91,000 | 95,000 | |
Unrealized Losses | 71,000 | 46,000 | |
Estimated Fair Value | 21,201,000 | 15,761,000 | |
Amortized Cost [Abstract] | |||
Without single maturity date | 21,181,000 | ||
Amortized Cost | 21,181,000 | 15,712,000 | |
Fair Value [Abstract] | |||
Without single maturity date | 21,201,000 | ||
Estimated Fair Value | $ 21,201,000 | $ 15,761,000 |
SECURITIES - Securities Held to
SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Securities held to maturity | $ 3,001 | $ 3,115 |
Unrecognized Gains | 23 | 24 |
Unrecognized Losses | 0 | 0 |
Securities held to maturity | 3,024 | 3,139 |
Amortized Cost [Abstract] | ||
Within one year | 1,480 | |
After one, but within five years | 1,521 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 3,001 | |
Securities held to maturity | 3,001 | 3,115 |
Fair Value [Abstract] | ||
Within one year | 1,484 | |
After one, but within five years | 1,540 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 3,024 | |
Securities held to maturity | 3,024 | 3,139 |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Securities held to maturity | 931 | 1,045 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 0 | 0 |
Securities held to maturity | 931 | 1,045 |
Amortized Cost [Abstract] | ||
Securities held to maturity | 931 | 1,045 |
Fair Value [Abstract] | ||
Securities held to maturity | 931 | 1,045 |
Time deposits with other financial institutions | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Securities held to maturity | 2,070 | 2,070 |
Unrecognized Gains | 23 | 24 |
Unrecognized Losses | 0 | 0 |
Securities held to maturity | 2,093 | 2,094 |
Amortized Cost [Abstract] | ||
Securities held to maturity | 2,070 | 2,070 |
Fair Value [Abstract] | ||
Securities held to maturity | 2,093 | $ 2,094 |
Mortgage-backed securities, residential | ||
Amortized Cost [Abstract] | ||
Without single maturity date | 0 | |
SBA loan pools | ||
Amortized Cost [Abstract] | ||
Without single maturity date | $ 0 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds form sale of securities resulting in gain (loss) | $ 0 | $ 0 |
SECURITIES - Investment Securit
SECURITIES - Investment Securities Available for Sale in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less than 12 months | $ 11,177 | $ 74,520 |
12 months or longer | 5,213 | 55,748 |
Total | 16,390 | 130,268 |
Unrealized Losses | ||
Less than 12 months | 151 | 800 |
12 months or longer | 126 | 512 |
Total | 277 | 1,312 |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 months | 5,168 | 71,506 |
12 months or longer | 3,875 | 54,343 |
Total | 9,043 | 125,849 |
Unrealized Losses | ||
Less than 12 months | 114 | 791 |
12 months or longer | 92 | 475 |
Total | 206 | 1,266 |
SBA loan pools | ||
Fair Value | ||
Less than 12 months | 6,009 | 3,014 |
12 months or longer | 1,338 | 1,405 |
Total | 7,347 | 4,419 |
Unrealized Losses | ||
Less than 12 months | 37 | 9 |
12 months or longer | 34 | 37 |
Total | $ 71 | $ 46 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | $ 1,320,461 | $ 1,309,219 |
Interest receivable on loans | 3,759 | 3,684 |
Total recorded investment in loans | 1,324,220 | 1,312,903 |
Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 236,650 | 230,922 |
Commercial Mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 661,661 | 650,570 |
Commercial Mortgages | Construction | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 40,957 | 43,962 |
Total recorded investment in loans | 41,073 | 44,082 |
Commercial Mortgages | Commercial mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 618,831 | 604,832 |
Total recorded investment in loans | 620,588 | 606,488 |
Residential mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 192,722 | 188,338 |
Total recorded investment in loans | 193,269 | 188,874 |
Consumer Loans | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 232,640 | 242,537 |
Consumer Loans | Credit cards | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 0 | 0 |
Total recorded investment in loans | 0 | |
Consumer Loans | Home equity lines and loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 88,149 | 91,784 |
Total recorded investment in loans | 88,421 | 92,065 |
Consumer Loans | Indirect consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 129,473 | 134,973 |
Total recorded investment in loans | 129,809 | 135,366 |
Consumer Loans | Direct consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 14,350 | 15,038 |
Total recorded investment in loans | 14,410 | 15,106 |
Commercial and industrial | Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 235,690 | 230,018 |
Total recorded investment in loans | 236,360 | 230,648 |
Agricultural | Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred origination fees and costs | 289 | 274 |
Total recorded investment in loans | $ 290 | $ 274 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | $ 23,478 | $ 18,944 | $ 18,944 | ||
Charge-offs | (433) | (448) | |||
Recoveries | 140 | 156 | |||
Net recoveries (charge-offs) | (294) | (292) | |||
Provision | 3,050 | 1,093 | |||
Ending balance | 26,233 | 19,745 | 23,478 | ||
Ending allowance balance attributable to loans [Abstract] | |||||
Individually evaluated for impairment | $ 7,909 | $ 8,097 | |||
Collectively evaluated for impairment | 18,324 | 15,381 | |||
Total ending allowance balance | 26,233 | 19,745 | 23,478 | 26,233 | 23,478 |
Loans [Abstract] | |||||
Loans individually evaluated for impairment | 15,097 | 15,665 | |||
Loans collectively evaluated for impairment | 1,309,123 | 1,297,238 | |||
Total recorded investment in loans | 1,324,220 | 1,312,903 | |||
Commercial and Agricultural | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 10,227 | 5,383 | 5,383 | ||
Charge-offs | (30) | (7) | |||
Recoveries | 4 | 11 | |||
Net recoveries (charge-offs) | (26) | 4 | |||
Provision | 990 | 42 | |||
Ending balance | 11,191 | 5,429 | 10,227 | ||
Ending allowance balance attributable to loans [Abstract] | |||||
Individually evaluated for impairment | 5,851 | 6,000 | |||
Collectively evaluated for impairment | 5,340 | 4,227 | |||
Total ending allowance balance | 11,191 | 5,429 | 10,227 | 11,191 | 10,227 |
Loans [Abstract] | |||||
Loans individually evaluated for impairment | 5,952 | 6,147 | |||
Loans collectively evaluated for impairment | 230,698 | 224,775 | |||
Total recorded investment in loans | 236,650 | 230,922 | |||
Commercial Mortgages | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 8,869 | 8,184 | 8,184 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 1 | 1 | |||
Net recoveries (charge-offs) | 0 | 1 | |||
Provision | 1,603 | 1,289 | |||
Ending balance | 10,472 | 9,474 | 8,869 | ||
Ending allowance balance attributable to loans [Abstract] | |||||
Individually evaluated for impairment | 2,058 | 2,097 | |||
Collectively evaluated for impairment | 8,414 | 6,772 | |||
