Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | CITIZENS & NORTHERN CORPORATION | |
Entity Central Index Key | 0000810958 | |
Trading Symbol | CZNC | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 15,871,073 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock Par Value $1.00 | |
City Area Code | 570 | |
Security Exchange Name | NASDAQ | |
Local Phone Number | 724-3411 | |
Entity Address, Postal Zip Code | 16901 | |
Entity Address, State or Province | PA | |
Entity Address, City or Town | WELLSBORO | |
Entity Address, Address Line One | 90-92 MAIN STREET | |
Entity Tax Identification Number | 23-2451943 | |
Entity Incorporation, State or Country Code | PA | |
Entity File Number | 000-16084 | |
Document Transition Report | false | |
Document Quarterly Report | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Noninterest-bearing | $ 24,075,000 | $ 17,667,000 |
Interest-bearing | 53,567,000 | 17,535,000 |
Total cash and due from banks | 77,642,000 | 35,202,000 |
Available-for-sale debt securities, at fair value | 332,188,000 | 346,723,000 |
Marketable equity security | 1,003,000 | 979,000 |
Loans held for sale | 1,258,000 | 767,000 |
Loans receivable | 1,241,413,000 | 1,182,222,000 |
Allowance for loan losses | (11,026,000) | (9,836,000) |
Loans, net | 1,230,387,000 | 1,172,386,000 |
Bank-owned life insurance | 18,843,000 | 18,641,000 |
Accrued interest receivable | 6,326,000 | 5,001,000 |
Bank premises and equipment, net | 18,332,000 | 17,170,000 |
Foreclosed assets held for sale | 1,593,000 | 2,886,000 |
Deferred tax asset, net | 93,000 | 2,618,000 |
Goodwill | 28,388,000 | 28,388,000 |
Core deposit intangibles, net | 1,123,000 | 1,247,000 |
Other assets | 28,290,000 | 22,137,000 |
TOTAL ASSETS | 1,745,466,000 | 1,654,145,000 |
LIABILITIES | ||
Noninterest-bearing | 353,707,000 | 285,904,000 |
Interest-bearing | 1,027,471,000 | 966,756,000 |
Total deposits | 1,381,178,000 | 1,252,660,000 |
Short-term borrowings | 14,404,000 | 86,220,000 |
Long-term borrowings | 72,904,000 | 52,127,000 |
Subordinated debt | 6,500,000 | 6,500,000 |
Accrued interest and other liabilities | 14,689,000 | 12,186,000 |
TOTAL LIABILITIES | 1,489,675,000 | 1,409,693,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $1,000 par value; authorized 30,000 shares; $1,000 liquidation preference per share; no shares issued | 0 | 0 |
Common stock, par value $1.00 per share; authorized 20,000,000 shares; issued 13,934,996 and outstanding 13,807,157 at June 30, 2020; issued 13,934,996 and outstanding 13,716,445 at December 31, 2019 | 13,935,000 | 13,935,000 |
Paid-in capital | 103,954,000 | 104,519,000 |
Retained earnings | 128,661,000 | 126,480,000 |
Treasury stock, at cost; 127,839 shares at June 30, 2020 and 218,551 shares at December 31, 2019 | (2,470,000) | (4,173,000) |
Accumulated other comprehensive income | 11,711,000 | 3,691,000 |
TOTAL STOCKHOLDERS' EQUITY | 255,791,000 | 244,452,000 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 1,745,466,000 | $ 1,654,145,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized shares (in shares) | 30,000 | 30,000 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 13,934,996 | 13,934,996 |
Common stock, shares outstanding (in shares) | 13,807,157 | 13,716,445 |
Treasury stock, shares (in shares) | 127,839 | 218,551 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and fees on loans: | ||||
Taxable | $ 14,126,000 | $ 14,098,000 | $ 28,587,000 | $ 24,046,000 |
Tax-exempt | 439,000 | 524,000 | 898,000 | 1,088,000 |
Interest on mortgages held for sale | 15,000 | 6,000 | 21,000 | 9,000 |
Interest on balances with depository institutions | 41,000 | 149,000 | 122,000 | 265,000 |
Income from available-for-sale debt securities: | ||||
Taxable | 1,380,000 | 1,826,000 | 2,968,000 | 3,660,000 |
Tax-exempt | 507,000 | 531,000 | 944,000 | 1,125,000 |
Dividends on marketable equity security | 5,000 | 5,000 | 10,000 | 11,000 |
Total interest and dividend income | 16,513,000 | 17,139,000 | 33,550,000 | 30,204,000 |
INTEREST EXPENSE | ||||
Interest on deposits | 1,784,000 | 2,363,000 | 3,939,000 | 3,416,000 |
Interest on short-term borrowings | 64,000 | 228,000 | 262,000 | 307,000 |
Interest on long-term borrowings | 313,000 | 228,000 | 608,000 | 446,000 |
Interest on subordinated debt | 106,000 | 115,000 | 213,000 | 115,000 |
Total interest expense | 2,267,000 | 2,934,000 | 5,022,000 | 4,284,000 |
Net interest income | 14,246,000 | 14,205,000 | 28,528,000 | 25,920,000 |
(Credit) provision for loan losses | (176,000) | (4,000) | 1,352,000 | (961,000) |
Net interest income after (credit) provision for loan losses | 14,422,000 | 14,209,000 | 27,176,000 | 26,881,000 |
NONINTEREST INCOME | ||||
Brokerage revenue | 343,000 | 361,000 | 676,000 | 668,000 |
Insurance commissions, fees and premiums | 52,000 | 48,000 | 85,000 | 78,000 |
Net gains from sale of loans | 1,564,000 | 221,000 | 1,879,000 | 308,000 |
Increase in cash surrender value of life insurance | 98,000 | 99,000 | 202,000 | 191,000 |
Other noninterest income | 431,000 | 437,000 | 1,418,000 | 967,000 |
Sub-total | 5,528,000 | 4,849,000 | 10,809,000 | 9,255,000 |
Realized gains on available-for-sale debt securities, net | 0 | 7,000 | 0 | 7,000 |
Total noninterest income | 5,528,000 | 4,856,000 | 10,809,000 | 9,262,000 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 5,364,000 | 5,276,000 | 10,704,000 | 9,769,000 |
Pensions and other employee benefits | 1,619,000 | 1,225,000 | 3,657,000 | 2,843,000 |
Occupancy expense, net | 664,000 | 665,000 | 1,409,000 | 1,322,000 |
Furniture and equipment expense | 311,000 | 333,000 | 669,000 | 634,000 |
Data processing expenses | 1,040,000 | 962,000 | 2,058,000 | 1,765,000 |
Automated teller machine and interchange expense | 275,000 | 277,000 | 572,000 | 466,000 |
Pennsylvania shares tax | 423,000 | 347,000 | 845,000 | 694,000 |
Professional fees | 464,000 | 331,000 | 843,000 | 553,000 |
Telecommunications | 213,000 | 176,000 | 419,000 | 340,000 |
Directors' fees | 178,000 | 141,000 | 348,000 | 324,000 |
Merger-related expenses | 983,000 | 3,301,000 | 1,124,000 | 3,612,000 |
Other noninterest expense | 1,723,000 | 1,689,000 | 3,662,000 | 3,408,000 |
Total noninterest expense | 13,257,000 | 14,723,000 | 26,310,000 | 25,730,000 |
Income before income tax provision | 6,693,000 | 4,342,000 | 11,675,000 | 10,413,000 |
Income tax provision | 1,255,000 | 693,000 | 2,071,000 | 1,674,000 |
NET INCOME | $ 5,438,000 | $ 3,649,000 | $ 9,604,000 | $ 8,739,000 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.39 | $ 0.27 | $ 0.70 | $ 0.67 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.39 | $ 0.27 | $ 0.70 | $ 0.67 |
Trust and Asset Management [Member] | ||||
NONINTEREST INCOME | ||||
Revenue | $ 1,565,000 | $ 1,583,000 | $ 3,044,000 | $ 2,943,000 |
Deposit Account [Member] | ||||
NONINTEREST INCOME | ||||
Revenue | 831,000 | 1,277,000 | 2,081,000 | 2,527,000 |
Service Charges and Fees [Member] | ||||
NONINTEREST INCOME | ||||
Revenue | 84,000 | 89,000 | 147,000 | 168,000 |
Debit Card [Member] | ||||
NONINTEREST INCOME | ||||
Revenue | 718,000 | 699,000 | 1,449,000 | 1,342,000 |
Bank Servicing [Member] | ||||
NONINTEREST INCOME | ||||
Revenue | $ (158,000) | $ 35,000 | $ (172,000) | $ 63,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 5,438 | $ 3,649 | $ 9,604 | $ 8,739 |
Unrealized holding gains on available-for-sale debt securities | 2,835 | 5,163 | 10,075 | 9,424 |
Changes from plan amendments and actuarial gains and losses | 0 | 0 | 88 | 214 |
net periodic benefit cost | (6) | (7) | (14) | (15) |
Other comprehensive (loss) gain on unfunded retirement obligations | (6) | (7) | 74 | 199 |
Total other comprehensive income, before tax amount | 2,829 | 5,156 | 10,149 | 9,623 |
Income tax related to other comprehensive income | (592) | (1,083) | (2,129) | (2,021) |
Net other comprehensive income | 2,237 | 4,073 | 8,020 | 7,602 |
Comprehensive income | $ 7,675 | $ 7,722 | $ 17,624 | $ 16,341 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 9,604,000 | $ 8,739,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (credit) for loan losses | 1,352,000 | (961,000) |
Realized gains on available-for-sale debt securities, net | 0 | (7,000) |
Accretion and amortization on securities, net | 802,000 | 505,000 |
Increase in cash surrender value of life insurance | (202,000) | (191,000) |
Depreciation and amortization of bank premises and equipment | 897,000 | 843,000 |
Other accretion and amortization, net | (578,000) | (138,000) |
Stock-based compensation | 424,000 | 431,000 |
Deferred income taxes | 396,000 | 583,000 |
Decrease in fair value of servicing rights | 396,000 | 148,000 |
Gains on sales of loans, net | (1,879,000) | (308,000) |
Origination of loans held for sale | (60,830,000) | (9,783,000) |
Proceeds from sales of loans held for sale | 61,815,000 | 9,107,000 |
Increase in accrued interest receivable and other assets | (9,085,000) | (254,000) |
Increase (decrease) in accrued interest payable and other liabilities | 2,630,000 | (1,188,000) |
Other | 15,000 | 58,000 |
Net Cash Provided by Operating Activities | 5,757,000 | 7,584,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash and cash equivalents used in business combination | 0 | (1,778,000) |
Proceeds from maturities of certificates of deposit | 250,000 | 100,000 |
Proceeds from sales of available-for-sale debt securities | 6,722,000 | 95,139,000 |
Proceeds from calls and maturities of available-for-sale debt securities | 43,718,000 | 34,825,000 |
Purchase of available-for-sale debt securities | (26,632,000) | (26,662,000) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 5,076,000 | 6,723,000 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (3,616,000) | (3,148,000) |
Net increase in loans | (58,591,000) | (30,385,000) |
Proceeds from bank owned life insurance | 0 | 796,000 |
Purchase of premises and equipment | (2,085,000) | (925,000) |
Proceeds from sale of foreclosed assets | 1,265,000 | 227,000 |
Other | 116,000 | 75,000 |
Net Cash (Used in) Provided by Investing Activities | (33,777,000) | 74,987,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 128,464,000 | 26,931,000 |
Net decrease in short-term borrowings | (71,822,000) | (96,990,000) |
Proceeds from long-term borrowings | 25,891,000 | 22,500,000 |
Repayments of long-term borrowings and subordinated debt | (5,114,000) | (25,517,000) |
Sale of treasury stock | 124,000 | 198,000 |
Purchase of vested restricted stock | (163,000) | (189,000) |
Common dividends paid | (6,670,000) | (7,386,000) |
Net Cash Provided by (Used in) Financing Activities | 70,710,000 | (80,453,000) |
INCREASE IN CASH AND CASH EQUIVALENTS | 42,690,000 | 2,118,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 31,122,000 | 32,827,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 73,812,000 | 34,945,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Right-of-use assets recognized at adoption of ASU 2016-02 | 0 | 1,132,000 |
Leased assets obtained in exchange for new operating lease liabilities | 0 | 745,000 |
Assets acquired through foreclosure of real estate loans | 0 | 824,000 |
Interest paid | 4,961,000 | 3,846,000 |
Income taxes paid | $ 42,000 | $ 950,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent | Total |
Balance (in shares) at Dec. 31, 2018 | 12,655,171 | 335,841 | ||||
Balance at Dec. 31, 2018 | $ 12,655 | $ (6,362) | $ 72,602 | $ 122,643 | $ (4,170) | $ 197,368 |
Net income | 8,739 | 8,739 | ||||
Other comprehensive income, net | 7,602 | 7,602 | ||||
Cash dividends declared on common stock | (8,270) | (8,270) | ||||
Shares issued for dividend reinvestment plan (in shares) | (33,172) | |||||
Shares issued for dividend reinvestment plan | $ 633 | 251 | 884 | |||
Share issued from treasury and redeemed related to exercise of stock options (in shares) | (18,071) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 344 | (146) | 198 | |||
Restricted stock granted (in shares) | (48,137) | |||||
Restricted stock granted | $ 918 | (918) | 0 | |||
Forfeiture of restricted stock (in shares) | 3,144 | |||||
Forfeiture of restricted stock | $ (60) | 60 | 0 | |||
Stock-based compensation expense | 431 | 431 | ||||
Purchase of restricted stock for tax withholding (in shares) | 7,392 | |||||
Purchase of restricted stock for tax withholding | $ (189) | (189) | ||||
Shares issued for acquisition of Monument Bancorp, Inc., net of equity issuance costs (in shares) | 1,279,825 | |||||
Shares issued for acquisition of Monument Bancorp, Inc., net of equity issuance costs | $ 1,280 | 31,673 | 32,953 | |||
Balance (in shares) at Jun. 30, 2019 | 13,934,996 | 246,997 | ||||
Balance at Jun. 30, 2019 | $ 13,935 | $ (4,716) | 103,953 | 123,112 | 3,432 | 239,716 |
Balance (in shares) at Mar. 31, 2019 | 12,655,171 | 262,127 | ||||
Balance at Mar. 31, 2019 | $ 12,655 | $ (5,005) | 71,963 | 123,155 | (641) | 202,127 |
Net income | 3,649 | 3,649 | ||||
Other comprehensive income, net | 4,073 | 4,073 | ||||
Cash dividends declared on common stock | (3,692) | (3,692) | ||||
Shares issued for dividend reinvestment plan (in shares) | (12,685) | |||||
Shares issued for dividend reinvestment plan | $ 242 | 126 | 368 | |||
Share issued from treasury and redeemed related to exercise of stock options (in shares) | (5,433) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 104 | (68) | 36 | |||
Forfeiture of restricted stock (in shares) | 2,988 | |||||
Forfeiture of restricted stock | $ (57) | 57 | 0 | |||
Stock-based compensation expense | 202 | 202 | ||||
Shares issued for acquisition of Monument Bancorp, Inc., net of equity issuance costs (in shares) | 1,279,825 | |||||
Shares issued for acquisition of Monument Bancorp, Inc., net of equity issuance costs | $ 1,280 | 31,673 | 32,953 | |||
Balance (in shares) at Jun. 30, 2019 | 13,934,996 | 246,997 | ||||
Balance at Jun. 30, 2019 | $ 13,935 | $ (4,716) | 103,953 | 123,112 | 3,432 | 239,716 |
Balance (in shares) at Dec. 31, 2019 | 13,934,996 | 218,551 | ||||
Balance at Dec. 31, 2019 | $ 13,935 | $ (4,173) | 104,519 | 126,480 | 3,691 | 244,452 |
Net income | 9,604 | 9,604 | ||||
Other comprehensive income, net | 8,020 | 8,020 | ||||
Cash dividends declared on common stock | (7,423) | (7,423) | ||||
Shares issued for dividend reinvestment plan (in shares) | (34,700) | |||||
Shares issued for dividend reinvestment plan | $ (671) | (82) | 753 | |||
Share issued from treasury and redeemed related to exercise of stock options (in shares) | (9,652) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 186 | (62) | 124 | |||
Restricted stock granted (in shares) | (55,864) | |||||
Restricted stock granted | $ 1,079 | (1,079) | 0 | |||
Forfeiture of restricted stock (in shares) | 3,642 | |||||
Forfeiture of restricted stock | $ (70) | 70 | 0 | |||
Stock-based compensation expense | 424 | 424 | ||||
Purchase of restricted stock for tax withholding (in shares) | 5,862 | |||||
Purchase of restricted stock for tax withholding | $ (163) | (163) | ||||
Balance (in shares) at Jun. 30, 2020 | 13,934,996 | 127,839 | ||||
Balance at Jun. 30, 2020 | $ 13,935 | $ (2,470) | 103,954 | 128,661 | 11,711 | 255,791 |
Balance (in shares) at Mar. 31, 2020 | 13,934,996 | 147,836 | ||||
Balance at Mar. 31, 2020 | $ 13,935 | $ (2,856) | 103,731 | 126,944 | 9,474 | 251,228 |
Net income | 5,438 | 5,438 | ||||
Other comprehensive income, net | 2,237 | 2,237 | ||||
Cash dividends declared on common stock | (3,721) | (3,721) | ||||
Shares issued for dividend reinvestment plan (in shares) | (20,755) | |||||
Shares issued for dividend reinvestment plan | $ 401 | (22) | 379 | |||
Forfeiture of restricted stock (in shares) | 758 | |||||
Forfeiture of restricted stock | $ (15) | 15 | 0 | |||
Stock-based compensation expense | 230 | 230 | ||||
Balance (in shares) at Jun. 30, 2020 | 13,934,996 | 127,839 | ||||
Balance at Jun. 30, 2020 | $ 13,935 | $ (2,470) | $ 103,954 | $ 128,661 | $ 11,711 | $ 255,791 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retained Earnings [Member] | ||||
Common stock, dividends, per share (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.54 | $ 0.64 |
BASIS OF INTERIM PRESENTATION A
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 1. BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS The consolidated financial statements include the accounts of Citizens & Northern Corporation and its subsidiaries, Citizens & Northern Bank (“C&N Bank”), Bucktail Life Insurance Company and Citizens & Northern Investment Corporation (collectively, “Corporation”). The consolidated financial statements also include C&N Bank’s wholly-owned subsidiaries, C&N Financial Services Corporation and Northern Tier Holding LLC. C&N Bank is the sole member of Northern Tier Holding LLC. All material intercompany balances and transactions have been eliminated in consolidation. The consolidated financial information included herein, except the consolidated balance sheet dated December 31, 2019, is unaudited. Such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows and changes in stockholders’ equity for the interim periods; however, the information does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for a complete set of financial statements. Certain 2019 information has been reclassified for consistency with the 2020 presentation. Operating results reported for the six-month period ended June 30, 2020 might not be indicative of the results for the year ending December 31, 2020. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission. RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recent Accounting Pronouncements - Adopted ASU 2018-13, Fair Value Measurement (Topic 820) modifies disclosure requirements on fair value measurements. This ASU removes requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. ASU 2018-13 clarifies that disclosure regarding measurement uncertainty is intended to communicate information about the uncertainty in measurement as of the reporting date. ASU 2018-13 adds certain disclosure requirements, including disclosure of changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU became effective for the Corporation beginning in the first quarter 2020. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively, while all other amendments should be applied retrospectively for all periods presented. Note 12 provides disclosure regarding fair value measurements of the Corporation’s financial instruments. Adoption of this ASU did not have a material impact on the Corporation’s consolidated financial position or results of operations. Recently Issued But Not Yet Effective Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), as modified by subsequent ASUs, changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The effect of implementing this ASU is recorded through a cumulative-effect adjustment to retained earnings. The Corporation has formed a cross functional management team and is working with an outside vendor assessing alternative loss estimation methodologies and the Corporation’s data and system needs to evaluate the impact that adoption of this standard will have on the Corporation’s financial condition and results of operations. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Corporation, resulting in a required implementation date for the Corporation of January 1, 2023. ASU 2020-04, Reference Rate Reform (Topic 848) provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. Some specific optional expedients are as follows: ● Simplifies accounting for contract modifications, including modifications to loans receivable and debt, by prospectively adjusting the effective interest rate. ● Simplifies the assessment of hedge effectiveness and allows hedging relationships affected by reference rate reform to continue. The amendments in ASU 2020-04 are effective as of March 12, 2020 through December 31, 2022. The Corporation expects to apply the amendments prospectively for applicable loan and other contracts within the effective period of ASU 2020-04. |
BUSINESS COMBINATION AND PENDIN
BUSINESS COMBINATION AND PENDING ACQUISITION | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
BUSINESS COMBINATION AND PENDING ACQUISITION | 2. BUSINESS COMBINATION AND PENDING ACQUISITION Business Combination – Acquisition of Monument Bancorp, Inc. On April 1, 2019, the Corporation completed its acquisition of 100% of the common stock of Monument Bancorp, Inc.(“Monument”) Monument was the parent company of Monument Bank, a commercial bank which operated two community bank offices and one lending office in Bucks County, Pennsylvania. Pursuant to the merger, Monument was merged into Citizens & Northern Corporation and Monument Bank was merged into C&N Bank. Total purchase consideration was $42.7 million, including cash paid to former Monument shareholders totaling $9.6 million and 1,279,825 shares of Corporation common stock issued with a value of $33.1 million, net of costs directly related to stock issuance of $181,000. In connection with the transaction, the Corporation recorded goodwill of $16.4 million and a core deposit intangible asset of $1.5 million. Total loans acquired on April 1, 2019 were valued at $259.3 million, while total deposits assumed were valued at $223.3 million, borrowings were valued at $111.6 million and subordinated debt was valued at $12.4 million. The subordinated debt included an instrument with a fair value of $5.4 million that was redeemed on April 1, 2019 with no realized gain or loss. The Corporation acquired available-for-sale debt securities valued at $94.6 million and sold the securities in early April for approximately no realized gain or loss. The assets purchased and liabilities assumed in the merger were recorded at their estimated fair values at the time of closing, subject to refinement for up to one year after the closing date. There were no adjustments to the fair value measurements of assets or liabilities in 2020. Merger-related expenses, including legal and professional expenses and conversion of Monument’s customer accounting data into the Corporation’s core system, were $3,301,000 in the second quarter 2019 and $3,612,000 in the six-month period ended June 30, 2019. Acquisition of Covenant Financial, Inc. In December 2019, the Corporation announced a plan of merger to acquire Covenant Financial, Inc. (“Covenant”). In July 2020, the Corporation and Covenant announced the completion of the merger as of July 1, 2020. Covenant was the holding company for Covenant Bank, which operated banking offices in Bucks and Chester Counties of PA. Under the terms of the Agreement and Plan of Merger, Covenant merged into the Corporation, and Covenant Bank merged into C&N Bank. In the transaction, Covenant shareholders elected to receive either 0.6212 shares of Corporation common stock or $16.50 in cash for each share of Covenant common stock owned, subject to proration to ensure that, overall, 25% of the Covenant shares were converted into cash and 75 % of the Covenant shares were converted into Corporation stock. The election and proration process commenced in June 2020 and was completed in early July 2020. Holders of Covenant common stock prior to the consummation of the merger own approximately 12.9% of the Corporation’s common stock outstanding following the merger. Based on the average of the high and low trading price of the Corporation’s common stock of $20.32 per share on July 1, 2020, the total purchase consideration is valued at approximately $63.3 million. As of June 30, 2020, Covenant reported total assets of $608 million, including gross loans of $472 million, total deposits of $480 million and total stockholders’ equity of $44 million. As of the date the Corporation’s June 30, 2020 financial statements are issued, some of the information required to be disclosed under U.S. GAAP was not available since, given the short period between the July 1, 2020 merger date and the financial statement issuance, the calculation of the fair value of all material Covenant assets acquired and liabilities assumed had not yet been completed. Merger-related expenses related to the planned acquisition of Covenant totaled $983,000 in the second quarter 2020 and $1,124,000 in the six-month period ended June 30, 2020. Merger-related expenses include severance and similar expenses as well as initial expenses related to conversion of Covenant’s core customer data into the Corporation’s core system and legal and other professional expenses. Management estimates total pre-tax merger-related expenses associated with the Covenant transaction will be approximately $8.0 million, including remaining expenses of approximately $6.6 million. Most of the expenses are expected to be incurred in the third quarter 2020. |
PER SHARE DATA
PER SHARE DATA | 6 Months Ended |
Jun. 30, 2020 | |
PER SHARE DATA | |
