COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35741 | |
Entity Registrant Name | CHEMUNG FINANCIAL CORP | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-1237038 | |
Entity Address, Address Line One | One Chemung Canal Plaza | |
Entity Address, City or Town | Elmira | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14901 | |
City Area Code | 607 | |
Local Phone Number | 737-3711 | |
Title of 12(b) Security | Common stock, par value $.01 per share | |
Trading Symbol | CHMG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,710,408 | |
Entity Central Index Key | 0000763563 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Cash and due from financial institutions | $ 25,109 | $ 29,309 | |
Interest-earning deposits in other financial institutions | 9,532 | 26,560 | |
Total cash and cash equivalents | 34,641 | 55,869 | |
Equity investments, at estimated fair value | 2,949 | 2,830 | |
Securities available for sale, at estimated fair value (net of allowance for credit losses of $0 at March 31, 2023) | 626,055 | 632,589 | |
Securities held to maturity, estimated fair value of $1,905 at March 31, 2023 and $2,402 at December 31, 2022 (net of allowance for credit losses of $0 at March 31, 2023) | 1,932 | 2,424 | |
FHLBNY and FRBNY Stock, at cost | 7,913 | 8,197 | |
Loans, net of deferred loan fees | 1,873,701 | 1,829,448 | |
Allowance for credit losses | [1] | (20,075) | (19,659) |
Loans, net | 1,853,626 | 1,809,789 | |
Premises and equipment, net | 15,867 | 16,113 | |
Operating lease right-of-use assets | 6,250 | 6,449 | |
Goodwill | 21,824 | 21,824 | |
Bank-owned life insurance | 2,881 | 2,871 | |
Interest rate swap assets | 22,710 | 27,141 | |
Accrued interest receivable and other assets | 57,535 | 59,457 | |
Total assets | 2,654,183 | 2,645,553 | |
Deposits: | |||
Non-interest-bearing | 690,596 | 733,329 | |
Interest-bearing | 1,641,833 | 1,593,898 | |
Total deposits | 2,332,429 | 2,327,227 | |
FHLBNY overnight advances | 90,070 | 95,810 | |
Long term finance lease obligation | 3,258 | 3,327 | |
Operating lease liabilities | 6,427 | 6,620 | |
Dividends payable | 1,460 | 1,455 | |
Interest rate swap liabilities | 22,776 | 27,196 | |
Accrued interest payable and other liabilities | 20,422 | 17,530 | |
Total liabilities | 2,476,842 | 2,479,165 | |
Shareholders' equity: | |||
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at March 31, 2023 and December 31, 2022 | 53 | 53 | |
Additional paid-in capital | 47,387 | 47,331 | |
Retained earnings | 216,593 | 211,859 | |
Treasury stock, at cost; 600,973 shares at March 31, 2023 and 615,448 shares at December 31, 2022 | (17,219) | (17,598) | |
Accumulated other comprehensive loss | (69,473) | (75,257) | |
Total shareholders' equity | 177,341 | 166,388 | |
Total liabilities and shareholders' equity | $ 2,654,183 | $ 2,645,553 | |
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale, allowance for credit loss | $ 0 | |
Securities held to maturity, estimated fair value | 1,905,000 | $ 2,402,000 |
Securities held to maturity, allowance for credit loss | $ 0 | |
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) | 600,973 | 615,448 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Interest and dividend income: | |||
Loans, including fees | $ 22,289,000 | $ 14,481,000 | |
Taxable securities | 3,583,000 | 2,688,000 | |
Tax exempt securities | 261,000 | 270,000 | |
Interest-earning deposits | 97,000 | 19,000 | |
Total interest and dividend income | 26,230,000 | 17,458,000 | |
Interest expense: | |||
Deposits | 5,387,000 | 748,000 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Borrowed funds | 896,000 | 33,000 | |
Total interest expense | 6,283,000 | 781,000 | |
Net interest income | 19,947,000 | 16,677,000 | |
Provision (credit) for credit losses | [1] | 277,000 | (1,145,000) |
Net interest income after provision for credit losses | 19,670,000 | 17,822,000 | |
Non-interest income: | |||
Changes in fair value of equity investments | 72,000 | (113,000) | |
Net gains on sales of loans held for sale | 5,000 | 74,000 | |
Income from bank-owned life insurance | 10,000 | 11,000 | |
Other | 682,000 | 940,000 | |
Total non-interest income | 5,423,000 | 5,663,000 | |
Non-interest expenses: | |||
Salaries and wages | 6,783,000 | 6,223,000 | |
Pension and other employee benefits | 1,680,000 | 1,718,000 | |
Other components of net periodic pension and postretirement benefits | (174,000) | (408,000) | |
Net occupancy | 1,465,000 | 1,427,000 | |
Furniture and equipment | 418,000 | 437,000 | |
Data processing | 2,381,000 | 2,187,000 | |
Professional services | 440,000 | 521,000 | |
Legal accruals and settlements | 0 | 0 | |
Amortization of intangible assets | 0 | 11,000 | |
Marketing and advertising | 332,000 | 276,000 | |
Other real estate owned | 38,000 | (37,000) | |
FDIC insurance | 497,000 | 314,000 | |
Loan expense | 232,000 | 215,000 | |
Merger and acquisition related expenses | 0 | 0 | |
Other | 1,744,000 | 1,784,000 | |
Total non-interest expenses | 15,836,000 | 14,668,000 | |
Income before income tax expense | 9,257,000 | 8,817,000 | |
Income tax expense | 1,987,000 | 1,950,000 | |
Net income | $ 7,270,000 | $ 6,867,000 | |
Weighted average shares outstanding, basic (in shares) | 4,721 | 4,689 | |
Weighted average shares outstanding, diluted (in shares) | 4,721 | 4,689 | |
Basic earnings per share (in dollars per share) | $ 1.54 | $ 1.46 | |
Diluted earnings per share (in dollars per share) | $ 1.54 | $ 1.46 | |
WMG fee income | |||
Non-interest income: | |||
Revenues from contracts with customer | $ 2,580,000 | $ 2,757,000 | |
Service charges on deposit accounts | |||
Non-interest income: | |||
Revenues from contracts with customer | 941,000 | 864,000 | |
Interchange revenue from debit card transactions | |||
Non-interest income: | |||
Revenues from contracts with customer | $ 1,133,000 | $ 1,130,000 | |
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,270 | $ 6,867 |
Other comprehensive income (loss): | ||
Net unrealized gains (losses) on securities available for sale | 7,825 | (42,115) |
Tax effect | 2,050 | (11,028) |
Net of tax amount | 5,775 | (31,087) |
Change in funded status of defined benefit pension plan and other benefit plans: | ||
Reclassification adjustment for amortization of net actuarial loss | 12 | 14 |
Total before tax effect | 12 | 14 |
Tax effect | 3 | 2 |
Net of tax amount | 9 | 12 |
Total other comprehensive income (loss) | 5,784 | (31,075) |
Comprehensive income (loss) | $ 13,054 | $ (24,208) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect adjustment for the adoption of ASC 326 | [2] | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative effect adjustment for the adoption of ASC 326 | [2] | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | |
Beginning balance at Dec. 31, 2021 | $ 211,455 | $ 53 | $ 46,901 | $ 188,877 | $ (17,846) | $ (6,530) | |||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 6,867 | 6,867 | |||||||||||||||
Other comprehensive loss | (31,075) | (31,075) | |||||||||||||||
Restricted stock awards | 179 | 179 | |||||||||||||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||||||||||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (112) | 112 | ||||||||||||||
Cash dividends declared | (1,449) | (1,449) | |||||||||||||||
Distribution of treasury stock for directors' compensation | 105 | (139) | 244 | ||||||||||||||
Repurchase of shares of common stock | (695) | (695) | |||||||||||||||
Sale of shares of treasury stock | [1] | 118 | 46 | 72 | |||||||||||||
Ending balance at Mar. 31, 2022 | 185,510 | 53 | 46,880 | 194,295 | (18,113) | (37,605) | |||||||||||
Beginning balance at Dec. 31, 2021 | 211,455 | 53 | 46,901 | 188,877 | (17,846) | (6,530) | |||||||||||
Ending balance at Dec. 31, 2022 | $ 166,388 | $ (1,076) | $ 165,312 | 53 | $ 53 | 47,331 | $ 47,331 | 211,859 | $ (1,076) | $ 210,783 | (17,598) | $ (17,598) | (75,257) | $ (75,257) | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||||||||
Net income | $ 7,270 | 7,270 | |||||||||||||||
Other comprehensive loss | 5,784 | 5,784 | |||||||||||||||
Restricted stock awards | 263 | 263 | |||||||||||||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||||||||||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (131) | 131 | ||||||||||||||
Cash dividends declared | (1,460) | (1,460) | |||||||||||||||
Distribution of treasury stock for directors' compensation | 96 | (147) | 243 | ||||||||||||||
Repurchase of shares of common stock | (98) | (98) | |||||||||||||||
Sale of shares of treasury stock | [1] | 169 | 66 | 103 | |||||||||||||
Ending balance at Mar. 31, 2023 | $ 177,341 | $ 53 | $ 47,387 | $ 216,593 | $ (17,219) | $ (69,473) | |||||||||||
[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.[2]Due to implementation of ASC 326. See "Adoption of New Accounting Standards" discussion in Note 1. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Distribution of shares of treasury stock for employee restricted stock awards (in shares) | 4,577 | 3,985 |
Cash dividends declared (in dollars per share) | $ 0.31 | $ 0.31 |
Distribution of shares of treasury stock for director restricted stock awards (in shares) | 8,492 | 8,575 |
Treasury stock acquired (in shares) | 2,148 | 15,388 |
Sale of shares of treasury stock (in shares) | 3,554 | 2,545 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 7,270,000 | $ 6,867,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization (increase in) of right-of-use assets | 199,000 | 199,000 | |
Amortization of intangible assets | 0 | 11,000 | |
Provision for credit losses | [1] | 277,000 | (1,145,000) |
Loss on disposal of fixed assets | 0 | 20,000 | |
Depreciation and amortization of fixed assets | 533,000 | 579,000 | |
Amortization of premiums on securities, net | 656,000 | 1,146,000 | |
Gain on sales of loans held for sale, net | (5,000) | (74,000) | |
Proceeds from sales of loans held for sale | 210,000 | 3,901,000 | |
Loans originated and held for sale | (205,000) | (3,776,000) | |
Net change in fair value of equity investments | (72,000) | 113,000 | |
Purchase of equity investments | (47,000) | (98,000) | |
Increase in other assets and accrued interest receivable | (132,000) | (1,418,000) | |
Increase in accrued interest payable | 636,000 | 17,000 | |
Expense related to restricted stock units for directors' deferred compensation plan | 5,000 | 5,000 | |
Expense related to employee stock compensation | 131,000 | 0 | |
Expense related to employee restricted stock awards | 263,000 | 179,000 | |
Increases in (payments on) operating leases | (193,000) | (192,000) | |
Net (gain) loss on interest rate swaps | 11,000 | (138,000) | |
Increase (decrease) in other liabilities | 1,159,000 | (201,000) | |
Income from bank owned life insurance | (10,000) | (11,000) | |
Net cash provided by operating activities | 10,686,000 | 5,984,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities, calls, and principal paydowns on securities available for sale | 15,901,000 | 24,813,000 | |
Proceeds from maturities and principal collected on securities held to maturity | 492,000 | 211,000 | |
Purchases of securities available for sale | (2,199,000) | (22,388,000) | |
Purchase of FHLBNY and FRBNY stock | (16,853,000) | (1,304,000) | |
Redemption of FHLBNY and FRBNY stock | 17,137,000 | 1,946,000 | |
Proceeds from sales of fixed assets | 0 | 125,000 | |
Purchases of premises and equipment | (287,000) | (15,000) | |
Net increase in loans | (44,114,000) | (48,365,000) | |
Net cash used in investing activities | (29,923,000) | (44,977,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net (decrease) increase in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts | (44,507,000) | 35,187,000 | |
Increase in time deposits | 49,709,000 | 58,972,000 | |
Net change in FHLB overnight advances | (5,740,000) | (14,570,000) | |
Payments made on finance leases | (69,000) | (67,000) | |
Purchase of treasury stock | (98,000) | (695,000) | |
Sale of treasury stock | 169,000 | 118,000 | |
Cash dividends paid | (1,455,000) | (1,450,000) | |
Net cash (used in) provided by financing activities | (1,991,000) | 77,495,000 | |
Net (decrease) increase in cash and cash equivalents | (21,228,000) | 38,502,000 | |
Cash and cash equivalents, beginning of period | 55,869,000 | 26,981,000 | |
Cash and cash equivalents, end of period | 34,641,000 | 65,483,000 | |
Cash paid for: | |||
Interest | 5,647,000 | 764,000 | |
Income taxes | 4,305,000 | 115,000 | |
Supplemental disclosure of non-cash activity: | |||
Transfer of loans to other real estate owned | 0 | 137,000 | |
Dividends declared, not yet paid | $ 1,460,000 | $ 1,449,000 | |
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
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 Co rporation, 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 8 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 2022 Annual Report on Form 10-K for the year ended December 31, 2022. 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 Accounting Standards Adopted in 2023 : Financial Instruments - Credit Losses - Topic 326 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. The ASU supersedes prior GAAP by replacing the incurred loss impairment method with a methodology that reflects lifetime expected credit losses and requires the consideration of a broader range of reasonable and supportable information to form loss estimates. In November 2019, the FASB adopted an amendment to postpone the effective date of ASU 2016-13 to January 2023, for some entities, including certain Securities and Exchange Commission filers. As a smaller reporting company, the Corporation was eligible for and elected delayed adoption. The Corporation adopted the standard on January 1, 2023, and recognized a one-time cumulative-effect adjustment to retained earnings, of $1.5 million, or $1.1 million, net of tax effects, of which $1.1 million reflected the establishment of an allowance for credit losses on unfunded commitments, $0.4 million reflected additional allowance related to the loan portfolio, and no adjustment was recognized related to the securities portfolio. The quantitative component of the estimate relies on the statistical relationship between the projected value of an economic indicator and the implied historical loss experience among a curated group of peers. The Corporation utilized regression analyses of peer data, in which the Corporation was included, and where observed credit losses and selected economic factors were used to determine suitable loss drivers for modeling the lifetime rates of probability of default (PD). A loss given default rate (LGD) is assigned to each pool for each period based on these PD outcomes. The model fundamentally utilizes an expected discounted cash flow (DCF) analysis for all loan portfolio segments. The DCF analysis is run at the instrument-level and incorporates an array of loan-specific data points and segment-implied assumptions to determine the lifetime expected loss attributable to each instrument. An implicit "hypothetical loss" is derived for each period of the DCF, and helps establish the present value of future cash flows for each period. The reserve applied to a specific instrument is the difference between the sum of the present value of future cash flows and the book balance of the loan at the measurement date. Portfolio segments are the level at which loss assumptions are applied to a pool of loans based on the similarity of risk characteristics inherent in the included instruments, relying on FFIEC Call Report codes. The loss driver for each loan portfolio segment is derived from a readily available and reasonable economic forecast, chiefly the FOMC of the Federal Reserve's projections of civilian unemployment and year-over-year U.S. GDP growth. Forecasts are applied over a four-quarter period and revert to the lookback period's historical mean for the economic indicator over an eight-quarter horizon, on a straight-line basis. The model incorporates qualitative factor adjustments in order to calibrate the model for risk in each portfolio segment that may not be captured through quantitative analysis. Determinations regarding qualitative adjustments are reflective of management's expectation of loss conditions differing from those already captured in the quantitative component of the model. The Corporation evaluates all assets exhibiting potential credit risk, including off-balance sheet exposures on unfunded commitments, and debt securities. Allowances on unfunded commitments utilize a calculated funding rate to estimate the Corporation's future obligations, and applies the overall loss rate assigned to each concurrent pool. Securities backed by U.S. government-related agencies are determined to be zero-credit loss securities. Potential losses on obligations of states, political subdivisions, and corporate bonds and notes are analyzed by management to determine whether any of the losses may be attributable to credit-related factors on an individual basis. The adoption of ASU 2016-13 had an initial impact on the allowance for credit losses on loans of $0.4 million, reflecting changes in the methodology when compared to the allowance for loan losses on loans at December 31, 2022. The increase represents an increase of $0.2 million in the allowance relating to commercial loans, the combined effect of changes to commercial & agricultural and commercial real estate, and an increase of $0.2 million in consumer loans, mostly in relation to indirect auto lending. The remainder of the adoption impact, or $1.1 million, related to the establishment of an allowance for unfunded commitments. Troubled Debt Restructurings and Vintage Disclosures - Topic 326 In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU made certain targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. Upon adoption, the Corporation will be required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. The ASU also requires companies to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within scope of Subtopic 326-20. The Corporation adopted the standard prospectively, beginning January 1, 2023, concurrently with the aforementioned ASU 2016-13, and its impact can be found within Note 4 to the consolidated financial statements. The Corporation established a methodology for identifying and reporting the financial impact of modifications made to borrowers who are deemed to be experiencing financial difficulty. Reference Rate Reform - ASC 848 ASU No. 2022-06, Deferral of the Sunset Date of Topic 848 , was issued in December 2022 and defers the date for which accounting relief can be applied under Topic 848. ASU 2022-06 applies to entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The objective of the guidance in Topic 848 is to ease the burden in accounting related to the recognition of the effects of reference rate reform on financial reporting. A sunset provision was included within Topic 848 based on expectations of when LIBOR would cease being published. The Corporation had adopted the accounting relief provisions of Topic 848 effective October 1, 2020. The amendments in ASU 2022-06 defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be able to apply the accounting relief in Topic 848. ASU 2022-06 was effective for all entities upon its issuance. The adoption of the provisions of Topic 848, as amended, did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Pending Adoption None. Risks and Uncertainties Current Banking Environment Industry events transpiring prior to the Corporation’s filing date, continue to present challenges to the banking sector. Market conditions and external factors may unpredictably impact the competitive landscape for deposits in the banking industry. Additionally, the rising interest rate environment has increased competition for liquidity and the premium at which liquidity is available to meet funding needs. The Corporation believes the sources of liquidity presented in the these Unaudited Consolidated Financial Statements and the Notes to the Unaudited Consolidated Financial Statements are sufficient to meet its needs on the balance sheet date. An unexpected decrease in deposit balances due to heavy withdrawal activity could adversely impact the Corporation's ability to rely on organic deposits to primarily fund its operations, potentially requiring greater reliance on secondary sources of liquidity to meet withdrawal demands or to fund continuing operations. These sources may include proceeds from Federal Home Loan Bank advances, sales of investment securities and loans, federal funds lines of credit from correspondent banks, and out-of-market time deposits. Important Accounting Policy ramifications of such events are outlined in the previous sections of Note 1, and subsequently in the relevant Notes to the Consolidated Financial Statements. In response to these events, the Treasury Department, Federal Reserve, and FDIC jointly announced the Bank Term Funding Program (BTFP) on March 12, 2023. This program aims to enhance liquidity by allowing institutions to pledge certain securities at the par value of the securities, and at a borrowing rate of ten basis points over the one-year overnight index swap rate. The BTFP is available to eligible U.S. federally insured depository institutions, with advances having a term of up to one year and no prepayment penalties. As of the date of the release of the Unaudited Consolidated Financial Statements, the Corporation has not accessed the BTFP. Such reliance on secondary funding sources could increase the Corporation's overall cost of funding and thereby reduce net income. While the Corporation believes its current sources of liquidity are adequate to fund operations, there is no guarantee they will suffice to meet future liquidity demands. This may necessitate slowing or discontinuing loan growth, capital expenditures, or other investments, or liquidating assets. For further discussion of the Corporation's liquidity practices, see pages 59-61 of this Form 10-Q. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS 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 shares, 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 nonforfeitable 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 4,721 and 4,689 weighted average shares outstanding for the three month periods ended March 31, 2023 and 2022, respectively. There were no common stock equivalents during the three month periods ended March 31, 2023 or 2022. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Allowance for credit losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,619 $ — $ 5,291 $ — $ 56,328 Mortgage-backed securities, residential 508,906 — 76,252 — 432,654 Obligations of states and political subdivisions 39,795 19 400 — 39,414 Corporate bonds and notes 25,750 — 5,120 — 20,630 SBA loan pools 78,769 130 1,870 — 77,029 Total $ 714,839 $ 149 $ 88,933 $ — $ 626,055 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,800 $ — $ 6,225 $ 55,574 Mortgage-backed securities, residential 518,838 — 83,707 435,131 Obligations of states and political subdivisions 39,828 2 938 38,892 Corporate bonds and notes 25,750 — 3,780 21,970 SBA loan pools 82,982 155 2,116 81,022 Total $ 729,198 $ 157 $ 96,766 $ 632,589 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2023 Amortized Cost Unrecognized Gains Unrecognized Losses Allowance for credit losses Estimated Fair Value Obligations of states and political subdivisions $ 952 $ — $ — $ — $ 952 Time deposits with other financial institutions 980 — 27 — 953 Total $ 1,932 $ — $ 27 $ — $ 1,905 December 31, 2022 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 952 $ — $ — $ 952 Time deposits with other financial institutions 1,472 — 22 1,450 Total $ 2,424 $ — $ 22 $ 2,402 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, 2023 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 3,141 $ 3,102 $ 1,004 $ 1,003 After one, but within five years 104,669 98,309 928 902 After five, but within ten years 18,883 14,501 — — After ten years 471 460 — — 127,164 116,372 1,932 1,905 Mortgage-backed securities, residential 508,906 432,654 — — SBA loan pools 78,769 77,029 — — Total $ 714,839 $ 626,055 $ 1,932 $ 1,905 There were no proceeds from sales and calls of securities resulting in gains or losses for the three month periods ended March 31, 2023 and 2022. The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2023 and December 31, 2022 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, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 1,107 $ 16 $ 55,221 $ 5,275 $ 56,328 $ 5,291 Mortgage-backed securities, residential 7,594 477 425,060 75,775 432,654 76,252 Obligations of states and political subdivisions 20,209 176 12,962 224 33,171 400 Corporate bonds and notes 2,750 250 12,064 4,870 14,814 5,120 SBA loan pools 9,279 20 56,883 1,850 66,162 1,870 Total temporarily impaired securities $ 40,939 $ 939 $ 562,190 $ 87,994 $ 603,129 $ 88,933 Less than 12 months 12 months or longer Total December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 1,011 $ 30 $ 54,563 $ 6,195 $ 55,574 $ 6,225 Mortgage-backed securities, residential 79,891 7,621 355,240 76,086 435,131 83,707 Obligations of states and political subdivisions 37,847 938 — — 38,785 938 Corporate bonds and notes 4,515 485 7,455 3,295 11,970 3,780 SBA loan pools 14,333 925 51,123 1,191 65,456 2,116 Total temporarily impaired securities $ 137,597 $ 9,999 $ 468,381 $ 86,767 $ 606,916 $ 96,766 Assessment of Available for Sale Debt Securities for Impairment Management assesses the decline in fair value of investment securities on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates both qualitative and quantitative factors to assess whether an impairment exists. The following is a discussion of the credit quality characteristics of portfolio segments carrying material unrealized losses as of March 31, 2023. Obligations of U.S. Governmental agencies and sponsored enterprises : At March 31, 2023, the majority of the Corporation’s unrealized losses in available for sale investment securities related to mortgage-backed securities, issued by government-sponsored entities and agencies. Declines in fair value are attributable to changes in interest rates and illiquidity, not credit quality. The Corporation does not have the intent, and it is not likely to be required to, sell these securities prior to their anticipated recovery. Because the Corporation considers these obligations to carry zero loss estimates, no ACL has been recorded. Corporate bonds and notes : |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, 2023 December 31, 2022 Commercial and agricultural: Commercial and industrial $ 244,174 $ 252,044 Agricultural 333 249 Commercial mortgages: Construction 118,660 108,243 Commercial mortgages, other 917,637 888,670 Residential mortgages 285,944 285,672 Consumer loans: Home equity lines and loans 84,537 81,401 Indirect consumer loans 211,270 202,124 Direct consumer loans 11,146 11,045 Total loans, net of deferred loan fees and costs 1,873,701 1,829,448 Allowance for credit losses (20,075) (19,659) Loans, net $ 1,853,626 $ 1,809,789 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. Accrued interest receivable on loans amounted to $6.3 million at March 31, 2023 and $6.5 million million at December 31, 2022. Accrued interest receivable on loans is included in the "accrued interest receivable and other assets" line item on the Corporation's Consolidated Balance Sheets, and is excluded from the estimate of credit losses. The following table presents the activity in the allowance for credit losses by portfolio segment for the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 Cumulative effect adjustment for the adoption of ASC 326 909 (695) (16) 176 374 Beginning balance after cumulative effect adjustment 4,282 10,881 1,829 3,041 20,033 Charge-offs (190) — — (193) (383) Recoveries 6 — — 108 114 Net recoveries (charge-offs) (184) — — (85) (269) Provision (1) (45) 102 63 191 311 Ending balance $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 (1) Additional credit provision related to off-balance sheet exposure was $34 thousand for the three months ended March 31, 2023. Refer to Note 1-Summary of Significant Accounting Policies in our Annual report on Form 10-K for the fiscal year ended December 31, 2022, for the allowance for loan losses policy effective prior to the adoption of ASC 326- Financial Instruments-Credit Losses , as of December 31, 2022. The following table presents the activity in the allowance for loan losses by portfolio segment for the three month period ended March 31, 2022. Three Months Ended March 31, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 Charge-offs (4) — — (194) (198) Recoveries 6 1 — 239 246 Net recoveries (charge-offs) 2 1 — 45 48 Provision (110) (593) (197) (245) (1,145) Ending balance $ 3,483 $ 12,964 $ 1,606 $ 1,875 $ 19,928 Unfunded Commitments The allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities in the Consolidated Balance Sheets), with adjustments to the reserve recognized in the provision for credit losses on the Consolidated Statements of Income. The Corporation established a reserve for unfunded commitments in conjunction with its adoption of ASC 326- Financial Instruments-Credit Losses . The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended March 31, 2023 and 2022: For the Three Months Ended Allowance for credit losses on unfunded commitments March 31, 2023 March 31, 2022 Beginning balance $ — $ — Impact of ASC 326 adoption 1,082 — Provision for unfunded commitments (34) — Ending balance $ 1,048 $ — The following table presents the provision for credit losses on loans and unfunded commitments for the three month period ended March 31, 2023, based upon the current expected credit loss methodology, and the provision for loan losses on loans for the three month period ended March 31, 2022, based upon the incurred loss methodology: For the Three Months Ended Provision for credit losses March 31, 2023 March 31, 2022 Provision for credit losses on loans $ 311 $ (1,145) Provision for unfunded commitments (34) — Total provision (credit) for credit losses $ 277 $ (1,145) The following tables present the balance in the allowance for credit losses and allowance for loan losses, and the amortized cost basis in loans by portfolio segment, as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually analyzed $ 1,040 $ 36 $ — $ — $ 1,076 Collectively analyzed 3,013 10,947 1,892 3,147 18,999 Total ending allowance balance $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 December 31, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,078 $ 38 $ — $ 31 $ 1,147 Collectively evaluated for impairment 2,295 11,538 1,845 2,834 18,512 Total ending allowance balance $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 March 31, 2023 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually analyzed $ 1,779 $ 4,089 $ 715 $ 254 $ 6,837 Loans collectively analyzed 242,728 1,032,208 285,229 306,699 1,866,864 Total ending loans balance $ 244,507 $ 1,036,297 $ 285,944 $ 306,953 $ 1,873,701 December 31, 2022 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,112 $ 4,383 $ 723 $ 264 $ 7,482 Loans collectively evaluated for impairment 250,181 992,530 284,949 294,306 1,821,966 Total ending loans balance $ 252,293 $ 996,913 $ 285,672 $ 294,570 $ 1,829,448 Modifications to Loans Made to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures . The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, or a combination thereof. The following table summarizes the amortized cost basis of loans modified as of March 31, 2023: March 31, 2023 Loans modified under ASU 2022-02: Principal Reduction Interest Rate Reduction Term Extension Combination Total (%) of Loan Class (1) Commercial mortgages $ — $ — $ 277 $ — $ 277 0.03 % Total $ — $ — $ 277 $ — $ 277 (1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended March 31, 2023: March 31, 2023 Effect of loan modifications under ASU 2022-02: Principal Reduction (in thousands) Weighted-average interest rate reduction (%) Weighted-average term extension (in months) Commercial mortgages $— —% 60 Individually Analyzed Loans Effective January 1, 2023, the Corporation began analyzing loans on an individual basis when management determined that the loan no longer exhibited risk characteristics consistent with the risk characteristics existing in its designated pool of loans, under the Corporation's CECL methodology. Loans individually analyzed include certain non-accrual commercial and consumer loans, as well as certain loans previously identified under prior troubled debt restructuring (TDR) guidance. As of March 31, 2023, the amortized cost basis of individually analyzed loans amounted to $6.8 million, of which $6.0 million were considered collateral dependent. For collateral dependent loans where the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan, at measurement date. Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage. The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2023 (in thousands): March 31, 2023 Amortized Cost Basis Related Allowance Commercial and agricultural: Commercial and industrial (1) (3) $ 573 $ 168 Commercial mortgages: Commercial mortgages, other (1) 4,413 36 Residential mortgages (2) 715 — Consumer loans Home equity lines and loans (2) 254 — Total $ 5,955 $ 204 (1) Secured by commercial real estate (2) Secured by residential real estate (3) Secured by business assets Prior to January 1, 2023, the Corporation considered a loan to be impaired when, based on currently available information, it was deemed probable that the Corporation would not be able to collect on the loan's contractually determined principal and interest payments. Impaired loans included loans on non-accrual status and troubled debt restructurings (TDRs). The Corporation identified loss allocations for impaired loans on an individual basis, and in conformity with its methodology under the incurred loss framework. The following is a summary of impaired loans as of December 31, 2022 (in thousands): December 31, 2022 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 1,026 $ 1,025 $ — Commercial mortgages: Construction 5 5 — Commercial mortgages, other 4,346 4,341 — Residential mortgages 767 760 — Consumer loans: Home equity lines and loans 154 138 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,086 1,088 1,078 Commercial mortgages: Commercial mortgages, other 38 38 38 Consumer loans: Home equity lines and loans 126 127 31 Total $ 7,548 $ 7,522 $ 1,147 The following table presents the amortized cost basis and interest income of loans individually evaluated recognized by class of loans for the three month periods ended March 31, 2023 and 2022 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Amortized Cost Basis Interest Income Recognized ( 1) Amortized Cost Basis Interest Income Recognized ( 1) Commercial and agricultural: Commercial and industrial $ 729 $ — $ 926 $ 3 Commercial mortgages: Construction — — 113 1 Commercial mortgages, other 4,053 7 4,105 7 Residential mortgages 715 9 895 11 Consumer loans: Home equity lines & loans 254 — 161 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,049 2 1,414 3 Commercial mortgages: Commercial mortgages, other 36 — 2,601 21 Consumer loans: Home equity lines and loans — — 141 — Total $ 6,836 $ 18 $ 10,356 $ 47 (1) Cash basis interest income approximates interest income recognized. The following table presents the amortized cost basis in non-accrual and loans past due 90 days or more and still accruing by class of loan as of March 31, 2023 and December 31, 2022 (in thousands): Non-accrual with no allowance for credit losses Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2023 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Commercial and agricultural: Commercial and industrial $ 730 $ 1,623 $ 1,946 $ 6 $ 1 Commercial mortgages: Construction — — 5 — — Commercial mortgages, other 3,611 3,647 3,928 — — Residential mortgages 1,036 1,036 986 — — Consumer loans: Home equity lines and loans 866 866 760 — — Indirect consumer loans 556 556 540 — — Direct consumer loans 3 3 13 — — Total $ 6,802 $ 7,731 $ 8,178 $ 6 $ 1 The following tables present the aging of the amortized cost basis of loans as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 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 $ 67 $ 8 $ 16 $ 91 $ 244,083 $ 244,174 Agricultural — — — — 333 333 Commercial mortgages: Construction 2,284 — — 2,284 116,376 118,660 Commercial mortgages, other 246 — 297 543 917,094 917,637 Residential mortgages 933 57 412 1,402 284,542 285,944 Consumer loans: Home equity lines and loans 261 57 568 886 83,651 84,537 Indirect consumer loans 1,036 52 265 1,353 209,917 211,270 Direct consumer loans 10 — — 10 11,136 11,146 Total $ 4,837 $ 174 $ 1,558 $ 6,569 $ 1,867,132 $ 1,873,701 December 31, 2022 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 $ 74 $ 3 $ 1 $ 78 $ 251,966 $ 252,044 Agricultural — — — — 249 249 Commercial mortgages: Construction — — — — 108,243 108,243 Commercial mortgages, other 1,058 — 486 1,544 887,126 888,670 Residential mortgages 1,360 709 294 2,363 283,309 285,672 Consumer loans: Home equity lines and loans 193 121 442 756 80,645 81,401 Indirect consumer loans 1,397 193 250 1,840 200,284 202,124 Direct consumer loans 2 19 1 22 11,023 11,045 Total $ 4,084 $ 1,045 $ 1,474 $ 6,603 $ 1,822,845 $ 1,829,448 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 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. Retail loans are not rated until they become 90 days past due. 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, 2023, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2023 2022 2021 2020 2019 Prior Commercial & industrial Pass $ 7,750 $ 43,899 $ 21,452 $ 14,723 $ 38,017 $ 12,844 $ 88,666 $ — $ 227,351 Special mention 100 104 350 3 86 457 3,478 9,315 13,893 Substandard — 36 — 412 28 370 629 588 2,063 Doubtful — — — — — 867 — — 867 Total 7,850 44,039 21,802 15,138 38,131 14,538 92,773 9,903 244,174 Gross charge-offs $ — $ — $ — $ — $ — $ 190 $ — $ — $ 190 Agricultural Pass — 17 170 — — — 146 — 333 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total — 17 170 — — — 146 — 333 Gross charge-offs — — — — — — — — — Construction Pass 8,311 2,819 1,975 — 2,317 1,205 101,857 — 118,484 Special mention — 176 — — — — — — 176 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 8,311 2,995 1,975 — 2,317 1,205 101,857 — 118,660 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 31,729 214,915 129,614 99,057 40,489 180,523 192,038 — 888,365 Special mention — 2,563 8,828 1,033 — 3,867 — 6,154 22,445 Substandard 277 1,186 — — — 4,790 97 441 6,791 Doubtful — — — — — 36 — — 36 Total 32,006 218,664 138,442 100,090 40,489 189,216 192,135 6,595 917,637 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 5,594 52,576 52,443 75,198 16,416 52,615 30,066 — 284,908 Substandard — 107 64 111 181 573 — — 1,036 Total 5,594 52,683 52,507 75,309 16,597 53,188 30,066 — 285,944 Gross charge-offs — — — — — — — — — Home equity lines and loans Not rated 3,945 19,073 6,477 3,827 3,110 12,740 34,500 — 83,672 Substandard — — — — 121 392 352 — 865 Total 3,945 19,073 6,477 3,827 3,231 13,132 34,852 — 84,537 Gross charge-offs — — — — — — 8 — 8 Indirect consumer Not rated 26,012 123,593 32,138 14,374 7,385 7,211 — — 210,713 Substandard — 186 98 59 73 141 — — 557 Total 26,012 123,779 32,236 14,433 7,458 7,352 — — 211,270 Gross charge-offs — 43 36 30 12 23 — — 144 Direct consumer Not rated 1,121 3,956 1,330 630 266 478 3,362 — 11,143 Substandard — — — — — 3 — — 3 Total 1,121 3,956 1,330 630 266 481 3,362 — 11,146 Gross charge-offs — — 1 4 — 36 — — 41 Total loans $ 84,839 $ 465,206 $ 254,939 $ 209,427 $ 108,489 $ 279,112 $ 455,191 $ 16,498 $ 1,873,701 Total gross charge-offs $ — $ 43 $ 37 $ 34 $ 12 $ 249 $ 8 $ — $ 383 Prior to the adoption of ASC 326- Financial Instruments-Credit Losses, loans not meeting the criteria above that were analyzed individually as part of the above described process were considered pass rated loans as of December 31, 2022. Based upon the analyses performed as of December 31, 2022, the risk category of the recorded investment of loans by class of loans was as follows (in thousands): December 31, 2022 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 235,900 $ 13,349 $ 2,899 $ 893 $ 253,041 Agricultural — 250 — — — 250 Commercial mortgages: Construction — 108,488 178 5 — 108,671 Commercial mortgages — 860,389 23,938 7,825 38 892,190 Residential mortgages 285,459 — — 986 — 286,445 Consumer loans: Home equity lines and loans 80,942 — — 760 — 81,702 Indirect consumer loans 202,050 — — 540 — 202,590 Direct consumer loans 11,094 — — 13 — 11,107 Total $ 579,545 $ 1,205,027 $ 37,465 $ 13,028 $ 931 $ 1,835,996 For residential and consumer loan classes, the Corporation also evaluated credit quality based on the aging status of the loan, which was previously presented, by payment activity. The following table presents the amortized cost basis in residential and consumer loans based on payment activity as of March 31, 2023 (in thousands): Consumer Loans March 31, 2023 Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 284,908 $ 83,672 $ 210,713 $ 11,143 Non-Performing 1,036 865 557 3 Total $ 285,944 $ 84,537 $ 211,270 $ 11,146 Prior to the adoption of ASC 326- Financial Instruments-Credit Losses , the Corporation also evaluated credit quality based on the aging status of the loan, which was previously presented, by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2022 (in thousands): Consumer Loans December 31, 2022 Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 285,459 $ 80,942 $ 202,050 $ 11,094 Non-Performing 986 760 540 13 Total $ 286,445 $ 81,702 $ 202,590 $ 11,107 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