Total ending allowance balance | 10,472 | 9,474 | 8,869 | 10,472 | 8,869 |
Loans [Abstract] | |||||
Loans individually evaluated for impairment | 8,478 | 8,844 | |||
Loans collectively evaluated for impairment | 653,183 | 641,726 | |||
Total recorded investment in loans | 661,661 | 650,570 | |||
Residential mortgages | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 1,252 | 1,226 | 1,226 | ||
Charge-offs | 0 | (2) | |||
Recoveries | 0 | 0 | |||
Net recoveries (charge-offs) | 0 | (2) | |||
Provision | 169 | (9) | |||
Ending balance | 1,421 | 1,215 | 1,252 | ||
Ending allowance balance attributable to loans [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,421 | 1,252 | |||
Total ending allowance balance | 1,421 | 1,215 | 1,252 | 1,421 | 1,252 |
Loans [Abstract] | |||||
Loans individually evaluated for impairment | 518 | 525 | |||
Loans collectively evaluated for impairment | 192,751 | 188,349 | |||
Total recorded investment in loans | 193,269 | 188,874 | |||
Consumer Loans | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 3,130 | 4,151 | 4,151 | ||
Charge-offs | (403) | (439) | |||
Recoveries | 135 | 144 | |||
Net recoveries (charge-offs) | (268) | (295) | |||
Provision | 288 | (229) | |||
Ending balance | 3,149 | 3,627 | 3,130 | ||
Ending allowance balance attributable to loans [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,149 | 3,130 | |||
Total ending allowance balance | $ 3,149 | $ 3,627 | $ 3,130 | 3,149 | 3,130 |
Loans [Abstract] | |||||
Loans individually evaluated for impairment | 149 | 149 | |||
Loans collectively evaluated for impairment | 232,491 | 242,388 | |||
Total recorded investment in loans | $ 232,640 | $ 242,537 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Unpaid Principal Balance [Abstract] | |||
Unpaid principal balance, total | $ 15,143 | $ 15,712 | |
Recorded Investment [Abstract] | |||
Recorded investment, total | 15,097 | 15,665 | |
Allowance for loan losses allocated | 7,909 | 8,097 | |
Average Recorded Investment [Abstract] | |||
Average recorded investment, total | 15,381 | $ 10,353 | |
Interest Income, Accrual Method [Abstract] | |||
Interest income, accrual method, total | 9 | 11 | |
Commercial Mortgages | Construction | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance, unpaid principal balance | 231 | 247 | |
Recorded Investment [Abstract] | |||
With no related allowance, recorded investment | 232 | 247 | |
Average Recorded Investment [Abstract] | |||
With no related allowance, average recorded investment | 239 | 301 | |
Interest Income, Accrual Method [Abstract] | |||
With no related allowance, interest income, accrual method | 2 | 2 | |
Commercial Mortgages | Commercial mortgages, other | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance, unpaid principal balance | 3,219 | 3,501 | |
With related allowance, Unpaid Principal Balance | 5,025 | 5,093 | |
Recorded Investment [Abstract] | |||
With no related allowance, recorded investment | 3,220 | 3,503 | |
With related allowance, recorded investment | 5,026 | 5,094 | |
Allowance for loan losses allocated | 2,058 | 2,097 | |
Average Recorded Investment [Abstract] | |||
With no related allowance, average recorded investment | 3,362 | 3,889 | |
With related allowance, average recorded investment | 5,060 | 3,523 | |
Interest Income, Accrual Method [Abstract] | |||
With no related allowance, interest income, accrual method | 0 | 5 | |
With related allowance, interest income, accrual method | 0 | 0 | |
Residential mortgages | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance, unpaid principal balance | 547 | 554 | |
Recorded Investment [Abstract] | |||
With no related allowance, recorded investment | 518 | 525 | |
Average Recorded Investment [Abstract] | |||
With no related allowance, average recorded investment | 521 | 397 | |
Interest Income, Accrual Method [Abstract] | |||
With no related allowance, interest income, accrual method | 5 | 2 | |
Consumer Loans | Home equity lines and loans | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance, unpaid principal balance | 171 | 171 | |
Recorded Investment [Abstract] | |||
With no related allowance, recorded investment | 149 | 149 | |
Average Recorded Investment [Abstract] | |||
With no related allowance, average recorded investment | 149 | 111 | |
Interest Income, Accrual Method [Abstract] | |||
With no related allowance, interest income, accrual method | 2 | 1 | |
Commercial and industrial | Commercial and agricultural | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance, unpaid principal balance | 105 | 133 | |
With related allowance, Unpaid Principal Balance | 5,845 | 6,013 | |
Recorded Investment [Abstract] | |||
With no related allowance, recorded investment | 106 | 133 | |
With related allowance, recorded investment | 5,846 | 6,014 | |
Allowance for loan losses allocated | 5,851 | $ 6,000 | |
Average Recorded Investment [Abstract] | |||
With no related allowance, average recorded investment | 120 | 325 | |
With related allowance, average recorded investment | 5,930 | 1,807 | |
Interest Income, Accrual Method [Abstract] | |||
With no related allowance, interest income, accrual method | 0 | 1 | |
With related allowance, interest income, accrual method | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 17,948 | $ 18,008 |
Loans Past Due 90 Days or More and Still Accruing | 8 | 7 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 17,065 | 14,370 |
Loans Not Past Due | 1,307,155 | 1,298,533 |
Total recorded investment in loans | 1,324,220 | 1,312,903 |
30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 5,615 | 4,672 |
60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 3,281 | 1,668 |
90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 8,169 | 8,029 |
Commercial and agricultural | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Total recorded investment in loans | 236,650 | 230,922 |
Commercial Mortgages | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Total recorded investment in loans | 661,661 | 650,570 |
Commercial Mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 73 | 80 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Loans Not Past Due | 41,073 | 44,082 |
Total recorded investment in loans | 41,073 | 44,082 |
Commercial Mortgages | Construction | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Commercial Mortgages | Construction | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Commercial Mortgages | Construction | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Commercial Mortgages | Commercial mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 8,247 | 8,407 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 5,893 | 2,883 |
Loans Not Past Due | 614,695 | 603,605 |
Total recorded investment in loans | 620,588 | 606,488 |