PER SHARE DATA | 3. PER SHARE DATA Basic earnings per common share are calculated using the two-class method to determine income attributable to common shareholders. Unvested restricted stock awards that contain nonforfeitable rights to dividends are considered participating securities under the two-class method. Distributed dividends and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. Income attributable to common shareholders is then divided by weighted-average common shares outstanding for the period to determine basic earnings per common share. Diluted earnings per common share are calculated under the more dilutive of either the treasury method or the two-class method. Diluted earnings per common share is computed using weighted-average common shares outstanding, plus weighted-average common shares available from the exercise of all dilutive stock options, less the number of shares that could be repurchased with the proceeds of stock option exercises based on the average share price of the Corporation’s common stock during the period. (In Thousands, Except Share and Per Share Data) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Basic Net income $ 5,438 $ 3,649 $ 9,604 $ 8,739 Less: Dividends and undistributed earnings allocated to participating securities (33) (19) (54) (46) Net income attributable to common shares $ 5,405 $ 3,630 $ 9,550 $ 8,693 Basic weighted-average common shares outstanding 13,710,118 13,597,848 13,697,617 12,956,916 Basic earnings per common share (a) $ 0.39 $ 0.27 $ 0.70 $ 0.67 Diluted Net income attributable to common shares $ 5,405 $ 3,630 $ 9,550 $ 8,693 Basic weighted-average common shares outstanding 13,710,118 13,597,848 13,697,617 12,956,916 Dilutive effect of potential common stock arising from stock options 2,269 25,106 8,116 25,445 Diluted weighted-average common shares outstanding 13,712,387 13,622,954 13,705,733 12,982,361 Diluted earnings per common share (a) $ 0.39 $ 0.27 $ 0.70 $ 0.67 Weighted-average nonvested restricted shares outstanding 88,514 70,366 77,093 68,016 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). Anti-dilutive stock options are excluded from net income per share calculations. Weighted-average common shares available from anti-dilutive instruments totaled 39,012 shares in the three-month period ended June 30, 2020 and 19,506 shares in the six-month period ended June 30, 2020. There were no anti-dilutive instruments in the three-month and six-month periods ended June 30, 2019. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2020 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | 4. COMPREHENSIVE INCOME Comprehensive income is the total of (1) net income, and (2) all other changes in equity from non-stockholder sources, which are referred to as other comprehensive income (loss). The components of other comprehensive income (loss), and the related tax effects, are as follows: (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Six Months Ended June 30, 2020 Unrealized gains on available-for-sale debt securities, Unrealized holding gains on available-for-sale debt securities $ 10,075 $ (2,114) $ 7,961 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 88 (18) 70 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (14) 3 (11) Other comprehensive income on unfunded retirement obligations 74 (15) 59 Total other comprehensive income $ 10,149 $ (2,129) $ 8,020 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Six Months Ended June 30, 2019 Unrealized gains on available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 9,431 $ (1,980) $ 7,451 Reclassification adjustment for (gains) realized in income (7) 1 (6) Other comprehensive income on available-for-sale debt securities 9,424 (1,979) 7,445 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses included in other comprehensive income 214 (45) 169 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (15) 3 (12) Other comprehensive income on unfunded retirement obligations 199 (42) 157 Total other comprehensive income $ 9,623 $ (2,021) $ 7,602 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended June 30, 2020 Unrealized gains on available-for-sale debt securities, Unrealized holding gains on available-for-sale debt securities $ 2,835 $ (593) $ 2,242 Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (6) 1 (5) Total other comprehensive income $ 2,829 $ (592) $ 2,237 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended June 30, 2019 Unrealized gains on available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 5,170 $ (1,085) $ 4,085 Reclassification adjustment for (gains) realized in income (7) 1 (6) Other comprehensive income on available-for-sale debt securities 5,163 (1,084) 4,079 Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (7) 1 (6) Other comprehensive loss on unfunded retirement obligations (7) 1 (6) Total other comprehensive income $ 5,156 $ (1,083) $ 4,073 The amounts shown in the table immediately above are included in the following line items in the consolidated statements of income: Affected Line Item in the Description Consolidated Statements of Income Amortization of prior service cost and Other noninterest expense net actuarial loss included in net periodic benefit cost (Before-Tax) Reclassification adjustment for (gains) Realized gains on available-for-sale realized in income (Before-Tax) debt securities, net Income Tax effect Income tax provision Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax: (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income (Loss) Six Months Ended June 30, 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during six months ended June 30, 2020 7,961 59 8,020 Balance, end of period $ 11,472 $ 239 $ 11,711 Six Months Ended June 30, 2019 Balance, beginning of period $ (4,307) $ 137 $ (4,170) Other comprehensive income during six months ended June 30, 2019 7,445 157 7,602 Balance, end of period $ 3,138 $ 294 $ 3,432 (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income (Loss) Three Months Ended June 30, 2020 Balance, beginning of period $ 9,230 $ 244 $ 9,474 Other comprehensive income (loss) during three months ended June 30, 2020 2,242 (5) 2,237 Balance, end of period $ 11,472 $ 239 $ 11,711 Three Months Ended June 30, 2019 Balance, beginning of period $ (941) $ 300 $ (641) Other comprehensive income (loss) during three months ended June 30, 2019 4,079 (6) 4,073 Balance, end of period $ 3,138 $ 294 $ 3,432 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 6 Months Ended |
Jun. 30, 2020 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 5. CASH AND DUE FROM BANKS Cash and due from banks at June 30, 2020 and December 31, 2019 include the following: (In thousands) June 30, Dec. 31, 2020 2019 Cash and cash equivalents $ 73,812 $ 31,122 Certificates of deposit 3,830 4,080 Total cash and due from banks $ 77,642 $ 35,202 Certificates of deposit are issues by U.S. banks with original maturities greater than three months. Each certificate of deposit is fully FDIC-insured. The Corporation maintains cash and cash equivalents with certain financial institutions in excess of the FDIC insurance limit. Historically, C&N Bank has been required to maintain reserves against deposit liabilities in the form of cash and balances with the Federal Reserve Bank of Philadelphia. The reserves are based on deposit levels, account activity, and other services provided by the Federal Reserve Bank. In March 2020, the Federal Reserve Board reduced reserve requirements for U.S. banks to 0%. Accordingly, C&N Bank had no required reserves at June 30, 2020. Required reserves were $20,148,000 at December 31, 2019. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
SECURITIES | |
SECURITIES | 6. SECURITIES Amortized cost and fair value of available-for-sale debt securities at June 30, 2020 and December 31, 2019 are summarized as follows: (In Thousands) June 30, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of U.S. Government agencies $ 10,706 $ 967 $ 0 $ 11,673 Obligations of states and political subdivisions: Tax-exempt 86,897 4,786 (40) 91,643 Taxable 38,022 1,810 (48) 39,784 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 49,852 1,668 0 51,520 Residential collateralized mortgage obligations 87,527 1,951 (43) 89,435 Commercial mortgage-backed securities 44,664 3,469 0 48,133 Total available-for-sale debt securities $ 317,668 $ 14,651 $ (131) $ 332,188 (In Thousands) December 31, 2019 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of U.S. Government agencies $ 16,380 $ 620 $ 0 $ 17,000 Obligations of states and political subdivisions: Tax-exempt 68,787 2,011 (38) 70,760 Taxable 35,446 927 (70) 36,303 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 58,875 472 (137) 59,210 Residential collateralized mortgage obligations 115,025 308 (610) 114,723 Commercial mortgage-backed securities 47,765 1,069 (107) 48,727 Total available-for-sale debt securities $ 342,278 $ 5,407 $ (962) $ 346,723 The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions that are not deemed to be other-than-temporarily impaired, aggregated by length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019: June 30, 2020 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of states and political subdivisions: Tax-exempt $ 3,743 $ (40) $ 0 $ 0 $ 3,743 $ (40) Taxable 1,476 (48) 0 0 1,476 (48) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential collateralized mortgage obligations 8,809 (43) 0 0 8,809 (43) Total temporary impaired available for sale debt securities $ 14,028 $ (131) $ 0 $ 0 $ 14,028 $ (131) December 31, 2019 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of states and political subdivisions: Tax-exempt $ 6,429 $ (38) $ 0 $ 0 $ 6,429 $ (38) Taxable 5,624 (68) 161 (2) 5,785 (70) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies Residential pass-through securities 9,771 (35) 14,787 (102) 24,558 (137) Residential collateralized mortgage obligations 31,409 (195) 30,535 (415) 61,944 (610) Commercial mortgage-backed securities 0 0 8,507 (107) 8,507 (107) Total temporarily impaired available-for-sale debt securities $ 53,233 $ (336) $ 53,990 $ (626) $ 107,223 $ (962) Gross realized gains and losses from available-for-sale debt securities were as follows: (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Gross realized gains from sales $ 0 $ 7 $ 52 $ 7 Gross realized losses from sales 0 0 (52) 0 Net realized gains $ 0 $ 7 $ 0 $ 7 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of June 30, 2020. Actual maturities may differ from contractual maturities because counterparties may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) June 30, 2020 Amortized Fair Cost Value Due in one year or less $ 7,369 $ 7,414 Due from one year through five years 33,740 35,119 Due from five years through ten years 38,294 40,729 Due after ten years 56,222 59,838 Sub-total 135,625 143,100 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 49,852 51,520 Residential collateralized mortgage obligations 87,527 89,435 Commercial mortgage-backed securities 44,664 48,133 Total $ 317,668 $ 332,188 The Corporation’s mortgage-backed securities and collateralized mortgage obligations have stated maturities that may differ from actual maturities due to borrowers’ ability to prepay obligations. Cash flows from such investments are dependent upon the performance of the underlying mortgage loans and are generally influenced by the level of interest rates. In the table above, mortgage-backed securities and collateralized mortgage obligations are shown in one period. Investment securities carried at $196,620,000 at June 30, 2020 and $215,270,000 at December 31, 2019 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 9 for information concerning securities pledged to secure borrowing arrangements. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Corporation intends to sell the security or more likely than not will be required to sell the security before its anticipated recovery. A summary of information management considered in evaluating debt and equity securities for other-than-temporary impairment (“OTTI”) at June 30, 2020 is provided below. Debt Securities At June 30, 2020 and December 31, 2019, management performed an assessment for possible OTTI of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. The extent of individual analysis applied to each security depended on the size of the Corporation’s investment, as well as management’s perception of the credit risk associated with each security. Based on the results of the assessment, management believes impairment of debt securities at June 30, 2020 and December 31, 2019 to be temporary. Equity Securities C&N Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB-Pittsburgh), which is one of 11 regional Federal Home Loan Banks. As a member, C&N Bank is required to purchase and maintain stock in FHLB-Pittsburgh. There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated. C&N Bank’s investment in FHLB-Pittsburgh stock, included in Other Assets in the consolidated balance sheets, was $8,671,000 at June 30, 2020 and $10,131,000 at December 31, 2019. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at June 30, 2020 and December 31, 2019. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based on review of financial information that FHLB-Pittsburgh has made publicly available. The Corporation’s marketable equity security, with a carrying value of $1,003,000 at June 30, 2020 and $979,000 at December 31, 2019, consisted exclusively of one mutual fund. There was an unrealized gain on the mutual fund of $3,000 at June 30, 2020 and an unrealized loss of $21,000 at December 31, 2019. Changes in the unrealized gains or losses on this security are included in other noninterest income in the consolidated statements of income. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2020 | |
LOANS | |
LOANS | 7. LOANS The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. Loans outstanding at June 30, 2020 and December 31, 2019 are summarized by segment, and by classes within each segment, as follows: Summary of Loans by Type (In Thousands) June 30, Dec. 31, 2020 2019 Residential mortgage: Residential mortgage loans - first liens $ 493,214 $ 510,641 Residential mortgage loans - junior liens 25,632 27,503 Home equity lines of credit 31,826 33,638 1-4 Family residential construction 15,621 14,798 Total residential mortgage 566,293 586,580 Commercial: Commercial loans secured by real estate 293,304 301,227 Commercial and industrial 120,202 126,374 Small Business Administration - Paycheck Protection Program 97,103 0 Political subdivisions 43,134 53,570 Commercial construction and land 40,348 33,555 Loans secured by farmland 11,433 12,251 Multi-family (5 or more) residential 32,699 31,070 Agricultural loans 3,874 4,319 Other commercial loans 16,579 16,535 Total commercial 658,676 578,901 Consumer 16,444 16,741 Total 1,241,413 1,182,222 Less: allowance for loan losses (11,026) (9,836) Loans, net $ 1,230,387 $ 1,172,386 In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $5,519,000 at June 30, 2020 and $2,482,000 at December 31, 2019. Effective April 1, 2019, the Corporation acquired loans pursuant to the acquisition of Monument. The loans acquired from Monument were recorded at an initial fair value of $259,295,000. The gross amortized cost of loans acquired from Monument on April 1, 2019 was reduced $1,807,000 based on movements in interest rates (market rate adjustment) and was also reduced $1,914,000 based on a credit fair value adjustment on non-impaired loans and by $318,000 based on a credit fair value adjustment on impaired loans. In the last three quarters of 2019 and first six months of 2020, the Corporation recognized accretion of a portion of the market rate adjustment and credit adjustment on non-impaired loans, and a partial recovery of purchased credit impaired (PCI) loans. For the three-month and six-month periods ended June 30, 2020 and 2019, adjustments to the initial market rate and credit fair value adjustments were recognized as follows: (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (1,268) $ 0 $ (1,415) $ 0 Market rate adjustment recorded in acquisition 0 (1,807) 0 (1,807) Accretion recognized in interest income 165 149 312 149 Adjustments to gross amortized cost of loans at end of period $ (1,103) $ (1,658) $ (1,103) $ (1,658) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,011) $ 0 $ (1,216) $ 0 Credit adjustment recorded in acquisition 0 (1,914) 0 (1,914) Accretion recognized in interest income 133 261 338 261 Adjustments to gross amortized cost of loans at end of period $ (878) $ (1,653) $ (878) $ (1,653) PCI loans acquired from Monument were valued at $441,000 at April 1, 2019, which was $318,000 lower than the total outstanding balance of the loans. The fair values of all of the PCI loans were determined based on the estimated realizable value of underlying real estate collateral, net of estimated selling cost. In the first six months of 2020, the Corporation recorded interest income of $113,000 from the excess of proceeds received on the pay-off of PCI loans over their carrying amounts. A summary of PCI loans held at June 30, 2020 and December 31, 2019 is as follows: (In Thousands) June 30, December 31, 2020 2019 Outstanding balance $ 407 $ 759 Carrying amount 305 441 The Corporation grants loans to individuals as well as commercial and tax-exempt entities. Commercial, residential and personal loans are made to customers geographically concentrated in northcentral Pennsylvania, the southern tier of New York State and southeastern Pennsylvania. Although the Corporation has a diversified loan portfolio, a significant portion of its debtors’ ability to honor their contracts is dependent on the local economic conditions within the region. There is no concentration of loans to borrowers engaged in similar businesses or activities that exceed 10% of total loans at either June 30, 2020 or December 31, 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act is a $2 trillion stimulus package designed to provide relief to U.S. businesses and consumers struggling as a result of the pandemic. A provision in the CARES Act includes creation of the Paycheck Protection Program (“PPP”) through the Small Business Administration (SBA) and Treasury Department. Under the PPP, the Corporation, as an SBA-certified lender, provides SBA-guaranteed loans to small businesses to pay their employees, rent, mortgage interest, and utilities. PPP loans will be forgiven subject to clients’ providing documentation evidencing their compliant use of funds and otherwise complying with the terms of the program. The maximum term of PPP loans is five years, though most of the Corporation’s PPP loans have two-year terms, and the Corporation will be repaid sooner to the extent the loans are forgiven. The interest rate on PPP loans is 1%, and the Corporation has received fees from the SBA ranging between 1% and 5% per loan, depending on the size of the loan. Consistent with current SBA guidance, if a borrower uses an agent in the loan process, the Corporation would pay a percentage of the SBA fees to the agent. Fees on PPP loans, net of origination costs, will be recognized in interest income as a yield adjustment over the term of the loans. The Corporation began accepting and processing applications for loans under the PPP on April 3, 2020. As of June 30, 2020, the recorded investment in PPP loans was $97,103,000, including contractual principal balances of $100,120,000, reduced by net deferred origination fees of $3,017,000 . Net deferred origination fees on PPP loans are recognized in interest income as a yield adjustment (accretion over the term of the loans). Accretion of $337,000 from fees received on PPP loans was included in interest and fees on (taxable) loans in the consolidated statements of income in the three-month and six-month periods ended June 30, 2020. Section 4013 of the CARES Act provides that, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the coronavirus (COVID-19) pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), the Corporation may elect to suspend U.S. GAAP for loan modifications related to the pandemic that would otherwise be categorized as troubled debt restructurings (TDRs) and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. In addition, the banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the FASB staff that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under U.S. GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. To work with clients impacted by COVID-19, the Corporation is offering short-term loan modifications on a case-by-case basis to borrowers who were current in their payments at the inception of the loan modification program. These efforts have been designed to assist borrowers as they deal with the current crisis and help the Corporation mitigate credit risk. For loans subject to the program, each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term. Consistent with Section 4013 of the CARES ACT and guidance from the joint interagency statement described in the preceding paragraphs, the modified loans have not been reported as past due, nonaccrual or as TDRs at June 30, 2020. Most of the modifications under the program became effective In March or April 2020 and provided a deferral of interest or principal and interest for 90 days. Accordingly, most of the loans for which deferrals were granted returned to full payment status in June or July 2020. There have been 706 loans for which deferrals have been granted through June 30, 2020 with an aggregate recorded investment of approximately $202 million at the time of deferral. The quantity and balances of modifications outstanding under the program at June 30, 2020 and July 31, 2020 (excluding loans acquired pursuant to the Covenant acquisition on July 1, 2020) are as follows: Deferrals Remaining Deferrals Remaining As of June 30, 2020 As of July 31, 2020 (Dollars in Thousands) Number Number of Recorded of Recorded Loans Investment Loans Investment COVID-19-related loan modifications: Residential mortgage 307 $ 40,930 54 $ 7,130 Consumer 36 364 — — Commercial 198 117,424 24 22,488 Total 541 $ 158,718 78 $ 29,618 The ultimate effect of COVID-19 on the local or broader economy is not known. In the first six months of 2020, the Corporation increased the allowance for loan losses $646,000, including $244,000 in the second quarter, based on an increase in qualitative factors related to potential deterioration in economic conditions. Further, in June 2020, the Corporation’s credit administration and commercial lending staffs performed a review of commercial credits with “Pass” ratings in an effort to reduce the risk of failing to identify loans that should be evaluated for risk rating downgrade or a specific allowance. Updated risk ratings and specific allowances based on that review have been included in the June 30, 2020 information presented below. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its economic impact, the total impact on the Corporation’s loan portfolio is not determinable. The Corporation maintains an allowance for loan losses that represents management’s estimate of the losses inherent in the loan portfolio as of the balance sheet date and recorded as a reduction of the investment in loans. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. In the process of evaluating the loan portfolio, management also considers the Corporation’s exposure to losses from unfunded loan commitments. As of June 30, 2020, and December 31, 2019, management determined that no allowance for credit losses related to unfunded loan commitments was required. Transactions within the allowance for loan losses, summarized by segment and class, for the three-month and six-month periods ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30, 2020 March 31, June 30, (In Thousands) 2020 Balance Charge-offs Recoveries Provision (Credit) 2020 Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,572 $ 0 $ 1 $ (42) $ 3,531 Residential mortgage loans - junior liens 414 0 0 (49) 365 Home equity lines of credit 278 0 1 8 287 1-4 Family residential construction 119 0 0 18 137 Total residential mortgage 4,383 0 2 (65) 4,320 Commercial: Commercial loans secured by real estate 1,932 0 0 494 2,426 Commercial and industrial 2,645 0 0 (149) 2,496 Commercial construction and land 970 (107) 0 (443) 420 Loans secured by farmland 144 0 0 2 146 Multi-family (5 or more) residential 199 0 0 (36) 163 Agricultural loans 39 0 0 1 40 Other commercial loans 160 0 0 7 167 Total commercial 6,089 (107) 0 (124) 5,858 Consumer 273 (39) 16 13 263 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 11,330 $ (146) $ 18 $ (176) $ 11,026 Three Months Ended June 30, 2019 March 31, June 30, (In Thousands) 2019 Balance Charge-offs Recoveries Provision (Credit) 2019 Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,178 $ (33) $ 1 $ (16) $ 3,130 Residential mortgage loans - junior liens 329 0 0 4 333 Home equity lines of credit 286 0 1 (7) 280 1-4 Family residential construction 198 0 0 22 220 Total residential mortgage 3,991 (33) 2 3 3,963 Commercial: Commercial loans secured by real estate 1,887 0 0 (310) 1,577 Commercial and industrial 1,069 (6) 1 182 1,246 Commercial construction and land 114 0 0 38 152 Loans secured by farmland 98 0 0 4 102 Multi-family (5 or more) residential 112 0 0 38 150 Agricultural loans 43 0 0 (1) 42 Other commercial loans 121 0 0 (2) 119 Total commercial 3,444 (6) 1 (51) 3,388 Consumer 236 (29) 13 44 264 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 8,256 $ (68) $ 16 $ (4) $ 8,200 Dec. 31, June 30, Six Months Ended June 30, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,405 $ 0 $ 2 $ 124 $ 3,531 Residential mortgage loans - junior liens 384 0 1 (20) 365 Home equity lines of credit 276 0 2 9 287 1-4 Family residential construction 117 0 0 20 137 Total residential mortgage 4,182 0 5 133 4,320 Commercial: Commercial loans secured by real estate 1,921 0 0 505 2,426 Commercial and industrial 1,391 (17) 0 1,122 2,496 Commercial construction and land 966 (107) 0 (439) 420 Loans secured by farmland 158 0 0 (12) 146 Multi-family (5 or more) residential 156 0 0 7 163 Agricultural loans 41 0 0 (1) 40 Other commercial loans 155 0 0 12 167 Total commercial 4,788 (124) 0 1,194 5,858 Consumer 281 (70) 27 25 263 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (194) $ 32 $ 1,352 $ 11,026 Dec. 31, June 30, Six Months Ended June 30, 2019 2018 Provision 2019 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,156 $ (83) $ 2 $ 55 $ 3,130 Residential mortgage loans - junior liens 325 (24) 0 32 333 Home equity lines of credit 302 0 4 (26) 280 1-4 Family residential construction 203 0 0 17 220 Total residential mortgage 3,986 (107) 6 78 3,963 Commercial: Commercial loans secured by real estate 2,538 0 0 (961) 1,577 Commercial and industrial 1,553 (6) 3 (304) 1,246 Commercial construction and land 110 0 0 42 152 Loans secured by farmland 102 0 0 0 102 Multi-family (5 or more) residential 114 0 0 36 150 Agricultural loans 46 0 0 (4) 42 Other commercial loans 128 0 0 (9) 119 Total commercial 4,591 (6) 3 (1,200) 3,388 Consumer 233 (66) 22 75 264 Unallocated 499 0 0 86 585 Total Allowance for Loan Losses $ 9,309 $ (179) $ 31 $ (961) $ 8,200 In the evaluation of the loan portfolio, management determines two major components for the allowance for loan losses – (1) a specific component based on an assessment of certain larger relationships, mainly commercial purpose loans, on a loan-by-loan basis; and (2) a general component for the remainder of the portfolio, except for performing loans purchased from Monument, based on a collective evaluation of pools of loans with similar risk characteristics. The general component is assigned to each pool of loans based on both historical net charge-off experience, and an evaluation of certain qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the above methodologies for estimating specific and general losses in the portfolio. Performing loans acquired from Monument are presented net of a discount for credit losses of $878,000 at June 30, 2020 and $1,216,000 at December 31, 2019. This discount reflects an estimate of the present value of credit losses based on market expectations at the date of acquisition of $1,914,000, subsequently reduced as accretion has been recognized based on estimated and actual principal pay-downs. At June 30, 2020, it was determined that five purchased loans to two borrowers with recorded investments totaling $6,075,000 were found to be impaired. Specific allowances totaling $350,000 were recorded on these loans at June 30, 2020, based on the excess of the recorded investments in the loans over the estimated value of the related real estate collateral, net of selling costs. Purchased performing loans were excluded from the loan pools for which the general component of the allowance for loan losses was calculated. The credit for loan losses of $176,000 in the second quarter 2020 included the benefit of repayment of a commercial construction loan for less than the full principal balance, resulting in a charge-off of $107,000 as compared to a specific allowance on the loan of $674,000 at March 31, 2020. For the first six months of 2020, the provision for loan losses was $1,352,000, an increase in expense of $2,313,000 as compared to the credit for loan losses of $961,000 recorded in the first six months of 2019. In 2020, the provision includes the effects of recording a specific allowance of $1,193,000 on a commercial loan in the first quarter, partially offset by the benefit from the previously described repayment of the commercial construction loan in the second quarter. In total, the provision for the first six months of 2020 included a net charge of $1,067,000 related to specific loans (net increase in specific allowances on loans of $905,000 and net charge-offs of $162,000); a charge of $646,000 attributable to increases in qualitative factors; a credit of $272,000 from the impact of a reduction in outstanding loans, excluding PPP loans; and a credit of $89,000 in the net charge-off experience factors used to estimate the allowance. No provision for loan losses was recognized on PPP loans because the SBA guarantees the loans, subject to compliance with program requirements. The credit for loan losses in the first six months of 2019 included a benefit from eliminating specific allowances on commercial loans that were no longer considered impaired. In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” column in the table that follows. The following tables summarize the aggregate credit quality classification of outstanding loans by risk rating as of June 30, 2020 and December 31, 2019: June 30, 2020 (In Thousands) Purchased Special Credit Pass Mention Substandard Doubtful Impaired Total Residential Mortgage: Residential Mortgage loans - first liens $ 480,338 $ 2,977 $ 9,822 $ 0 $ 77 $ 493,214 Residential Mortgage loans - junior liens 24,990 130 512 0 0 25,632 Home Equity lines of credit 31,115 59 652 0 0 31,826 1-4 Family residential construction 15,621 0 0 0 0 15,621 Total residential mortgage 552,064 3,166 10,986 0 77 566,293 Commercial: Commercial loans secured by real estate 276,776 6,536 9,764 0 228 293,304 Commercial and Industrial 107,788 6,225 2,689 3,500 0 120,202 Small Business Administration - Paycheck Protection Program 97,103 0 0 0 0 97,103 Political subdivisions 43,134 0 0 0 0 43,134 Commercial construction and land 40,082 198 68 0 0 40,348 Loans secured by farmland 9,819 728 886 0 0 11,433 Multi-family (5 or more) residential 29,364 2,434 901 0 0 32,699 Agricultural loans 3,261 0 613 0 0 3,874 Other commercial loans 16,579 0 0 0 0 16,579 Total commercial 623,906 16,121 14,921 3,500 228 658,676 Consumer 16,345 0 99 0 0 16,444 Totals $ 1,192,315 $ 19,287 $ 26,006 $ 3,500 $ 305 $ 1,241,413 December 31, 2019 (In Thousands) Purchased Special Credit Pass Mention Substandard Doubtful Impaired Total Residential Mortgage: Residential Mortgage loans - first liens $ 500,963 $ 193 $ 9,324 $ 84 $ 77 $ 510,641 Residential Mortgage loans - junior liens 26,953 79 471 0 0 27,503 Home Equity lines of credit 33,170 59 409 0 0 33,638 1-4 Family residential construction 14,798 0 0 0 0 14,798 Total residential mortgage 575,884 331 10,204 84 77 586,580 Commercial: Commercial loans secured by real estate 294,397 4,773 1,693 0 364 301,227 Commercial and Industrial 114,293 9,538 2,543 0 0 126,374 Political subdivisions 53,570 0 0 0 0 53,570 Commercial construction and land 32,224 0 1,331 0 0 33,555 Loans secured by farmland 6,528 4,681 1,042 0 0 12,251 Multi-family (5 or more) residential 30,160 0 910 0 0 31,070 Agricultural loans 3,343 335 641 0 0 4,319 Other commercial loans 16,416 0 119 0 0 16,535 Total commercial 550,931 19,327 8,279 0 364 578,901 Consumer 16,720 0 21 0 0 16,741 Totals $ 1,143,535 $ 19,658 $ 18,504 $ 84 $ 441 $ 1,182,222 The general component of the allowance for loan losses covers pools of loans including commercial loans not considered individually impaired, as well as smaller balance homogeneous classes of loans, such as residential real estate, home equity lines of credit and other consumer loans. Accordingly, the Corporation generally does not separately identify individual consumer and residential loans for impairment disclosures, unless such a loan: (1) is subject to a restructuring agreement, or (2) has an outstanding balance of $400,000 or more and a credit grade of Special Mention, Substandard or Doubtful. The pools of loans are evaluated for loss exposure based upon average historical net charge-off rates for each loan class, adjusted for qualitative factors (described in the following paragraphs). The time period used in determining the average historical net charge-off rate for each loan class is based on management’s evaluation of an appropriate time period that captures an historical loss experience relevant to the current portfolio. At June 30, 2020 and December 31, 2019, a five-year average net charge-off rate was used for commercial loans secured by real estate and for multi-family residential loans, while a three-year average net charge-off rate was used for all other loan classes. Qualitative risk factors are evaluated for the impact on each of the three segments (residential mortgage, commercial and consumer) within the loan portfolio. Each qualitative factor is assigned a value to reflect improving, stable or declining conditions based on management’s judgment using relevant information available at the time of the evaluation. The adjustment for qualitative factors is applied as an increase or decrease to the average net charge-off rate for each loan class within each segment. The qualitative factors used in the general component calculations are designed to address credit risk characteristics associated with each segment. The Corporation’s credit risk associated with all of the segments is significantly impacted by these factors, which include economic conditions within its market area, the Corporation’s lending policies, changes or trends in the portfolio, risk profile, competition, regulatory requirements and other factors. Loans are classified as impaired, when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial loans, by the fair value of the collateral (if the loan is collateral dependent), by future cash flows discounted at the loan’s effective rate or by the loan’s observable market price. The scope of loans reviewed individually each quarter to determine if they are impaired include all commercial loan relationships greater than $200,000 and any residential mortgage or consumer loans of $400,000 or more for which there is at least one extension of credit graded Special Mention, Substandard or Doubtful. Loans that are individually reviewed, but which are determined to not be impaired, are combined with all remaining loans that are not reviewed on a specific basis, and such loans are included within larger pools of loans based on similar risk and loss characteristics for purposes of determining the general component of the allowance. The loans that have been individually reviewed, but which have been determined to not be impaired, are included in the “Collectively Evaluated” column in the table summarizing the allowance and associated loan balances as of June 30, 2020 and December 31, 2019. All loans classified as troubled debt restructurings (discussed in more detail below) and all commercial loan relationships less than $200,000 or other loan relationships less than $400,000 in the aggregate, but with an estimated loss of $100,000 or more, are individually evaluated for impairment. The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of June 30, 2020 and December 31, 2019. June 30, 2020 (In Thousands) Loans: Allowance for Loan Losses: Purchased Individually Collectively Performing Individually Collectively Evaluated Evaluated Loans Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 1,358 $ 391,116 $ 100,740 $ 493,214 $ 10 $ 3,521 $ 3,531 Residential mortgage loans - junior liens 355 23,422 1,855 25,632 154 211 365 Home equity lines of credit 0 30,540 1,286 31,826 0 287 287 1-4 Family residential construction 0 15,621 0 15,621 0 137 137 Total residential mortgage 1,713 460,699 103,881 566,293 164 4,156 4,320 Commercial: Commercial loans secured by real estate 7,501 186,066 99,737 293,304 494 1,932 2,426 Commercial and industrial 4,645 112,891 2,666 120,202 1,264 1,232 2,496 Small Business Administration - Paycheck Protection Program 0 97,103 0 97,103 0 0 0 Political subdivisions 0 43,134 0 43,134 0 0 0 Commercial construction and land 0 40,348 0 40,348 0 420 420 Loans secured by farmland 421 10,758 254 11,433 34 112 146 Multi-family (5 or more) residential 0 11,195 21,504 32,699 0 163 163 Agricultural loans 0 3,874 0 3,874 0 40 40 Other commercial loans 0 16,031 548 16,579 0 16 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Information related to core deposit intangibles, net are as follows: (In Thousands) June 30, December 31, 2020 2019 Gross amount $ 3,495 $ 3,495 Accumulated amortization (2,372) (2,248) Net $ 1,123 $ 1,247 Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows: (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Amortization expense $ 62 $ 73 $ 124 $ 75 Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. At June 30, 2020 and December 31, 2019, the carrying value of goodwill is $28,388,000. Goodwill is tested at least annually at December 31 for impairment, or more often if events or circumstances indicate there may be impairment. In 2020, the COVID-19 pandemic led to government-imposed emergency restrictions that substantially limited the operation of non-essential businesses and the activities of individuals. These restrictions had significant adverse effects on macroeconomic conditions. After a period when the virus appeared to have subsided in Pennsylvania and throughout many parts of the US, the number of cases and mortality levels have increased in recent weeks. Broader US stock market valuations decreased significantly in the latter part of the first quarter and early second quarter 2020 but more recently have bounced back to levels consistent with pre-COVID-19 conditions. Bank stock valuations have lagged, reflecting market concerns about potential credit losses and the effects of a substantial drop in interest rates. The ultimate effect of COVID-19 on the local or broader economy is not known nor is the ultimate length of the restrictions described and any accompanying effects. In light of the adverse circumstances resulting from COVID-19, management determined it necessary to evaluate goodwill for impairment at June 30, 2020. The average closing price (trading price) of the Corporation’s common stock was $20.24 per share for the month of June 2020, down from an average closing price of $26.05 in the fourth quarter 2019. The average closing price for the last 10 trading days of the second quarter 2020 (June 17 through June 30, 2020) was $20.14 per share. In comparison, the book value per share of the Corporation’s common stock at June 30, 2020 was $18.53 per share. In testing goodwill for impairment as of June 30, 2020, the Corporation by-passed performing a qualitative assessment and performed a quantitative assessment based on comparison of the Corporation’s market capitalization to its stockholders’ equity, resulting in the determination that the fair value of its reporting unit, its community banking operation, exceeded its carrying value. Accordingly, there was no goodwill impairment at June 30, 2020. |
BORROWED FUNDS AND SUBORDINATED
BORROWED FUNDS AND SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
BORROWED FUNDS AND SUBORDINATED DEBT | 9. BORROWED FUNDS AND SUBORDINATED DEBT Short-term borrowings (initial maturity within one year) include the following: (In Thousands) June 30, Dec. 31, 2020 2019 FHLB-Pittsburgh borrowings $ 12,200 $ 84,292 Customer repurchase agreements 2,204 1,928 Total short-term borrowings $ 14,404 $ 86,220 Short-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) June 30, Dec. 31, 2020 2019 Overnight borrowing $ 0 $ 64,000 Other short-term advances 12,200 20,292 Total short-term FHLB-Pittsburgh borrowings $ 12,200 $ 84,292 At June 30, 2020, other short-term advances included five advances totaling $12,200,000 with a weighted-average interest rate of 1.59%. The Corporation had available credit with other correspondent banks totaling $45,000,000 at June 30, 2020 and December 31, 2019. These lines of credit are primarily unsecured. No amounts were outstanding at June 30, 2020 or December 31, 2019. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At June 30, 2020, the Corporation had available credit in the amount of $14,605,000 on this line with no outstanding advances. At December 31, 2019, the Corporation had available credit in the amount of $14,244,000 on this line with no outstanding advances. As collateral for this line, the Corporation has pledged available-for-sale securities with a carrying value of $15,092,000 at June 30, 2020 and $14,728,000 at December 31, 2019. The Corporation engages in repurchase agreements with certain commercial customers. These agreements provide that the Corporation sells specified investment securities to the customers on an overnight basis and repurchases them on the following business day. The weighted average rate paid by the Corporation on customer repurchase agreements was 0.10% at June 30, 2020 and December 31, 2019. The carrying value of the underlying securities was $2,240,000 at June 30, 2020 and $1,951,000 at December 31, 2019. The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $759,623,000 at June 30, 2020 and $778,877,000 at December 31, 2019. Also, the FHLB-Pittsburgh loan facility requires the Corporation to invest in established amounts of FHLB-Pittsburgh stock. The carrying values of the Corporation’s holdings of FHLB-Pittsburgh stock (included in Other Assets) were $8,671,000 at June 30, 2020 and $10,131,000 at December 31, 2019. In addition to the short-term and long-term borrowings shown in these tables, there was a $400,000 letter of credit from FHLB-Pittsburgh outstanding at June 30, 2020. The Corporation’s total credit facility with FHLB-Pittsburgh was $571,597,000 at June 30, 2020, including an unused (available) amount of $486,093,000. At December 31, 2019, the Corporation’s total credit facility with FHLB-Pittsburgh was $552,546,000, including an unused (available) amount of $416,127,000. LONG-TERM BORROWINGS Long-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) June 30, Dec. 31, 2020 2019 Loans matured in 2020 with a weighted-average rate of 2.71% $ 0 $ 5,069 Loans maturing in 2021 with a weighted-average rate of 1.63% 20,000 6,000 Loans maturing in 2022 with a weighted-average rate of 1.90% 22,355 20,000 Loans maturing in 2023 with a weighted-average rate of 1.63% 22,500 20,500 Loans maturing in 2024 with a weighted-average rate of 1.27% 7,536 0 Loan maturing in 2025 with a rate of 4.91% 513 558 Total long-term FHLB-Pittsburgh borrowings $ 72,904 $ 52,127 At June 30, 2020 and December 31, 2019, the Corporation has outstanding subordinated debt agreements with par values totaling $6,500,000, maturing April 1, 2027, which may be redeemed at par beginning April 1, 2022. The agreements have fixed annual interest rates of 6.50%. At June 30, 2020 and December 31, 2019, the carrying value of the subordinated debt on the consolidated balance sheets is $6,500,000. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2020 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 10. STOCK-BASED COMPENSATION PLANS The Corporation has a Stock Incentive Plan for a selected group of officers and an Independent Directors Stock Incentive Plan. In the first quarter 2020, the Corporation awarded 48,284 shares of restricted stock under the Stock Incentive Plan and 7,580 shares of restricted stock under the Independent Directors Stock Incentive Plan. The 2020 restricted stock awards under the Stock Incentive Plan vest ratably over three years , and include 30,381 time-based awards with a total fair value of $801,000 at the date of grant and 17,903 performance-based awards with a total fair value of $343,000 at date of grant. The 2020 restricted stock issued under the Independent Directors Stock Incentive Plan are time-based awards, vesting over one year , with a total fair value of $200,000 at the date of grant. Compensation cost related to restricted stock is recognized based on the fair value of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. Total annual stock-based compensation for the year ending December 31, 2020 is estimated to total $893,000. Total stock-based compensation expense attributable to restricted stock awards amounted to $230,000 in the second quarter 2020 and $202,000 in the second quarter 2019. Total stock-based compensation expense attributable to restricted stock awards amounted to $424,000 in the six-month period ended June 30, 2020 and $431,000 in the six-month period ended June 30, 2019. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