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). Individually Analyzed Loans : At the time a loan is considered individually analyzed, it is valued at the lower of cost or fair value. Individually analyzed loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for credit 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 analyzed 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 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, 2023 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 56,328 $ 56,328 $ — $ — Mortgage-backed securities, residential 432,654 — 432,654 — Obligations of states and political subdivisions 39,414 — 39,414 — Corporate bonds and notes 20,630 — 11,964 8,666 SBA loan pools 77,029 — 77,029 — Total available for sale securities $ 626,055 $ 56,328 $ 561,061 $ 8,666 Equity investments, at fair value $ 2,311 $ 2,311 $ — $ — Derivative assets 22,710 — 22,710 — Financial Liabilities: Derivative liabilities $ 22,776 $ — $ 22,776 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2023. Fair Value Measurement at December 31, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 55,574 $ 55,574 $ — $ — Mortgage-backed securities, residential 435,131 — 435,131 — Obligations of states and political subdivisions 38,892 — 38,892 — Corporate bonds and notes 21,970 — 21,970 — SBA loan pools 81,022 — 81,022 — Total available for sale securities $ 632,589 $ 55,574 $ 577,015 $ — Equity investments, at fair value $ 2,246 $ 2,246 $ — $ — Derivative assets 27,141 — 27,141 — Financial Liabilities: Derivative liabilities $ 27,196 $ — $ 27,196 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2022. The Corporation transfers assets and liabilities between levels within the hierarchy when the methodology to obtain the fair value changes such that there are either more or fewer unobservable inputs as of the end of the reporting period. The Corporation transferred its investment in eight corporate sub-debt issuances from Level 2 to Level 3 in the three month period ended March 31, 2023. Illiquidity in new issuances of comparable bonds and the size of issuances led to pricing difficulties, and the transfer to Level 3 within the period. The Corporation utilizes a "beginning of reporting period" timing assumption when recognizing transfers between hierarchy levels, consistent with ASC 820-10-50-2. The table below presents a reconciliation of all assets measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2023 and March 31, 2022. Corporate Bonds: For the Three Months Ended Level 3 Financial Assets March 31, 2023 March 31, 2022 Balance of recurring Level 3 assets at January 1, 2023 $ — $ — Total gains and losses for the period: — — Included in other comprehensive income (1,289) — Transfer into Level 3 9,955 — Balance of recurring Level 3 assets at March 31, 2023 $ 8,666 $ — March 31, 2023 Fair Value Valuation Techniques Unobservable Input Range (WA) Corporate bonds and notes $ 8,666 Discounted cash flow Market discount rate 12.00% -12.00% [12.00%] There were no financial assets considered to be Level 3 fair value by the Corporation at December 31, 2022. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of other financial instruments, at March 31, 2023 and December 31, 2022, are as follows (in thousands): March 31, 2023 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 25,109 $ 25,109 $ — $ — $ 25,109 Interest-earning deposits in other financial institutions 9,532 9,532 — — 9,532 Equity investments 2,949 2,949 — — 2,949 Securities available for sale 626,055 56,328 561,061 8,666 626,055 Securities held to maturity 1,932 — 953 952 1,905 FHLBNY and FRBNY stock 7,913 — — — N/A Loans, net and loans held for sale 1,853,626 — — 1,790,939 1,790,939 Accrued interest receivable 8,469 229 1,900 6,340 8,469 Derivative Assets 22,710 — 22,710 — 22,710 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,880,335 $ 1,880,335 $ — $ — $ 1,880,335 Time deposits 452,094 — 450,201 — 450,201 Accrued interest payable 1,500 73 1,427 — 1,500 Derivative Liabilities 22,776 — 22,776 — 22,776 (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, 2022 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 29,309 $ 29,309 $ — $ — $ 29,309 Interest-earning deposits in other financial institutions 26,560 26,560 — — 26,560 Equity investments 2,830 2,830 — — 2,830 Securities available for sale 632,589 55,574 577,015 — 632,589 Securities held to maturity 2,424 — 1,639 2,157 3,796 FHLBNY and FRBNY stock 8,197 — — — N/A Loans, net and loans held for sale 1,809,789 — — 1,757,171 1,757,171 Accrued interest receivable 8,682 132 2,002 6,548 8,682 Derivative Asset 27,141 — 27,141 — 27,141 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,924,843 $ 1,924,843 $ — $ — $ 1,924,843 Time deposits 402,384 — 403,572 — 403,572 Accrued interest payable 864 64 800 — 864 Derivative Liabilities 27,196 — 27,196 — 27,196 (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, 2023 | |
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, 2023, the weighted average remaining lease term was 8.43 years with a weighted average discount rate of 3.36%. Rent expense was $0.2 million for the three months ended March 31, 2023. 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, 2023 and December 31, 2022 consist of the following (in thousands): March 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 6,449 $ 7,234 Less: accumulated amortization (199) (785) Less: lease termination — — Add: new lease agreement and modifications — — Operating lease right-of-use-assets, net $ 6,250 $ 6,449 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2023 (in thousands): Year Amount 2023 $ 747 2024 924 2025 841 2026 845 2027 854 2028 and thereafter 3,169 Total minimum lease payments 7,380 Less: amount representing interest (953) Present value of net minimum lease payments $ 6,427 As of March 31, 2023, 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, 2023, the weighted average remaining lease term was 9.99 years with a weighted average discount rate of 3.40%. The Corporation has included these leases in premises and equipment March 31, 2023 December 31, 2022 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,540) Net book value $ 3,115 $ 3,032 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, 2023 (in thousands): Year Amount 2023 $ 293 2024 391 2025 409 2026 425 2027 428 2028 and thereafter 1,988 Total minimum lease payments 3,934 Less: amount representing interest (676) Present value of net minimum lease payments $ 3,258 As of March 31, 2023, 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, 2024 from a former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended March 31, 2022. |
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, 2023, the weighted average remaining lease term was 8.43 years with a weighted average discount rate of 3.36%. Rent expense was $0.2 million for the three months ended March 31, 2023. 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, 2023 and December 31, 2022 consist of the following (in thousands): March 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 6,449 $ 7,234 Less: accumulated amortization (199) (785) Less: lease termination — — Add: new lease agreement and modifications — — Operating lease right-of-use-assets, net $ 6,250 $ 6,449 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2023 (in thousands): Year Amount 2023 $ 747 2024 924 2025 841 2026 845 2027 854 2028 and thereafter 3,169 Total minimum lease payments 7,380 Less: amount representing interest (953) Present value of net minimum lease payments $ 6,427 As of March 31, 2023, 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, 2023, the weighted average remaining lease term was 9.99 years with a weighted average discount rate of 3.40%. The Corporation has included these leases in premises and equipment March 31, 2023 December 31, 2022 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,540) Net book value $ 3,115 $ 3,032 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, 2023 (in thousands): Year Amount 2023 $ 293 2024 391 2025 409 2026 425 2027 428 2028 and thereafter 1,988 Total minimum lease payments 3,934 Less: amount representing interest (676) Present value of net minimum lease payments $ 3,258 As of March 31, 2023, 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, 2024 from a former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended March 31, 2022. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 were as follows (in thousands): 2023 2022 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 The Corporation had no aggregate amortization expense for the three month period ended March 31, 2023, and $11 thousand for the three month period ended March 31, 2022. As of March 31, 2023, there is no remaining estimated aggregate amortization expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe 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. In conjunction with the Corporation's adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326 ), an allowance for credit losses on unfunded commitments was established as of January 1, 2023, to comply with the accounting standard requirements. As of March 31, 2023, the allowance for credit losses on unfunded commitments was $1.0 million. The following table lists the contractual amounts of financial instruments with off-balance sheet risk at March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 40,759 $ 71,151 $ 44,481 $ 75,028 Unused lines of credit 3,085 344,423 2,887 326,188 Standby letters of credit — 17,425 — 17,211 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 Corporation received a recovery of $0.5 million in April, 2020, and continues to pursue recovery of the remaining $3.7 million and accumulated expenses as a result of purchasing the participation interest. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. As of March 31, 2023, 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 INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (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 income (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, 2023 $ (71,296) $ (3,961) $ (75,257) Other comprehensive income before reclassification 5,775 — 5,775 Amounts reclassified from accumulated other comprehensive income — 9 9 Net current period other comprehensive income 5,775 9 5,784 Balance at March 31, 2023 $ (65,521) $ (3,952) $ (69,473) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2022 $ (2,495) $ (4,035) $ (6,530) Other comprehensive income before reclassification (31,087) — (31,087) Amounts reclassified from accumulated other comprehensive income — 12 12 Net current period other comprehensive income (loss) (31,087) 12 (31,075) Balance at March 31, 2022 $ (33,582) $ (4,023) $ (37,605) 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 2023 2022 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ — Other components of net periodic pension and postretirement benefits Actuarial losses (a) 12 14 Other components of net periodic pension and postretirement benefits Tax effect (3) (2) Income tax expense Net of tax 9 12 Total reclassification for the period, net of tax $ 9 $ 12 (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, 2023 | |
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, 2023 and 2022 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2023 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b) Total Service charges on deposit accounts Overdraft fees $ 714 $ — $ — $ 714 Other 227 — — 227 Interchange revenue from debit card transactions 1,133 — — 1,133 WMG fee income — 2,580 — 2,580 CFS fee and commission income — — 241 241 Net gains (losses) on sales of OREO — — — — Net gains on sales of loans (a) 5 — — 5 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 78 — (6) 72 Income from bank-owned life insurance (a) 10 — — 10 Other (a) 448 — (43) 405 Total non-interest income (loss) $ 2,651 $ 2,580 $ 192 $ 5,423 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Three Months Ended March 31, 2022 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b) Total Service charges on deposit accounts Overdraft fees $ 673 $ — $ — $ 673 Other 191 — — 191 Interchange revenue from debit card transactions 1,130 — — 1,130 WMG fee income — 2,757 — 2,757 CFS fee and commission income — — 253 253 Net gains on sales of loans (a) 74 — — 74 Loan servicing fees (a) 39 — — 39 Changes in fair value of equity investments (a) (114) — 1 (113) Income from bank-owned life insurance (a) 11 — — 11 Other (a) 689 — (41) 648 Total non-interest income $ 2,693 $ 2,757 $ 213 $ 5,663 (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 transaction processing services provided to the 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. |
COMPONENTS OF QUARTERLY AND YEA
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 396 282 Expected return on plan assets (596) (713) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 6 — Net periodic pension benefit $ (194) $ (431) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 12 8 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 2 5 Net periodic supplemental pension cost $ 14 $ 13 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 1 1 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 5 9 Net periodic postretirement, medical and life benefit $ 6 $ 10 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2023 | |
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 2022 Annual Report on Form 10-K, which was filed with the SEC on March 22, 2023. 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 columns below include amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2023 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 26,203 $ — $ 27 $ 26,230 Interest expense 6,283 — — 6,283 Net interest income 19,920 — 27 19,947 Provision for credit losses 277 — — 277 Net interest income after provision for credit losses 19,643 — 27 19,670 Other non-interest income 2,651 2,580 192 5,423 Other non-interest expenses 13,696 1,798 342 15,836 Income (loss) before income tax expense (benefit) 8,598 782 (123) 9,257 Income tax expense (benefit) 1,831 177 (21) 1,987 Segment net income (loss) $ 6,767 $ 605 $ (102) $ 7,270 Segment assets $ 2,644,158 $ 8,311 $ 1,714 $ 2,654,183 Three months ended March 31, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 17,451 $ — $ 7 $ 17,458 Interest expense 781 — — 781 Net interest income 16,670 — 7 16,677 Provision for credit losses (1,145) — — (1,145) Net interest income after provision for credit losses 17,815 — 7 17,822 Other non-interest income 2,693 2,757 213 5,663 Other non-interest expenses 12,531 1,815 322 14,668 Income (loss) before income tax expense (benefit) 7,977 942 (102) 8,817 Income tax expense (benefit) 1,766 209 (25) 1,950 Segment net income (loss) $ 6,211 $ 733 $ (77) $ 6,867 Segment assets $ 2,463,194 $ 8,620 $ 3,081 $ 2,474,895 |
STOCK COMPENSATION
STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION Pursuant to the Corporation's 2021 Equity Incentive Plan (the "2021 Plan") the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the 2021 Plan, the chief executive officer and members of the Board of Directors. Awards are based on the performance, responsibility and contributions of the individual and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares related to the 2021 Plan may not exceed 170,000, upon which time a new plan may be created. Compensation expense for shares granted will be recognized over the vesting period of the award based upon the average closing price of the Corporation's stock for each of the prior 30 trading days ending on the grant date. During the three months ended March 31, 2023 and 2022, 13,069 and 12,560 shares, respectively, were re-issued from treasury to fund stock compensation. The expense related to the grants made in the first quarter of 2023 is recognized over a one year vesting period. Total expense related to the 2021 Plan of $0.4 million and $0.3 million was recognized during each of the three month periods ended March 31, 2023 and 2022, respectively. A summary of restricted stock activity for the three months ended March 31, 2023 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2023 55,402 $44.57 Granted 13,069 $45.89 Vested (14,143) $45.38 Forfeited or cancelled — $— Nonvested at March 31, 2023 54,328 $43.77 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 Co rporation, 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 8 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 2022 Annual Report on Form 10-K for the year ended December 31, 2022. 