Commercial Mortgages | Commercial mortgages | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 2,385 | 440 |
Commercial Mortgages | Commercial mortgages | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,211 | 277 |
Commercial Mortgages | Commercial mortgages | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 2,297 | 2,165 |
Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,265 | 2,155 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 2,849 | 2,775 |
Loans Not Past Due | 190,420 | 186,099 |
Total recorded investment in loans | 193,269 | 188,874 |
Residential mortgages | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,432 | 1,016 |
Residential mortgages | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 286 | 804 |
Residential mortgages | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,131 | 956 |
Consumer Loans | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Total recorded investment in loans | 232,640 | 242,537 |
Consumer Loans | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | |
Loans Not Past Due | 0 | |
Total recorded investment in loans | 0 | |
Consumer Loans | Credit cards | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | |
Consumer Loans | Credit cards | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | |
Consumer Loans | Credit cards | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | |
Consumer Loans | Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 638 | 641 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 637 | 653 |
Loans Not Past Due | 87,784 | 91,412 |
Total recorded investment in loans | 88,421 | 92,065 |
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 368 | 353 |
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 174 | 151 |
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 95 | 149 |
Consumer Loans | Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 767 | 571 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,642 | 2,278 |
Loans Not Past Due | 128,167 | 133,088 |
Total recorded investment in loans | 129,809 | 135,366 |
Consumer Loans | Indirect consumer loans | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,050 | 1,546 |
Consumer Loans | Indirect consumer loans | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 216 | 377 |
Consumer Loans | Indirect consumer loans | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 376 | 355 |
Consumer Loans | Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 7 | 7 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 60 | 49 |
Loans Not Past Due | 14,350 | 15,057 |
Total recorded investment in loans | 14,410 | 15,106 |
Consumer Loans | Direct consumer loans | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 33 | 32 |
Consumer Loans | Direct consumer loans | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 21 | 10 |
Consumer Loans | Direct consumer loans | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 6 | 6 |
Commercial and industrial | Commercial and agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 5,951 | 6,147 |
Loans Past Due 90 Days or More and Still Accruing | 8 | 7 |
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 5,984 | 5,732 |
Loans Not Past Due | 230,376 | 224,916 |
Total recorded investment in loans | 236,360 | 230,648 |
Commercial and industrial | Commercial and agricultural | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 347 | 1,285 |
Commercial and industrial | Commercial and agricultural | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 1,373 | 49 |
Commercial and industrial | Commercial and agricultural | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 4,264 | 4,398 |
Agricultural | Commercial and agricultural | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Loans Not Past Due | 290 | 274 |
Total recorded investment in loans | 290 | 274 |
Agricultural | Commercial and agricultural | 30 - 59 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Agricultural | Commercial and agricultural | 60 - 89 Days Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | 0 | 0 |
Agricultural | Commercial and agricultural | 90 Days or More Past Due | ||
Aging of the recorded investment in loans past due [Abstract] | ||
Past Due | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)loancontract | Mar. 31, 2019USD ($)loancontract | Dec. 31, 2019USD ($) | |
Troubled Debt Restructurings [Abstract] | |||
Recorded investment in troubled debt restructurings | $ 8,700,000 | $ 9,000,000 | |
Troubled debt restructuring reserve | 2,300,000 | 2,300,000 | |
Troubled debt restructurings accruing interest under modified terms | 800,000 | 900,000 | |
Troubled debt restructurings on non-accrual status | 7,900,000 | 8,100,000 | |
Additional amounts committed to customers with loans classified as troubled debt restructurings | 0 | $ 0 | |
TDR charge-offs | $ 0 | $ 0 | |
Number of loans | contract | 0 | 0 | |
Loans by class modified as troubled debt restructurings [Abstract] | |||
Number of loans | loan | 1 | ||
Pre-modification outstanding recorded investment | $ 137,000 | ||
Post-modification outstanding recorded investment | $ 137,000 | ||
Commercial and Consumer Loans | |||
Loans by class modified as troubled debt restructurings [Abstract] | |||
Number of loans | loan | 444 | ||
Post-modification outstanding recorded investment | $ 56,600,000 | ||
Consumer Loans | Home equity lines and loans | |||
Loans by class modified as troubled debt restructurings [Abstract] | |||
Number of loans | loan | 1 | ||
Pre-modification outstanding recorded investment | $ 137,000 | ||
Post-modification outstanding recorded investment | $ 137,000 | ||
Interest Rate Below Market Reduction | Consumer Loans | Home equity lines and loans | |||
Loans by class modified as troubled debt restructurings [Abstract] | |||
Number of loans | loan | 1 | ||
Principal Forgiveness | |||
Troubled Debt Restructurings [Abstract] | |||
Extension period | 3 years |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finance receivable by credit quality indicator [Abstract] | ||
Loans | $ 1,324,220 | $ 1,312,903 |
Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 422,232 | 428,037 |
Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 845,956 | 826,396 |
Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 17,733 | 18,534 |
Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 28,163 | 29,701 |
Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 10,136 | 10,235 |
Commercial and agricultural | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 236,650 | 230,922 |
Commercial Mortgages | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 661,661 | 650,570 |
Commercial Mortgages | Construction | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 41,073 | 44,082 |
Commercial Mortgages | Construction | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Commercial Mortgages | Construction | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 37,123 | 40,304 |