CONTINGENCIES | 11. CONTINGENCIES In the normal course of business, the Corporation may be subject to pending and threatened lawsuits in which claims for monetary damages could be asserted. In management’s opinion, the Corporation’s financial position and results of operations would not be materially affected by the outcome of such pending legal proceedings. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 12. FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS The Corporation measures certain assets at fair value. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. FASB topic 820, “Fair Value Measurements and Disclosures” establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Corporation for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available. Level 2 – Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets and other observable inputs. Level 3 – Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows and other similar techniques. The Corporation monitors and evaluates available data relating to fair value measurements on an ongoing basis and recognizes transfers among the levels of the fair value hierarchy as of the date of an event or change in circumstances that affects the valuation method chosen. Examples of such changes may include the market for a particular asset becoming active or inactive, changes in the availability of quoted prices, or changes in the availability of other market data. At June 30, 2020 and December 31, 2019, assets measured at fair value and the valuation methods used are as follows: June 30, 2020 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of U.S. Government agencies $ 0 $ 11,673 $ 0 $ 11,673 Obligations of states and political subdivisions: Tax-exempt 0 91,643 0 91,643 Taxable 0 39,784 0 39,784 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 51,520 0 51,520 Residential collateralized mortgage obligations 0 89,435 0 89,435 Commercial mortgage-backed securities 0 48,133 0 48,133 Total available for sale debt Securities 0 332,188 0 332,188 Marketable equity security 1,003 0 0 1,003 Servicing rights 0 0 1,284 1,284 Total recurring fair value measurements $ 1,003 $ 332,188 $ 1,284 $ 334,475 Nonrecurring fair value measurements Impaired loans with a valuation allowance $ 0 $ 0 $ 12,189 $ 12,189 Valuation allowance 0 0 (1,956) (1,956) Impaired loans, net 0 0 10,233 10,233 Foreclosed assets held for sale 0 0 1,593 1,593 Total nonrecurring fair value measurements $ 0 $ 0 $ 11,826 $ 11,826 December 31, 2019 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of U.S. Government agencies $ 0 $ 17,000 $ 0 $ 17,000 Obligations of states and political subdivisions: Tax-exempt 0 70,760 0 70,760 Taxable 0 36,303 0 36,303 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 59,210 0 59,210 Residential collateralized mortgage obligations 0 114,723 0 114,723 Commercial mortgage-backed securities 0 48,727 0 48,727 Total available-for-sale debt securities 0 346,723 0 346,723 Marketable equity security 979 0 0 979 Servicing rights 0 0 1,277 1,277 Total recurring fair value measurements $ 979 $ 346,723 $ 1,277 $ 348,979 Nonrecurring fair value measurements Impaired loans with a valuation allowance $ 0 $ 0 $ 3,375 $ 3,375 Valuation allowance 0 0 (1,051) (1,051) Impaired loans, net 0 0 2,324 2,324 Foreclosed assets held for sale 0 0 2,886 2,886 Total nonrecurring fair value measurements $ 0 $ 0 $ 5,210 $ 5,210 Management’s evaluation and selection of valuation techniques and the unobservable inputs used in determining the fair values of assets valued using Level 3 methodologies include sensitive assumptions. Other market participants might use substantially different assumptions, which could result in calculations of fair values that would be substantially different than the amount calculated by management. At June 30, 2020 and December 31, 2019, quantitative information regarding valuation techniques and the significant unobservable inputs used for assets measured on a recurring basis using unobservable inputs (Level 3 methodologies) are as follows: Fair Value at 6/30/20 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 6/30/20 Servicing rights $ 1,284 Discounted cash flow Discount rate 12.50 % Rate used through modeling period Loan prepayment speeds 285.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs Fair Value at 12/31/19 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/19 Servicing rights $ 1,277 Discounted cash flow Discount rate 12.50 % Rate used through modeling period Loan prepayment speeds 183.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs The fair value of servicing rights is affected by expected future interest rates. Increases (decreases) in future expected interest rates tend to increase (decrease) the fair value of the Corporation’s servicing rights because of changes in expected prepayment behavior by the borrowers on the underlying loans. Unrealized gains (losses) in fair value of servicing rights are included in Loan servicing fees, net, in the unaudited consolidated statements of income. Following is a reconciliation of activity for Level 3 assets measured at fair value on a recurring basis: (In Thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Servicing rights balance, beginning of period $ 1,226 $ 1,347 $ 1,277 $ 1,404 Originations of servicing rights 328 46 403 66 Unrealized losses included in earnings (270) (71) (396) (148) Servicing rights balance, end of period $ 1,284 $ 1,322 $ 1,284 $ 1,322 Loans are classified as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Foreclosed assets held for sale consist of real estate acquired by foreclosure. For impaired commercial loans secured by real estate and foreclosed assets held for sale, estimated fair values are determined primarily using values from third-party appraisals. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial and agricultural loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging data or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. At June 30, 2020 and December 31, 2019, quantitative information regarding valuation techniques and the significant unobservable inputs used for nonrecurring fair value measurements using Level 3 methodologies are as follows: (In Thousands, Except Weighted Percentages) Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 6/30/20 6/30/20 6/30/20 Technique Inputs 6/30/20 Impaired loans: Residential mortgage loans - first and junior liens $ 1,520 $ 164 $ 1,355 Sales comparison Discount to appraised value 31 % Commercial: Commercial loans secured by real estate 6,754 494 6,261 Sales comparison Discount to appraised value 38 % Commercial and industrial 3,580 1,264 2,316 Liquidation of assets Discount to appraised value 35 % Loans secured by farmland 335 34 302 Sales comparison Discount to appraised value 42 % Total impaired loans $ 12,189 $ 1,956 $ 10,234 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 118 $ 0 $ 118 Sales comparison Discount to appraised value 55 % Land 70 0 70 Sales comparison Discount to appraised value 53 % Commercial real estate 1,405 0 1,405 Sales comparison Discount to appraised value 38 % Total foreclosed assets held for sale $ 1,593 $ 0 $ 1,593 (In Thousands, Except Weighted Percentages) Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/19 12/31/19 12/31/19 Technique Inputs 12/31/19 Impaired loans: Residential mortgage loans - first and junior liens $ 732 $ 176 $ 556 Sales comparison Discount to appraised value 30 % Commercial: Commercial and industrial 106 89 17 Sales comparison Discount to appraised value 69 % Commercial and industrial 798 60 738 Liquidation of accounts receivable Discount to borrower's financial statement value 15 % Commercial construction and land 1,261 678 583 Sales comparison Discount to appraised value 47 % Loans secured by farmland 478 48 430 Sales comparison Discount to appraised value 46 % Total impaired loans $ 3,375 $ 1,051 $ 2,324 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 292 $ 0 $ 292 Sales comparison Discount to appraised value 46 % Land 70 0 70 Sales comparison Discount to appraised value 53 % Commercial real estate 2,524 0 2,524 Sales comparison Discount to appraised value 39 % Total foreclosed assets held for sale $ 2,886 $ 0 $ 2,886 Certain of the Corporation’s financial instruments are not measured at fair value in the consolidated financial statements. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Therefore, the aggregate fair value amounts presented may not represent the underlying fair value of the Corporation. The estimated fair values, and related carrying amounts, of the Corporation’s financial instruments that are not recorded at fair value are as follows: (In Thousands) Fair Value June 30, 2020 December 31, 2019 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 73,812 $ 73,812 $ 31,122 $ 31,122 Certificates of deposit Level 2 3,830 4,078 4,080 4,227 Restricted equity securities (included in Other Assets) Level 2 8,861 8,861 10,321 10,321 Loans, net Level 3 1,230,387 1,236,040 1,172,386 1,181,000 Accrued interest receivable Level 2 6,326 6,326 5,001 5,001 Financial liabilities: Deposits with no stated maturity Level 2 1,039,401 1,039,401 877,965 877,965 Time deposits Level 2 341,777 344,959 374,695 376,738 Short-term borrowings Level 2 14,404 14,271 86,220 86,166 Long-term borrowings Level 2 72,904 74,545 52,127 52,040 Accrued interest payable Level 2 312 312 311 311 The Corporation has commitments to extend credit and has issued standby letters of credit. Standby letters of credit are conditional guarantees of performance by a customer to a third party. Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties. |
BASIS OF INTERIM PRESENTATION_2
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recent Accounting Pronouncements - Adopted ASU 2018-13, Fair Value Measurement (Topic 820) modifies disclosure requirements on fair value measurements. This ASU removes requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. ASU 2018-13 clarifies that disclosure regarding measurement uncertainty is intended to communicate information about the uncertainty in measurement as of the reporting date. ASU 2018-13 adds certain disclosure requirements, including disclosure of changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU became effective for the Corporation beginning in the first quarter 2020. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively, while all other amendments should be applied retrospectively for all periods presented. Note 12 provides disclosure regarding fair value measurements of the Corporation’s financial instruments. Adoption of this ASU did not have a material impact on the Corporation’s consolidated financial position or results of operations. Recently Issued But Not Yet Effective Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), as modified by subsequent ASUs, changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The effect of implementing this ASU is recorded through a cumulative-effect adjustment to retained earnings. The Corporation has formed a cross functional management team and is working with an outside vendor assessing alternative loss estimation methodologies and the Corporation’s data and system needs to evaluate the impact that adoption of this standard will have on the Corporation’s financial condition and results of operations. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Corporation, resulting in a required implementation date for the Corporation of January 1, 2023. ASU 2020-04, Reference Rate Reform (Topic 848) provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. Some specific optional expedients are as follows: ● Simplifies accounting for contract modifications, including modifications to loans receivable and debt, by prospectively adjusting the effective interest rate. ● Simplifies the assessment of hedge effectiveness and allows hedging relationships affected by reference rate reform to continue. The amendments in ASU 2020-04 are effective as of March 12, 2020 through December 31, 2022. The Corporation expects to apply the amendments prospectively for applicable loan and other contracts within the effective period of ASU 2020-04. |
PER SHARE DATA (Tables)
PER SHARE DATA (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Basic Net income $ 5,438 $ 3,649 $ 9,604 $ 8,739 Less: Dividends and undistributed earnings allocated to participating securities (33) (19) (54) (46) Net income attributable to common shares $ 5,405 $ 3,630 $ 9,550 $ 8,693 Basic weighted-average common shares outstanding 13,710,118 13,597,848 13,697,617 12,956,916 Basic earnings per common share (a) $ 0.39 $ 0.27 $ 0.70 $ 0.67 Diluted Net income attributable to common shares $ 5,405 $ 3,630 $ 9,550 $ 8,693 Basic weighted-average common shares outstanding 13,710,118 13,597,848 13,697,617 12,956,916 Dilutive effect of potential common stock arising from stock options 2,269 25,106 8,116 25,445 Diluted weighted-average common shares outstanding 13,712,387 13,622,954 13,705,733 12,982,361 Diluted earnings per common share (a) $ 0.39 $ 0.27 $ 0.70 $ 0.67 Weighted-average nonvested restricted shares outstanding 88,514 70,366 77,093 68,016 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
COMPREHENSIVE INCOME | |
Schedule of the components of other comprehensive income (loss), and the related tax effects | (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Six Months Ended June 30, 2020 Unrealized gains on available-for-sale debt securities, Unrealized holding gains on available-for-sale debt securities $ 10,075 $ (2,114) $ 7,961 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 88 (18) 70 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (14) 3 (11) Other comprehensive income on unfunded retirement obligations 74 (15) 59 Total other comprehensive income $ 10,149 $ (2,129) $ 8,020 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Six Months Ended June 30, 2019 Unrealized gains on available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 9,431 $ (1,980) $ 7,451 Reclassification adjustment for (gains) realized in income (7) 1 (6) Other comprehensive income on available-for-sale debt securities 9,424 (1,979) 7,445 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses included in other comprehensive income 214 (45) 169 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (15) 3 (12) Other comprehensive income on unfunded retirement obligations 199 (42) 157 Total other comprehensive income $ 9,623 $ (2,021) $ 7,602 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended June 30, 2020 Unrealized gains on available-for-sale debt securities, Unrealized holding gains on available-for-sale debt securities $ 2,835 $ (593) $ 2,242 Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (6) 1 (5) Total other comprehensive income $ 2,829 $ (592) $ 2,237 (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended June 30, 2019 Unrealized gains on available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 5,170 $ (1,085) $ 4,085 Reclassification adjustment for (gains) realized in income (7) 1 (6) Other comprehensive income on available-for-sale debt securities 5,163 (1,084) 4,079 Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (7) 1 (6) Other comprehensive loss on unfunded retirement obligations (7) 1 (6) Total other comprehensive income $ 5,156 $ (1,083) $ 4,073 |
Schedule of changes in the components of accumulated other comprehensive income (loss) | Affected Line Item in the Description Consolidated Statements of Income Amortization of prior service cost and Other noninterest expense net actuarial loss included in net periodic benefit cost (Before-Tax) Reclassification adjustment for (gains) Realized gains on available-for-sale realized in income (Before-Tax) debt securities, net Income Tax effect Income tax provision |
Schedule of items reclassified out of each component of other comprehensive income (loss) | (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income (Loss) Six Months Ended June 30, 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during six months ended June 30, 2020 7,961 59 8,020 Balance, end of period $ 11,472 $ 239 $ 11,711 Six Months Ended June 30, 2019 Balance, beginning of period $ (4,307) $ 137 $ (4,170) Other comprehensive income during six months ended June 30, 2019 7,445 157 7,602 Balance, end of period $ 3,138 $ 294 $ 3,432 (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income (Loss) Three Months Ended June 30, 2020 Balance, beginning of period $ 9,230 $ 244 $ 9,474 Other comprehensive income (loss) during three months ended June 30, 2020 2,242 (5) 2,237 Balance, end of period $ 11,472 $ 239 $ 11,711 Three Months Ended June 30, 2019 Balance, beginning of period $ (941) $ 300 $ (641) Other comprehensive income (loss) during three months ended June 30, 2019 4,079 (6) 4,073 Balance, end of period $ 3,138 $ 294 $ 3,432 |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In thousands) June 30, Dec. 31, 2020 2019 Cash and cash equivalents $ 73,812 $ 31,122 Certificates of deposit 3,830 4,080 Total cash and due from banks $ 77,642 $ 35,202 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SECURITIES | |
Schedule of Amortized cost and fair value of available-for-sale debt securities at | (In Thousands) June 30, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of U.S. Government agencies $ 10,706 $ 967 $ 0 $ 11,673 Obligations of states and political subdivisions: Tax-exempt 86,897 4,786 (40) 91,643 Taxable 38,022 1,810 (48) 39,784 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 49,852 1,668 0 51,520 Residential collateralized mortgage obligations 87,527 1,951 (43) 89,435 Commercial mortgage-backed securities 44,664 3,469 0 48,133 Total available-for-sale debt securities $ 317,668 $ 14,651 $ (131) $ 332,188 (In Thousands) December 31, 2019 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of U.S. Government agencies $ 16,380 $ 620 $ 0 $ 17,000 Obligations of states and political subdivisions: Tax-exempt 68,787 2,011 (38) 70,760 Taxable 35,446 927 (70) 36,303 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 58,875 472 (137) 59,210 Residential collateralized mortgage obligations 115,025 308 (610) 114,723 Commercial mortgage-backed securities 47,765 1,069 (107) 48,727 Total available-for-sale debt securities $ 342,278 $ 5,407 $ (962) $ 346,723 |
Schedule of gross unrealized losses and fair value of available-for-sale debt securities | June 30, 2020 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of states and political subdivisions: Tax-exempt $ 3,743 $ (40) $ 0 $ 0 $ 3,743 $ (40) Taxable 1,476 (48) 0 0 1,476 (48) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential collateralized mortgage obligations 8,809 (43) 0 0 8,809 (43) Total temporary impaired available for sale debt securities $ 14,028 $ (131) $ 0 $ 0 $ 14,028 $ (131) December 31, 2019 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of states and political subdivisions: Tax-exempt $ 6,429 $ (38) $ 0 $ 0 $ 6,429 $ (38) Taxable 5,624 (68) 161 (2) 5,785 (70) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies Residential pass-through securities 9,771 (35) 14,787 (102) 24,558 (137) Residential collateralized mortgage obligations 31,409 (195) 30,535 (415) 61,944 (610) Commercial mortgage-backed securities 0 0 8,507 (107) 8,507 (107) Total temporarily impaired available-for-sale debt securities $ 53,233 $ (336) $ 53,990 $ (626) $ 107,223 $ (962) |
Schedule of Gross realized gains and losses from available-for-sale | (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Gross realized gains from sales $ 0 $ 7 $ 52 $ 7 Gross realized losses from sales 0 0 (52) 0 Net realized gains $ 0 $ 7 $ 0 $ 7 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) June 30, 2020 Amortized Fair Cost Value Due in one year or less $ 7,369 $ 7,414 Due from one year through five years 33,740 35,119 Due from five years through ten years 38,294 40,729 Due after ten years 56,222 59,838 Sub-total 135,625 143,100 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 49,852 51,520 Residential collateralized mortgage obligations 87,527 89,435 Commercial mortgage-backed securities 44,664 48,133 Total $ 317,668 $ 332,188 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Summary of loans | June 30, Dec. 31, 2020 2019 Residential mortgage: Residential mortgage loans - first liens $ 493,214 $ 510,641 Residential mortgage loans - junior liens 25,632 27,503 Home equity lines of credit 31,826 33,638 1-4 Family residential construction 15,621 14,798 Total residential mortgage 566,293 586,580 Commercial: Commercial loans secured by real estate 293,304 301,227 Commercial and industrial 120,202 126,374 Small Business Administration - Paycheck Protection Program 97,103 0 Political subdivisions 43,134 53,570 Commercial construction and land 40,348 33,555 Loans secured by farmland 11,433 12,251 Multi-family (5 or more) residential 32,699 31,070 Agricultural loans 3,874 4,319 Other commercial loans 16,579 16,535 Total commercial 658,676 578,901 Consumer 16,444 16,741 Total 1,241,413 1,182,222 Less: allowance for loan losses (11,026) (9,836) Loans, net $ 1,230,387 $ 1,172,386 |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (1,268) $ 0 $ (1,415) $ 0 Market rate adjustment recorded in acquisition 0 (1,807) 0 (1,807) Accretion recognized in interest income 165 149 312 149 Adjustments to gross amortized cost of loans at end of period $ (1,103) $ (1,658) $ (1,103) $ (1,658) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,011) $ 0 $ (1,216) $ 0 Credit adjustment recorded in acquisition 0 (1,914) 0 (1,914) Accretion recognized in interest income 133 261 338 261 Adjustments to gross amortized cost of loans at end of period $ (878) $ (1,653) $ (878) $ (1,653) |
Schedule of PCI loans | (In Thousands) June 30, December 31, 2020 2019 Outstanding balance $ 407 $ 759 Carrying amount 305 441 |
Schedule of quantity and balances of modification | Deferrals Remaining Deferrals Remaining As of June 30, 2020 As of July 31, 2020 (Dollars in Thousands) Number Number of Recorded of Recorded Loans Investment Loans Investment COVID-19-related loan modifications: Residential mortgage 307 $ 40,930 54 $ 7,130 Consumer 36 364 — — Commercial 198 117,424 24 22,488 Total 541 $ 158,718 78 $ 29,618 |
Schedule of transactions within the allowance for loan losses | Three Months Ended June 30, 2020 March 31, June 30, (In Thousands) 2020 Balance Charge-offs Recoveries Provision (Credit) 2020 Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,572 $ 0 $ 1 $ (42) $ 3,531 Residential mortgage loans - junior liens 414 0 0 (49) 365 Home equity lines of credit 278 0 1 8 287 1-4 Family residential construction 119 0 0 18 137 Total residential mortgage 4,383 0 2 (65) 4,320 Commercial: Commercial loans secured by real estate 1,932 0 0 494 2,426 Commercial and industrial 2,645 0 0 (149) 2,496 Commercial construction and land 970 (107) 0 (443) 420 Loans secured by farmland 144 0 0 2 146 Multi-family (5 or more) residential 199 0 0 (36) 163 Agricultural loans 39 0 0 1 40 Other commercial loans 160 0 0 7 167 Total commercial 6,089 (107) 0 (124) 5,858 Consumer 273 (39) 16 13 263 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 11,330 $ (146) $ 18 $ (176) $ 11,026 Three Months Ended June 30, 2019 March 31, June 30, (In Thousands) 2019 Balance Charge-offs Recoveries Provision (Credit) 2019 Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,178 $ (33) $ 1 $ (16) $ 3,130 Residential mortgage loans - junior liens 329 0 0 4 333 Home equity lines of credit 286 0 1 (7) 280 1-4 Family residential construction 198 0 0 22 220 Total residential mortgage 3,991 (33) 2 3 3,963 Commercial: Commercial loans secured by real estate 1,887 0 0 (310) 1,577 Commercial and industrial 1,069 (6) 1 182 1,246 Commercial construction and land 114 0 0 38 152 Loans secured by farmland 98 0 0 4 102 Multi-family (5 or more) residential 112 0 0 38 150 Agricultural loans 43 0 0 (1) 42 Other commercial loans 121 0 0 (2) 119 Total commercial 3,444 (6) 1 (51) 3,388 Consumer 236 (29) 13 44 264 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 8,256 $ (68) $ 16 $ (4) $ 8,200 Dec. 31, June 30, Six Months Ended June 30, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,405 $ 0 $ 2 $ 124 $ 3,531 Residential mortgage loans - junior liens 384 0 1 (20) 365 Home equity lines of credit 276 0 2 9 287 1-4 Family residential construction 117 0 0 20 137 Total residential mortgage 4,182 0 5 133 4,320 Commercial: Commercial loans secured by real estate 1,921 0 0 505 2,426 Commercial and industrial 1,391 (17) 0 1,122 2,496 Commercial construction and land 966 (107) 0 (439) 420 Loans secured by farmland 158 0 0 (12) 146 Multi-family (5 or more) residential 156 0 0 7 163 Agricultural loans 41 0 0 (1) 40 Other commercial loans 155 0 0 12 167 Total commercial 4,788 (124) 0 1,194 5,858 Consumer 281 (70) 27 25 263 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (194) $ 32 $ 1,352 $ 11,026 Dec. 31, June 30, Six Months Ended June 30, 2019 2018 Provision 2019 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,156 $ (83) $ 2 $ 55 $ 3,130 Residential mortgage loans - junior liens 325 (24) 0 32 333 Home equity lines of credit 302 0 4 (26) 280 1-4 Family residential construction 203 0 0 17 220 Total residential mortgage 3,986 (107) 6 78 3,963 Commercial: Commercial loans secured by real estate 2,538 0 0 (961) 1,577 Commercial and industrial 1,553 (6) 3 (304) 1,246 Commercial construction and land 110 0 0 42 152 Loans secured by farmland 102 0 0 0 102 Multi-family (5 or more) residential 114 0 0 36 150 Agricultural loans 46 0 0 (4) 42 Other commercial loans 128 0 0 (9) 119 Total commercial 4,591 (6) 3 (1,200) 3,388 Consumer 233 (66) 22 75 264 Unallocated 499 0 0 86 585 Total Allowance for Loan Losses $ 9,309 $ (179) $ 31 $ (961) $ 8,200 |
Schedule of aggregate credit quality classification of outstanding loans by risk | Purchased Special Credit Pass Mention Substandard Doubtful Impaired Total Residential Mortgage: Residential Mortgage loans - first liens $ 480,338 $ 2,977 $ 9,822 $ 0 $ 77 $ 493,214 Residential Mortgage loans - junior liens 24,990 130 512 0 0 25,632 Home Equity lines of credit 31,115 59 652 0 0 31,826 1-4 Family residential construction 15,621 0 0 0 0 15,621 Total residential mortgage 552,064 3,166 10,986 0 77 566,293 Commercial: Commercial loans secured by real estate 276,776 6,536 9,764 0 228 293,304 Commercial and Industrial 107,788 6,225 2,689 3,500 0 120,202 Small Business Administration - Paycheck Protection Program 97,103 0 0 0 0 97,103 Political subdivisions 43,134 0 0 0 0 43,134 Commercial construction and land 40,082 198 68 0 0 40,348 Loans secured by farmland 9,819 728 886 0 0 11,433 Multi-family (5 or more) residential 29,364 2,434 901 0 0 32,699 Agricultural loans 3,261 0 613 0 0 3,874 Other commercial loans 16,579 0 0 0 0 16,579 Total commercial 623,906 16,121 14,921 3,500 228 658,676 Consumer 16,345 0 99 0 0 16,444 Totals $ 1,192,315 $ 19,287 $ 26,006 $ 3,500 $ 305 $ 1,241,413 December 31, 2019 (In Thousands) Purchased Special Credit Pass Mention Substandard Doubtful Impaired Total Residential Mortgage: Residential Mortgage loans - first liens $ 500,963 $ 193 $ 9,324 $ 84 $ 77 $ 510,641 Residential Mortgage loans - junior liens 26,953 79 471 0 0 27,503 Home Equity lines of credit 33,170 59 409 0 0 33,638 1-4 Family residential construction 14,798 0 0 0 0 14,798 Total residential mortgage 575,884 331 10,204 84 77 586,580 Commercial: Commercial loans secured by real estate 294,397 4,773 1,693 0 364 301,227 Commercial and Industrial 114,293 9,538 2,543 0 0 126,374 Political subdivisions 53,570 0 0 0 0 53,570 Commercial construction and land 32,224 0 1,331 0 0 33,555 Loans secured by farmland 6,528 4,681 1,042 0 0 12,251 Multi-family (5 or more) residential 30,160 0 910 0 0 31,070 Agricultural loans 3,343 335 641 0 0 4,319 Other commercial loans 16,416 0 119 0 0 16,535 Total commercial 550,931 19,327 8,279 0 364 578,901 Consumer 16,720 0 21 0 0 16,741 Totals $ 1,143,535 $ 19,658 $ 18,504 $ 84 $ 441 $ 1,182,222 |