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 Amounts in the prior year financial statements are reclassified whenever necessary to conform to the current year's presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2023 : Financial Instruments - Credit Losses - Topic 326 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. The ASU supersedes prior GAAP by replacing the incurred loss impairment method with a methodology that reflects lifetime expected credit losses and requires the consideration of a broader range of reasonable and supportable information to form loss estimates. In November 2019, the FASB adopted an amendment to postpone the effective date of ASU 2016-13 to January 2023, for some entities, including certain Securities and Exchange Commission filers. As a smaller reporting company, the Corporation was eligible for and elected delayed adoption. The Corporation adopted the standard on January 1, 2023, and recognized a one-time cumulative-effect adjustment to retained earnings, of $1.5 million, or $1.1 million, net of tax effects, of which $1.1 million reflected the establishment of an allowance for credit losses on unfunded commitments, $0.4 million reflected additional allowance related to the loan portfolio, and no adjustment was recognized related to the securities portfolio. The quantitative component of the estimate relies on the statistical relationship between the projected value of an economic indicator and the implied historical loss experience among a curated group of peers. The Corporation utilized regression analyses of peer data, in which the Corporation was included, and where observed credit losses and selected economic factors were used to determine suitable loss drivers for modeling the lifetime rates of probability of default (PD). A loss given default rate (LGD) is assigned to each pool for each period based on these PD outcomes. The model fundamentally utilizes an expected discounted cash flow (DCF) analysis for all loan portfolio segments. The DCF analysis is run at the instrument-level and incorporates an array of loan-specific data points and segment-implied assumptions to determine the lifetime expected loss attributable to each instrument. An implicit "hypothetical loss" is derived for each period of the DCF, and helps establish the present value of future cash flows for each period. The reserve applied to a specific instrument is the difference between the sum of the present value of future cash flows and the book balance of the loan at the measurement date. Portfolio segments are the level at which loss assumptions are applied to a pool of loans based on the similarity of risk characteristics inherent in the included instruments, relying on FFIEC Call Report codes. The loss driver for each loan portfolio segment is derived from a readily available and reasonable economic forecast, chiefly the FOMC of the Federal Reserve's projections of civilian unemployment and year-over-year U.S. GDP growth. Forecasts are applied over a four-quarter period and revert to the lookback period's historical mean for the economic indicator over an eight-quarter horizon, on a straight-line basis. The model incorporates qualitative factor adjustments in order to calibrate the model for risk in each portfolio segment that may not be captured through quantitative analysis. Determinations regarding qualitative adjustments are reflective of management's expectation of loss conditions differing from those already captured in the quantitative component of the model. The Corporation evaluates all assets exhibiting potential credit risk, including off-balance sheet exposures on unfunded commitments, and debt securities. Allowances on unfunded commitments utilize a calculated funding rate to estimate the Corporation's future obligations, and applies the overall loss rate assigned to each concurrent pool. Securities backed by U.S. government-related agencies are determined to be zero-credit loss securities. Potential losses on obligations of states, political subdivisions, and corporate bonds and notes are analyzed by management to determine whether any of the losses may be attributable to credit-related factors on an individual basis. The adoption of ASU 2016-13 had an initial impact on the allowance for credit losses on loans of $0.4 million, reflecting changes in the methodology when compared to the allowance for loan losses on loans at December 31, 2022. The increase represents an increase of $0.2 million in the allowance relating to commercial loans, the combined effect of changes to commercial & agricultural and commercial real estate, and an increase of $0.2 million in consumer loans, mostly in relation to indirect auto lending. The remainder of the adoption impact, or $1.1 million, related to the establishment of an allowance for unfunded commitments. Troubled Debt Restructurings and Vintage Disclosures - Topic 326 In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU made certain targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. Upon adoption, the Corporation will be required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. The ASU also requires companies to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within scope of Subtopic 326-20. The Corporation adopted the standard prospectively, beginning January 1, 2023, concurrently with the aforementioned ASU 2016-13, and its impact can be found within Note 4 to the consolidated financial statements. The Corporation established a methodology for identifying and reporting the financial impact of modifications made to borrowers who are deemed to be experiencing financial difficulty. Reference Rate Reform - ASC 848 ASU No. 2022-06, Deferral of the Sunset Date of Topic 848 , was issued in December 2022 and defers the date for which accounting relief can be applied under Topic 848. ASU 2022-06 applies to entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The objective of the guidance in Topic 848 is to ease the burden in accounting related to the recognition of the effects of reference rate reform on financial reporting. A sunset provision was included within Topic 848 based on expectations of when LIBOR would cease being published. The Corporation had adopted the accounting relief provisions of Topic 848 effective October 1, 2020. The amendments in ASU 2022-06 defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be able to apply the accounting relief in Topic 848. ASU 2022-06 was effective for all entities upon its issuance. The adoption of the provisions of Topic 848, as amended, did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Pending Adoption None. Risks and Uncertainties Current Banking Environment Industry events transpiring prior to the Corporation’s filing date, continue to present challenges to the banking sector. Market conditions and external factors may unpredictably impact the competitive landscape for deposits in the banking industry. Additionally, the rising interest rate environment has increased competition for liquidity and the premium at which liquidity is available to meet funding needs. The Corporation believes the sources of liquidity presented in the these Unaudited Consolidated Financial Statements and the Notes to the Unaudited Consolidated Financial Statements are sufficient to meet its needs on the balance sheet date. An unexpected decrease in deposit balances due to heavy withdrawal activity could adversely impact the Corporation's ability to rely on organic deposits to primarily fund its operations, potentially requiring greater reliance on secondary sources of liquidity to meet withdrawal demands or to fund continuing operations. These sources may include proceeds from Federal Home Loan Bank advances, sales of investment securities and loans, federal funds lines of credit from correspondent banks, and out-of-market time deposits. Important Accounting Policy ramifications of such events are outlined in the previous sections of Note 1, and subsequently in the relevant Notes to the Consolidated Financial Statements. In response to these events, the Treasury Department, Federal Reserve, and FDIC jointly announced the Bank Term Funding Program (BTFP) on March 12, 2023. This program aims to enhance liquidity by allowing institutions to pledge certain securities at the par value of the securities, and at a borrowing rate of ten basis points over the one-year overnight index swap rate. The BTFP is available to eligible U.S. federally insured depository institutions, with advances having a term of up to one year and no prepayment penalties. As of the date of the release of the Unaudited Consolidated Financial Statements, the Corporation has not accessed the BTFP. Such reliance on secondary funding sources could increase the Corporation's overall cost of funding and thereby reduce net income. While the Corporation believes its current sources of liquidity are adequate to fund operations, there is no guarantee they will suffice to meet future liquidity demands. This may necessitate slowing or discontinuing loan growth, capital expenditures, or other investments, or liquidating assets. For further discussion of the Corporation's liquidity practices, see pages 59-61 of this Form 10-Q. |
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 shares, 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 nonforfeitable 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). Individually Analyzed Loans : At the time a loan is considered individually analyzed, it is valued at the lower of cost or fair value. Individually analyzed loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for credit 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 analyzed 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 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, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of 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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Allowance for credit losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,619 $ — $ 5,291 $ — $ 56,328 Mortgage-backed securities, residential 508,906 — 76,252 — 432,654 Obligations of states and political subdivisions 39,795 19 400 — 39,414 Corporate bonds and notes 25,750 — 5,120 — 20,630 SBA loan pools 78,769 130 1,870 — 77,029 Total $ 714,839 $ 149 $ 88,933 $ — $ 626,055 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,800 $ — $ 6,225 $ 55,574 Mortgage-backed securities, residential 518,838 — 83,707 435,131 Obligations of states and political subdivisions 39,828 2 938 38,892 Corporate bonds and notes 25,750 — 3,780 21,970 SBA loan pools 82,982 155 2,116 81,022 Total $ 729,198 $ 157 $ 96,766 $ 632,589 |
Schedule of 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, 2023 Amortized Cost Unrecognized Gains Unrecognized Losses Allowance for credit losses Estimated Fair Value Obligations of states and political subdivisions $ 952 $ — $ — $ — $ 952 Time deposits with other financial institutions 980 — 27 — 953 Total $ 1,932 $ — $ 27 $ — $ 1,905 December 31, 2022 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 952 $ — $ — $ 952 Time deposits with other financial institutions 1,472 — 22 1,450 Total $ 2,424 $ — $ 22 $ 2,402 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | Securities not due at a single maturity date are shown separately (in thousands): March 31, 2023 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 3,141 $ 3,102 $ 1,004 $ 1,003 After one, but within five years 104,669 98,309 928 902 After five, but within ten years 18,883 14,501 — — After ten years 471 460 — — 127,164 116,372 1,932 1,905 Mortgage-backed securities, residential 508,906 432,654 — — SBA loan pools 78,769 77,029 — — Total $ 714,839 $ 626,055 $ 1,932 $ 1,905 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2023 and December 31, 2022 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, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 1,107 $ 16 $ 55,221 $ 5,275 $ 56,328 $ 5,291 Mortgage-backed securities, residential 7,594 477 425,060 75,775 432,654 76,252 Obligations of states and political subdivisions 20,209 176 12,962 224 33,171 400 Corporate bonds and notes 2,750 250 12,064 4,870 14,814 5,120 SBA loan pools 9,279 20 56,883 1,850 66,162 1,870 Total temporarily impaired securities $ 40,939 $ 939 $ 562,190 $ 87,994 $ 603,129 $ 88,933 Less than 12 months 12 months or longer Total December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 1,011 $ 30 $ 54,563 $ 6,195 $ 55,574 $ 6,225 Mortgage-backed securities, residential 79,891 7,621 355,240 76,086 435,131 83,707 Obligations of states and political subdivisions 37,847 938 — — 38,785 938 Corporate bonds and notes 4,515 485 7,455 3,295 11,970 3,780 SBA loan pools 14,333 925 51,123 1,191 65,456 2,116 Total temporarily impaired securities $ 137,597 $ 9,999 $ 468,381 $ 86,767 $ 606,916 $ 96,766 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of 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, 2023 December 31, 2022 Commercial and agricultural: Commercial and industrial $ 244,174 $ 252,044 Agricultural 333 249 Commercial mortgages: Construction 118,660 108,243 Commercial mortgages, other 917,637 888,670 Residential mortgages 285,944 285,672 Consumer loans: Home equity lines and loans 84,537 81,401 Indirect consumer loans 211,270 202,124 Direct consumer loans 11,146 11,045 Total loans, net of deferred loan fees and costs 1,873,701 1,829,448 Allowance for credit losses (20,075) (19,659) Loans, net $ 1,853,626 $ 1,809,789 |
Schedules of Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses by portfolio segment for the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 Cumulative effect adjustment for the adoption of ASC 326 909 (695) (16) 176 374 Beginning balance after cumulative effect adjustment 4,282 10,881 1,829 3,041 20,033 Charge-offs (190) — — (193) (383) Recoveries 6 — — 108 114 Net recoveries (charge-offs) (184) — — (85) (269) Provision (1) (45) 102 63 191 311 Ending balance $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 (1) Additional credit provision related to off-balance sheet exposure was $34 thousand for the three months ended March 31, 2023. Refer to Note 1-Summary of Significant Accounting Policies in our Annual report on Form 10-K for the fiscal year ended December 31, 2022, for the allowance for loan losses policy effective prior to the adoption of ASC 326- Financial Instruments-Credit Losses , as of December 31, 2022. The following table presents the activity in the allowance for loan losses by portfolio segment for the three month period ended March 31, 2022. Three Months Ended March 31, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 Charge-offs (4) — — (194) (198) Recoveries 6 1 — 239 246 Net recoveries (charge-offs) 2 1 — 45 48 Provision (110) (593) (197) (245) (1,145) Ending balance $ 3,483 $ 12,964 $ 1,606 $ 1,875 $ 19,928 Unfunded Commitments The allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities in the Consolidated Balance Sheets), with adjustments to the reserve recognized in the provision for credit losses on the Consolidated Statements of Income. The Corporation established a reserve for unfunded commitments in conjunction with its adoption of ASC 326- Financial Instruments-Credit Losses . The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended March 31, 2023 and 2022: For the Three Months Ended Allowance for credit losses on unfunded commitments March 31, 2023 March 31, 2022 Beginning balance $ — $ — Impact of ASC 326 adoption 1,082 — Provision for unfunded commitments (34) — Ending balance $ 1,048 $ — The following table presents the provision for credit losses on loans and unfunded commitments for the three month period ended March 31, 2023, based upon the current expected credit loss methodology, and the provision for loan losses on loans for the three month period ended March 31, 2022, based upon the incurred loss methodology: For the Three Months Ended Provision for credit losses March 31, 2023 March 31, 2022 Provision for credit losses on loans $ 311 $ (1,145) Provision for unfunded commitments (34) — Total provision (credit) for credit losses $ 277 $ (1,145) The following tables present the balance in the allowance for credit losses and allowance for loan losses, and the amortized cost basis in loans by portfolio segment, as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually analyzed $ 1,040 $ 36 $ — $ — $ 1,076 Collectively analyzed 3,013 10,947 1,892 3,147 18,999 Total ending allowance balance $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 December 31, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,078 $ 38 $ — $ 31 $ 1,147 Collectively evaluated for impairment 2,295 11,538 1,845 2,834 18,512 Total ending allowance balance $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 March 31, 2023 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually analyzed $ 1,779 $ 4,089 $ 715 $ 254 $ 6,837 Loans collectively analyzed 242,728 1,032,208 285,229 306,699 1,866,864 Total ending loans balance $ 244,507 $ 1,036,297 $ 285,944 $ 306,953 $ 1,873,701 December 31, 2022 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,112 $ 4,383 $ 723 $ 264 $ 7,482 Loans collectively evaluated for impairment 250,181 992,530 284,949 294,306 1,821,966 Total ending loans balance $ 252,293 $ 996,913 $ 285,672 $ 294,570 $ 1,829,448 |
Schedule of Financing Receivable, Modified | The following table summarizes the amortized cost basis of loans modified as of March 31, 2023: March 31, 2023 Loans modified under ASU 2022-02: Principal Reduction Interest Rate Reduction Term Extension Combination Total (%) of Loan Class (1) Commercial mortgages $ — $ — $ 277 $ — $ 277 0.03 % Total $ — $ — $ 277 $ — $ 277 (1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended March 31, 2023: March 31, 2023 Effect of loan modifications under ASU 2022-02: Principal Reduction (in thousands) Weighted-average interest rate reduction (%) Weighted-average term extension (in months) Commercial mortgages $— —% 60 |
Schedule of Analysis of Collateral Dependent Loans | The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2023 (in thousands): March 31, 2023 Amortized Cost Basis Related Allowance Commercial and agricultural: Commercial and industrial (1) (3) $ 573 $ 168 Commercial mortgages: Commercial mortgages, other (1) 4,413 36 Residential mortgages (2) 715 — Consumer loans Home equity lines and loans (2) 254 — Total $ 5,955 $ 204 (1) Secured by commercial real estate (2) Secured by residential real estate (3) Secured by business assets |
Schedule of Impaired Financing Receivables | The following is a summary of impaired loans as of December 31, 2022 (in thousands): December 31, 2022 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 1,026 $ 1,025 $ — Commercial mortgages: Construction 5 5 — Commercial mortgages, other 4,346 4,341 — Residential mortgages 767 760 — Consumer loans: Home equity lines and loans 154 138 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,086 1,088 1,078 Commercial mortgages: Commercial mortgages, other 38 38 38 Consumer loans: Home equity lines and loans 126 127 31 Total $ 7,548 $ 7,522 $ 1,147 The following table presents the amortized cost basis and interest income of loans individually evaluated recognized by class of loans for the three month periods ended March 31, 2023 and 2022 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Amortized Cost Basis Interest Income Recognized ( 1) Amortized Cost Basis Interest Income Recognized ( 1) Commercial and agricultural: Commercial and industrial $ 729 $ — $ 926 $ 3 Commercial mortgages: Construction — — 113 1 Commercial mortgages, other 4,053 7 4,105 7 Residential mortgages 715 9 895 11 Consumer loans: Home equity lines & loans 254 — 161 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,049 2 1,414 3 Commercial mortgages: Commercial mortgages, other 36 — 2,601 21 Consumer loans: Home equity lines and loans — — 141 — Total $ 6,836 $ 18 $ 10,356 $ 47 (1) Cash basis interest income approximates interest income recognized. |
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans | The following table presents the amortized cost basis in non-accrual and loans past due 90 days or more and still accruing by class of loan as of March 31, 2023 and December 31, 2022 (in thousands): Non-accrual with no allowance for credit losses Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2023 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Commercial and agricultural: Commercial and industrial $ 730 $ 1,623 $ 1,946 $ 6 $ 1 Commercial mortgages: Construction — — 5 — — Commercial mortgages, other 3,611 3,647 3,928 — — Residential mortgages 1,036 1,036 986 — — Consumer loans: Home equity lines and loans 866 866 760 — — Indirect consumer loans 556 556 540 — — Direct consumer loans 3 3 13 — — Total $ 6,802 $ 7,731 $ 8,178 $ 6 $ 1 The following tables present the aging of the amortized cost basis of loans as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 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 $ 67 $ 8 $ 16 $ 91 $ 244,083 $ 244,174 Agricultural — — — — 333 333 Commercial mortgages: Construction 2,284 — — 2,284 116,376 118,660 Commercial mortgages, other 246 — 297 543 917,094 917,637 Residential mortgages 933 57 412 1,402 284,542 285,944 Consumer loans: Home equity lines and loans 261 57 568 886 83,651 84,537 Indirect consumer loans 1,036 52 265 1,353 209,917 211,270 Direct consumer loans 10 — — 10 11,136 11,146 Total $ 4,837 $ 174 $ 1,558 $ 6,569 $ 1,867,132 $ 1,873,701 December 31, 2022 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 $ 74 $ 3 $ 1 $ 78 $ 251,966 $ 252,044 Agricultural — — — — 249 249 Commercial mortgages: Construction — — — — 108,243 108,243 Commercial mortgages, other 1,058 — 486 1,544 887,126 888,670 Residential mortgages 1,360 709 294 2,363 283,309 285,672 Consumer loans: Home equity lines and loans 193 121 442 756 80,645 81,401 Indirect consumer loans 1,397 193 250 1,840 200,284 202,124 Direct consumer loans 2 19 1 22 11,023 11,045 Total $ 4,084 $ 1,045 $ 1,474 $ 6,603 $ 1,822,845 $ 1,829,448 |