Commercial Mortgages | Construction | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 398 | 168 |
Commercial Mortgages | Construction | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 3,552 | 3,610 |
Commercial Mortgages | Construction | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Commercial Mortgages | Commercial mortgages | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 620,588 | 606,488 |
Commercial Mortgages | Commercial mortgages | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Commercial Mortgages | Commercial mortgages | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 593,742 | 577,266 |
Commercial Mortgages | Commercial mortgages | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 11,483 | 12,451 |
Commercial Mortgages | Commercial mortgages | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 11,008 | 12,356 |
Commercial Mortgages | Commercial mortgages | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 4,355 | 4,415 |
Residential mortgages | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 193,269 | 188,874 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 193,269 | 188,874 |
Residential mortgages | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 191,004 | 186,719 |
Residential mortgages | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 2,265 | 2,155 |
Residential mortgages | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 191,004 | 186,719 |
Residential mortgages | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Residential mortgages | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Residential mortgages | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 2,265 | 2,155 |
Residential mortgages | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 232,640 | 242,537 |
Consumer Loans | Credit cards | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 0 | 0 |
Consumer Loans | Credit cards | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 0 | 0 |
Consumer Loans | Credit cards | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 0 | 0 |
Consumer Loans | Credit cards | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Consumer Loans | Credit cards | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Consumer Loans | Credit cards | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Consumer Loans | Credit cards | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Consumer Loans | Credit cards | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | |
Consumer Loans | Home equity lines and loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 88,421 | 92,065 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 88,421 | 92,065 |
Consumer Loans | Home equity lines and loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 87,783 | 91,424 |
Consumer Loans | Home equity lines and loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 638 | 641 |
Consumer Loans | Home equity lines and loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 87,783 | 91,424 |
Consumer Loans | Home equity lines and loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Home equity lines and loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Home equity lines and loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 638 | 641 |
Consumer Loans | Home equity lines and loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 129,809 | 135,366 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 129,809 | 135,366 |
Consumer Loans | Indirect consumer loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 129,042 | 134,795 |
Consumer Loans | Indirect consumer loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 767 | 571 |
Consumer Loans | Indirect consumer loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 129,042 | 134,795 |
Consumer Loans | Indirect consumer loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 767 | 571 |
Consumer Loans | Indirect consumer loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Direct consumer loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 14,410 | 15,106 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 14,410 | 15,106 |
Consumer Loans | Direct consumer loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 14,403 | 15,099 |
Consumer Loans | Direct consumer loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 7 | 7 |
Consumer Loans | Direct consumer loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 14,403 | 15,099 |
Consumer Loans | Direct consumer loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Direct consumer loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Consumer Loans | Direct consumer loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 7 | 7 |
Consumer Loans | Direct consumer loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Commercial and industrial | Commercial and agricultural | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 236,360 | 230,648 |
Commercial and industrial | Commercial and agricultural | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Commercial and industrial | Commercial and agricultural | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 214,801 | 208,552 |
Commercial and industrial | Commercial and agricultural | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 5,852 | 5,915 |
Commercial and industrial | Commercial and agricultural | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 9,926 | 10,361 |
Commercial and industrial | Commercial and agricultural | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 5,781 | 5,820 |
Agricultural | Commercial and agricultural | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 290 | 274 |
Agricultural | Commercial and agricultural | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Agricultural | Commercial and agricultural | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 290 | 274 |
Agricultural | Commercial and agricultural | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Agricultural | Commercial and agricultural | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Agricultural | Commercial and agricultural | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Loans | $ 0 | $ 0 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financial Assets: | |||
Estimated Fair Value | $ 299,075,000 | $ 284,090,000 | |
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Level 2 to level 1 transfer amount | 0 | $ 0 | |
Total Gains (Losses) | (3,050,000) | (1,093,000) | |
Recurring | |||
Financial Assets: | |||
Mortgage-backed securities, residential | 234,999,000 | 225,234,000 | |
Obligations of states and political subdivisions | 42,625,000 | 42,845,000 | |
Corporate bonds and notes | 250,000 | 250,000 | |
SBA loan pools | 21,201,000 | 15,761,000 | |
Estimated Fair Value | 299,075,000 | 284,090,000 | |