Summary of loan balances and the related allowance for loan losses | Loans: Allowance for Loan Losses: Purchased Individually Collectively Performing Individually Collectively Evaluated Evaluated Loans Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 1,358 $ 391,116 $ 100,740 $ 493,214 $ 10 $ 3,521 $ 3,531 Residential mortgage loans - junior liens 355 23,422 1,855 25,632 154 211 365 Home equity lines of credit 0 30,540 1,286 31,826 0 287 287 1-4 Family residential construction 0 15,621 0 15,621 0 137 137 Total residential mortgage 1,713 460,699 103,881 566,293 164 4,156 4,320 Commercial: Commercial loans secured by real estate 7,501 186,066 99,737 293,304 494 1,932 2,426 Commercial and industrial 4,645 112,891 2,666 120,202 1,264 1,232 2,496 Small Business Administration - Paycheck Protection Program 0 97,103 0 97,103 0 0 0 Political subdivisions 0 43,134 0 43,134 0 0 0 Commercial construction and land 0 40,348 0 40,348 0 420 420 Loans secured by farmland 421 10,758 254 11,433 34 112 146 Multi-family (5 or more) residential 0 11,195 21,504 32,699 0 163 163 Agricultural loans 0 3,874 0 3,874 0 40 40 Other commercial loans 0 16,031 548 16,579 0 167 167 Total commercial 12,567 521,400 124,709 658,676 1,792 4,066 5,858 Consumer 0 16,444 0 16,444 0 263 263 Unallocated 585 Total $ 14,280 $ 998,543 $ 228,590 $ 1,241,413 $ 1,956 $ 8,485 $ 11,026 December 31, 2019 (In Thousands) Loans: Allowance for Loan Losses: Purchased Individually Collectively Performing Individually Collectively Evaluated Evaluated Loans Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 1,023 $ 405,186 $ 104,432 $ 510,641 $ 0 $ 3,405 $ 3,405 Residential mortgage loans - junior liens 368 24,730 2,405 27,503 176 208 384 Home equity lines of credit 0 32,147 1,491 33,638 0 276 276 1-4 Family residential construction 0 14,640 158 14,798 0 117 117 Total residential mortgage 1,391 476,703 108,486 586,580 176 4,006 4,182 Commercial: Commercial loans secured by real estate 684 198,532 102,011 301,227 0 1,921 1,921 Commercial and industrial 1,467 122,313 2,594 126,374 149 1,242 1,391 Political subdivisions 0 53,570 0 53,570 0 0 0 Commercial construction and land 1,261 29,710 2,584 33,555 678 288 966 Loans secured by farmland 607 11,386 258 12,251 48 110 158 Multi-family (5 or more) residential 0 10,617 20,453 31,070 0 156 156 Agricultural loans 76 4,243 0 4,319 0 41 41 Other commercial loans 0 15,947 588 16,535 0 155 155 Total commercial 4,095 446,318 128,488 578,901 875 3,913 4,788 Consumer 0 16,741 0 16,741 0 281 281 Unallocated 585 Total $ 5,486 $ 939,762 $ 236,974 $ 1,182,222 $ 1,051 $ 8,200 $ 9,836 |
Summary of information related to purchased credit impaired loans | (In Thousands) June 30, 2020 December 31, 2019 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Residential mortgage loans - first liens $ 179 $ 152 $ 0 $ 645 $ 617 $ 0 Residential mortgage loans - junior liens 41 41 0 42 42 0 Commercial loans secured by real estate 747 747 0 684 684 0 Commercial and industrial 1,065 1,065 0 563 563 0 Loans secured by farmland 86 86 0 129 129 0 Agricultural loans 0 0 0 76 76 0 Total with no related allowance recorded 2,118 2,091 0 2,139 2,111 0 With a related allowance recorded: Residential mortgage loans - first liens 1,206 1,206 10 406 406 0 Residential mortgage loans - junior liens 314 314 154 326 326 176 Commercial loans secured by real estate 6,754 6,754 494 0 0 0 Commercial and industrial 3,580 3,580 1,264 904 904 149 Construction and other land loans 0 0 0 1,261 1,261 678 Loans secured by farmland 335 335 34 478 478 48 Total with a related allowance recorded 12,189 12,189 1,956 3,375 3,375 1,051 Total $ 14,307 $ 14,280 $ 1,956 $ 5,514 $ 5,486 $ 1,051 |
Schedule of average balances of impaired loans, excluding purchased credit impaired loans, and interest income recognized | (In Thousands) Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 2020 2019 2020 2019 Residential mortgage: Residential mortgage loans - first lien $ 1,398 $ 970 $ 1,315 $ 977 $ 35 $ 8 $ 43 $ 18 Residential mortgage loans - junior lien 391 289 387 290 13 0 13 2 Home equity lines of credit 65 0 65 0 1 0 2 0 Total residential mortgage 1,854 1,259 1,767 1,267 49 8 58 20 Commercial: Commercial loans secured by real estate 3,771 1,722 2,079 2,582 12 7 16 17 Commercial and industrial 4,460 1,241 3,666 1,546 19 8 20 34 Commercial construction and land 678 0 993 0 1 0 13 0 Loans secured by farmland 422 1,533 469 1,471 7 18 24 19 Agricultural loans 76 626 76 639 2 12 2 24 Other commercial loans 25 0 37 0 0 0 1 0 Total commercial 9,432 5,122 7,320 6,238 41 45 76 94 Consumer 0 0 0 6 0 0 0 0 Total $ 11,286 $ 6,381 $ 9,087 $ 7,511 $ 90 $ 53 $ 134 $ 114 |
Schedule of breakdown by portfolio segment and class of non accrual loans | (In Thousands) June 30,2020 December 31,2019 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Residential mortgage: Residential mortgage loans - first liens $ 1,545 $ 5,888 $ 878 $ 4,679 Residential mortgage loans - junior liens 59 344 53 326 Home equity lines of credit 243 273 71 73 1-4 Family residential construction 0 39 0 0 Total residential mortgage 1,847 6,544 1,002 5,078 Commercial: Commercial loans secured by real estate 558 7,482 107 1,148 Commercial and industrial 135 4,227 15 1,051 Commercial construction and land 0 50 0 1,311 Loans secured by farmland 188 421 43 565 Other commercial 0 0 0 49 Total commercial 881 12,180 165 4,124 Consumer 84 39 40 16 Totals $ 2,812 $ 18,763 $ 1,207 $ 9,218 |
Schedule of amounts shown in the table immediately above include loans classified as debt restructurings and contractual aging of loans | (In Thousands) As of June 30, 2020 As of December 31, 2019 Current & Current & Past Due Past Due Past Due Past Due Past Due Past Due Less than 30-89 90+ Less than 30-89 90+ 30 Days Days Days Total 30 Days Days Days Total Residential mortgage: Residential mortgage loans - first liens $ 484,129 $ 5,111 $ 3,974 $ 493,214 $ 499,024 $ 7,839 $ 3,778 $ 510,641 Residential mortgage loans - junior liens 25,482 4 146 25,632 27,041 83 379 27,503 Home equity lines of credit 31,246 337 243 31,826 33,115 452 71 33,638 1-4 Family residential construction 15,621 0 0 15,621 14,758 40 0 14,798 Total residential mortgage 556,478 5,452 4,363 566,293 573,938 8,414 4,228 586,580 Commercial: Commercial loans secured by real estate 291,728 245 1,331 293,304 299,640 737 850 301,227 Commercial and industrial 116,429 67 3,706 120,202 126,221 16 137 126,374 Small Business Administration - Paycheck Protection Program 97,103 0 0 97,103 0 0 0 0 Political subdivisions 43,134 0 0 43,134 53,570 0 0 53,570 Commercial construction and land 39,947 351 50 40,348 33,505 0 50 33,555 Loans secured by farmland 11,159 52 222 11,433 11,455 666 130 12,251 Multi-family (5 or more) residential 32,699 0 0 32,699 31,070 0 0 31,070 Agricultural loans 3,800 74 0 3,874 4,318 1 0 4,319 Other commercial loans 16,553 26 0 16,579 16,535 0 0 16,535 Total commercial 652,552 815 5,309 658,676 576,314 1,420 1,167 578,901 Consumer 16,205 124 115 16,444 16,496 189 56 16,741 Totals $ 1,225,235 $ 6,391 $ 9,787 $ 1,241,413 $ 1,166,748 $ 10,023 $ 5,451 $ 1,182,222 |
Schedule of Non accrual loans are included in the contractual aging | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total June 30, 2020 Nonaccrual Totals $ 10,521 $ 1,267 $ 6,975 $ 18,763 December 31, 2019 Nonaccrual Totals $ 3,840 $ 1,134 $ 4,244 $ 9,218 |
Schedule of outstanding balance of loans as troubled debt restructurings | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total June 30, 2020 Totals $ 172 $ 93 $ 338 $ 452 $ 1,055 December 31, 2019 Totals $ 889 $ 0 $ 0 $ 1,737 $ 2,626 |
Schedule of residential real estate properties as a result of obtaining physical possession | (In Thousands) June 30, Dec. 31, 2020 2019 Foreclosed residential real estate $ 118 $ 292 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) June 30, Dec. 31, 2020 2019 Residential real estate in process of foreclosure $ 1,502 $ 1,717 |
Troubled Debt Restructuring | |
Notes Tables | |
Schedule of outstanding balance of loans as troubled debt restructurings | Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 Post- Post- Number Modification Number Modification of Recorded of Recorded (Balances in Thousands) Loans Investment Loans Investment Commercial and industrial, Interest only payments for a nine-month period 1 $ 240 0 $ 0 (Balances in Thousands) Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Post- Post- Number Modification Number Modification of Recorded of Recorded Loans Investment Loans Investment Residential mortgage - first liens, Reduced monthly payments and extended maturity date 0 $ 0 1 $ 271 Residential mortgage - junior liens: Reduced monthly payments and extended maturity date 0 0 1 18 New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted 1 30 0 0 Commercial and industrial: Reduced monthly payments and extended maturity date 0 0 8 177 Interest only payments for a nine-month period 1 240 0 0 Agricultural loans, Reduced monthly payments and extended maturity date 0 0 1 84 Total 2 $ 270 11 $ 550 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of Goodwill and Intangible Assets | (In Thousands) June 30, December 31, 2020 2019 Gross amount $ 3,495 $ 3,495 Accumulated amortization (2,372) (2,248) Net $ 1,123 $ 1,247 |
Schedule of amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income | Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows: (In Thousands) 3 Months Ended 6 Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Amortization expense $ 62 $ 73 $ 124 $ 75 |
BORROWED FUNDS AND SUBORDINAT_2
BORROWED FUNDS AND SUBORDINATED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of short term borrowings | Short-term borrowings (initial maturity within one year) include the following: (In Thousands) June 30, Dec. 31, 2020 2019 FHLB-Pittsburgh borrowings $ 12,200 $ 84,292 Customer repurchase agreements 2,204 1,928 Total short-term borrowings $ 14,404 $ 86,220 Short-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) June 30, Dec. 31, 2020 2019 Overnight borrowing $ 0 $ 64,000 Other short-term advances 12,200 20,292 Total short-term FHLB-Pittsburgh borrowings $ 12,200 $ 84,292 |
Schedule of long term borrowings | (In Thousands) June 30, Dec. 31, 2020 2019 Loans matured in 2020 with a weighted-average rate of 2.71% $ 0 $ 5,069 Loans maturing in 2021 with a weighted-average rate of 1.63% 20,000 6,000 Loans maturing in 2022 with a weighted-average rate of 1.90% 22,355 20,000 Loans maturing in 2023 with a weighted-average rate of 1.63% 22,500 20,500 Loans maturing in 2024 with a weighted-average rate of 1.27% 7,536 0 Loan maturing in 2025 with a rate of 4.91% 513 558 Total long-term FHLB-Pittsburgh borrowings $ 72,904 $ 52,127 |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of fair Value, by Balance Sheet Grouping | June 30, 2020 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of U.S. Government agencies $ 0 $ 11,673 $ 0 $ 11,673 Obligations of states and political subdivisions: Tax-exempt 0 91,643 0 91,643 Taxable 0 39,784 0 39,784 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 51,520 0 51,520 Residential collateralized mortgage obligations 0 89,435 0 89,435 Commercial mortgage-backed securities 0 48,133 0 48,133 Total available for sale debt Securities 0 332,188 0 332,188 Marketable equity security 1,003 0 0 1,003 Servicing rights 0 0 1,284 1,284 Total recurring fair value measurements $ 1,003 $ 332,188 $ 1,284 $ 334,475 Nonrecurring fair value measurements Impaired loans with a valuation allowance $ 0 $ 0 $ 12,189 $ 12,189 Valuation allowance 0 0 (1,956) (1,956) Impaired loans, net 0 0 10,233 10,233 Foreclosed assets held for sale 0 0 1,593 1,593 Total nonrecurring fair value measurements $ 0 $ 0 $ 11,826 $ 11,826 December 31, 2019 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of U.S. Government agencies $ 0 $ 17,000 $ 0 $ 17,000 Obligations of states and political subdivisions: Tax-exempt 0 70,760 0 70,760 Taxable 0 36,303 0 36,303 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 59,210 0 59,210 Residential collateralized mortgage obligations 0 114,723 0 114,723 Commercial mortgage-backed securities 0 48,727 0 48,727 Total available-for-sale debt securities 0 346,723 0 346,723 Marketable equity security 979 0 0 979 Servicing rights 0 0 1,277 1,277 Total recurring fair value measurements $ 979 $ 346,723 $ 1,277 $ 348,979 Nonrecurring fair value measurements Impaired loans with a valuation allowance $ 0 $ 0 $ 3,375 $ 3,375 Valuation allowance 0 0 (1,051) (1,051) Impaired loans, net 0 0 2,324 2,324 Foreclosed assets held for sale 0 0 2,886 2,886 Total nonrecurring fair value measurements $ 0 $ 0 $ 5,210 $ 5,210 |
Schedule of fair Value Measurement Inputs and Valuation Techniques | Fair Value at 6/30/20 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 6/30/20 Servicing rights $ 1,284 Discounted cash flow Discount rate 12.50 % Rate used through modeling period Loan prepayment speeds 285.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs Fair Value at 12/31/19 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/19 Servicing rights $ 1,277 Discounted cash flow Discount rate 12.50 % Rate used through modeling period Loan prepayment speeds 183.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs |
Schedule of fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | (In Thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Servicing rights balance, beginning of period $ 1,226 $ 1,347 $ 1,277 $ 1,404 Originations of servicing rights 328 46 403 66 Unrealized losses included in earnings (270) (71) (396) (148) Servicing rights balance, end of period $ 1,284 $ 1,322 $ 1,284 $ 1,322 |
Schedule of fair Value Measurements, Recurring and Nonrecurring | (In Thousands) Fair Value June 30, 2020 December 31, 2019 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 73,812 $ 73,812 $ 31,122 $ 31,122 Certificates of deposit Level 2 3,830 4,078 4,080 4,227 Restricted equity securities (included in Other Assets) Level 2 8,861 8,861 10,321 10,321 Loans, net Level 3 1,230,387 1,236,040 1,172,386 1,181,000 Accrued interest receivable Level 2 6,326 6,326 5,001 5,001 Financial liabilities: Deposits with no stated maturity Level 2 1,039,401 1,039,401 877,965 877,965 Time deposits Level 2 341,777 344,959 374,695 376,738 Short-term borrowings Level 2 14,404 14,271 86,220 86,166 Long-term borrowings Level 2 72,904 74,545 52,127 52,040 Accrued interest payable Level 2 312 312 311 311 |
Recurring fair value measurements | |
Notes Tables | |
Schedule of fair Value Measurement Inputs and Valuation Techniques | (In Thousands, Except Weighted Percentages) Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 6/30/20 6/30/20 6/30/20 Technique Inputs 6/30/20 Impaired loans: Residential mortgage loans - first and junior liens $ 1,520 $ 164 $ 1,355 Sales comparison Discount to appraised value 31 % Commercial: Commercial loans secured by real estate 6,754 494 6,261 Sales comparison Discount to appraised value 38 % Commercial and industrial 3,580 1,264 2,316 Liquidation of assets Discount to appraised value 35 % Loans secured by farmland 335 34 302 Sales comparison Discount to appraised value 42 % Total impaired loans $ 12,189 $ 1,956 $ 10,234 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 118 $ 0 $ 118 Sales comparison Discount to appraised value 55 % Land 70 0 70 Sales comparison Discount to appraised value 53 % Commercial real estate 1,405 0 1,405 Sales comparison Discount to appraised value 38 % Total foreclosed assets held for sale $ 1,593 $ 0 $ 1,593 (In Thousands, Except Weighted Percentages) Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/19 12/31/19 12/31/19 Technique Inputs 12/31/19 Impaired loans: Residential mortgage loans - first and junior liens $ 732 $ 176 $ 556 Sales comparison Discount to appraised value 30 % Commercial: Commercial and industrial 106 89 17 Sales comparison Discount to appraised value 69 % Commercial and industrial 798 60 738 Liquidation of accounts receivable Discount to borrower's financial statement value 15 % Commercial construction and land 1,261 678 583 Sales comparison Discount to appraised value 47 % Loans secured by farmland 478 48 430 Sales comparison Discount to appraised value 46 % Total impaired loans $ 3,375 $ 1,051 $ 2,324 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 292 $ 0 $ 292 Sales comparison Discount to appraised value 46 % Land 70 0 70 Sales comparison Discount to appraised value 53 % Commercial real estate 2,524 0 2,524 Sales comparison Discount to appraised value 39 % Total foreclosed assets held for sale $ 2,886 $ 0 $ 2,886 |
BUSINESS COMBINATION AND PEND_2
BUSINESS COMBINATION AND PENDING ACQUISITION (Details) | Jul. 01, 2020USD ($)$ / shares | Apr. 01, 2019USD ($)shares | Jun. 30, 2020USD ($)$ / shares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Goodwill, Ending Balance | $ 28,388,000 | $ 28,388,000 | $ 28,388,000 | $ 28,388,000 | ||||||||
Debt Securities, Available-for-sale, Realized Gain (Loss), Total | 0 | $ 7,000 | 0 | $ 7,000 | ||||||||
Business Combination, Acquisition Related Costs | 983,000 | 3,301,000 | 1,124,000 | 3,612,000 | ||||||||
Assets, Total | 1,745,466,000 | 1,745,466,000 | 1,654,145,000 | 1,745,466,000 | ||||||||
Liabilities, Total | 1,489,675,000 | 1,489,675,000 | 1,409,693,000 | 1,489,675,000 | ||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | $ 255,791,000 | $ 255,791,000 | $ 244,452,000 | 239,716,000 | 255,791,000 | 239,716,000 | $ 251,228,000 | $ 202,127,000 | $ 197,368,000 | |||
Average Closing Share Price (in dollars per share) | $ / shares | $ 20.24 | $ 20.14 | $ 26.05 | |||||||||
Loans receivable | $ 1,241,413,000 | $ 1,241,413,000 | $ 1,182,222,000 | 1,241,413,000 | ||||||||
Monument Bancorp, Inc | ||||||||||||
Business Combination, Consideration Transferred, Total | $ 42,700,000 | |||||||||||
Payments to Acquire Businesses, Cash, Net of Stock Issuance Costs | $ 9,600,000 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | shares | 1,279,825 | |||||||||||
Payments to Acquire Businesses, Cash, Net of Stock Issuance Costs | $ 33,100,000 | |||||||||||
Business Combination, Consideration Transferred, Equity Interest Issuance Costs | 181,000 | |||||||||||
Goodwill, Ending Balance | 16,400,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable | 259,295,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | 223,300,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Short-term Borrowing | 111,600,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Subordinated Debt | 12,400,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 94,600,000 | |||||||||||
Debt Securities, Available-for-sale, Realized Gain (Loss), Total | 0 | |||||||||||
Business Combination, Acquisition Related Costs | $ 3,301,000 | $ 3,612,000 | ||||||||||
Monument Bancorp, Inc | Subordinated debt, Redeemed April 1, 2019 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Subordinated Debt | 5,400,000 | |||||||||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total | 0 | |||||||||||
Monument Bancorp, Inc | Core Deposits | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 1,500,000 | |||||||||||
Covenant Financial Inc. | ||||||||||||
Business Combination, Acquisition Related Costs | 983,000 | 1,124,000 | ||||||||||
Assets, Total | 608,000,000 | 608,000,000 | 608,000,000 | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | 44,000,000 | 44,000,000 | 44,000,000 | |||||||||
Loans receivable | 472,000,000 | 472,000,000 | 472,000,000 | |||||||||
Total deposits | $ 480,000,000 | $ 480,000,000 | $ 480,000,000 | |||||||||
Covenant Financial Inc. | Subsequent event | ||||||||||||
Business Combination, Consideration Transferred, Total | $ 63,300,000 | |||||||||||
Business Combination, Percent Paid in Cash | 25.00% | |||||||||||
Business Combination, Percent Paid in Equity | 75.00% | |||||||||||
Average Closing Share Price (in dollars per share) | $ / shares | $ 20.32 | |||||||||||
Consideration agreed, option one, fraction of shares | 0.6212 | |||||||||||
Consideration agreed, option two, cash per share | $ / shares | $ 16.50 | |||||||||||
Shareholding percentage held in the company by acquiree's shareholders prior to the consummation of merger | 12.90% | |||||||||||
Covenant Financial Inc. | Forecast | ||||||||||||
Business Combination, Acquisition Related Costs | $ 8,000,000 | |||||||||||
Remaining expenses | $ 6,600,000 |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
PER SHARE DATA | ||||
Net income | $ 5,438 | $ 3,649 | $ 9,604 | $ 8,739 |
Less: Dividends and undistributed earnings allocated to participating securities | (33) | (19) | (54) | (46) |
Net income attributable to common shares | $ 5,405 | $ 3,630 | $ 9,550 | $ 8,693 |
Basic weighted-average common shares outstanding (in shares) | 13,710,118 | 13,597,848 | 13,697,617 | 12,956,916 |
Basic earnings per common share (a) (in dollars per share) | $ 0.39 | $ 0.27 | $ 0.70 | $ 0.67 |
Net income attributable to common shares | $ 5,405 | $ 3,630 | $ 9,550 | $ 8,693 |
Dilutive effect of potential common stock arising from stock options (in shares) | 2,269 | 25,106 | 8,116 | 25,445 |
Diluted weighted-average common shares outstanding (in shares) | 13,712,387 | 13,622,954 | 13,705,733 | 12,982,361 |
Diluted earnings per common share (a) (in dollars per share) | $ 0.39 | $ 0.27 | $ 0.70 | $ 0.67 |
Weighted-average nonvested restricted shares outstanding (in shares) | 88,514 | 70,366 | 77,093 | 68,016 |
PER SHARE DATA - Additional Inf
PER SHARE DATA - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
PER SHARE DATA | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 39,012 | 0 | 19,506 | 0 |
COMPREHENSIVE INCOME - Componen
COMPREHENSIVE INCOME - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
COMPREHENSIVE INCOME | ||||
Unrealized holding gains on available-for-sale debt securities | $ 2,835 | $ 5,170 | $ 10,075 | $ 9,431 |
Unrealized holding gains on available-for-sale debt securities, income tax effect | (593) | (1,085) | (2,114) | (1,980) |
Unrealized holding gains on available-for-sale debt securities,Net of Tax Amount | 2,242 | 4,085 | 7,961 | 7,451 |
Reclassification adjustment for (gains) realized in income | (7) | (7) | ||
Reclassification adjustment for (gains) realized in income, Income Tax Effect | 1 | 1 | ||
Reclassification adjustment for (gains) realized in income. Net of Tax Amount | (6) | (6) | ||
Other comprehensive income on available-for-sale debt securities | 5,163 | 9,424 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent | (1,084) | (1,979) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 4,079 | 7,445 | ||
Changes from plan amendments and actuarial gains and losses, before tax amount | 0 | 0 | 88 | 214 |
Changes from plan amendments and actuarial gains and losses, income tax effect | (18) | (45) | ||
Changes from plan amendments and actuarial gains and losses, net of tax amount | 70 | 169 | ||
Amortization of prior service cost and net actuarial gain included in net periodic benefit cost, before tax amount | (6) | (7) | (14) | (15) |
Amortization of prior service cost and net actuarial gain included in net periodic benefit cost, income tax effect | 1 | 1 | 3 | 3 |
Amortization of prior service cost and net actuarial gain included in net periodic benefit cost, net of tax amount | (5) | (6) | (11) | (12) |
Other comprehensive (loss) gain on unfunded retirement obligations | (6) | (7) | 74 | 199 |
Other comprehensive income (loss) on unfunded retirement obligations, income tax effect | (592) | 1 | (15) | (42) |
Other comprehensive income (loss) on unfunded retirement obligations, net of tax amount | 2,237 | (6) | 59 | 157 |
Total other comprehensive income, before tax amount | (2,829) | (5,156) | (10,149) | (9,623) |
Total other comprehensive income (loss), income tax effect | (592) | (1,083) | (2,129) | (2,021) |
Total other comprehensive income, net of tax amount | $ 2,237 | $ 4,073 | $ 8,020 | $ 7,602 |
COMPREHENSIVE INCOME - Changes
COMPREHENSIVE INCOME - Changes in the Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Balance | $ 251,228 | $ 202,127 | $ 244,452 | $ 197,368 |
Other comprehensive income, net | 2,237 | 4,073 | 8,020 | 7,602 |
Balance | 255,791 | 239,716 | 255,791 | 239,716 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Balance | 9,230 | (941) | 3,511 | (4,307) |
Other comprehensive income, net | 2,242 | 4,079 | 7,961 | 7,445 |
Balance | 11,472 | 3,138 | 11,472 | 3,138 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Balance | 244 | 300 | 180 | 137 |
Other comprehensive income, net | (5) | (6) | 59 | 157 |
Balance | 239 | 294 | 239 | 294 |
AOCI Attributable to Parent | ||||
Balance | 9,474 | (641) | 3,691 | (4,170) |
Other comprehensive income, net | 2,237 | 4,073 | 8,020 | 7,602 |
Balance | $ 11,711 | $ 3,432 | $ 11,711 | $ 3,432 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 73,812 | $ 31,122 |
Certificates of deposit | 3,830 | 4,080 |
Total cash and due from banks | $ 77,642 | $ 35,202 |
CASH AND DUE FROM BANKS - Addit
CASH AND DUE FROM BANKS - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