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans | Based on the analyses performed as of March 31, 2023, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2023 2022 2021 2020 2019 Prior Commercial & industrial Pass $ 7,750 $ 43,899 $ 21,452 $ 14,723 $ 38,017 $ 12,844 $ 88,666 $ — $ 227,351 Special mention 100 104 350 3 86 457 3,478 9,315 13,893 Substandard — 36 — 412 28 370 629 588 2,063 Doubtful — — — — — 867 — — 867 Total 7,850 44,039 21,802 15,138 38,131 14,538 92,773 9,903 244,174 Gross charge-offs $ — $ — $ — $ — $ — $ 190 $ — $ — $ 190 Agricultural Pass — 17 170 — — — 146 — 333 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total — 17 170 — — — 146 — 333 Gross charge-offs — — — — — — — — — Construction Pass 8,311 2,819 1,975 — 2,317 1,205 101,857 — 118,484 Special mention — 176 — — — — — — 176 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total 8,311 2,995 1,975 — 2,317 1,205 101,857 — 118,660 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 31,729 214,915 129,614 99,057 40,489 180,523 192,038 — 888,365 Special mention — 2,563 8,828 1,033 — 3,867 — 6,154 22,445 Substandard 277 1,186 — — — 4,790 97 441 6,791 Doubtful — — — — — 36 — — 36 Total 32,006 218,664 138,442 100,090 40,489 189,216 192,135 6,595 917,637 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 5,594 52,576 52,443 75,198 16,416 52,615 30,066 — 284,908 Substandard — 107 64 111 181 573 — — 1,036 Total 5,594 52,683 52,507 75,309 16,597 53,188 30,066 — 285,944 Gross charge-offs — — — — — — — — — Home equity lines and loans Not rated 3,945 19,073 6,477 3,827 3,110 12,740 34,500 — 83,672 Substandard — — — — 121 392 352 — 865 Total 3,945 19,073 6,477 3,827 3,231 13,132 34,852 — 84,537 Gross charge-offs — — — — — — 8 — 8 Indirect consumer Not rated 26,012 123,593 32,138 14,374 7,385 7,211 — — 210,713 Substandard — 186 98 59 73 141 — — 557 Total 26,012 123,779 32,236 14,433 7,458 7,352 — — 211,270 Gross charge-offs — 43 36 30 12 23 — — 144 Direct consumer Not rated 1,121 3,956 1,330 630 266 478 3,362 — 11,143 Substandard — — — — — 3 — — 3 Total 1,121 3,956 1,330 630 266 481 3,362 — 11,146 Gross charge-offs — — 1 4 — 36 — — 41 Total loans $ 84,839 $ 465,206 $ 254,939 $ 209,427 $ 108,489 $ 279,112 $ 455,191 $ 16,498 $ 1,873,701 Total gross charge-offs $ — $ 43 $ 37 $ 34 $ 12 $ 249 $ 8 $ — $ 383 Prior to the adoption of ASC 326- Financial Instruments-Credit Losses, loans not meeting the criteria above that were analyzed individually as part of the above described process were considered pass rated loans as of December 31, 2022. Based upon the analyses performed as of December 31, 2022, the risk category of the recorded investment of loans by class of loans was as follows (in thousands): December 31, 2022 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 235,900 $ 13,349 $ 2,899 $ 893 $ 253,041 Agricultural — 250 — — — 250 Commercial mortgages: Construction — 108,488 178 5 — 108,671 Commercial mortgages — 860,389 23,938 7,825 38 892,190 Residential mortgages 285,459 — — 986 — 286,445 Consumer loans: Home equity lines and loans 80,942 — — 760 — 81,702 Indirect consumer loans 202,050 — — 540 — 202,590 Direct consumer loans 11,094 — — 13 — 11,107 Total $ 579,545 $ 1,205,027 $ 37,465 $ 13,028 $ 931 $ 1,835,996 For residential and consumer loan classes, the Corporation also evaluated credit quality based on the aging status of the loan, which was previously presented, by payment activity. The following table presents the amortized cost basis in residential and consumer loans based on payment activity as of March 31, 2023 (in thousands): Consumer Loans March 31, 2023 Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 284,908 $ 83,672 $ 210,713 $ 11,143 Non-Performing 1,036 865 557 3 Total $ 285,944 $ 84,537 $ 211,270 $ 11,146 Prior to the adoption of ASC 326- Financial Instruments-Credit Losses , the Corporation also evaluated credit quality based on the aging status of the loan, which was previously presented, by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2022 (in thousands): Consumer Loans December 31, 2022 Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 285,459 $ 80,942 $ 202,050 $ 11,094 Non-Performing 986 760 540 13 Total $ 286,445 $ 81,702 $ 202,590 $ 11,107 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule 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, 2023 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 56,328 $ 56,328 $ — $ — Mortgage-backed securities, residential 432,654 — 432,654 — Obligations of states and political subdivisions 39,414 — 39,414 — Corporate bonds and notes 20,630 — 11,964 8,666 SBA loan pools 77,029 — 77,029 — Total available for sale securities $ 626,055 $ 56,328 $ 561,061 $ 8,666 Equity investments, at fair value $ 2,311 $ 2,311 $ — $ — Derivative assets 22,710 — 22,710 — Financial Liabilities: Derivative liabilities $ 22,776 $ — $ 22,776 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2023. Fair Value Measurement at December 31, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 55,574 $ 55,574 $ — $ — Mortgage-backed securities, residential 435,131 — 435,131 — Obligations of states and political subdivisions 38,892 — 38,892 — Corporate bonds and notes 21,970 — 21,970 — SBA loan pools 81,022 — 81,022 — Total available for sale securities $ 632,589 $ 55,574 $ 577,015 $ — Equity investments, at fair value $ 2,246 $ 2,246 $ — $ — Derivative assets 27,141 — 27,141 — Financial Liabilities: Derivative liabilities $ 27,196 $ — $ 27,196 $ — |
Information Related To Level 3 Non-Recurring Fair Value Measurement | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2023 and March 31, 2022. Corporate Bonds: For the Three Months Ended Level 3 Financial Assets March 31, 2023 March 31, 2022 Balance of recurring Level 3 assets at January 1, 2023 $ — $ — Total gains and losses for the period: — — Included in other comprehensive income (1,289) — Transfer into Level 3 9,955 — Balance of recurring Level 3 assets at March 31, 2023 $ 8,666 $ — March 31, 2023 Fair Value Valuation Techniques Unobservable Input Range (WA) Corporate bonds and notes $ 8,666 Discounted cash flow Market discount rate 12.00% -12.00% [12.00%] |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of other financial instruments, at March 31, 2023 and December 31, 2022, are as follows (in thousands): March 31, 2023 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 25,109 $ 25,109 $ — $ — $ 25,109 Interest-earning deposits in other financial institutions 9,532 9,532 — — 9,532 Equity investments 2,949 2,949 — — 2,949 Securities available for sale 626,055 56,328 561,061 8,666 626,055 Securities held to maturity 1,932 — 953 952 1,905 FHLBNY and FRBNY stock 7,913 — — — N/A Loans, net and loans held for sale 1,853,626 — — 1,790,939 1,790,939 Accrued interest receivable 8,469 229 1,900 6,340 8,469 Derivative Assets 22,710 — 22,710 — 22,710 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,880,335 $ 1,880,335 $ — $ — $ 1,880,335 Time deposits 452,094 — 450,201 — 450,201 Accrued interest payable 1,500 73 1,427 — 1,500 Derivative Liabilities 22,776 — 22,776 — 22,776 (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, 2022 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 29,309 $ 29,309 $ — $ — $ 29,309 Interest-earning deposits in other financial institutions 26,560 26,560 — — 26,560 Equity investments 2,830 2,830 — — 2,830 Securities available for sale 632,589 55,574 577,015 — 632,589 Securities held to maturity 2,424 — 1,639 2,157 3,796 FHLBNY and FRBNY stock 8,197 — — — N/A Loans, net and loans held for sale 1,809,789 — — 1,757,171 1,757,171 Accrued interest receivable 8,682 132 2,002 6,548 8,682 Derivative Asset 27,141 — 27,141 — 27,141 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,924,843 $ 1,924,843 $ — $ — $ 1,924,843 Time deposits 402,384 — 403,572 — 403,572 Accrued interest payable 864 64 800 — 864 Derivative Liabilities 27,196 — 27,196 — 27,196 (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, 2023 | |
Leases [Abstract] | |
Schedule of Leased Branch Properties | Leased branch properties at March 31, 2023 and December 31, 2022 consist of the following (in thousands): March 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 6,449 $ 7,234 Less: accumulated amortization (199) (785) Less: lease termination — — Add: new lease agreement and modifications — — Operating lease right-of-use-assets, net $ 6,250 $ 6,449 |
Schedule of Undiscounted Cash Flows of the Operating Lease Liabilities | The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2023 (in thousands): Year Amount 2023 $ 747 2024 924 2025 841 2026 845 2027 854 2028 and thereafter 3,169 Total minimum lease payments 7,380 Less: amount representing interest (953) Present value of net minimum lease payments $ 6,427 |
Schedule of Leases in Premises and Equipment | The Corporation has included these leases in premises and equipment March 31, 2023 December 31, 2022 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,540) Net book value $ 3,115 $ 3,032 |
Schedule of Future Minimum Financial Lease Payments | 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, 2023 (in thousands): Year Amount 2023 $ 293 2024 391 2025 409 2026 425 2027 428 2028 and thereafter 1,988 Total minimum lease payments 3,934 Less: amount representing interest (676) Present value of net minimum lease payments $ 3,258 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 were as follows (in thousands): 2023 2022 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of 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, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 40,759 $ 71,151 $ 44,481 $ 75,028 Unused lines of credit 3,085 344,423 2,887 326,188 Standby letters of credit — 17,425 — 17,211 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The following is a summary of the changes in accumulated other comprehensive income (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, 2023 $ (71,296) $ (3,961) $ (75,257) Other comprehensive income before reclassification 5,775 — 5,775 Amounts reclassified from accumulated other comprehensive income — 9 9 Net current period other comprehensive income 5,775 9 5,784 Balance at March 31, 2023 $ (65,521) $ (3,952) $ (69,473) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2022 $ (2,495) $ (4,035) $ (6,530) Other comprehensive income before reclassification (31,087) — (31,087) Amounts reclassified from accumulated other comprehensive income — 12 12 Net current period other comprehensive income (loss) (31,087) 12 (31,075) Balance at March 31, 2022 $ (33,582) $ (4,023) $ (37,605) |
Schedule of 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 2023 2022 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ — Other components of net periodic pension and postretirement benefits Actuarial losses (a) 12 14 Other components of net periodic pension and postretirement benefits Tax effect (3) (2) Income tax expense Net of tax 9 12 Total reclassification for the period, net of tax $ 9 $ 12 (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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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, 2023 and 2022 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2023 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b) Total Service charges on deposit accounts Overdraft fees $ 714 $ — $ — $ 714 Other 227 — — 227 Interchange revenue from debit card transactions 1,133 — — 1,133 WMG fee income — 2,580 — 2,580 CFS fee and commission income — — 241 241 Net gains (losses) on sales of OREO — — — — Net gains on sales of loans (a) 5 — — 5 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 78 — (6) 72 Income from bank-owned life insurance (a) 10 — — 10 Other (a) 448 — (43) 405 Total non-interest income (loss) $ 2,651 $ 2,580 $ 192 $ 5,423 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Three Months Ended March 31, 2022 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b) Total Service charges on deposit accounts Overdraft fees $ 673 $ — $ — $ 673 Other 191 — — 191 Interchange revenue from debit card transactions 1,130 — — 1,130 WMG fee income — 2,757 — 2,757 CFS fee and commission income — — 253 253 Net gains on sales of loans (a) 74 — — 74 Loan servicing fees (a) 39 — — 39 Changes in fair value of equity investments (a) (114) — 1 (113) Income from bank-owned life insurance (a) 11 — — 11 Other (a) 689 — (41) 648 Total non-interest income $ 2,693 $ 2,757 $ 213 $ 5,663 (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, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of 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 2023 2022 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 396 282 Expected return on plan assets (596) (713) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 6 — Net periodic pension benefit $ (194) $ (431) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 12 8 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 2 5 Net periodic supplemental pension cost $ 14 $ 13 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 1 1 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 5 9 Net periodic postretirement, medical and life benefit $ 6 $ 10 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Financial Information Showing Reconciliation of Segment Net Income Loss and Assets to Consolidated Results | The Holding Company, CFS, and CRM columns below include amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2023 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 26,203 $ — $ 27 $ 26,230 Interest expense 6,283 — — 6,283 Net interest income 19,920 — 27 19,947 Provision for credit losses 277 — — 277 Net interest income after provision for credit losses 19,643 — 27 19,670 Other non-interest income 2,651 2,580 192 5,423 Other non-interest expenses 13,696 1,798 342 15,836 Income (loss) before income tax expense (benefit) 8,598 782 (123) 9,257 Income tax expense (benefit) 1,831 177 (21) 1,987 Segment net income (loss) $ 6,767 $ 605 $ (102) $ 7,270 Segment assets $ 2,644,158 $ 8,311 $ 1,714 $ 2,654,183 Three months ended March 31, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 17,451 $ — $ 7 $ 17,458 Interest expense 781 — — 781 Net interest income 16,670 — 7 16,677 Provision for credit losses (1,145) — — (1,145) Net interest income after provision for credit losses 17,815 — 7 17,822 Other non-interest income 2,693 2,757 213 5,663 Other non-interest expenses 12,531 1,815 322 14,668 Income (loss) before income tax expense (benefit) 7,977 942 (102) 8,817 Income tax expense (benefit) 1,766 209 (25) 1,950 Segment net income (loss) $ 6,211 $ 733 $ (77) $ 6,867 Segment assets $ 2,463,194 $ 8,620 $ 3,081 $ 2,474,895 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of restricted stock activity for the three months ended March 31, 2023 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2023 55,402 $44.57 Granted 13,069 $45.89 Vested (14,143) $45.38 Forfeited or cancelled — $— Nonvested at March 31, 2023 54,328 $43.77 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (177,341,000) | $ (166,388,000) | $ (185,510,000) | $ (211,455,000) | |||
Allowance for credit losses | 20,075,000 | [1] | 19,659,000 | [1] | 19,928,000 | 21,025,000 | |
Unfunded Loan Commitment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 1,048,000 | 0 | 0 | 0 | |||
Commercial Mortgages | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 10,983,000 | 11,576,000 | 12,964,000 | 13,556,000 | |||
Consumer Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 3,147,000 | 2,865,000 | 1,875,000 | 2,075,000 | |||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (216,593,000) | (211,859,000) | $ (194,295,000) | (188,877,000) | |||
Cumulative effect adjustment for the adoption of ASC 326 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | [2] | 1,076,000 | |||||
Allowance for credit losses | 374,000 | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Unfunded Loan Commitment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 1,082,000 | $ 0 | |||||
Cumulative effect adjustment for the adoption of ASC 326 | Loan Portfolio | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 400,000 | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Securities Portfolio | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 0 | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Commercial Mortgages | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | (695,000) | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Commercial Mortgages | Commercial And Agricultural And Commercial Real Estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 200,000 | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Consumer Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 176,000 | ||||||
Cumulative effect adjustment for the adoption of ASC 326 | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, before tax | 1,500,000 | ||||||
Stockholders' equity | [2] | $ 1,076,000 | |||||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion.[2]Due to implementation of ASC 326. See "Adoption of New Accounting Standards" discussion in Note 1. |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding, basic (in shares) | 4,721,000 | 4,689,000 |
Weighted average shares outstanding, diluted (in shares) | 4,721,000 | 4,689,000 |
Dilutive common stock equivalents (in shares) | 0 | 0 |
SECURITIES - Securities Availab
SECURITIES - Securities Available for Sale (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | $ 714,839,000 | $ 729,198,000 | |
Unrealized Gains | 149,000 | 157,000 | |
Unrealized Losses | 88,933,000 | 96,766,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 626,055,000 | 632,589,000 | |
Amortized Cost | |||
Within one year | 3,141,000 | ||
After one, but within five years | 104,669,000 | ||
After five, but within ten years | 18,883,000 | ||
After ten years | 471,000 | ||
Total | 127,164,000 | ||
Total | 714,839,000 | 729,198,000 | |
Fair Value | |||
Within one year | 3,102,000 | ||
After one, but within five years | 98,309,000 | ||
After five, but within ten years | 14,501,000 | ||
After ten years | 460,000 | ||
Total | 116,372,000 | ||
Total | 626,055,000 | 632,589,000 | |
Proceeds from sales and calls of securities resulting in gains or losses | |||
Debt securities, gain (loss) | 0 | $ 0 | |
U.S. Treasury notes and bonds | |||
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | 61,619,000 | 61,800,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 5,291,000 | 6,225,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 56,328,000 | 55,574,000 | |
Amortized Cost | |||
Total | 61,619,000 | 61,800,000 | |
Fair Value | |||
Total | 56,328,000 | 55,574,000 | |
Mortgage-backed securities, residential | |||
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | 508,906,000 | 518,838,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 76,252,000 | 83,707,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 432,654,000 | 435,131,000 | |
Amortized Cost | |||
Without single maturity date | 508,906,000 | ||
Total | 508,906,000 | 518,838,000 | |
Fair Value | |||
Without single maturity date | 432,654,000 | ||
Total | 432,654,000 | 435,131,000 | |
Obligations of states and political subdivisions | |||
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | 39,795,000 | 39,828,000 | |
Unrealized Gains | 19,000 | 2,000 | |
Unrealized Losses | 400,000 | 938,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 39,414,000 | 38,892,000 | |
Amortized Cost | |||
Total | 39,795,000 | 39,828,000 | |
Fair Value | |||
Total | 39,414,000 | 38,892,000 | |
Corporate bonds and notes | |||
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | 25,750,000 | 25,750,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 5,120,000 | 3,780,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 20,630,000 | 21,970,000 | |