Equity investments | 1,274,000 | 1,442,000 | |
Derivative Asset | 16,343,000 | 6,466,000 | |
Financial Liabilities: | |||
Derivative Liabilities | 16,773,000 | 6,831,000 | |
Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 1,554,000 | 1,554,000 | |
Total Gains (Losses) | (1,429,000) | (1,597,000) | |
Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 380,000 | 517,000 | |
Total Gains (Losses) | 0 | (12,000) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | |||
Financial Assets: | |||
Mortgage-backed securities, residential | 0 | 0 | |
Obligations of states and political subdivisions | 0 | 0 | |
Corporate bonds and notes | 0 | 0 | |
SBA loan pools | 0 | 0 | |
Estimated Fair Value | 0 | 0 | |
Equity investments | 1,274,000 | 1,442,000 | |
Derivative Asset | 0 | 0 | |
Financial Liabilities: | |||
Derivative Liabilities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Recurring | |||
Financial Assets: | |||
Mortgage-backed securities, residential | 234,999,000 | 225,234,000 | |
Obligations of states and political subdivisions | 42,625,000 | 42,845,000 | |
Corporate bonds and notes | 250,000 | 250,000 | |
SBA loan pools | 21,201,000 | 15,761,000 | |
Estimated Fair Value | 299,075,000 | 284,090,000 | |
Equity investments | 0 | 0 | |
Derivative Asset | 16,343,000 | 6,466,000 | |
Financial Liabilities: | |||
Derivative Liabilities | 16,343,000 | 6,466,000 | |
Significant Other Observable Inputs (Level 2) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring | |||
Financial Assets: | |||
Mortgage-backed securities, residential | 0 | 0 | |
Obligations of states and political subdivisions | 0 | 0 | |
Corporate bonds and notes | 0 | 0 | |
SBA loan pools | 0 | 0 | |
Estimated Fair Value | 0 | 0 | |
Equity investments | 0 | 0 | |
Derivative Asset | 0 | 0 | |
Financial Liabilities: | |||
Derivative Liabilities | 430,000 | 365,000 | |
Significant Unobservable Inputs (Level 3) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 1,554,000 | 1,554,000 | |
Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 380,000 | 517,000 | |
Commercial mortgages, other | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 111,000 | 111,000 | |
Total Gains (Losses) | 0 | 0 | |
Commercial mortgages, other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Commercial mortgages, other | Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Commercial mortgages, other | Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 111,000 | 111,000 | |
Home equity lines and loans | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 122,000 | ||
Total Gains (Losses) | 0 | ||
Home equity lines and loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | ||
Home equity lines and loans | Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | ||
Home equity lines and loans | Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 122,000 | ||
Commercial Mortgages | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total Gains (Losses) | (1,603,000) | (1,289,000) | |
Commercial Mortgages | Commercial mortgages | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 1,554,000 | 1,554,000 | |
Total Gains (Losses) | (1,429,000) | (1,597,000) | |
Commercial Mortgages | Commercial mortgages | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 0 | 0 | |
Commercial Mortgages | Commercial mortgages | Significant Other Observable Inputs (Level 2) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 0 | 0 | |
Commercial Mortgages | Commercial mortgages | Significant Unobservable Inputs (Level 3) | Non-recurring | Impaired Loans: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total impaired loans | 1,554,000 | 1,554,000 | |
Residential mortgages | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total Gains (Losses) | (169,000) | 9,000 | |
Residential mortgages | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 178,000 | 284,000 | |
Total Gains (Losses) | 0 | (12,000) | |
Residential mortgages | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Residential mortgages | Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | 0 | |
Residential mortgages | Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 178,000 | $ 284,000 | |
Consumer Loans | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total Gains (Losses) | (288,000) | $ 229,000 | |
Consumer Loans | Home equity lines and loans | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 91,000 | ||
Total Gains (Losses) | 0 | ||
Consumer Loans | Home equity lines and loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | ||
Consumer Loans | Home equity lines and loans | Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | 0 | ||
Consumer Loans | Home equity lines and loans | Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||
Impaired Loans, Fair Value Disclosure [Abstract] | |||
Total other real estate owned, net | $ 91,000 |
FAIR VALUE - Unobservable Input
FAIR VALUE - Unobservable Inputs (Details) - Derivative Liabilities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Liabilities | ||
Balance of recurring Level 3 assets at beginning of period | $ (365) | $ (140) |
Derivative instruments entered into | (9) | (24) |
Included in earnings - other non-interest income | (56) | (66) |
Included in other comprehensive income | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance of recurring Level 3 assets at end of period | $ (430) | $ (230) |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Impaired Loans: | Non-recurring | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 1,554 | $ 1,554 |
Other real estate owned: | Non-recurring | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 380 | $ 517 |
Commercial and Industrial | Other real estate owned: | Non-recurring | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 20.80% | 20.80% |
Commercial and Industrial | Other real estate owned: | Non-recurring | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 20.80% | 20.80% |
Commercial and Industrial | Other real estate owned: | Non-recurring | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 20.80% | 20.80% |
Commercial mortgages, other | Impaired Loans: | Non-recurring | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 1,554 | $ 1,554 |
Commercial mortgages, other | Impaired Loans: | Non-recurring | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 10.31% | 10.00% |
Commercial mortgages, other | Impaired Loans: | Non-recurring | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 10.31% | 10.00% |
Commercial mortgages, other | Impaired Loans: | Non-recurring | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 10.31% | 10.00% |
Commercial mortgages, other | Other real estate owned: | Non-recurring | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 111 | $ 111 |
Residential mortgages | Other real estate owned: | Non-recurring | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 0.00% | 20.80% |