CASH AND DUE FROM BANKS | |||
Cash Reserve Deposit Required and Made | $ 0 | $ 0 | |
Restricted Cash and Cash Equivalents, Current, Total | $ 20,148,000 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale securities, amortized cost | $ 317,668 | $ 342,278 |
Available-for-sale securities, gross unrealized holding gains | 14,651 | 5,407 |
Available-for-sale securities, gross unrealized holding losses | (131) | (962) |
Available-for-sale debt securities, at fair value | 332,188 | 346,723 |
Obligations of U.S. Government agencies | ||
Available-for-sale securities, amortized cost | 10,706 | 16,380 |
Available-for-sale securities, gross unrealized holding gains | 967 | 620 |
Available-for-sale securities, gross unrealized holding losses | 0 | 0 |
Available-for-sale debt securities, at fair value | 11,673 | 17,000 |
Obligations of States and Political Subdivisions Tax Exempt | ||
Available-for-sale securities, amortized cost | 86,897 | 68,787 |
Available-for-sale securities, gross unrealized holding gains | 4,786 | 2,011 |
Available-for-sale securities, gross unrealized holding losses | (40) | (38) |
Available-for-sale debt securities, at fair value | 91,643 | 70,760 |
Obligations of States and Political Subdivisions Taxable | ||
Available-for-sale securities, amortized cost | 38,022 | 35,446 |
Available-for-sale securities, gross unrealized holding gains | 1,810 | 927 |
Available-for-sale securities, gross unrealized holding losses | (48) | (70) |
Available-for-sale debt securities, at fair value | 39,784 | 36,303 |
Residential Pass-Through Securities | ||
Available-for-sale securities, amortized cost | 49,852 | 58,875 |
Available-for-sale securities, gross unrealized holding gains | 1,668 | 472 |
Available-for-sale securities, gross unrealized holding losses | 0 | (137) |
Available-for-sale debt securities, at fair value | 51,520 | 59,210 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale securities, amortized cost | 87,527 | 115,025 |
Available-for-sale securities, gross unrealized holding gains | 1,951 | 308 |
Available-for-sale securities, gross unrealized holding losses | (43) | (610) |
Available-for-sale debt securities, at fair value | 89,435 | 114,723 |
Commercial Mortgage Backed Securities | ||
Available-for-sale securities, amortized cost | 44,664 | 47,765 |
Available-for-sale securities, gross unrealized holding gains | 3,469 | 1,069 |
Available-for-sale securities, gross unrealized holding losses | 0 | (107) |
Available-for-sale debt securities, at fair value | $ 48,133 | $ 48,727 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | $ 14,028 | $ 53,233 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (131) | (336) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 53,990 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | (626) |
Available-for-sale securities with unrealized loss positions, fair value | 14,028 | 107,223 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (131) | (962) |
Obligations of States and Political Subdivisions Tax Exempt | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 3,743 | 6,429 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (40) | (38) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 3,743 | 6,429 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (40) | (38) |
Obligations of States and Political Subdivisions Taxable | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 1,476 | 5,624 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (48) | (68) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 161 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | (2) |
Available-for-sale securities with unrealized loss positions, fair value | 1,476 | 5,785 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (48) | (70) |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 8,809 | 31,409 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (43) | (195) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 30,535 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | (415) |
Available-for-sale securities with unrealized loss positions, fair value | 8,809 | 61,944 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (43) | (610) |
Residential Pass-Through Securities | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 9,771 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (35) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 14,787 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (102) | |
Available-for-sale securities with unrealized loss positions, fair value | 24,558 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (137) | |
Commercial Mortgage Backed Securities | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 8,507 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (107) | |
Available-for-sale securities with unrealized loss positions, fair value | 8,507 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (107) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
SECURITIES | ||||
Gross realized gains from sales | $ 0 | $ 7 | $ 52 | $ 7 |
Gross realized losses from sales | 0 | 0 | (52) | 0 |
Net realized gains | $ 0 | $ 7 | $ 0 | $ 7 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Due in one year or less, amortized cost | $ 7,369 | |
Due in one year or less, fair value | 7,414 | |
Due from one year through five years. amortized cost | 33,740 | |
Due from one year through five years, fair value | 35,119 | |
Due from five years through ten years, amortized cost | 38,294 | |
Due from five years through ten years, fair value | 40,729 | |
Due after ten years, amortized cost | 56,222 | |
Due after ten years, fair value | 59,838 | |
Sub-total, amortized cost | 135,625 | |
Sub-total, fair value | 143,100 | |
Total, amortized cost | 317,668 | $ 342,278 |
Total, fair value | 332,188 | 346,723 |
Residential Pass-Through Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 49,852 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 51,520 | |
Total, amortized cost | 49,852 | 58,875 |
Total, fair value | 51,520 | 59,210 |
Residential Collateralized Mortgage Obligations | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 87,527 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 89,435 | |
Total, amortized cost | 87,527 | 115,025 |
Total, fair value | 89,435 | $ 114,723 |
Commercial Mortgage-backed Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 44,664 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | $ 48,133 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Equity Securities, FV-NI | $ 1,003,000 | $ 979,000 |
Mutual Fund | ||
Equity Securities Unrealized Loss Cumulative Amount | 21,000 | |
Equity Securities Unrealized Gain Cumulative Amount | 3,000 | |
Other Assets | Federal Home Loan Bank of Pittsburgh | ||
Federal Home Loan Bank Stock | 8,671,000 | 10,131,000 |
Investment Securities [Member] | ||
Debt Securities, Available-for-sale, Restricted | $ 196,620,000 | $ 215,270,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans receivable | $ 1,241,413 | $ 1,182,222 | ||||
Allowance for loan losses | (11,026) | $ (11,330) | (9,836) | $ (8,200) | $ (8,256) | $ (9,309) |
Loans, net | 1,230,387 | 1,172,386 | ||||
Residential mortgage | ||||||
Loans receivable | 566,293 | 586,580 | ||||
Allowance for loan losses | (4,320) | (4,383) | (4,182) | (3,963) | (3,991) | (3,986) |
Residential mortgage | Real estate loan | first liens | ||||||
Loans receivable | 493,214 | 510,641 | ||||
Allowance for loan losses | (3,531) | (3,572) | (3,405) | (3,130) | (3,178) | (3,156) |
Residential mortgage | Real estate loan | junior liens | ||||||
Loans receivable | 25,632 | 27,503 | ||||
Allowance for loan losses | (365) | (414) | (384) | (333) | (329) | (325) |
Residential mortgage | Home equity lines of credit | ||||||
Loans receivable | 31,826 | 33,638 | ||||
Allowance for loan losses | (287) | (278) | (276) | (280) | (286) | (302) |
Residential mortgage | Construction Loans | ||||||
Loans receivable | 15,621 | 14,798 | ||||
Allowance for loan losses | (137) | (119) | (117) | (220) | (198) | (203) |
Commercial | ||||||
Loans receivable | 658,676 | 578,901 | ||||
Allowance for loan losses | (5,858) | (6,089) | (4,788) | (3,388) | (3,444) | (4,591) |
Commercial | Real estate loan | ||||||
Loans receivable | 293,304 | 301,227 | ||||
Allowance for loan losses | (2,426) | (1,932) | (1,921) | (1,577) | (1,887) | (2,538) |
Commercial | Construction Loans | ||||||
Loans receivable | 40,348 | 33,555 | ||||
Allowance for loan losses | (420) | (970) | (966) | (152) | (114) | (110) |
Commercial | Commercial and industrial | ||||||
Loans receivable | 120,202 | 126,374 | ||||
Allowance for loan losses | (2,496) | (2,645) | (1,391) | (1,246) | (1,069) | (1,553) |
Commercial | Small Business Administration - Paycheck Protection Program | ||||||
Loans receivable | 97,103 | 0 | ||||
Allowance for loan losses | 0 | |||||
Commercial | Political subdivisions | ||||||
Loans receivable | 43,134 | 53,570 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Loans secured by farm land | ||||||
Loans receivable | 11,433 | 12,251 | ||||
Allowance for loan losses | (146) | (144) | (158) | (102) | (98) | (102) |
Commercial | Multi-family (5 or more) residential | ||||||
Loans receivable | 32,699 | 31,070 | ||||
Allowance for loan losses | (163) | (199) | (156) | (150) | (112) | (114) |
Commercial | Agricultural loans | ||||||
Loans receivable | 3,874 | 4,319 | ||||
Allowance for loan losses | (40) | (39) | (41) | (42) | (43) | (46) |
Commercial | Other commercial loans | ||||||
Loans receivable | 16,579 | 16,535 | ||||
Allowance for loan losses | (167) | (160) | (155) | (119) | (121) | (128) |
Consumer | ||||||
Loans receivable | 16,444 | 16,741 | ||||
Allowance for loan losses | $ (263) | $ (273) | $ (281) | $ (264) | $ (236) | $ (233) |
LOANS - Adjustments to Initial
LOANS - Adjustments to Initial Discounts and Carrying Amounts of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Market Rate Adjustment | ||||
Adjustments to gross amortized cost of loans, Beginning balance | $ (1,268) | $ 0 | $ (1,415) | $ 0 |
Adjustment recorded in acquisition | 0 | (1,807) | 0 | (1,807) |
Accretion recognized in interest income | 165 | 149 | 312 | 149 |
Adjustments to gross amortized cost of loans, Ending balance | (1,103) | (1,658) | (1,103) | (1,658) |
Credit Adjustment on Non-impaired Loans | ||||
Adjustments to gross amortized cost of loans, Beginning balance | (1,011) | 0 | (1,216) | 0 |
Adjustment recorded in acquisition | 0 | (1,914) | 0 | (1,914) |
Accretion recognized in interest income | 133 | 261 | 338 | 261 |
Adjustments to gross amortized cost of loans, Ending balance | $ (878) | $ (1,653) | $ (878) | $ (1,653) |
LOANS - Summary of PCI Loans He
LOANS - Summary of PCI Loans Held (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
LOANS | ||
Outstanding balance | $ 407 | $ 759 |
Carrying amount | $ 305 | $ 441 |
LOANS - Loans Modified Under Co
LOANS - Loans Modified Under Covid-19 Program (Details) $ in Thousands | Jul. 31, 2020USD ($)loan | Jun. 30, 2020USD ($)loan |
Loans Modified, Number of Loans | loan | 541 | |
Loans Modified, Recorded Investment | $ | $ 158,718 | |
Subsequent event | ||
Loans Modified, Number of Loans | loan | 78 | |
Loans Modified, Recorded Investment | $ | $ 29,618 | |
Residential mortgage | ||
Loans Modified, Number of Loans | loan | 307 | |
Loans Modified, Recorded Investment | $ | $ 40,930 | |
Residential mortgage | Subsequent event | ||
Loans Modified, Number of Loans | loan | 54 | |
Loans Modified, Recorded Investment | $ | $ 7,130 | |
Consumer | ||
Loans Modified, Number of Loans | loan | 36 | |
Loans Modified, Recorded Investment | $ | $ 364 | |
Commercial | ||
Loans Modified, Number of Loans | loan | 198 | |
Loans Modified, Recorded Investment | $ | $ 117,424 | |
Commercial | Subsequent event | ||
Loans Modified, Number of Loans | loan | 24 | |
Loans Modified, Recorded Investment | $ | $ 22,488 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for Loan losses | $ 11,330,000 | $ 8,256,000 | $ 9,836,000 | $ 9,309,000 |
Allowance for Loan losses, Charge-offs | (146,000) | (68,000) | (194,000) | (179,000) |
Allowance for Loan losses, Recoveries | 18,000 | 16,000 | 32,000 | 31,000 |
Allowance for Loan losses, Provision (Credit) | (176,000) | (4,000) | 1,352,000 | (961,000) |
Allowance for Loan losses | 11,026,000 | 8,200,000 | 11,026,000 | 8,200,000 |
Residential mortgage | ||||
Allowance for Loan losses | 4,383,000 | 3,991,000 | 4,182,000 | 3,986,000 |
Allowance for Loan losses, Charge-offs | 0 | (33,000) | 0 | (107,000) |
Allowance for Loan losses, Recoveries | 2,000 | 2,000 | 5,000 | 6,000 |
Allowance for Loan losses, Provision (Credit) | (65,000) | 3,000 | 133,000 | 78,000 |
Allowance for Loan losses | 4,320,000 | 3,963,000 | 4,320,000 | 3,963,000 |
Residential mortgage | Real estate loan | first liens | ||||
Allowance for Loan losses | 3,572,000 | 3,178,000 | 3,405,000 | 3,156,000 |
Allowance for Loan losses, Charge-offs | 0 | (33,000) | 0 | (83,000) |
Allowance for Loan losses, Recoveries | 1,000 | 1,000 | 2,000 | 2,000 |
Allowance for Loan losses, Provision (Credit) | (42,000) | (16,000) | 124,000 | 55,000 |
Allowance for Loan losses | 3,531,000 | 3,130,000 | 3,531,000 | 3,130,000 |
Residential mortgage | Real estate loan | junior liens | ||||
Allowance for Loan losses | 414,000 | 329,000 | 384,000 | 325,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | (24,000) |
Allowance for Loan losses, Recoveries | 0 | 0 | 1,000 | 0 |
Allowance for Loan losses, Provision (Credit) | (49,000) | 4,000 | (20,000) | 32,000 |
Allowance for Loan losses | 365,000 | 333,000 | 365,000 | 333,000 |
Residential mortgage | Home equity lines of credit | ||||
Allowance for Loan losses | 278,000 | 286,000 | 276,000 | 302,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 1,000 | 1,000 | 2,000 | 4,000 |
Allowance for Loan losses, Provision (Credit) | 8,000 | (7,000) | 9,000 | (26,000) |
Allowance for Loan losses | 287,000 | 280,000 | 287,000 | 280,000 |
Residential mortgage | Construction Loans | ||||
Allowance for Loan losses | 119,000 | 198,000 | 117,000 | 203,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 18,000 | 22,000 | 20,000 | 17,000 |
Allowance for Loan losses | 137,000 | 220,000 | 137,000 | 220,000 |
Commercial | ||||
Allowance for Loan losses | 6,089,000 | 3,444,000 | 4,788,000 | 4,591,000 |
Allowance for Loan losses, Charge-offs | (107,000) | (6,000) | (124,000) | (6,000) |
Allowance for Loan losses, Recoveries | 0 | 1,000 | 0 | 3,000 |
Allowance for Loan losses, Provision (Credit) | (124,000) | (51,000) | 1,194,000 | (1,200,000) |
Allowance for Loan losses | 5,858,000 | 3,388,000 | 5,858,000 | 3,388,000 |
Commercial | Real estate loan | ||||
Allowance for Loan losses | 1,932,000 | 1,887,000 | 1,921,000 | 2,538,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 494,000 | (310,000) | 505,000 | (961,000) |
Allowance for Loan losses | 2,426,000 | 1,577,000 | 2,426,000 | 1,577,000 |
Commercial | Construction Loans | ||||
Allowance for Loan losses | 970,000 | 114,000 | 966,000 | 110,000 |
Allowance for Loan losses, Charge-offs | (107,000) | 0 | (107,000) | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (443,000) | 38,000 | (439,000) | 42,000 |
Allowance for Loan losses | 420,000 | 152,000 | 420,000 | 152,000 |
Commercial | Commercial and industrial | ||||
Allowance for Loan losses | 2,645,000 | 1,069,000 | 1,391,000 | 1,553,000 |
Allowance for Loan losses, Charge-offs | 0 | (6,000) | (17,000) | (6,000) |
Allowance for Loan losses, Recoveries | 0 | 1,000 | 0 | 3,000 |
Allowance for Loan losses, Provision (Credit) | (149,000) | 182,000 | 1,122,000 | (304,000) |
Allowance for Loan losses | 2,496,000 | 1,246,000 | 2,496,000 | 1,246,000 |
Commercial | Loans secured by farm land | ||||
Allowance for Loan losses | 144,000 | 98,000 | 158,000 | 102,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 2,000 | 4,000 | (12,000) | 0 |
Allowance for Loan losses | 146,000 | 102,000 | 146,000 | 102,000 |
Commercial | Multi-family (5 or more) residential | ||||
Allowance for Loan losses | 199,000 | 112,000 | 156,000 | 114,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (36,000) | 38,000 | 7,000 | 36,000 |
Allowance for Loan losses | 163,000 | 150,000 | 163,000 | 150,000 |
Commercial | Agricultural loans | ||||
Allowance for Loan losses | 39,000 | 43,000 | 41,000 | 46,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 1,000 | (1,000) | (1,000) | (4,000) |
Allowance for Loan losses | 40,000 | 42,000 | 40,000 | 42,000 |
Commercial | Other commercial loans | ||||
Allowance for Loan losses | 160,000 | 121,000 | 155,000 | 128,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 7,000 | (2,000) | 12,000 | (9,000) |
Allowance for Loan losses | 167,000 | 119,000 | 167,000 | 119,000 |
Consumer | ||||
Allowance for Loan losses | 273,000 | 236,000 | 281,000 | 233,000 |
Allowance for Loan losses, Charge-offs | (39,000) | (29,000) | (70,000) | (66,000) |
Allowance for Loan losses, Recoveries | 16,000 | 13,000 | 27,000 | 22,000 |
Allowance for Loan losses, Provision (Credit) | 13,000 | 44,000 | 25,000 | 75,000 |
Allowance for Loan losses | 263,000 | 264,000 | 263,000 | 264,000 |
Unallocated | ||||
Allowance for Loan losses | 585,000 | 585,000 | 585,000 | 499,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 0 | 0 | 0 | 86,000 |
Allowance for Loan losses | $ 585,000 | $ 585,000 | $ 585,000 | $ 585,000 |
LOANS - Outstanding Loans by Ri
LOANS - Outstanding Loans by Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans receivable | $ 1,241,413 | $ 1,182,222 |
Purchased Credit Impaired | ||
Loans receivable | 305 | 441 |
Residential mortgage | ||
Loans receivable | 566,293 | 586,580 |
Residential mortgage | Purchased Credit Impaired | ||
Loans receivable | 77 | 77 |
Residential mortgage | Real estate loan | first liens | ||
Loans receivable | 493,214 | 510,641 |
Residential mortgage | Real estate loan | first liens | Purchased Credit Impaired | ||
Loans receivable | 77 | 77 |
Residential mortgage | Real estate loan | junior liens | ||
Loans receivable | 25,632 | 27,503 |
Residential mortgage | Real estate loan | junior liens | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
Loans receivable | 31,826 | 33,638 |
Residential mortgage | Home equity lines of credit | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Residential mortgage | Construction Loans | ||
Loans receivable | 15,621 | 14,798 |
Residential mortgage | Construction Loans | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | ||
Loans receivable | 658,676 | 578,901 |
Commercial | Purchased Credit Impaired | ||
Loans receivable | 228 | 364 |
Commercial | Real estate loan | ||
Loans receivable | 293,304 | 301,227 |
Commercial | Real estate loan | Purchased Credit Impaired | ||
Loans receivable | 228 | 364 |
Commercial | Construction Loans | ||
Loans receivable | 40,348 | 33,555 |
Commercial | Construction Loans | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Commercial and industrial | ||
Loans receivable | 120,202 | 126,374 |
Commercial | Commercial and industrial | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans receivable | 97,103 | 0 |
Commercial | Small Business Administration - Paycheck Protection Program | Purchased Credit Impaired | ||
Loans receivable | 0 | |
Commercial | Political subdivisions | ||
Loans receivable | 43,134 | 53,570 |
Commercial | Political subdivisions | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Loans secured by farm land | ||
Loans receivable | 11,433 | 12,251 |
Commercial | Loans secured by farm land | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
Loans receivable | 32,699 | 31,070 |
Commercial | Multi-family (5 or more) residential | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Agricultural loans | ||
Loans receivable | 3,874 | 4,319 |
Commercial | Agricultural loans | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Commercial | Other commercial loans | ||
Loans receivable | 16,579 | 16,535 |
Commercial | Other commercial loans | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Consumer | ||
Loans receivable | 16,444 | 16,741 |
Consumer | Purchased Credit Impaired | ||
Loans receivable | 0 | 0 |
Pass | ||
Loans receivable | 1,192,315 | 1,143,535 |
Pass | Residential mortgage | ||
Loans receivable | 552,064 | 575,884 |
Pass | Residential mortgage | Real estate loan | first liens | ||
Loans receivable | 480,338 | 500,963 |
Pass | Residential mortgage | Real estate loan | junior liens | ||
Loans receivable | 24,990 | 26,953 |
Pass | Residential mortgage | Home equity lines of credit | ||
Loans receivable | 31,115 | 33,170 |
Pass | Residential mortgage | Construction Loans | ||
Loans receivable | 15,621 | 14,798 |
Pass | Commercial | ||
Loans receivable | 623,906 | 550,931 |
Pass | Commercial | Real estate loan | ||
Loans receivable | 276,776 | 294,397 |
Pass | Commercial | Construction Loans | ||
Loans receivable | 40,082 | 32,224 |
Pass | Commercial | Commercial and industrial | ||
Loans receivable | 107,788 | 114,293 |
Pass | Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans receivable | 97,103 | |
Pass | Commercial | Political subdivisions | ||
Loans receivable | 43,134 | 53,570 |
Pass | Commercial | Loans secured by farm land | ||
Loans receivable | 9,819 | 6,528 |
Pass | Commercial | Multi-family (5 or more) residential | ||
Loans receivable | 29,364 | 30,160 |
Pass | Commercial | Agricultural loans | ||
Loans receivable | 3,261 | 3,343 |
Pass | Commercial | Other commercial loans | ||
Loans receivable | 16,579 | 16,416 |
Pass | Consumer | ||
Loans receivable | 16,345 | 16,720 |
Special Mention | ||
Loans receivable | 19,287 | 19,658 |
Special Mention | Residential mortgage | ||
Loans receivable | 3,166 | 331 |
Special Mention | Residential mortgage | Real estate loan | first liens | ||
Loans receivable | 2,977 | 193 |
Special Mention | Residential mortgage | Real estate loan | junior liens | ||
Loans receivable | 130 | 79 |
Special Mention | Residential mortgage | Home equity lines of credit | ||
Loans receivable | 59 | 59 |
Special Mention | Residential mortgage | Construction Loans | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | ||
Loans receivable | 16,121 | 19,327 |
Special Mention | Commercial | Real estate loan | ||
Loans receivable | 6,536 | 4,773 |
Special Mention | Commercial | Construction Loans | ||
Loans receivable | 198 | 0 |
Special Mention | Commercial | Commercial and industrial | ||
Loans receivable | 6,225 | 9,538 |
Special Mention | Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans receivable | 0 | |
Special Mention | Commercial | Political subdivisions | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Loans secured by farm land | ||
Loans receivable | 728 | 4,681 |
Special Mention | Commercial | Multi-family (5 or more) residential | ||
Loans receivable | 2,434 | 0 |
Special Mention | Commercial | Agricultural loans | ||
Loans receivable | 0 | 335 |
Special Mention | Commercial | Other commercial loans | ||
Loans receivable | 0 | 0 |
Special Mention | Consumer | ||
Loans receivable | 0 | 0 |
Substandard | ||
Loans receivable | 26,006 | 18,504 |
Substandard | Residential mortgage | ||
Loans receivable | 10,986 | 10,204 |
Substandard | Residential mortgage | Real estate loan | first liens | ||
Loans receivable | 9,822 | 9,324 |
Substandard | Residential mortgage | Real estate loan | junior liens | ||
Loans receivable | 512 | 471 |
Substandard | Residential mortgage | Home equity lines of credit | ||
Loans receivable | 652 | 409 |
Substandard | Residential mortgage | Construction Loans | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | ||
Loans receivable | 14,921 | 8,279 |
Substandard | Commercial | Real estate loan | ||
Loans receivable | 9,764 | 1,693 |
Substandard | Commercial | Construction Loans | ||
Loans receivable | 68 | 1,331 |
Substandard | Commercial | Commercial and industrial | ||
Loans receivable | 2,689 | 2,543 |
Substandard | Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans receivable | 0 | |
Substandard | Commercial | Political subdivisions | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Loans secured by farm land | ||
Loans receivable | 886 | 1,042 |
Substandard | Commercial | Multi-family (5 or more) residential | ||
Loans receivable | 901 | 910 |
Substandard | Commercial | Agricultural loans | ||
Loans receivable | 613 | 641 |
Substandard | Commercial | Other commercial loans | ||
Loans receivable | 0 | 119 |
Substandard | Consumer | ||
Loans receivable | 99 | 21 |
Doubtful | ||
Loans receivable | 3,500 | 84 |
Doubtful | Residential mortgage | ||
Loans receivable | 0 | 84 |
Doubtful | Residential mortgage | Real estate loan | first liens | ||
Loans receivable | 0 | 84 |