Amortized Cost | |||
Total | 25,750,000 | 25,750,000 | |
Fair Value | |||
Total | 20,630,000 | 21,970,000 | |
SBA loan pools | |||
Amortized cost and estimated fair value of debt securities available-for-sale | |||
Amortized Cost | 78,769,000 | 82,982,000 | |
Unrealized Gains | 130,000 | 155,000 | |
Unrealized Losses | 1,870,000 | 2,116,000 | |
Allowance for credit losses | 0 | ||
Estimated Fair Value | 77,029,000 | 81,022,000 | |
Amortized Cost | |||
Without single maturity date | 78,769,000 | ||
Total | 78,769,000 | 82,982,000 | |
Fair Value | |||
Without single maturity date | 77,029,000 | ||
Total | $ 77,029,000 | $ 81,022,000 |
SECURITIES - Securities Held to
SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | $ 1,932 | $ 2,424 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 27 | 22 |
Allowance for credit losses | 0 | |
Estimated Fair Value | 1,905 | 2,402 |
Amortized Cost | ||
Within one year | 1,004 | |
After one, but within five years | 928 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 1,932 | |
Amortized Cost | 1,932 | 2,424 |
Fair Value | ||
Within one year | 1,003 | |
After one, but within five years | 902 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 1,905 | |
Total | 1,905 | 2,402 |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | 952 | 952 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 0 | 0 |
Allowance for credit losses | 0 | |
Estimated Fair Value | 952 | 952 |
Amortized Cost | ||
Amortized Cost | 952 | 952 |
Fair Value | ||
Total | 952 | 952 |
Time deposits with other financial institutions | ||
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | 980 | 1,472 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 27 | 22 |
Allowance for credit losses | 0 | |
Estimated Fair Value | 953 | 1,450 |
Amortized Cost | ||
Amortized Cost | 980 | 1,472 |
Fair Value | ||
Total | 953 | $ 1,450 |
Mortgage-backed securities, residential | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
SBA loan pools | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | $ 0 |
SECURITIES - Investment Securit
SECURITIES - Investment Securities Available for Sale in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 40,939 | $ 137,597 |
12 months or longer | 562,190 | 468,381 |
Total | 603,129 | 606,916 |
Unrealized Losses | ||
Less than 12 months | 939 | 9,999 |
12 months or longer | 87,994 | 86,767 |
Total | 88,933 | 96,766 |
U.S. Treasury notes and bonds | ||
Fair Value | ||
Less than 12 months | 1,107 | 1,011 |
12 months or longer | 55,221 | 54,563 |
Total | 56,328 | 55,574 |
Unrealized Losses | ||
Less than 12 months | 16 | 30 |
12 months or longer | 5,275 | 6,195 |
Total | 5,291 | 6,225 |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 months | 7,594 | 79,891 |
12 months or longer | 425,060 | 355,240 |
Total | 432,654 | 435,131 |
Unrealized Losses | ||
Less than 12 months | 477 | 7,621 |
12 months or longer | 75,775 | 76,086 |
Total | 76,252 | 83,707 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 20,209 | 37,847 |
12 months or longer | 12,962 | 0 |
Total | 33,171 | 38,785 |
Unrealized Losses | ||
Less than 12 months | 176 | 938 |
12 months or longer | 224 | 0 |
Total | 400 | 938 |
Corporate bonds and notes | ||
Fair Value | ||
Less than 12 months | 2,750 | 4,515 |
12 months or longer | 12,064 | 7,455 |
Total | 14,814 | 11,970 |
Unrealized Losses | ||
Less than 12 months | 250 | 485 |
12 months or longer | 4,870 | 3,295 |
Total | 5,120 | 3,780 |
SBA loan pools | ||
Fair Value | ||
Less than 12 months | 9,279 | 14,333 |
12 months or longer | 56,883 | 51,123 |
Total | 66,162 | 65,456 |
Unrealized Losses | ||
Less than 12 months | 20 | 925 |
12 months or longer | 1,850 | 1,191 |
Total | $ 1,870 | $ 2,116 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | $ 1,873,701 | $ 1,829,448 | ||||
Allowance for credit losses | (20,075) | [1] | (19,659) | [1] | $ (19,928) | $ (21,025) |
Loans, net | 1,853,626 | 1,809,789 | ||||
Construction | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 118,660 | |||||
Commercial mortgages, other | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 917,637 | |||||
Home equity lines and loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 84,537 | |||||
Indirect consumer loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 211,270 | |||||
Direct consumer loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 11,146 | |||||
Commercial and Agricultural | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 244,507 | 252,293 | ||||
Allowance for credit losses | (4,053) | (3,373) | (3,483) | (3,591) | ||
Commercial Mortgages | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 1,036,297 | 996,913 | ||||
Allowance for credit losses | (10,983) | (11,576) | (12,964) | (13,556) | ||
Commercial Mortgages | Construction | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 118,660 | 108,243 | ||||
Commercial Mortgages | Commercial mortgages, other | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 917,637 | 888,670 | ||||
Residential Mortgages | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 285,944 | 285,672 | ||||
Allowance for credit losses | (1,892) | (1,845) | (1,606) | (1,803) | ||
Consumer Loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 306,953 | 294,570 | ||||
Allowance for credit losses | (3,147) | (2,865) | $ (1,875) | $ (2,075) | ||
Consumer Loans | Home equity lines and loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 84,537 | 81,401 | ||||
Consumer Loans | Indirect consumer loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 211,270 | 202,124 | ||||
Consumer Loans | Direct consumer loans | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 11,146 | 11,045 | ||||
Commercial and industrial | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 244,174 | |||||
Commercial and industrial | Commercial and Agricultural | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 244,174 | 252,044 | ||||
Agricultural | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | 333 | |||||
Agricultural | Commercial and Agricultural | ||||||
Composition of loan portfolio [Abstract] | ||||||
Total loans, net of deferred loan fees and costs | $ 333 | $ 249 | ||||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Credit Loss [Abstract] | ||
Accrued interest | $ 6,300 | $ 6,500 |
Number of days past due after which a retail loan is rated | 90 days | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans individually analyzed | $ 6,837 | $ 7,482 |
Collateral Pledged | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans individually analyzed | $ 5,955 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 19,659 | [1] | $ 21,025 |
Charge-offs | (383) | (198) | |
Recoveries | 114 | 246 | |
Net recoveries (charge-offs) | (269) | 48 | |
Provision | 311 | (1,145) | |
Ending balance | 20,075 | [1] | 19,928 |
Credit provision related to off-balance sheet exposure | 34 | ||
Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 374 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 20,033 | ||
Commercial and Agricultural | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,373 | 3,591 | |
Charge-offs | (190) | (4) | |
Recoveries | 6 | 6 | |
Net recoveries (charge-offs) | (184) | 2 | |
Provision | (45) | (110) | |
Ending balance | 4,053 | 3,483 | |
Commercial and Agricultural | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 909 | ||
Commercial and Agricultural | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,282 | ||
Commercial Mortgages | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 11,576 | 13,556 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 1 | |
Net recoveries (charge-offs) | 0 | 1 | |
Provision | 102 | (593) | |
Ending balance | 10,983 | 12,964 | |
Commercial Mortgages | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (695) | ||
Commercial Mortgages | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,881 | ||
Residential Mortgages | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,845 | 1,803 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | |
Provision | 63 | (197) | |
Ending balance | 1,892 | 1,606 | |
Residential Mortgages | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (16) | ||
Residential Mortgages | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,829 | ||
Consumer Loans | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,865 | 2,075 | |
Charge-offs | (193) | (194) | |
Recoveries | 108 | 239 | |
Net recoveries (charge-offs) | (85) | 45 | |
Provision | 191 | (245) | |
Ending balance | 3,147 | 1,875 | |
Consumer Loans | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 176 | ||
Consumer Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,041 | ||
Unfunded Loan Commitment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision | (34) | 0 | |
Ending balance | 1,048 | 0 | |
Unfunded Loan Commitment | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,082 | $ 0 | |
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision | $ 311 | $ (1,145) |
Loans And Unfunded Commitments | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision | 277 | (1,145) |
Loans Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision | 311 | (1,145) |
Unfunded Loan Commitment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision | $ (34) | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances by Impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Allowance for loan losses | ||||||
Individually evaluated for impairment | $ 1,076 | $ 1,147 | ||||
Collectively evaluated for impairment | 18,999 | 18,512 | ||||
Total ending allowance balance | 20,075 | [1] | 19,659 | [1] | $ 19,928 | $ 21,025 |
Loans: | ||||||
Loans individually analyzed | 6,837 | 7,482 | ||||
Loans collectively analyzed | 1,866,864 | 1,821,966 | ||||
Total loans, net of deferred loan fees and costs | 1,873,701 | 1,829,448 | ||||
Collateral Pledged | ||||||
Allowance for loan losses | ||||||
Total ending allowance balance | 204 | |||||
Loans: | ||||||
Loans individually analyzed | 5,955 | |||||
Commercial and Agricultural | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 1,040 | 1,078 | ||||
Collectively evaluated for impairment | 3,013 | 2,295 | ||||
Total ending allowance balance | 4,053 | 3,373 | 3,483 | 3,591 | ||
Loans: | ||||||
Loans individually analyzed | 1,779 | 2,112 | ||||
Loans collectively analyzed | 242,728 | 250,181 | ||||
Total loans, net of deferred loan fees and costs | 244,507 | 252,293 | ||||
Commercial Mortgages | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 36 | 38 | ||||
Collectively evaluated for impairment | 10,947 | 11,538 | ||||
Total ending allowance balance | 10,983 | 11,576 | 12,964 | 13,556 | ||
Loans: | ||||||
Loans individually analyzed | 4,089 | 4,383 | ||||
Loans collectively analyzed | 1,032,208 | 992,530 | ||||
Total loans, net of deferred loan fees and costs | 1,036,297 | 996,913 | ||||
Residential Mortgages | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,892 | 1,845 | ||||
Total ending allowance balance | 1,892 | 1,845 | 1,606 | 1,803 | ||
Loans: | ||||||
Loans individually analyzed | 715 | 723 | ||||
Loans collectively analyzed | 285,229 | 284,949 | ||||
Total loans, net of deferred loan fees and costs | 285,944 | 285,672 | ||||
Consumer Loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 31 | ||||
Collectively evaluated for impairment | 3,147 | 2,834 | ||||
Total ending allowance balance | 3,147 | 2,865 | $ 1,875 | $ 2,075 | ||
Loans: | ||||||
Loans individually analyzed | 254 | 264 | ||||
Loans collectively analyzed | 306,699 | 294,306 | ||||
Total loans, net of deferred loan fees and costs | $ 306,953 | $ 294,570 | ||||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Modifications (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 277 |
Weighted-average term extension (in months) | 60 months |
Commercial Mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 277 |
% of Loan Class | 0.03% |
Weighted-average interest rate reduction (%) | 0% |
Principal Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 0 |
Principal Reduction (in thousands) | 0 |
Principal Reduction | Commercial Mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Interest Rate Reduction | Commercial Mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 277 |
Term Extension | Commercial Mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 277 |
Combination | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Combination | Commercial Mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Collateral Dependent (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | $ 6,837 | $ 7,482 | ||||
Allowance for credit losses | 20,075 | [1] | 19,659 | [1] | $ 19,928 | $ 21,025 |
Commercial and Agricultural | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 1,779 | 2,112 | ||||
Allowance for credit losses | 4,053 | 3,373 | 3,483 | 3,591 | ||
Commercial Mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 4,089 | 4,383 | ||||
Allowance for credit losses | 10,983 | 11,576 | 12,964 | 13,556 | ||
Residential Mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 715 | 723 | ||||
Allowance for credit losses | 1,892 | 1,845 | 1,606 | 1,803 | ||
Consumer Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 254 | 264 | ||||
Allowance for credit losses | 3,147 | $ 2,865 | $ 1,875 | $ 2,075 | ||
Collateral Pledged | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 5,955 | |||||
Allowance for credit losses | 204 | |||||
Commercial Real Estate And Business Assets | Commercial and Agricultural | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 573 | |||||
Allowance for credit losses | 168 | |||||
Commercial Real Estate | Commercial Mortgages | Commercial mortgages, other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 4,413 | |||||
Allowance for credit losses | 36 | |||||
Residential Real Estate | Residential Mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 715 | |||||
Allowance for credit losses | 0 | |||||
Residential Real Estate | Consumer Loans | Home equity lines and loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually analyzed | 254 | |||||
Allowance for credit losses | $ 0 | |||||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Total | $ 7,548 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Total | 7,522 | ||
Allowance for Loan Losses Allocated | 1,147 | ||
Amortized Cost Basis | |||
Average recorded investment, total | $ 6,836 | $ 10,356 | |
Interest Income Recognized | |||
Total | 18 | 47 | |
Residential Mortgages | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 767 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With no related allowance recorded | 760 | ||
Amortized Cost Basis | |||
With no related allowance recorded | 715 | 895 | |
Interest Income Recognized | |||
With no related allowance recorded | 9 | 11 | |
Construction | Commercial Mortgages | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 5 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With no related allowance recorded | 5 | ||
Amortized Cost Basis | |||
With no related allowance recorded | 0 | 113 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 1 | |
Commercial mortgages, other | Commercial Mortgages | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 4,346 | ||
With an allowance recorded | 38 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With no related allowance recorded | 4,341 | ||
With an allowance recorded | 38 | ||
Allowance for Loan Losses Allocated | 38 | ||
Amortized Cost Basis | |||
With no related allowance recorded | 4,053 | 4,105 | |
With an allowance recorded | 36 | 2,601 | |
Interest Income Recognized | |||
With no related allowance recorded | 7 | 7 | |
With an allowance recorded | 0 | 21 | |
Home equity lines and loans | Consumer Loans | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 154 | ||
With an allowance recorded | 126 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With no related allowance recorded | 138 | ||
With an allowance recorded | 127 | ||
Allowance for Loan Losses Allocated | 31 | ||
Amortized Cost Basis | |||
With no related allowance recorded | 254 | 161 | |
With an allowance recorded | 0 | 141 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 1 | |
With an allowance recorded | 0 | 0 | |
Commercial and industrial | Commercial and Agricultural | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 1,026 | ||
With an allowance recorded | 1,086 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With no related allowance recorded | 1,025 | ||
With an allowance recorded | 1,088 | ||
Allowance for Loan Losses Allocated | $ 1,078 | ||
Amortized Cost Basis | |||
With no related allowance recorded | 729 | 926 | |
With an allowance recorded | 1,049 | 1,414 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 3 | |
With an allowance recorded | $ 2 | $ 3 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | $ 6,802 | |
Non-accrual | 7,731 | $ 8,178 |
Loans Past Due 90 Days or More and Still Accruing | 6 | 1 |
Financing receivable | 1,873,701 | 1,829,448 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 6,569 | 6,603 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 4,837 | 4,084 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 174 | 1,045 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,558 | 1,474 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,867,132 | 1,822,845 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 118,660 | |
Commercial mortgages, other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 917,637 | |
Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 84,537 | |
Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 211,270 | |
Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 11,146 | |
Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 244,507 | 252,293 |
Commercial Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,036,297 | 996,913 |
Commercial Mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 0 | |
Non-accrual | 0 | 5 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 118,660 | 108,243 |
Commercial Mortgages | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,284 | 0 |
Commercial Mortgages | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,284 | 0 |
Commercial Mortgages | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Mortgages | Construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Mortgages | Construction | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 116,376 | 108,243 |
Commercial Mortgages | Commercial mortgages, other | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 3,611 | |
Non-accrual | 3,647 | 3,928 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 917,637 | 888,670 |
Commercial Mortgages | Commercial mortgages, other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 543 | 1,544 |
Commercial Mortgages | Commercial mortgages, other | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 246 | 1,058 |
Commercial Mortgages | Commercial mortgages, other | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Mortgages | Commercial mortgages, other | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 297 | 486 |
Commercial Mortgages | Commercial mortgages, other | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 917,094 | 887,126 |
Residential Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 1,036 | |
Non-accrual | 1,036 | 986 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 285,944 | 285,672 |
Residential Mortgages | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,402 | 2,363 |
Residential Mortgages | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 933 | 1,360 |
Residential Mortgages | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 57 | 709 |
Residential Mortgages | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 412 | 294 |
Residential Mortgages | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 284,542 | 283,309 |
Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 306,953 | 294,570 |
Consumer Loans | Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 866 | |
Non-accrual | 866 | 760 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 84,537 | 81,401 |