Residential mortgages | Other real estate owned: | Non-recurring | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 0.00% | 35.29% |
Residential mortgages | Other real estate owned: | Non-recurring | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 0.00% | 24.09% |
Residential mortgages | Other real estate owned: | Non-recurring | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 178 | $ 284 |
Home equity lines and loans | Other real estate owned: | Non-recurring | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 91 | $ 122 |
Home equity lines and loans | Other real estate owned: | Non-recurring | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 27.49% | 20.80% |
Home equity lines and loans | Other real estate owned: | Non-recurring | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 27.49% | 20.80% |
Home equity lines and loans | Other real estate owned: | Non-recurring | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value | 27.49% | 20.80% |
Derivative Liabilities | Recurring | Historical trend | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Liabilities, fair value disclosure | $ 430 | $ 365 |
Derivative Liabilities | Recurring | Historical trend | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Credit default rate | 12.86% | 7.30% |
Derivative Liabilities | Recurring | Historical trend | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Credit default rate | 20.75% | 7.30% |
Derivative Liabilities | Recurring | Historical trend | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Credit default rate | 13.82% | 7.30% |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Cash and due from financial institutions | $ 27,522 | $ 25,203 |
Interest-earning deposits in other financial institutions | 116,936 | 96,701 |
Securities available for sale | 299,075 | 284,090 |
Securities held to maturity | 3,024 | 3,139 |
Accrued interest receivable | 3,759 | 3,684 |
Recurring | ||
Financial assets: | ||
Securities available for sale | 299,075 | 284,090 |
Derivative Asset | 16,343 | 6,466 |
Financial liabilities: | ||
Derivative Liabilities | 16,773 | 6,831 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from financial institutions | 27,522 | 25,203 |
Interest-earning deposits in other financial institutions | 116,936 | 96,701 |
Equity investments | 1,999 | 2,174 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 39 | 63 |
Derivative Asset | 0 | 0 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,441,841 | 1,410,962 |
Time deposits | 0 | 0 |
Accrued interest payable | 11 | 27 |
Derivative Liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning deposits in other financial institutions | 0 | 0 |
Equity investments | 0 | 0 |
Securities available for sale | 299,075 | 284,090 |
Securities held to maturity | 2,093 | 2,094 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 988 | 885 |
Derivative Asset | 16,343 | 6,466 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 170 | 163,761 |
Accrued interest payable | 282 | 272 |
Derivative Liabilities | 16,343 | 6,466 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning deposits in other financial institutions | 0 | 0 |
Equity investments | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 931 | 1,045 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 1,298 | 1,285,215 |
Accrued interest receivable | 3,759 | 3,685 |
Derivative Asset | 0 | 0 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | 430 | 365 |
Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and due from financial institutions | 27,522 | 25,203 |
Interest-earning deposits in other financial institutions | 116,936 | 96,701 |
Equity investments | 1,999 | 2,174 |
Securities available for sale | 284,090 | |
Securities held to maturity | 3,001 | 3,115 |
FHLBNY and FRBNY stock | 3,099 | 3,099 |
Loans, net and loans held for sale | 1,295,029 | 1,286,926 |
Accrued interest receivable | 4,786 | 4,633 |
Derivative Asset | 16,343 | 6,466 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,441,841 | 1,410,962 |
Time deposits | 166,262 | 161,176 |
Accrued interest payable | 293 | 299 |
Derivative Liabilities | 16,773 | 6,831 |
Recurring | Estimated Fair Value | ||
Financial assets: | ||
Cash and due from financial institutions | 27,522 | 25,203 |
Interest-earning deposits in other financial institutions | 116,936 | 96,701 |
Equity investments | 1,999 | 2,174 |
Securities available for sale | 284,090 | |
Securities held to maturity | 3,024 | 3,139 |
Loans, net and loans held for sale | 1,298 | 1,285,215 |
Accrued interest receivable | 4,786 | 4,633 |
Derivative Asset | 16,343 | 6,466 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,441,841 | 1,410,962 |
Time deposits | 170 | 163,761 |
Accrued interest payable | 293 | 299 |
Derivative Liabilities | $ 16,773 | $ 6,831 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average remaining lease term | 9 years 5 days | ||
Operating lease, weighted average discount rate | 3.27% | ||
Operating lease, rent expense | $ 200 | ||
Finance lease, weighted average remaining lease term | 12 years 9 months 19 days | ||
Finance lease, weighted average discount rate | 3.35% | ||
Director | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, rent expense | $ 24 | $ 24 | |
1365 New Scotland Road, Slingerlands, New York | Director | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, rent expense | 12 | $ 12 | |
Operating lease, monthly rent expense | $ 4 | ||
2 Rush Street, Schenectady, New York | Director | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, monthly rent expense | $ 8 |
LEASES - Leased Branch Properti
LEASES - Leased Branch Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 8,713 | $ 8,713 |
Less: accumulated amortization | (887) | (712) |
Operating lease right-of-use-assets, net | $ 7,826 | $ 8,001 |
- Maturities of Operating Lease
- Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 700 | |
2021 | 930 | |
2022 | 869 | |
2023 | 889 | |
2024 | 880 | |
2025 and thereafter | 5,347 | |
Total minimum lease payments | 9,615 | |
Less: amount representing interest | (1,696) | |
Operating lease liabilities | $ 7,919 | $ 8,084 |
- Premises and Equipment (Detai
- Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Buildings | $ 5,572 | $ 5,572 |
Less: accumulated depreciation | (1,625) | (1,541) |
Net book value | $ 3,947 | $ 4,031 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payment Obligations Under Capital Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 284 | |
2021 | 388 | |
2022 | 391 | |
2023 | 391 | |
2024 | 391 | |
2025 and thereafter | 3,248 | |
Total minimum lease payments | 5,093 | |
Less: amount representing interest | (1,065) | |
Present value of net minimum lease payments | $ 4,028 | $ 4,085 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Beginning of year | $ 21,824 | $ 21,824 | $ 21,824 |