Doubtful | Residential mortgage | Real estate loan | junior liens | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Home equity lines of credit | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Construction Loans | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | ||
Loans receivable | 3,500 | 0 |
Doubtful | Commercial | Real estate loan | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Construction Loans | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Commercial and industrial | ||
Loans receivable | 3,500 | 0 |
Doubtful | Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans receivable | 0 | |
Doubtful | Commercial | Political subdivisions | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Loans secured by farm land | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Multi-family (5 or more) residential | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Agricultural loans | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Other commercial loans | ||
Loans receivable | 0 | 0 |
Doubtful | Consumer | ||
Loans receivable | $ 0 | $ 0 |
LOANS - Loan Balances and Allow
LOANS - Loan Balances and Allowance for Loan Losses for Each Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans receivable: Individually Evaluated | $ 14,280 | $ 5,486 | ||||
Loans receivable: Collectively Evaluated | 998,543 | 939,762 | ||||
Loans receivable | 1,241,413 | 1,182,222 | ||||
Allowance for loan losses: individually evaluated | 1,956 | 1,051 | ||||
Allowance for loan losses: collectively evaluated | 8,485 | 8,200 | ||||
Allowance for loan losses | 11,026 | $ 11,330 | 9,836 | $ 8,200 | $ 8,256 | $ 9,309 |
Purchased Performing Loans | ||||||
Loans receivable | 228,590 | 236,974 | ||||
Residential mortgage | ||||||
Loans receivable: Individually Evaluated | 1,713 | 1,391 | ||||
Loans receivable: Collectively Evaluated | 460,699 | 476,703 | ||||
Loans receivable | 566,293 | 586,580 | ||||
Allowance for loan losses: individually evaluated | 164 | 176 | ||||
Allowance for loan losses: collectively evaluated | 4,156 | 4,006 | ||||
Allowance for loan losses | 4,320 | 4,383 | 4,182 | 3,963 | 3,991 | 3,986 |
Residential mortgage | Purchased Performing Loans | ||||||
Loans receivable | 103,881 | 108,486 | ||||
Residential mortgage | Real estate loan | first liens | ||||||
Loans receivable: Individually Evaluated | 1,358 | 1,023 | ||||
Loans receivable: Collectively Evaluated | 391,116 | 405,186 | ||||
Loans receivable | 493,214 | 510,641 | ||||
Allowance for loan losses: individually evaluated | 10 | 0 | ||||
Allowance for loan losses: collectively evaluated | 3,521 | 3,405 | ||||
Allowance for loan losses | 3,531 | 3,572 | 3,405 | 3,130 | 3,178 | 3,156 |
Residential mortgage | Real estate loan | first liens | Purchased Performing Loans | ||||||
Loans receivable | 100,740 | 104,432 | ||||
Residential mortgage | Real estate loan | junior liens | ||||||
Loans receivable: Individually Evaluated | 355 | 368 | ||||
Loans receivable: Collectively Evaluated | 23,422 | 24,730 | ||||
Loans receivable | 25,632 | 27,503 | ||||
Allowance for loan losses: individually evaluated | 154 | 176 | ||||
Allowance for loan losses: collectively evaluated | 211 | 208 | ||||
Allowance for loan losses | 365 | 414 | 384 | 333 | 329 | 325 |
Residential mortgage | Real estate loan | junior liens | Purchased Performing Loans | ||||||
Loans receivable | 1,855 | 2,405 | ||||
Residential mortgage | Home equity lines of credit | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 30,540 | 32,147 | ||||
Loans receivable | 31,826 | 33,638 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 287 | 276 | ||||
Allowance for loan losses | 287 | 278 | 276 | 280 | 286 | 302 |
Residential mortgage | Home equity lines of credit | Purchased Performing Loans | ||||||
Loans receivable | 1,286 | 1,491 | ||||
Residential mortgage | Construction Loans | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 15,621 | 14,640 | ||||
Loans receivable | 15,621 | 14,798 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 137 | 117 | ||||
Allowance for loan losses | 137 | 119 | 117 | 220 | 198 | 203 |
Residential mortgage | Construction Loans | Purchased Performing Loans | ||||||
Loans receivable | 0 | 158 | ||||
Commercial | ||||||
Loans receivable: Individually Evaluated | 12,567 | 4,095 | ||||
Loans receivable: Collectively Evaluated | 521,400 | 446,318 | ||||
Loans receivable | 658,676 | 578,901 | ||||
Allowance for loan losses: individually evaluated | 1,792 | 875 | ||||
Allowance for loan losses: collectively evaluated | 4,066 | 3,913 | ||||
Allowance for loan losses | 5,858 | 6,089 | 4,788 | 3,388 | 3,444 | 4,591 |
Commercial | Purchased Performing Loans | ||||||
Loans receivable | 124,709 | 128,488 | ||||
Commercial | Real estate loan | ||||||
Loans receivable: Individually Evaluated | 7,501 | 684 | ||||
Loans receivable: Collectively Evaluated | 186,066 | 198,532 | ||||
Loans receivable | 293,304 | 301,227 | ||||
Allowance for loan losses: individually evaluated | 494 | 0 | ||||
Allowance for loan losses: collectively evaluated | 1,932 | 1,921 | ||||
Allowance for loan losses | 2,426 | 1,932 | 1,921 | 1,577 | 1,887 | 2,538 |
Commercial | Real estate loan | Purchased Performing Loans | ||||||
Loans receivable | 99,737 | 102,011 | ||||
Commercial | Construction Loans | ||||||
Loans receivable: Individually Evaluated | 0 | 1,261 | ||||
Loans receivable: Collectively Evaluated | 40,348 | 29,710 | ||||
Loans receivable | 40,348 | 33,555 | ||||
Allowance for loan losses: individually evaluated | 0 | 678 | ||||
Allowance for loan losses: collectively evaluated | 420 | 288 | ||||
Allowance for loan losses | 420 | 970 | 966 | 152 | 114 | 110 |
Commercial | Construction Loans | Purchased Performing Loans | ||||||
Loans receivable | 0 | 2,584 | ||||
Commercial | Commercial and industrial | ||||||
Loans receivable: Individually Evaluated | 4,645 | 1,467 | ||||
Loans receivable: Collectively Evaluated | 112,891 | 122,313 | ||||
Loans receivable | 120,202 | 126,374 | ||||
Allowance for loan losses: individually evaluated | 1,264 | 149 | ||||
Allowance for loan losses: collectively evaluated | 1,232 | 1,242 | ||||
Allowance for loan losses | 2,496 | 2,645 | 1,391 | 1,246 | 1,069 | 1,553 |
Commercial | Commercial and industrial | Purchased Performing Loans | ||||||
Loans receivable | 2,666 | 2,594 | ||||
Commercial | Small Business Administration - Paycheck Protection Program | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 97,103 | |||||
Loans receivable | 97,103 | 0 | ||||
Allowance for loan losses: individually evaluated | 0 | |||||
Allowance for loan losses: collectively evaluated | 0 | |||||
Allowance for loan losses | 0 | |||||
Commercial | Small Business Administration - Paycheck Protection Program | Purchased Performing Loans | ||||||
Loans receivable | 0 | |||||
Commercial | Political subdivisions | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 43,134 | 53,570 | ||||
Loans receivable | 43,134 | 53,570 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Political subdivisions | Purchased Performing Loans | ||||||
Loans receivable | 0 | 0 | ||||
Commercial | Loans secured by farm land | ||||||
Loans receivable: Individually Evaluated | 421 | 607 | ||||
Loans receivable: Collectively Evaluated | 10,758 | 11,386 | ||||
Loans receivable | 11,433 | 12,251 | ||||
Allowance for loan losses: individually evaluated | 34 | 48 | ||||
Allowance for loan losses: collectively evaluated | 112 | 110 | ||||
Allowance for loan losses | 146 | 144 | 158 | 102 | 98 | 102 |
Commercial | Loans secured by farm land | Purchased Performing Loans | ||||||
Loans receivable | 254 | 258 | ||||
Commercial | Multi-family (5 or more) residential | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 11,195 | 10,617 | ||||
Loans receivable | 32,699 | 31,070 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 163 | 156 | ||||
Allowance for loan losses | 163 | 199 | 156 | 150 | 112 | 114 |
Commercial | Multi-family (5 or more) residential | Purchased Performing Loans | ||||||
Loans receivable | 21,504 | 20,453 | ||||
Commercial | Agricultural loans | ||||||
Loans receivable: Individually Evaluated | 0 | 76 | ||||
Loans receivable: Collectively Evaluated | 3,874 | 4,243 | ||||
Loans receivable | 3,874 | 4,319 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 40 | 41 | ||||
Allowance for loan losses | 40 | 39 | 41 | 42 | 43 | 46 |
Commercial | Agricultural loans | Purchased Performing Loans | ||||||
Loans receivable | 0 | 0 | ||||
Commercial | Other commercial loans | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 16,031 | 15,947 | ||||
Loans receivable | 16,579 | 16,535 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 167 | 155 | ||||
Allowance for loan losses | 167 | 160 | 155 | 119 | 121 | 128 |
Commercial | Other commercial loans | Purchased Performing Loans | ||||||
Loans receivable | 548 | 588 | ||||
Consumer | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 16,444 | 16,741 | ||||
Loans receivable | 16,444 | 16,741 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 263 | 281 | ||||
Allowance for loan losses | 263 | 273 | 281 | 264 | 236 | 233 |
Consumer | Purchased Performing Loans | ||||||
Loans receivable | 0 | 0 | ||||
Unallocated | ||||||
Loans receivable: Individually Evaluated | 585 | |||||
Allowance for loan losses | $ 585 | $ 585 | $ 585 | $ 585 | $ 585 | $ 499 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Unpaid Principal Balance - with no allowance | $ 2,118,000 | $ 2,139,000 | |
Recorded Investment - with no allowance | 2,091,000 | 2,111,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 12,189,000 | 3,375,000 | |
Recorded investment - with allowance | 12,189,000 | 3,375,000 | |
Related Allowance - with allowance | 1,956,000 | 1,051,000 | |
Unpaid Principal Balance | 14,307,000 | 5,514,000 | |
Recorded Investment | 14,280,000 | 5,486,000 | |
Residential mortgage | Real estate loan | |||
Related Allowance - with allowance | 154,000 | 176,000 | |
Residential mortgage | Real estate loan | first liens | |||
Unpaid Principal Balance - with no allowance | 179,000 | 645,000 | |
Recorded Investment - with no allowance | 152,000 | 617,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 1,206,000 | 406,000 | |
Recorded investment - with allowance | 1,206,000 | 406,000 | |
Related Allowance - with allowance | 10,000 | 0 | |
Residential mortgage | Real estate loan | junior liens | |||
Unpaid Principal Balance - with no allowance | 41,000 | 42,000 | |
Recorded Investment - with no allowance | 41,000 | 42,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 314,000 | 326,000 | |
Recorded investment - with allowance | 314,000 | 326,000 | |
Related Allowance - with allowance | 154,000 | 176,000 | |
Commercial | Real estate loan | |||
Unpaid Principal Balance - with no allowance | 747,000 | 684,000 | |
Recorded Investment - with no allowance | 747,000 | 684,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 6,754,000 | 0 | |
Recorded investment - with allowance | 6,754,000 | 0 | |
Related Allowance - with allowance | 494,000 | 0 | |
Commercial | Commercial and industrial | |||
Unpaid Principal Balance - with no allowance | 1,065,000 | 563,000 | |
Recorded Investment - with no allowance | 1,065,000 | 563,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 3,580,000 | 904,000 | |
Recorded investment - with allowance | 3,580,000 | 904,000 | |
Related Allowance - with allowance | 1,264,000 | 149,000 | |
Commercial | Loans secured by farm land | |||
Unpaid Principal Balance - with no allowance | 86,000 | 129,000 | |
Recorded Investment - with no allowance | 86,000 | 129,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Unpaid Principal Balance - with allowance | 335,000 | 478,000 | |
Recorded investment - with allowance | 335,000 | 478,000 | |
Related Allowance - with allowance | 34,000 | 48,000 | |
Commercial | Agricultural loans | |||
Unpaid Principal Balance - with no allowance | 0 | 76,000 | |
Recorded Investment - with no allowance | 0 | 76,000 | |
Related Allowance - with no allowance | 0 | 0 | |
Commercial | Construction Loans | |||
Unpaid Principal Balance - with allowance | 0 | 1,261,000 | |
Recorded investment - with allowance | 0 | 1,261,000 | |
Related Allowance - with allowance | $ 0 | $ 674,000 | $ 678,000 |
LOANS - Average Balance of Impa
LOANS - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Average Investment in Impaired Loans | $ 11,286 | $ 6,381 | $ 9,087 | $ 7,511 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 90 | 53 | 134 | 114 |
Residential mortgage | ||||
Average Investment in Impaired Loans | 1,854 | 1,259 | 1,767 | 1,267 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 49 | 8 | 58 | 20 |
Residential mortgage | Real estate loan | first liens | ||||
Average Investment in Impaired Loans | 1,398 | 970 | 1,315 | 977 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 35 | 8 | 43 | 18 |
Residential mortgage | Real estate loan | junior liens | ||||
Average Investment in Impaired Loans | 391 | 289 | 387 | 290 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 13 | 0 | 13 | 2 |
Residential mortgage | Home Equity Line of Credit [Member] | ||||
Average Investment in Impaired Loans | 65 | 0 | 65 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 0 | 2 | 0 |
Commercial | ||||
Average Investment in Impaired Loans | 9,432 | 5,122 | 7,320 | 6,238 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 41 | 45 | 76 | 94 |
Commercial | Real estate loan | ||||
Average Investment in Impaired Loans | 3,771 | 1,722 | 2,079 | 2,582 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 12 | 7 | 16 | 17 |
Commercial | Commercial and industrial | ||||
Average Investment in Impaired Loans | 4,460 | 1,241 | 3,666 | 1,546 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 19 | 8 | 20 | 34 |
Commercial | Construction Loans | ||||
Average Investment in Impaired Loans | 678 | 0 | 993 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 0 | 13 | 0 |
Commercial | Loans secured by farm land | ||||
Average Investment in Impaired Loans | 422 | 1,533 | 469 | 1,471 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 7 | 18 | 24 | 19 |
Commercial | Agricultural loans | ||||
Average Investment in Impaired Loans | 76 | 626 | 76 | 639 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 2 | 12 | 2 | 24 |
Commercial | Other commercial loans | ||||
Average Investment in Impaired Loans | 25 | 0 | 37 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 0 | 1 | 0 |
Consumer | ||||
Average Investment in Impaired Loans | 0 | 0 | 0 | 6 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS - Nonaccrual Loans and Lo
LOANS - Nonaccrual Loans and Loans Past Due Ninety Days or More and Still Accruing (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Past Due 90+ Days and Accruing | $ 2,812 | $ 1,207 |
Nonaccrual | 18,763 | 9,218 |
Residential mortgage | ||
Past Due 90+ Days and Accruing | 1,847 | 1,002 |
Nonaccrual | 6,544 | 5,078 |
Residential mortgage | Real estate loan | first liens | ||
Past Due 90+ Days and Accruing | 1,545 | 878 |
Nonaccrual | 5,888 | 4,679 |
Residential mortgage | Real estate loan | junior liens | ||
Past Due 90+ Days and Accruing | 59 | 53 |
Nonaccrual | 344 | 326 |
Residential mortgage | Home equity lines of credit | ||
Past Due 90+ Days and Accruing | 243 | 71 |
Nonaccrual | 273 | 73 |
Residential mortgage | Construction Loans | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 39 | 0 |
Commercial | ||
Past Due 90+ Days and Accruing | 881 | 165 |
Nonaccrual | 12,180 | 4,124 |
Commercial | Real estate loan | ||
Past Due 90+ Days and Accruing | 558 | 107 |
Nonaccrual | 7,482 | 1,148 |
Commercial | Construction Loans | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 50 | 1,311 |
Commercial | Commercial and industrial | ||
Past Due 90+ Days and Accruing | 135 | 15 |
Nonaccrual | 4,227 | 1,051 |
Commercial | Loans secured by farm land | ||
Past Due 90+ Days and Accruing | 188 | 43 |
Nonaccrual | 421 | 565 |
Commercial | Other commercial loans | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 49 |
Consumer | ||
Past Due 90+ Days and Accruing | 84 | 40 |
Nonaccrual | $ 39 | $ 16 |
LOANS - Contractual Aging of Lo
LOANS - Contractual Aging of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans current and past due less than 30 days | $ 1,225,235 | $ 1,166,748 |
Loans receivable | 1,241,413 | 1,182,222 |
Past Due 30-89 Days | ||
Loans past due | 6,391 | 10,023 |
Past Due 90+ Days | ||
Loans past due | 9,787 | 5,451 |
Residential mortgage | ||
Loans current and past due less than 30 days | 556,478 | 573,938 |
Loans receivable | 566,293 | 586,580 |
Residential mortgage | Past Due 30-89 Days | ||
Loans past due | 5,452 | 8,414 |
Residential mortgage | Past Due 90+ Days | ||
Loans past due | 4,363 | 4,228 |
Residential mortgage | Real estate loan | first liens | ||
Loans current and past due less than 30 days | 484,129 | 499,024 |
Loans receivable | 493,214 | 510,641 |
Residential mortgage | Real estate loan | first liens | Past Due 30-89 Days | ||
Loans past due | 5,111 | 7,839 |
Residential mortgage | Real estate loan | first liens | Past Due 90+ Days | ||
Loans past due | 3,974 | 3,778 |
Residential mortgage | Real estate loan | junior liens | ||
Loans current and past due less than 30 days | 25,482 | 27,041 |
Loans receivable | 25,632 | 27,503 |
Residential mortgage | Real estate loan | junior liens | Past Due 30-89 Days | ||
Loans past due | 4 | 83 |
Residential mortgage | Real estate loan | junior liens | Past Due 90+ Days | ||
Loans past due | 146 | 379 |
Residential mortgage | Home equity lines of credit | ||
Loans current and past due less than 30 days | 31,246 | 33,115 |
Loans receivable | 31,826 | 33,638 |
Residential mortgage | Home equity lines of credit | Past Due 30-89 Days | ||
Loans past due | 337 | 452 |
Residential mortgage | Home equity lines of credit | Past Due 90+ Days | ||
Loans past due | 243 | 71 |
Residential mortgage | Construction Loans | ||
Loans current and past due less than 30 days | 15,621 | 14,758 |
Loans receivable | 15,621 | 14,798 |
Residential mortgage | Construction Loans | Past Due 30-89 Days | ||
Loans past due | 0 | 40 |
Residential mortgage | Construction Loans | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Commercial | ||
Loans current and past due less than 30 days | 652,552 | 576,314 |
Loans receivable | 658,676 | 578,901 |
Commercial | Past Due 30-89 Days | ||
Loans past due | 815 | 1,420 |
Commercial | Past Due 90+ Days | ||
Loans past due | 5,309 | 1,167 |
Commercial | Real estate loan | ||
Loans current and past due less than 30 days | 291,728 | 299,640 |
Loans receivable | 293,304 | 301,227 |
Commercial | Real estate loan | Past Due 30-89 Days | ||
Loans past due | 245 | 737 |
Commercial | Real estate loan | Past Due 90+ Days | ||
Loans past due | 1,331 | 850 |
Commercial | Construction Loans | ||
Loans current and past due less than 30 days | 39,947 | 33,505 |
Loans receivable | 40,348 | 33,555 |
Commercial | Construction Loans | Past Due 30-89 Days | ||
Loans past due | 351 | 0 |
Commercial | Construction Loans | Past Due 90+ Days | ||
Loans past due | 50 | 50 |
Commercial | Commercial and industrial | ||
Loans current and past due less than 30 days | 116,429 | 126,221 |
Loans receivable | 120,202 | 126,374 |
Commercial | Commercial and industrial | Past Due 30-89 Days | ||
Loans past due | 67 | 16 |
Commercial | Commercial and industrial | Past Due 90+ Days | ||
Loans past due | 3,706 | 137 |
Commercial | Small Business Administration - Paycheck Protection Program | ||
Loans current and past due less than 30 days | 97,103 | 0 |
Loans receivable | 97,103 | 0 |
Commercial | Small Business Administration - Paycheck Protection Program | Past Due 30-89 Days | ||
Loans past due | 0 | 0 |
Commercial | Small Business Administration - Paycheck Protection Program | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | ||
Loans current and past due less than 30 days | 43,134 | 53,570 |
Loans receivable | 43,134 | 53,570 |
Commercial | Political subdivisions | Past Due 30-89 Days | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Commercial | Loans secured by farm land | ||
Loans current and past due less than 30 days | 11,159 | 11,455 |
Loans receivable | 11,433 | 12,251 |
Commercial | Loans secured by farm land | Past Due 30-89 Days | ||
Loans past due | 52 | 666 |
Commercial | Loans secured by farm land | Past Due 90+ Days | ||
Loans past due | 222 | 130 |
Commercial | Multi-family (5 or more) residential | ||
Loans current and past due less than 30 days | 32,699 | 31,070 |
Loans receivable | 32,699 | 31,070 |
Commercial | Multi-family (5 or more) residential | Past Due 30-89 Days | ||
Loans past due | 0 | 0 |
Commercial | Multi-family (5 or more) residential | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Commercial | Agricultural loans | ||
Loans current and past due less than 30 days | 3,800 | 4,318 |
Loans receivable | 3,874 | 4,319 |
Commercial | Agricultural loans | Past Due 30-89 Days | ||
Loans past due | 74 | 1 |
Commercial | Agricultural loans | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Commercial | Other commercial loans | ||
Loans current and past due less than 30 days | 16,553 | 16,535 |
Loans receivable | 16,579 | 16,535 |
Commercial | Other commercial loans | Past Due 30-89 Days | ||
Loans past due | 26 | 0 |
Commercial | Other commercial loans | Past Due 90+ Days | ||
Loans past due | 0 | 0 |
Consumer | ||
Loans current and past due less than 30 days | 16,205 | 16,496 |
Loans receivable | 16,444 | 16,741 |
Consumer | Past Due 30-89 Days | ||
Loans past due | 124 | 189 |
Consumer | Past Due 90+ Days | ||
Loans past due | $ 115 | $ 56 |
LOANS - Contractual Aging of No
LOANS - Contractual Aging of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Nonaccrual loans | $ 18,763 | $ 9,218 |
Non accrual Loans [Member] | ||
Loans current and past due, nonaccrual | 10,521 | 3,840 |
Nonaccrual loans | 18,763 | 9,218 |
Non accrual Loans [Member] | Past Due 30-89 Days | ||
Loans current and past due, nonaccrual | 1,267 | 1,134 |
Non accrual Loans [Member] | Past Due 90+ Days | ||
Loans current and past due, nonaccrual | $ 6,975 | $ 4,244 |
LOANS - Aging of Troubled Debt
LOANS - Aging of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans current and past due less than 30 days | $ 1,225,235 | $ 1,166,748 |
Nonaccrual loans | 18,763 | 9,218 |
Past Due 30-89 Days | ||
Loans past due | 6,391 | 10,023 |
Past Due 90+ Days | ||
Loans past due | 9,787 | 5,451 |
Troubled Debt Restructuring | ||
Loans current and past due less than 30 days | 172 | 889 |
Nonaccrual loans | 452 | 1,737 |
Troubled debt restructurings | 1,055 | 2,626 |
Troubled Debt Restructuring | Past Due 30-89 Days | ||
Loans past due | 93 | 0 |
Troubled Debt Restructuring | Past Due 90+ Days | ||
Loans past due | $ 338 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Troubled debt restructurings, number of contracts | loan | 2 | 11 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 270 | $ 550 | ||
Residential mortgage | Real estate loan | first liens | Monthly Payment Reduction and Extended Maturity Date [Member] | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 1 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 271 | ||
Residential mortgage | Real estate loan | junior liens | Monthly Payment Reduction and Extended Maturity Date [Member] | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 1 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 18 | ||
Residential mortgage | Real estate loan | junior liens | New Loan at Lower Than Risk-adjusted Market Rate to Borrower [Member] | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 30 | $ 0 | ||
Commercial | Commercial and industrial | Monthly Payment Reduction and Extended Maturity Date [Member] | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 8 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 177 | ||
Commercial | Commercial and industrial | Interest only payments for a nine-month period | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 240 | $ 0 | $ 240 | $ 0 |
Commercial | Agricultural loans | Monthly Payment Reduction and Extended Maturity Date [Member] | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 1 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 84 |
LOANS - Foreclosed Residential
LOANS - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Residential mortgage | ||
Foreclosed residential real estate | $ 118 | $ 292 |
LOANS - Mortgage Loans in Proce
LOANS - Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Residential mortgage | ||
Residential real estate in process of foreclosure | $ 1,502 | $ 1,717 |
LOANS - Additional information
LOANS - Additional information (Details) | Jun. 30, 2020USD ($)loanborrower | Mar. 27, 2020USD ($) | Jun. 30, 2020USD ($)loanborrower | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loanborrower | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 5,519,000 | $ 5,519,000 | $ 5,519,000 | $ 2,482,000 | |||||||