Consumer Loans | Home equity lines and loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 886 | 756 |
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 261 | 193 |
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 57 | 121 |
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 568 | 442 |
Consumer Loans | Home equity lines and loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 83,651 | 80,645 |
Consumer Loans | Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 556 | |
Non-accrual | 556 | 540 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 211,270 | 202,124 |
Consumer Loans | Indirect consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,353 | 1,840 |
Consumer Loans | Indirect consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,036 | 1,397 |
Consumer Loans | Indirect consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 52 | 193 |
Consumer Loans | Indirect consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 265 | 250 |
Consumer Loans | Indirect consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 209,917 | 200,284 |
Consumer Loans | Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 3 | |
Non-accrual | 3 | 13 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Financing receivable | 11,146 | 11,045 |
Consumer Loans | Direct consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 10 | 22 |
Consumer Loans | Direct consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 10 | 2 |
Consumer Loans | Direct consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 19 |
Consumer Loans | Direct consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 1 |
Consumer Loans | Direct consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 11,136 | 11,023 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 244,174 | |
Commercial and industrial | Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no allowance for credit losses | 730 | |
Non-accrual | 1,623 | 1,946 |
Loans Past Due 90 Days or More and Still Accruing | 6 | 1 |
Financing receivable | 244,174 | 252,044 |
Commercial and industrial | Commercial and Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 91 | 78 |
Commercial and industrial | Commercial and Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 67 | 74 |
Commercial and industrial | Commercial and Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 8 | 3 |
Commercial and industrial | Commercial and Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 16 | 1 |
Commercial and industrial | Commercial and Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 244,083 | 251,966 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 333 | |
Agricultural | Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 333 | 249 |
Agricultural | Commercial and Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Agricultural | Commercial and Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Agricultural | Commercial and Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Agricultural | Commercial and Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Agricultural | Commercial and Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | $ 333 | $ 249 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | $ 84,839 | ||
2022 | 465,206 | ||
2021 | 254,939 | ||
2020 | 209,427 | ||
2019 | 108,489 | ||
Prior | 279,112 | ||
Revolving Loans Amortized Cost | 455,191 | ||
Revolving Loans Converted to Term | 16,498 | ||
Total loans, net of deferred loan fees and costs | 1,873,701 | $ 1,829,448 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 43 | ||
2021 | 37 | ||
2020 | 34 | ||
2019 | 12 | ||
Prior | 249 | ||
Revolving Loans Amortized Cost | 8 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 383 | $ 198 | |
Recorded investment | 1,835,996 | ||
Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 579,545 | ||
Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 1,205,027 | ||
Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 37,465 | ||
Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 13,028 | ||
Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 931 | ||
Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 8,311 | ||
2022 | 2,995 | ||
2021 | 1,975 | ||
2020 | 0 | ||
2019 | 2,317 | ||
Prior | 1,205 | ||
Revolving Loans Amortized Cost | 101,857 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 118,660 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | ||
Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 8,311 | ||
2022 | 2,819 | ||
2021 | 1,975 | ||
2020 | 0 | ||
2019 | 2,317 | ||
Prior | 1,205 | ||
Revolving Loans Amortized Cost | 101,857 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 118,484 | ||
Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 176 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 176 | ||
Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 0 | ||
Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 0 | ||
Commercial mortgages, other | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 32,006 | ||
2022 | 218,664 | ||
2021 | 138,442 | ||
2020 | 100,090 | ||
2019 | 40,489 | ||
Prior | 189,216 | ||
Revolving Loans Amortized Cost | 192,135 | ||
Revolving Loans Converted to Term | 6,595 | ||
Total loans, net of deferred loan fees and costs | 917,637 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | ||
Commercial mortgages, other | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 31,729 | ||
2022 | 214,915 | ||
2021 | 129,614 | ||
2020 | 99,057 | ||
2019 | 40,489 | ||
Prior | 180,523 | ||
Revolving Loans Amortized Cost | 192,038 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 888,365 | ||
Commercial mortgages, other | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 2,563 | ||
2021 | 8,828 | ||
2020 | 1,033 | ||
2019 | 0 | ||
Prior | 3,867 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 6,154 | ||
Total loans, net of deferred loan fees and costs | 22,445 | ||
Commercial mortgages, other | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 277 | ||
2022 | 1,186 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 4,790 | ||
Revolving Loans Amortized Cost | 97 | ||
Revolving Loans Converted to Term | 441 | ||
Total loans, net of deferred loan fees and costs | 6,791 | ||
Commercial mortgages, other | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 36 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 36 | ||
Home equity lines and loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 3,945 | ||
2022 | 19,073 | ||
2021 | 6,477 | ||
2020 | 3,827 | ||
2019 | 3,231 | ||
Prior | 13,132 | ||
Revolving Loans Amortized Cost | 34,852 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 84,537 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 8 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 8 | ||
Home equity lines and loans | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 3,945 | ||
2022 | 19,073 | ||
2021 | 6,477 | ||
2020 | 3,827 | ||
2019 | 3,110 | ||
Prior | 12,740 | ||
Revolving Loans Amortized Cost | 34,500 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 83,672 | ||
Home equity lines and loans | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 121 | ||
Prior | 392 | ||
Revolving Loans Amortized Cost | 352 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 865 | ||
Indirect consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 26,012 | ||
2022 | 123,779 | ||
2021 | 32,236 | ||
2020 | 14,433 | ||
2019 | 7,458 | ||
Prior | 7,352 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 211,270 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 43 | ||
2021 | 36 | ||
2020 | 30 | ||
2019 | 12 | ||
Prior | 23 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 144 | ||
Indirect consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 26,012 | ||
2022 | 123,593 | ||
2021 | 32,138 | ||
2020 | 14,374 | ||
2019 | 7,385 | ||
Prior | 7,211 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 210,713 | ||
Indirect consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 186 | ||
2021 | 98 | ||
2020 | 59 | ||
2019 | 73 | ||
Prior | 141 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 557 | ||
Direct consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 1,121 | ||
2022 | 3,956 | ||
2021 | 1,330 | ||
2020 | 630 | ||
2019 | 266 | ||
Prior | 481 | ||
Revolving Loans Amortized Cost | 3,362 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 11,146 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 1 | ||
2020 | 4 | ||
2019 | 0 | ||
Prior | 36 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 41 | ||
Direct consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 1,121 | ||
2022 | 3,956 | ||
2021 | 1,330 | ||
2020 | 630 | ||
2019 | 266 | ||
Prior | 478 | ||
Revolving Loans Amortized Cost | 3,362 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 11,143 | ||
Direct consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 3 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 3 | ||
Commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 7,850 | ||
2022 | 44,039 | ||
2021 | 21,802 | ||
2020 | 15,138 | ||
2019 | 38,131 | ||
Prior | 14,538 | ||
Revolving Loans Amortized Cost | 92,773 | ||
Revolving Loans Converted to Term | 9,903 | ||
Total loans, net of deferred loan fees and costs | 244,174 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 190 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 190 | ||
Commercial and industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 7,750 | ||
2022 | 43,899 | ||
2021 | 21,452 | ||
2020 | 14,723 | ||
2019 | 38,017 | ||
Prior | 12,844 | ||
Revolving Loans Amortized Cost | 88,666 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 227,351 | ||
Commercial and industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 100 | ||
2022 | 104 | ||
2021 | 350 | ||
2020 | 3 | ||
2019 | 86 | ||
Prior | 457 | ||
Revolving Loans Amortized Cost | 3,478 | ||
Revolving Loans Converted to Term | 9,315 | ||
Total loans, net of deferred loan fees and costs | 13,893 | ||
Commercial and industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 36 | ||
2021 | 0 | ||
2020 | 412 | ||
2019 | 28 | ||
Prior | 370 | ||
Revolving Loans Amortized Cost | 629 | ||
Revolving Loans Converted to Term | 588 | ||
Total loans, net of deferred loan fees and costs | 2,063 | ||
Commercial and industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 867 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 867 | ||
Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 17 | ||
2021 | 170 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 146 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 333 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | ||
Agricultural | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 17 | ||
2021 | 170 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 146 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 333 | ||
Agricultural | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 0 | ||
Agricultural | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 0 | ||
Agricultural | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 0 | ||
Commercial and Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 244,507 | 252,293 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 190 | 4 | |
Commercial and Agricultural | Commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 244,174 | 252,044 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 253,041 | ||
Commercial and Agricultural | Commercial and industrial | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial and Agricultural | Commercial and industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 235,900 | ||
Commercial and Agricultural | Commercial and industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 13,349 | ||
Commercial and Agricultural | Commercial and industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 2,899 | ||
Commercial and Agricultural | Commercial and industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 893 | ||
Commercial and Agricultural | Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 333 | 249 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 250 | ||
Commercial and Agricultural | Agricultural | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial and Agricultural | Agricultural | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 250 | ||
Commercial and Agricultural | Agricultural | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial and Agricultural | Agricultural | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial and Agricultural | Agricultural | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial Mortgages | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 1,036,297 | 996,913 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 0 | 0 | |
Commercial Mortgages | Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 118,660 | 108,243 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 108,671 | ||
Commercial Mortgages | Construction | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial Mortgages | Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 108,488 | ||
Commercial Mortgages | Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 178 | ||
Commercial Mortgages | Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 5 | ||
Commercial Mortgages | Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial Mortgages | Commercial mortgages, other | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 917,637 | 888,670 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 892,190 | ||
Commercial Mortgages | Commercial mortgages, other | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Commercial Mortgages | Commercial mortgages, other | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 860,389 | ||
Commercial Mortgages | Commercial mortgages, other | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 23,938 | ||
Commercial Mortgages | Commercial mortgages, other | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 7,825 | ||
Commercial Mortgages | Commercial mortgages, other | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 38 | ||
Residential Mortgages | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 5,594 | ||
2022 | 52,683 | ||
2021 | 52,507 | ||
2020 | 75,309 | ||
2019 | 16,597 | ||
Prior | 53,188 | ||
Revolving Loans Amortized Cost | 30,066 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 285,944 | 285,672 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | 0 | |
Recorded investment | 286,445 | ||
Residential Mortgages | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 5,594 | ||
2022 | 52,576 | ||
2021 | 52,443 | ||
2020 | 75,198 | ||
2019 | 16,416 | ||
Prior | 52,615 | ||
Revolving Loans Amortized Cost | 30,066 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 284,908 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 285,459 | ||
Residential Mortgages | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Residential Mortgages | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Residential Mortgages | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 0 | ||
2022 | 107 | ||
2021 | 64 | ||
2020 | 111 | ||
2019 | 181 | ||
Prior | 573 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 1,036 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 986 | ||
Residential Mortgages | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 306,953 | 294,570 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 193 | $ 194 | |
Consumer Loans | Home equity lines and loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 84,537 | 81,401 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 81,702 | ||
Consumer Loans | Home equity lines and loans | Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 83,672 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 80,942 | ||
Consumer Loans | Home equity lines and loans | Non-Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 865 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 760 | ||
Consumer Loans | Home equity lines and loans | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 80,942 | ||
Consumer Loans | Home equity lines and loans | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Home equity lines and loans | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Home equity lines and loans | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 760 | ||
Consumer Loans | Home equity lines and loans | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Indirect consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 211,270 | 202,124 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 202,590 | ||
Consumer Loans | Indirect consumer | Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 210,713 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 202,050 | ||
Consumer Loans | Indirect consumer | Non-Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 557 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 540 | ||
Consumer Loans | Indirect consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 202,050 | ||
Consumer Loans | Indirect consumer | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Indirect consumer | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Indirect consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 540 | ||
Consumer Loans | Indirect consumer | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Direct consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 11,146 | 11,045 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 11,107 | ||
Consumer Loans | Direct consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 11,094 | ||
Consumer Loans | Direct consumer | Pass | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Direct consumer | Special mention | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Direct consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 13 | ||
Consumer Loans | Direct consumer | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 0 | ||
Consumer Loans | Residential mortgages | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 285,944 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 286,445 | ||
Consumer Loans | Residential mortgages | Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 284,908 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 285,459 | ||
Consumer Loans | Residential mortgages | Non-Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 1,036 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 986 | ||
Consumer Loans | Other Direct Consumer Loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 11,146 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 11,107 | ||
Consumer Loans | Other Direct Consumer Loans | Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 11,143 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | 11,094 | ||
Consumer Loans | Other Direct Consumer Loans | Non-Performing | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | $ 3 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Recorded investment | $ 13 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Total | $ 626,055 | $ 632,589 |
Derivative assets | 22,710 | 27,141 |
Financial Liabilities: | ||
Derivative liabilities | 22,776 | 27,196 |
Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 56,328 | 55,574 |
Mortgage-backed securities, residential | 432,654 | 435,131 |
Obligations of states and political subdivisions | 39,414 | 38,892 |
Corporate bonds and notes | 20,630 | 21,970 |
SBA loan pools | 77,029 | 81,022 |
Total | 626,055 | 632,589 |
Equity investments, at fair value | 2,311 | 2,246 |
Derivative assets | 22,710 | 27,141 |
Financial Liabilities: | ||
Derivative liabilities | 22,776 | 27,196 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 56,328 | 55,574 |
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 |
Total | 56,328 | 55,574 |
Equity investments, at fair value | 2,311 | 2,246 |
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 0 | 0 |
Mortgage-backed securities, residential | 432,654 | 435,131 |
Obligations of states and political subdivisions | 39,414 | 38,892 |
Corporate bonds and notes | 11,964 | 21,970 |