Acquired goodwill | 0 | 0 | |
Ending balance | 21,824 | 21,824 | 21,824 |
Finite-lived intangible assets, net [Abstract] | |||
Balance Acquired | 11,608 | 11,608 | |
Accumulated Amortization | 10,998 | 10,866 | |
Aggregate amortization expense | 132 | $ 163 | |
Finite-lived intangible assets, future amortization expense [Abstract] | |||
2020 | 352 | ||
2021 | 258 | ||
2022 | |||
2023 | 0 | ||
2024 | 0 | ||
Total | 610 | ||
Core deposit intangibles | |||
Finite-lived intangible assets, net [Abstract] | |||
Balance Acquired | 5,975 | 5,975 | |
Accumulated Amortization | 5,875 | 5,832 | |
Other customer relationship intangibles | |||
Finite-lived intangible assets, net [Abstract] | |||
Balance Acquired | 5,633 | 5,633 | |
Accumulated Amortization | $ 5,123 | $ 5,034 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Apr. 23, 2020 | Feb. 04, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Participating credit facility receivable, ownership interest, amount | $ 4,200,000 | |||
Participating credit facility receivable, amount | 36,000,000 | |||
Loss contingency, damages sought | $ 4,200,000 | |||
Commitments to make loans | Fixed Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | $ 22,930,000 | $ 15,560,000 | ||
Commitments to make loans | Variable Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | 24,160,000 | 25,233,000 | ||
Unused lines of credit | Fixed Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | 2,213,000 | 1,062,000 | ||
Unused lines of credit | Variable Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | 234,343,000 | 229,137,000 | ||
Standby letters of credit | Fixed Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | 0 | 0 | ||
Standby letters of credit | Variable Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet contractual amounts of financial instruments | $ 16,022,000 | $ 16,272,000 | ||
Subsequent Event | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Participating credit facility receivable, ownership interest, amount | $ 4,200,000 | |||
Participating credit facility receivable, amount | 36,000,000 | |||
Proceeds from participation agreement | $ 461,309 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Changes in Accumulated Other Comprehensive Income or Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balances | $ 182,627 | $ 165,029 |
Other comprehensive income before reclassification | 5,696 | 2,556 |
Amounts reclassified from accumulated other comprehensive income | 21 | 13 |
Total other comprehensive income | 5,717 | 2,569 |
Ending balances | 190,447 | 171,534 |
Total | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balances | (5,799) | (11,411) |
Total other comprehensive income | 5,717 | 2,569 |
Ending balances | (82) | (8,842) |
Unrealized Gains and Losses on Securities Available for Sale | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balances | 1,368 | (4,646) |
Other comprehensive income before reclassification | 5,696 | 2,556 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income | 5,696 | 2,556 |
Ending balances | 7,064 | (2,090) |
Defined Benefit and Other Benefit Plans | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balances | (7,167) | (6,765) |
Other comprehensive income before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 21 | 13 |
Total other comprehensive income | 21 | 13 |
Ending balances | $ (7,146) | $ (6,752) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Details about Accumulated Other Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense (benefit) | $ 502 | $ 1,034 |
Pension and other employee benefits | 1,516 | 1,545 |
Net income | 2,491 | 4,468 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 21 | 13 |
Prior service costs | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and other employee benefits | (55) | (55) |
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and other employee benefits | 77 | 73 |
Defined Benefit and Other Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense (benefit) | (1) | (5) |
Net income | $ 21 | $ 13 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Revenue By Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | $ (29) | $ (83) |
Net gains on sales of loans held for sale | 75 | 48 |
Change in fair value of equity investments | (246) | 89 |
Total non-interest income | 4,730 | 4,925 |
Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 805 | 888 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 185 | 216 |
Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 925 | 1,031 |
WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 2,229 | 2,276 |
CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 177 | 168 |
Net gains (losses) on sales of OREO | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | (29) | (83) |
Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of loans held for sale | 75 | 48 |
Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Loan servicing fees | 27 | 35 |
Sale of securities | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of securities | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Other | 582 | 257 |
Core Banking | ||
Disaggregation of Revenue [Line Items] | ||
Change in fair value of equity investments | (167) | 73 |
Total non-interest income | 2,364 | 2,465 |
Core Banking | Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 805 | 888 |
Core Banking | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 185 | 216 |
Core Banking | Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 925 | 1,031 |
Core Banking | WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Core Banking | CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Core Banking | Net gains (losses) on sales of OREO | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | (29) | (83) |
Core Banking | Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of loans held for sale | 75 | 48 |
Core Banking | Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Loan servicing fees | 27 | 35 |
Core Banking | Sale of securities | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of securities | 0 | 0 |
Core Banking | Other | ||
Disaggregation of Revenue [Line Items] | ||
Other | 543 | 257 |
WMG | ||
Disaggregation of Revenue [Line Items] | ||
Change in fair value of equity investments | 0 | 0 |
Total non-interest income | 2,229 | 2,276 |
WMG | Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
WMG | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
WMG | Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
WMG | WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 2,229 | 2,276 |
WMG | CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
WMG | Net gains (losses) on sales of OREO | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | 0 |