Recorded investment - with allowance | 12,189,000 | 12,189,000 | 12,189,000 | 3,375,000 | |||||||
Specific allowances | 1,956,000 | 1,956,000 | 1,956,000 | 1,051,000 | |||||||
(Credit) provision for loan losses | (176,000) | $ (4,000) | 1,352,000 | $ (961,000) | |||||||
Increase in expenses | 2,313,000 | ||||||||||
Allowance for Loan losses | 11,026,000 | 11,026,000 | 8,200,000 | $ 11,026,000 | 8,200,000 | 9,836,000 | $ 11,330,000 | $ 8,256,000 | $ 9,309,000 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 100,000 | ||||||||||
Net deferred origination fees | $ 5,519,000 | 5,519,000 | $ 5,519,000 | 2,482,000 | |||||||
Number of loans granted deferrals | loan | 706 | ||||||||||
Aggregate recorded investment of deferral payments | $ 202,000,000 | ||||||||||
Financing receivable charge-offs | 146,000 | 68,000 | 194,000 | 179,000 | |||||||
Recorded Investment | 14,280,000 | 14,280,000 | 14,280,000 | 5,486,000 | |||||||
Financial Assets Facing Additional Credit Deterioration Due to Economic Impact of Covid-19 | |||||||||||
(Credit) provision for loan losses | 244,000 | 646,000 | |||||||||
Commercial | |||||||||||
Allowance for Loan losses | 5,858,000 | 5,858,000 | 3,388,000 | 5,858,000 | 3,388,000 | 4,788,000 | 6,089,000 | 3,444,000 | 4,591,000 | ||
Financing receivable charge-offs | 107,000 | 6,000 | 124,000 | 6,000 | |||||||
Commercial | Maximum | |||||||||||
Financing Receivable Individually Evaluated for Impairment Threshold With Estimated Loss | 200,000 | 200,000 | 200,000 | ||||||||
Commercial | Minimum | |||||||||||
Financing Receivable Individually Evaluated for Impairment Threshold With Estimated Loss | 200,000 | 200,000 | 200,000 | ||||||||
Specific Loans Portfolio Segment | |||||||||||
(Credit) provision for loan losses | 1,067,000 | ||||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease), Total | 905,000 | ||||||||||
Financing receivable charge-offs | 162,000 | ||||||||||
Unallocated | |||||||||||
Allowance for Loan losses | 585,000 | 585,000 | 585,000 | 585,000 | 585,000 | 585,000 | 585,000 | 585,000 | 499,000 | ||
Financing receivable charge-offs | 0 | 0 | 0 | 0 | |||||||
Residential mortgage | |||||||||||
Allowance for Loan losses | 4,320,000 | 4,320,000 | 3,963,000 | 4,320,000 | 3,963,000 | 4,182,000 | 4,383,000 | 3,991,000 | 3,986,000 | ||
Financing receivable charge-offs | 0 | 33,000 | 0 | 107,000 | |||||||
Residential mortgage | Maximum | |||||||||||
Financing Receivable Individually Evaluated for Impairment Threshold With Estimated Loss | 400,000 | 400,000 | 400,000 | ||||||||
Residential mortgage | Minimum | |||||||||||
Financing Receivable Individually Evaluated for Impairment Threshold With Estimated Loss | 400,000 | 400,000 | 400,000 | ||||||||
One Real Estate Secured Commercial Loan | Commercial | |||||||||||
Specific allowances | 1,193,000 | 1,193,000 | 1,193,000 | ||||||||
Small Business Administration - Paycheck Protection Program | |||||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 3,017,000 | 3,017,000 | 3,017,000 | ||||||||
Amount of stimulus package designed | $ 2,000,000,000,000 | ||||||||||
(Credit) provision for loan losses | 0 | ||||||||||
Contractual principal balances | 100,120,000 | 100,120,000 | 100,120,000 | ||||||||
Net deferred origination fees | 3,017,000 | 3,017,000 | 3,017,000 | ||||||||
Accretion of fees received | 337,000 | 337,000 | 337,000 | ||||||||
Recorded Investment | 97,103,000 | 97,103,000 | 97,103,000 | ||||||||
Small Business Administration - Paycheck Protection Program | Commercial | |||||||||||
Allowance for Loan losses | 0 | 0 | 0 | ||||||||
Construction Loans | Commercial | |||||||||||
Recorded investment - with allowance | 0 | 0 | 0 | 1,261,000 | |||||||
Specific allowances | 0 | 0 | 0 | 678,000 | 674,000 | ||||||
Allowance for Loan losses | 420,000 | 420,000 | 152,000 | 420,000 | 152,000 | 966,000 | 970,000 | 114,000 | 110,000 | ||
Financing receivable charge-offs | 107,000 | 0 | 107,000 | 0 | |||||||
Construction Loans | Residential mortgage | |||||||||||
Allowance for Loan losses | 137,000 | 137,000 | 220,000 | 137,000 | 220,000 | 117,000 | 119,000 | 198,000 | 203,000 | ||
Financing receivable charge-offs | 0 | 0 | 0 | 0 | |||||||
Real estate loan | Commercial | |||||||||||
Recorded investment - with allowance | 6,754,000 | 6,754,000 | 6,754,000 | 0 | |||||||
Specific allowances | 494,000 | 494,000 | 494,000 | 0 | |||||||
Allowance for Loan losses | 2,426,000 | 2,426,000 | 1,577,000 | 2,426,000 | 1,577,000 | 1,921,000 | $ 1,932,000 | $ 1,887,000 | $ 2,538,000 | ||
Financing receivable charge-offs | 0 | $ 0 | 0 | $ 0 | |||||||
Real estate loan | Residential mortgage | |||||||||||
Specific allowances | 154,000 | 154,000 | $ 154,000 | $ 176,000 | |||||||
Loans Receivable 1 | Credit Availability Concentration Risk | |||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||||||||
Purchased Credit Impaired | |||||||||||
Allowance for Loan losses | 305,000 | 305,000 | $ 305,000 | $ 441,000 | |||||||
Changes to Experience Factors Used to Estimate Allowance | |||||||||||
(Credit) provision for loan losses | (89,000) | ||||||||||
Impact of Reduction in Loans [Member] | |||||||||||
(Credit) provision for loan losses | (272,000) | ||||||||||
Monument Bancorp, Inc | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable | $ 259,295,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable, Market Rate Adjustment | 1,807,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Fair Value Adjustment on Non-credit Impaired Loans | 1,914,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Fair Value Adjustment on Impaired Loans | 318,000 | ||||||||||
Monument Bancorp, Inc | Purchased Credit Impaired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable | $ 441,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Credit Fair Value Adjustment on Non-credit Impaired Loans | $ 1,914,000 | $ 1,914,000 | 1,914,000 | ||||||||
Interest and Fee Income, Loans and Leases, Total | 113,000 | ||||||||||
Allowance for Loan and Lease Losses, Loans Acquired | $ 878,000 | $ 1,216,000 | |||||||||
Number of loans purchased that were impaired | borrower | 2 | 2 | 2 | ||||||||
Number of borrowers whose loans were impaired | loan | 5 | 5 | 5 | ||||||||
Recorded investment - with allowance | $ 6,075,000 | $ 6,075,000 | $ 6,075,000 | ||||||||
Specific allowances | $ 350,000 | $ 350,000 | $ 350,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross amount | $ 3,495 | $ 3,495 |
Accumulated amortization | (2,372) | (2,248) |
Net | $ 1,123 | $ 1,247 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||
Amortization expense | $ 62 | $ 73 | $ 124 | $ 75 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||
Goodwill, Ending Balance | $ 28,388,000 | $ 28,388,000 | $ 28,388,000 | $ 28,388,000 |
Average Closing Share Price (in dollars per share) | $ 20.24 | $ 20.14 | $ 26.05 | |
Share Price (in dollars per share) | $ 18.53 | $ 18.53 | $ 18.53 | |
Goodwill, Impairment Loss | $ 0 |
BORROWED FUNDS AND SUBORDINAT_3
BORROWED FUNDS AND SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Short-term borrowings | $ 14,404 | $ 86,220 |
Federal Home Loan Bank of Pittsburgh | ||
Short-term borrowings | 12,200 | 84,292 |
FHLB-Pittsburgh borrowings | ||
Short-term borrowings | 12,200 | 84,292 |
Overnight Borrowing | Federal Home Loan Bank of Pittsburgh | ||
Short-term borrowings | 0 | 64,000 |
Customer repurchase agreements | ||
Short-term borrowings | 2,204 | 1,928 |
Other short-term advances | Federal Home Loan Bank of Pittsburgh | ||
Short-term borrowings | $ 12,200 | $ 20,292 |
BORROWED FUNDS AND SUBORDINAT_4
BORROWED FUNDS AND SUBORDINATED DEBT - long-term borrowing (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long-term borrowings | $ 72,904 | $ 52,127 |
Federal Home Loan Bank of Pittsburgh | ||
Long-term borrowings | 72,904 | 52,127 |
Federal Home Loan Bank of Pittsburgh | Loans matured in 2020 with a weighted-average rate of 2.71% | ||
Long-term borrowings | 0 | 5,069 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2021 with a weighted-average rate of 1.63% | ||
Long-term borrowings | 20,000 | 6,000 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2022 with a weighted-average rate of 1.90% | ||
Long-term borrowings | 22,355 | 20,000 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2023 with a weighted-average rate of 1.63% | ||
Long-term borrowings | 22,500 | 20,500 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2024 with a weighted-average rate of 1.27% | ||
Long-term borrowings | 7,536 | 0 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2025 with a rate of 4.91% | ||
Long-term borrowings | $ 513 | $ 558 |
BORROWED FUNDS AND SUBORDINAT_5
BORROWED FUNDS AND SUBORDINATED DEBT - Long term borrowing additional (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Loans matured in 2020 with a weighted-average rate of 2.71% | ||
Rate | 2.71% | 2.71% |
Loans maturing in 2021 with a weighted-average rate of 1.63% | ||
Rate | 1.63% | 1.63% |
Loans maturing in 2022 with a weighted-average rate of 1.90% | ||
Rate | 1.90% | 1.90% |
Loans maturing in 2023 with a weighted-average rate of 1.63% | ||
Rate | 1.63% | 1.63% |
Loans maturing in 2024 with a weighted-average rate of 1.27% | ||
Rate | 1.27% | 1.27% |
Loan maturing in 2025 with a rate of 4.91% | ||
Rate | 4.91% | 4.91% |
BORROWED FUNDS AND SUBORDINAT_6
BORROWED FUNDS AND SUBORDINATED DEBT - Additional Information (Details) | Jun. 30, 2020USD ($)loanfacility | Dec. 31, 2019USD ($) |
Letter of credit | $ 400,000 | |
Subordinated Debt, Ending Balance | 6,500,000 | $ 6,500,000 |
Other Correspondent Banks | ||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | 45,000,000 |
Long-term Line of Credit, Total | 0 | 0 |
Federal Reserve Bank of Philadelphia | Collateral Pledged | ||
Debt Securities, Available-for-sale, Restricted | $ 15,092,000 | $ 14,728,000 |
Customer repurchase agreements | ||
Debt, Weighted Average Interest Rate | 0.10% | 0.10% |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned, Total | $ 2,240,000 | $ 1,951,000 |
Federal Home Loan Bank of Pittsburgh | ||
Line of Credit Facility, Maximum Borrowing Capacity | 571,597,000 | 552,546,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 759,623,000 | 778,877,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 486,093,000 | 416,127,000 |
Federal Home Loan Bank of Pittsburgh | Subordinated Debt Agreements | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | $ 6,500,000 | $ 6,500,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% |
Subordinated Debt, Ending Balance | $ 6,500,000 | $ 6,500,000 |
Federal Home Loan Bank of Pittsburgh | Other Assets | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 8,671,000 | 10,131,000 |
Federal Home Loan Bank Stock | 8,671,000 | 10,131,000 |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 14,605,000 | $ 14,244,000 |
Federal Home Loan Bank of Pittsburgh | Federal Home Loan Bank Advances 1 | ||
Number of Short-term Advances | loanfacility | 5 | |
Short-term Borrowing, Amount of Each Borrowing | $ 12,200,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.59% |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | |
Restricted Stock | ||||||
Share-based Payment Arrangement, Expense | $ 230,000 | $ 202,000 | $ 424,000 | $ 431,000 | ||
Restricted Stock | Forecast | ||||||
Share-based Payment Arrangement, Expense | $ 893,000 | |||||
Stock Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 48,284 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Stock Incentive Plan | Time Based Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 30,381 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 801,000 | |||||
Stock Incentive Plan | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 17,903 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 343,000 | |||||
Independent Directors Stock Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 7,580 | |||||
Independent Directors Stock Incentive Plan | Time Based Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 200,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Total, fair value | $ 332,188,000 | $ 346,723,000 |
Marketable equity security | 1,003,000 | 979,000 |
Impaired loans with a valuation allowance | 12,189,000 | 3,375,000 |
Valuation allowance | (1,956,000) | (1,051,000) |
Impaired loans, net | 12,189,000 | 3,375,000 |
Obligations of U.S. Government agencies | ||
Total, fair value | 11,673,000 | 17,000,000 |
Obligations of States and Political Subdivisions Tax Exempt | ||
Total, fair value | 91,643,000 | 70,760,000 |
Obligations of States and Political Subdivisions Taxable | ||
Total, fair value | 39,784,000 | 36,303,000 |
Residential Pass-Through Securities | ||
Total, fair value | 51,520,000 | 59,210,000 |
Residential Collateralized Mortgage Obligations | ||
Total, fair value | 89,435,000 | 114,723,000 |
Commercial Mortgage Backed Securities | ||
Total, fair value | 48,133,000 | 48,727,000 |
Recurring fair value measurements | ||
Total, fair value | 332,188,000 | 346,723,000 |
Marketable equity security | 1,003,000 | 979,000 |
Servicing rights | 1,284,000 | 1,277,000 |
Total asset fair value measurements | 334,475,000 | 348,979,000 |
Recurring fair value measurements | Level 1 | ||
Total, fair value | 0 | 0 |
Marketable equity security | 1,003,000 | 979,000 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 1,003,000 | 979,000 |
Recurring fair value measurements | Level 2 | ||
Total, fair value | 332,188,000 | 346,723,000 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 332,188,000 | 346,723,000 |
Recurring fair value measurements | Level 3 | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 1,284,000 | 1,277,000 |
Total asset fair value measurements | 1,284,000 | 1,277,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | ||
Total, fair value | 11,673,000 | 17,000,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 2 | ||
Total, fair value | 11,673,000 | 17,000,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 3 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Tax Exempt | ||
Total, fair value | 91,643,000 | 70,760,000 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Tax Exempt | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Tax Exempt | Level 2 | ||
Total, fair value | 91,643,000 | 70,760,000 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Tax Exempt | Level 3 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Taxable | ||
Total, fair value | 39,784,000 | 36,303,000 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Taxable | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Taxable | Level 2 | ||
Total, fair value | 39,784,000 | 36,303,000 |
Recurring fair value measurements | Obligations of States and Political Subdivisions Taxable | Level 3 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Pass-Through Securities | ||
Total, fair value | 51,520,000 | 59,210,000 |
Recurring fair value measurements | Residential Pass-Through Securities | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Pass-Through Securities | Level 2 | ||
Total, fair value | 51,520,000 | 59,210,000 |
Recurring fair value measurements | Residential Pass-Through Securities | Level 3 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | ||
Total, fair value | 89,435,000 | 114,723,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 2 | ||
Total, fair value | 89,435,000 | 114,723,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 3 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | ||
Total, fair value | 48,133,000 | 48,727,000 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 1 | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 2 | ||
Total, fair value | 48,133,000 | 48,727,000 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 3 | ||
Total, fair value | 0 | 0 |
Nonrecurring fair value measurements | ||
Total asset fair value measurements | 11,826,000 | 5,210,000 |
Impaired loans with a valuation allowance | 12,189,000 | 3,375,000 |
Valuation allowance | (1,956,000) | (1,051,000) |
Impaired loans, net | 10,233,000 | 2,324,000 |
Foreclosed assets held for sale | 1,593,000 | 2,886,000 |
Nonrecurring fair value measurements | Level 1 | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans with a valuation allowance | 0 | 0 |
Valuation allowance | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 2 | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans with a valuation allowance | 0 | 0 |
Valuation allowance | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 3 | ||
Total asset fair value measurements | 11,826,000 | 5,210,000 |
Impaired loans with a valuation allowance | 12,189,000 | 3,375,000 |
Valuation allowance | (1,956,000) | (1,051,000) |
Impaired loans, net | 10,233,000 | 2,324,000 |
Foreclosed assets held for sale | $ 1,593,000 | $ 2,886,000 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Valuation Techniques and the Unobservable Inputs Used in Determining Fair Value - Recurring Basis (Details) - Recurring fair value measurements - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair value | $ 1,284,000 | $ 1,277,000 |
Valuation Technique, Discounted cash flow | ||
Fair value | $ 1,284,000 | $ 1,277,000 |
Valuation Technique, Discounted cash flow | Servicing rights | ||
Discount rate | 12.50% | 12.50% |
Weighted-average PSA | 285.00% | 183.00% |
Servicing fees of loan balances | 0.25% | 0.25% |
Servicing fees of payments are late | 4.00% | 4.00% |
Late fees assessed | 5.00% | 5.00% |
Miscellaneous fees per account per month | $ 1.94 | $ 1.94 |
Monthly servicing cost per account | 6 | 6 |
Additional monthly servicing cost per loan on loans more than 30 days delinquent | $ 24 | $ 24 |
Servicing costs of loans more than 30 days delinquent | 1.50% | 1.50% |
Annual increase in servicing costs | 3.00% | 3.00% |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Reconciliation of Activity for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Level 3 - Servicing rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing rights balance, beginning of period | $ 1,226 | $ 1,347 | $ 1,277 | $ 1,404 |
Originations of servicing rights | 328 | 46 | 403 | 66 |
Unrealized losses included in earnings | (270) | (71) | (396) | (148) |
Servicing rights balance, end of period | $ 1,284 | $ 1,322 | $ 1,284 | $ 1,322 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Valuation Techniques and the Unobservable Inputs Used in Determining Fair Value - Nonrecurring Basis (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Recorded investment - with allowance | $ 12,189,000 | $ 3,375,000 |
Related allowance | 1,956,000 | 1,051,000 |
Nonrecurring fair value measurements | ||
Recorded investment - with allowance | 10,233,000 | 2,324,000 |
Related allowance | 1,956,000 | 1,051,000 |
Foreclosed assets held for sale | 1,593,000 | 2,886,000 |
Residential mortgage | ||
Foreclosed assets held for sale | 118,000 | 292,000 |
Residential mortgage | Real estate loan | ||
Related allowance | 154,000 | 176,000 |
Commercial | Real estate loan | ||
Recorded investment - with allowance | 6,754,000 | 0 |
Related allowance | 494,000 | 0 |
Commercial | Commercial and industrial | ||
Recorded investment - with allowance | 3,580,000 | 904,000 |
Related allowance | 1,264,000 | 149,000 |
Commercial | Loans secured by farm land | ||
Recorded investment - with allowance | 335,000 | 478,000 |
Related allowance | 34,000 | 48,000 |
Impaired loans | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | 12,189,000 | 3,375,000 |
Related allowance | 1,956,000 | 1,051,000 |
Fair value | 10,234,000 | 2,324,000 |
Impaired loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | 1,520,000 | 732,000 |
Related allowance | 164,000 | 176,000 |
Fair value | $ 1,355,000 | $ 556,000 |
Impaired loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 31.00% | 30.00% |
Impaired loans | Valuation, Market Approach | Commercial | Commercial loans secured by real estate | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | $ 6,754,000 | |
Related allowance | 494,000 | |
Fair value | $ 6,261,000 | |
Impaired loans | Valuation, Market Approach | Commercial | Commercial loans secured by real estate | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 38.00% | |
Impaired loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | $ 3,580,000 | $ 106,000 |
Related allowance | 1,264,000 | 89,000 |
Fair value | $ 2,316,000 | 17,000 |
Impaired loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | Discount to borrower's financial statement value | ||
Recorded investment - with allowance | 798,000 | |
Related allowance | 60,000 | |
Fair value | $ 738,000 | |
Impaired loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 35.00% | 69.00% |
Impaired loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Nonrecurring fair value measurements | Discount to borrower's financial statement value | ||
Discount rate | 15.00% | |
Impaired loans | Valuation, Market Approach | Commercial | Commercial construction and land | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | $ 1,261,000 | |
Related allowance | 678,000 | |
Fair value | $ 583,000 | |
Impaired loans | Valuation, Market Approach | Commercial | Commercial construction and land | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 47.00% | |
Impaired loans | Valuation, Market Approach | Commercial | Loans secured by farm land | Nonrecurring fair value measurements | ||
Recorded investment - with allowance | $ 335,000 | $ 478,000 |
Related allowance | 34,000 | 48,000 |
Fair value | $ 302,000 | $ 430,000 |
Impaired loans | Valuation, Market Approach | Commercial | Loans secured by farm land | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 42.00% | 46.00% |
Foreclosed assets held for sale | Nonrecurring fair value measurements | ||
Foreclosed assets held for sale | $ 1,593,000 | $ 2,886,000 |
Valuation allowance | 0 | 0 |
Fair value | 1,593,000 | 2,886,000 |
Foreclosed assets held for sale | Valuation, Market Approach | Land | Nonrecurring fair value measurements | ||
Foreclosed assets held for sale | 70,000 | 70,000 |
Valuation allowance | 0 | 0 |
Fair value | $ 70,000 | $ 70,000 |
Foreclosed assets held for sale | Valuation, Market Approach | Land | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 53.00% | 53.00% |
Foreclosed assets held for sale | Valuation, Market Approach | Commercial real estate | Nonrecurring fair value measurements | ||
Foreclosed assets held for sale | $ 1,405,000 | $ 2,524,000 |
Valuation allowance | 0 | 0 |
Fair value | $ 1,405,000 | $ 2,524,000 |
Foreclosed assets held for sale | Valuation, Market Approach | Commercial real estate | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 38.00% | 39.00% |
Foreclosed assets held for sale | Valuation, Market Approach | Residential mortgage | Nonrecurring fair value measurements | ||
Foreclosed assets held for sale | $ 118,000 | $ 292,000 |
Valuation allowance | 0 | 0 |
Fair value | $ 118,000 | $ 292,000 |
Foreclosed assets held for sale | Valuation, Market Approach | Residential mortgage | Weighted average | Nonrecurring fair value measurements | ||
Discount rate | 55.00% | 46.00% |
FAIR VALUE MEASUREMENTS AND F_7
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Estimated Fair Values, and Related Carrying Amounts, of the Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Reported value measurement | Level 1 | ||
Cash and cash equivalents | $ 73,812 | $ 31,122 |
Reported value measurement | Level 2 | ||
Certificates of deposit | 3,830 | 4,080 |
Restricted equity securities (included in Other Assets) | 8,861 | 10,321 |
Accrued interest receivable | 6,326 | 5,001 |
Short-term borrowings | 14,404 | 86,220 |
Long-term borrowings | 72,904 | 52,127 |
Accrued interest payable | 312 | 311 |
Reported value measurement | Level 2 | Deposits with no stated maturity | ||
Deposits, fair value | 1,039,401 | 877,965 |
Reported value measurement | Level 2 | Time deposits | ||
Deposits, fair value | 341,777 | 374,695 |
Reported value measurement | Level 3 | ||
Loans, net | 1,230,387 | 1,172,386 |
Estimate of fair value measurement | Level 1 | ||
Cash and cash equivalents | 73,812 | 31,122 |
Estimate of fair value measurement | Level 2 | ||
Certificates of deposit | 4,078 | 4,227 |
Restricted equity securities (included in Other Assets) | 8,861 | 10,321 |
Accrued interest receivable | 6,326 | 5,001 |
Short-term borrowings | 14,271 | 86,166 |
Long-term borrowings | 74,545 | 52,040 |
Accrued interest payable | 312 | 311 |
Estimate of fair value measurement | Level 2 | Deposits with no stated maturity | ||
Deposits, fair value | 1,039,401 | 877,965 |
Estimate of fair value measurement | Level 2 | Time deposits | ||
Deposits, fair value | 344,959 | 376,738 |
Estimate of fair value measurement | Level 3 | ||
Loans, net | $ 1,236,040 | $ 1,181,000 |