SBA loan pools | 77,029 | 81,022 |
Total | 561,061 | 577,015 |
Equity investments, at fair value | 0 | 0 |
Derivative assets | 22,710 | 27,141 |
Financial Liabilities: | ||
Derivative liabilities | 22,776 | 27,196 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 0 | 0 |
Mortgage-backed securities, residential | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate bonds and notes | 8,666 | 0 |
SBA loan pools | 0 | 0 |
Total | 8,666 | 0 |
Equity investments, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | Dec. 31, 2022 USD ($) |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Assets, fair value disclosure | $ 0 |
FAIR VALUE - Unobservable Input
FAIR VALUE - Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance of recurring Level 3 assets at January 1, 2023 | $ 0 | $ 0 |
Included in other comprehensive income | (1,289) | 0 |
Transfer into Level 3 | 9,955 | 0 |
Balance of recurring Level 3 assets at March 31, 2023 | $ 8,666 | $ 0 |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information (Details) - Corporate Bonds And Notes $ in Thousands | Mar. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value disclosure | $ 8,666 |
Market discount rate | Discounted cash flow | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financial asset, measurement input | 0.1200 |
Market discount rate | Discounted cash flow | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financial asset, measurement input | 0.1200 |
Market discount rate | Discounted cash flow | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financial asset, measurement input | 0.1200 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and due from financial institutions | $ 25,109 | $ 29,309 |
Interest-earning deposits in other financial institutions | 9,532 | 26,560 |
Securities available for sale | 626,055 | 632,589 |
Securities held to maturity | 1,932 | 2,424 |
Loans, net and loans held for sale | 1,853,626 | 1,809,789 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Derivative Liabilities | 22,776 | 27,196 |
Recurring | ||
Financial assets: | ||
Securities available for sale | 626,055 | 632,589 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Derivative Liabilities | 22,776 | 27,196 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available for sale | 56,328 | 55,574 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative Liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available for sale | 561,061 | 577,015 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Derivative Liabilities | 22,776 | 27,196 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available for sale | 8,666 | 0 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative Liabilities | 0 | 0 |
Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and due from financial institutions | 25,109 | 29,309 |
Interest-earning deposits in other financial institutions | 9,532 | 26,560 |
Equity investments | 2,949 | 2,830 |
Securities available for sale | 626,055 | 632,589 |
Securities held to maturity | 1,932 | 2,424 |
FHLBNY and FRBNY stock | 7,913 | 8,197 |
Loans, net and loans held for sale | 1,853,626 | 1,809,789 |
Accrued interest receivable | 8,469 | 8,682 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,880,335 | 1,924,843 |
Time deposits | 452,094 | 402,384 |
Accrued interest payable | 1,500 | 864 |
Derivative Liabilities | 22,776 | 27,196 |
Recurring | Estimated Fair Value | ||
Financial assets: | ||
Cash and due from financial institutions | 25,109 | 29,309 |
Interest-earning deposits in other financial institutions | 9,532 | 26,560 |
Equity investments | 2,949 | 2,830 |
Securities available for sale | 626,055 | 632,589 |
Securities held to maturity | 1,905 | 3,796 |
Loans, net and loans held for sale | 1,790,939 | 1,757,171 |
Accrued interest receivable | 8,469 | 8,682 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,880,335 | 1,924,843 |
Time deposits | 450,201 | 403,572 |
Accrued interest payable | 1,500 | 864 |
Derivative Liabilities | 22,776 | 27,196 |
Recurring | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from financial institutions | 25,109 | 29,309 |
Interest-earning deposits in other financial institutions | 9,532 | 26,560 |
Equity investments | 2,949 | 2,830 |
Securities available for sale | 56,328 | 55,574 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 229 | 132 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,880,335 | 1,924,843 |
Time deposits | 0 | 0 |
Accrued interest payable | 73 | 64 |
Derivative Liabilities | 0 | 0 |
Recurring | Estimated Fair Value | 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 | 561,061 | 577,015 |
Securities held to maturity | 953 | 1,639 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 1,900 | 2,002 |
Derivative assets | 22,710 | 27,141 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 450,201 | 403,572 |
Accrued interest payable | 1,427 | 800 |
Derivative Liabilities | 22,776 | 27,196 |
Recurring | Estimated Fair Value | 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 | 8,666 | 0 |
Securities held to maturity | 952 | 2,157 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 1,790,939 | 1,757,171 |
Accrued interest receivable | 6,340 | 6,548 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average remaining lease term (years) | 8 years 5 months 4 days | |
Operating lease, weighted average discount rate | 3.36% | |
Operating lease, rent expense | $ 200,000 | |
Operating lease not yet commenced | $ 0 | |
Finance lease, weighted average remaining lease term (years) | 9 years 11 months 26 days | |
Finance lease, weighted average discount rate | 3.40% | |
Finance lease not yet commenced | $ 0 | |
1365 New Scotland Road, Slingerlands, New York | Director | ||
Lessee, Lease, Description [Line Items] | ||
Monthly rent and common area maintenance expense | 4,000 | |
Rent and common area maintenance expense | $ 13,000 | |
2 Rush Street, Schenectady, New York | Director | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, rent expense | 26,000 | $ 26,000 |
Monthly rent and common area maintenance expense | $ 9,000 |
LEASES - Leased Branch Properti
LEASES - Leased Branch Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 6,449 | $ 7,234 |
Less: accumulated amortization | (199) | (785) |
Less: lease termination | 0 | 0 |
Add: new lease agreement and modifications | 0 | 0 |
Operating lease right-of-use assets | $ 6,250 | $ 6,449 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 747 | |
2024 | 924 | |
2025 | 841 | |
2026 | 845 | |
2027 | 854 | |
2027 and thereafter | 3,169 | |
Total minimum lease payments | 7,380 | |
Less: amount representing interest | (953) | |
Present value of net minimum lease payments | $ 6,427 | $ 6,620 |
LEASES - Premises and Equipment
LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Premises and equipment, net | Premises and equipment, net |
Buildings | $ 5,572 | $ 5,572 |
Less: accumulated depreciation | (2,457) | (2,540) |
Net book value | $ 3,115 | $ 3,032 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payment Obligations Under Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 293 | |
2024 | 391 | |
2025 | 409 | |
2026 | 425 | |
2027 | 428 | |
2027 and thereafter | 1,988 | |
Total minimum lease payments | 3,934 | |
Less: amount representing interest | (676) | |
Present value of net minimum lease payments | $ 3,258 | $ 3,327 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning of year | $ 21,824 | $ 21,824 |
Acquired goodwill | 0 | 0 |
Ending balance | $ 21,824 | $ 21,824 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 0 | $ 11,000 | |
Goodwill impairment charges | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Apr. 30, 2020 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Feb. 04, 2020 | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||||||
Allowance for credit losses | $ 20,075 | [1] | $ 19,659 | [1] | $ 19,928 | $ 21,025 | ||
Participating credit facility receivable, ownership interest, amount | $ 4,200 | |||||||
Participating credit facility receivable, amount | $ 36,000 | |||||||
Unfunded Loan Commitment | ||||||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||||||
Allowance for credit losses | 1,048 | 0 | $ 0 | 0 | ||||
Cumulative effect adjustment for the adoption of ASC 326 | ||||||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||||||
Allowance for credit losses | 374 | |||||||
Cumulative effect adjustment for the adoption of ASC 326 | Unfunded Loan Commitment | ||||||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||||||
Allowance for credit losses | $ 1,082 | $ 0 | ||||||
Pioneer Bank Litigation | ||||||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||||||
Litigation settlement, recovery received | $ 500 | |||||||
Loss contingency, damages sought | $ 3,700 | |||||||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments to make loans | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | $ 40,759 | $ 44,481 |
Commitments to make loans | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 71,151 | 75,028 |
Unused lines of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 3,085 | 2,887 |
Unused lines of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 344,423 | 326,188 |
Standby letters of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 0 | 0 |
Standby letters of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | $ 17,425 | $ 17,211 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Changes in Accumulated Other Comprehensive Income or Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | $ 166,388 | $ 211,455 |
Other comprehensive income before reclassification | 5,775 | (31,087) |
Amounts reclassified from accumulated other comprehensive income | 9 | 12 |
Total other comprehensive income (loss) | 5,784 | (31,075) |
Ending balance | 177,341 | 185,510 |
Total | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | (75,257) | (6,530) |
Total other comprehensive income (loss) | 5,784 | (31,075) |
Ending balance | (69,473) | (37,605) |
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 balance | (71,296) | (2,495) |
Other comprehensive income before reclassification | 5,775 | (31,087) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss) | 5,775 | (31,087) |
Ending balance | (65,521) | (33,582) |
Defined Benefit and Other Benefit Plans | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | (3,961) | (4,035) |
Other comprehensive income before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 9 | 12 |
Total other comprehensive income (loss) | 9 | 12 |
Ending balance | $ (3,952) | $ (4,023) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Details about Accumulated Other Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax effect | $ (1,987) | $ (1,950) |
Total reclassification for the period, net of tax | 7,270 | 6,867 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassification for the period, net of tax | 9 | 12 |
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 | 0 | 0 |
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and other employee benefits | 12 | 14 |
Defined Benefit and Other Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax effect | (3) | (2) |
Total reclassification for the period, net of tax | $ 9 | $ 12 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | $ 72 | $ (113) |
Income from bank owned life insurance | 10 | 11 |
Other non-interest income | 5,423 | 5,663 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Other non-interest income | 192 | 213 |
Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 714 | 673 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 227 | 191 |
Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 1,133 | 1,130 |
WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 2,580 | 2,757 |
CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 241 | 253 |
Net gains (losses) on sales of OREO | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | |
Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 5 | 74 |
Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 36 | 39 |
Income from bank-owned life insurance | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 10 | 11 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 405 | 648 |
Core Banking | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | 78 | (114) |
Other non-interest income | 2,651 | 2,693 |
Core Banking | Overdraft fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 714 | 673 |
Core Banking | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 227 | 191 |
Core Banking | Interchange revenue from debit card transactions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 1,133 | 1,130 |
Core Banking | WMG fee income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Core Banking | CFS fee and commission income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Core Banking | Net gains (losses) on sales of OREO | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | |
Core Banking | Net gains on sales of loans | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 5 | 74 |
Core Banking | Loan servicing fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 36 | 39 |
Core Banking | Income from bank-owned life insurance | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 10 | 11 |
Core Banking | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 448 | 689 |
WMG | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | 0 | 0 |
Other non-interest income | 2,580 | 2,757 |
WMG | Overdraft fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Interchange revenue from debit card transactions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | WMG fee income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 2,580 | 2,757 |
WMG | CFS fee and commission income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Net gains (losses) on sales of OREO | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | |
WMG | Net gains on sales of loans | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
WMG | Loan servicing fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
WMG | Income from bank-owned life insurance | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 0 | 0 |
WMG | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
Holding Company, CFS, and CRM | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | (6) | 1 |
Other non-interest income | 192 | 213 |
Holding Company, CFS, and CRM | Overdraft fees | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | Interchange revenue from debit card transactions | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | WMG fee income | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | CFS fee and commission income | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 241 | 253 |
Holding Company, CFS, and CRM | Net gains (losses) on sales of OREO | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Net gains (losses) on sales of OREO | 0 | |
Holding Company, CFS, and CRM | Net gains on sales of loans | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
Holding Company, CFS, and CRM | Loan servicing fees | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
Holding Company, CFS, and CRM | Income from bank-owned life insurance | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 0 | 0 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | $ (43) | $ (41) |
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, 2023 | Mar. 31, 2022 | |
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 | 396 | 282 |
Expected return on plan assets | (596) | (713) |
Amortization of unrecognized transition obligation | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 6 | 0 |
Net periodic pension benefit | (194) | (431) |
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 | 12 | 8 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 2 | 5 |
Net periodic pension benefit | 14 | 13 |
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 | 1 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 5 | 9 |
Net periodic pension benefit | $ 6 | $ 10 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of primary business segments | 2 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Segment Net Income Loss and Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Reportable segments and reconciliation to consolidated results [Abstract] | ||||
Interest and dividend income | $ 26,230 | $ 17,458 | ||
Interest expense | 6,283 | 781 | ||
Net interest income | 19,947 | 16,677 | ||
Provision for credit losses | [1] | 277 | (1,145) | |
Net interest income after provision for credit losses | 19,670 | 17,822 | ||
Other non-interest income | 5,423 | 5,663 | ||
Other non-interest expenses | 15,836 | 14,668 | ||
Income (loss) before income tax expense (benefit) | 9,257 | 8,817 | ||
Income tax expense (benefit) | 1,987 | 1,950 | ||
Segment net income (loss) | 7,270 | 6,867 | ||
Assets | 2,654,183 | 2,474,895 | $ 2,645,553 | |
Operating Segments | Core Banking | ||||
Reportable segments and reconciliation to consolidated results [Abstract] | ||||
Interest and dividend income | 26,203 | 17,451 | ||
Interest expense | 6,283 | 781 | ||
Net interest income | 19,920 | 16,670 | ||
Provision for credit losses | 277 | (1,145) | ||
Net interest income after provision for credit losses | 19,643 | 17,815 | ||
Other non-interest income | 2,651 | 2,693 | ||
Other non-interest expenses | 13,696 | 12,531 | ||
Income (loss) before income tax expense (benefit) | 8,598 | 7,977 | ||
Income tax expense (benefit) | 1,831 | 1,766 | ||
Segment net income (loss) | 6,767 | 6,211 | ||
Assets | 2,644,158 | 2,463,194 | ||
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 credit losses | 0 | 0 | ||
Net interest income after provision for credit losses | 0 | 0 | ||
Other non-interest income | 2,580 | 2,757 | ||
Other non-interest expenses | 1,798 | 1,815 | ||
Income (loss) before income tax expense (benefit) | 782 | 942 | ||
Income tax expense (benefit) | 177 | 209 | ||
Segment net income (loss) | 605 | 733 | ||
Assets | 8,311 | 8,620 | ||
Intersegment Eliminations | ||||
Reportable segments and reconciliation to consolidated results [Abstract] | ||||
Interest and dividend income | 27 | 7 | ||
Interest expense | 0 | 0 | ||
Net interest income | 27 | 7 | ||
Provision for credit losses | 0 | 0 | ||
Net interest income after provision for credit losses | 27 | 7 | ||
Other non-interest income | 192 | 213 | ||
Other non-interest expenses | 342 | 322 | ||
Income (loss) before income tax expense (benefit) | (123) | (102) | ||
Income tax expense (benefit) | (21) | (25) | ||
Segment net income (loss) | (102) | (77) | ||
Assets | $ 1,714 | $ 3,081 | ||
[1]Effective January 1, 2023, the allowance calculation is based upon Current Expected Credit loss methodology. Prior to January 1, 2023, the allowance calculation was based upon incurred loss methodology. Refer to Note 1 for further discussion. |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of treasury shares reissued to fund stock compensation (in shares) | 13,069 | 12,560 |
Vesting period | 1 year | |
Expenses related to stock based compensation recognized | $ 400 | $ 300 |
Restricted Stock | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $ 1,900 | |
Weighted-average period for recognition (in years) | 3 years 9 months 14 days | |
Total fair value of shares vested | $ 600 | $ 100 |
2021 Plan | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares authorized (in shares) | 170,000 | |
Trading days period | 30 days |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity For Officers And Employees (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 55,402 |
Granted (in shares) | shares | 13,069 |
Vested (in shares) | shares | (14,143) |
Forfeited or cancelled (in shares) | shares | 0 |
Nonvested, ending balance (in shares) | shares | 54,328 |
Weighted–Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 44.57 |
Granted (in dollars per share) | $ / shares | 45.89 |
Vested (in dollars per share) | $ / shares | 45.38 |
Forfeitures or cancelled (in dollars per share) | $ / shares | 0 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 43.77 |