WMG | Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of loans held for sale | 0 | 0 |
WMG | Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Loan servicing fees | 0 | 0 |
WMG | Sale of securities | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of securities | 0 | 0 |
WMG | Other | ||
Disaggregation of Revenue [Line Items] | ||
Other | 0 | 0 |
Holding Company, CFS, and CRM | ||
Disaggregation of Revenue [Line Items] | ||
Change in fair value of equity investments | (79) | 16 |
Total non-interest income | 137 | 184 |
Holding Company, CFS, and CRM | Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Holding Company, CFS, and CRM | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Holding Company, CFS, and CRM | Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Holding Company, CFS, and CRM | WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Holding Company, CFS, and CRM | CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 177 | 168 |
Holding Company, CFS, and CRM | Net gains (losses) on sales of OREO | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | 0 |
Holding Company, CFS, and CRM | Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of loans held for sale | 0 | 0 |
Holding Company, CFS, and CRM | Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Loan servicing fees | 0 | 0 |
Holding Company, CFS, and CRM | Sale of securities | ||
Disaggregation of Revenue [Line Items] | ||
Net gains on sales of securities | 0 | 0 |
Holding Company, CFS, and CRM | Other | ||
Disaggregation of Revenue [Line Items] | ||
Other | $ 39 | $ 0 |
COMPONENTS OF QUARTERLY AND Y_3
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Qualified Pension Plan | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 322 | 379 |
Expected return on plan assets | (610) | (554) |
Amortization of unrecognized transition obligation | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 49 | 49 |
Net periodic pension benefit | (239) | (126) |
Supplemental Pension Plan | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | 0 | 0 |
Interest cost on projected benefit obligation | 10 | 13 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 3 | 1 |
Net periodic pension benefit | 13 | 14 |
Postretirement Plan, Medical and Life | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | 0 | 0 |
Interest cost on projected benefit obligation | 2 | 3 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | (55) | (55) |
Amortization of unrecognized net loss | 25 | 23 |
Net periodic pension benefit | $ (28) | $ (29) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of primary business segments | segment | 2 | ||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | $ 16,384 | $ 16,665 | |
Interest expense | 1,322 | 1,498 | |
Net interest income | 15,062 | 15,167 | |
Provision for loan losses | 3,050 | 1,093 | |
Net interest income after provision for loan losses | 12,012 | 14,074 | |
Other non-interest income | 4,730 | 4,925 | |
Legal accruals and settlements | 0 | ||
Other non-interest expenses | 13,749 | 13,497 | |
Income (loss) before income tax expense (benefit) | 2,993 | 5,502 | |
Income tax expense (benefit) | 502 | 1,034 | |
Net income | 2,491 | 4,468 | |
Segment assets | 1,841,329 | 1,769,572 | $ 1,787,827 |
Core Banking | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Other non-interest income | 2,364 | 2,465 | |
Operating Segments | Core Banking | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 16,367 | 16,652 | |
Interest expense | 1,322 | 1,498 | |
Net interest income | 15,045 | 15,154 | |
Provision for loan losses | 3,050 | 1,093 | |
Net interest income after provision for loan losses | 11,995 | 14,061 | |
Other non-interest income | 2,364 | 2,465 | |
Legal accruals and settlements | 0 | ||
Other non-interest expenses | 11,882 | 11,625 | |
Income (loss) before income tax expense (benefit) | 2,477 | 4,901 | |
Income tax expense (benefit) | 390 | 889 | |
Net income | 2,087 | 4,012 | |
Segment assets | 1,833,135 | 1,758,795 | |
Operating Segments | WMG | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 0 | 0 | |
Interest expense | 0 | 0 | |
Net interest income | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | |
Other non-interest income | 2,229 | 2,276 | |
Legal accruals and settlements | 0 | ||
Other non-interest expenses | 1,602 | 1,575 | |
Income (loss) before income tax expense (benefit) | 627 | 701 | |
Income tax expense (benefit) | 161 | 179 | |
Net income | 466 | 522 | |
Segment assets | 3,281 | 3,697 | |
Intersegment Eliminations | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 17 | 13 | |
Interest expense | 0 | 0 | |
Net interest income | 17 | 13 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 17 | 13 | |
Other non-interest income | 137 | 184 | |
Legal accruals and settlements | 0 | ||
Other non-interest expenses | 265 | 297 | |
Income (loss) before income tax expense (benefit) | (111) | (100) | |
Income tax expense (benefit) | (49) | (34) | |
Net income | (62) | (66) | |
Segment assets | $ 4,913 | $ 7,080 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock | ||||
Shares [Roll Forward] | ||||
Nonvested, Beginning Balance (in shares) | 33,575 | 33,575 | ||
Granted (in shares) | 255 | |||
Vested (in shares) | (2,350) | |||
Forfeited or cancelled (in shares) | (112) | |||
Nonvested, Ending Balance (in shares) | 31,368 | |||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested, Beginning Balance (in dollars per share) | $ 43.24 | $ 43.24 | ||
Granted (in dollars per share) | 39.35 | |||
Vested (in dollars per share) | 41.52 | |||
Forfeitures or cancelled (in dollars per share) | 44.72 | |||
Nonvested, Ending Balance (in dollars per share) | $ 43.33 | |||
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $ 1,200 | |||
Weighted-average period for recognition | 3 years 4 months 17 days | |||
Total fair value of shares vested | $ 97 | $ 32 | ||
President and Chief Executive Officer | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Service period for comparable group used to determine share based payment awards | 12 months | |||
Directors and President and Chief Executive Officer | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of treasury shares reissued to fund stock compensation (in shares) | 7,923 | 8,465 | ||
Expenses related to stock based compensation recognized | $ 89 | $ 93 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) | Apr. 23, 2020 | Feb. 04, 2020 |
Subsequent Event [Line Items] | ||
Participating credit facility receivable, ownership interest, amount | $ 4,200,000 | |
Participating credit facility receivable, amount | $ 36,000,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from participation agreement | $ 461,309 | |
Participating credit facility receivable, ownership interest, amount | 4,200,000 | |
Participating credit facility receivable, amount | $ 36,000,000 |