Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 0-16084 | ||
Entity Registrant Name | CITIZENS & NORTHERN CORPORATION | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2451943 | ||
Entity Address, Address Line One | 90-92 MAIN STREET | ||
Entity Address, City or Town | WELLSBORO | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 16901 | ||
City Area Code | 570 | ||
Local Phone Number | 724-3411 | ||
Title of 12(b) Security | Common Stock Par Value $1.00 | ||
Trading Symbol | CZNC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,825,155 | ||
Entity Public Float | $ 377,589,321 | ||
Entity Central Index Key | 0000810958 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Firm ID | 23 | ||
Auditor Location | Pittsburgh, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and due from banks: | ||
Noninterest-bearing | $ 16,729 | $ 24,780 |
Interest-bearing | 88,219 | 77,077 |
Total cash and due from banks | 104,948 | 101,857 |
Available-for-sale debt securities, at fair value | 517,679 | 349,332 |
Loans receivable | 1,564,849 | 1,644,209 |
Allowance for loan losses | (13,537) | (11,385) |
Loans, net | 1,551,312 | 1,632,824 |
Bank-owned life insurance | 30,669 | 30,096 |
Accrued interest receivable | 7,235 | 8,293 |
Bank premises and equipment, net | 20,683 | 21,526 |
Foreclosed assets held for sale | 684 | 1,338 |
Deferred tax asset, net | 5,887 | 2,705 |
Goodwill | 52,505 | 52,505 |
Core deposit intangibles, net | 3,316 | 3,851 |
Other assets | 32,730 | 34,773 |
TOTAL ASSETS | 2,327,648 | 2,239,100 |
Deposits: | ||
Noninterest-bearing | 521,206 | 465,332 |
Interest-bearing | 1,403,854 | 1,355,137 |
Total deposits | 1,925,060 | 1,820,469 |
Short-term borrowings | 1,803 | 20,022 |
Long-term borrowings - FHLB advances | 28,042 | 54,608 |
Senior notes, net | 14,701 | 0 |
Subordinated debt, net | 33,009 | 16,553 |
Accrued interest and other liabilities | 23,628 | 27,692 |
TOTAL LIABILITIES | 2,026,243 | 1,939,344 |
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 16,030,172 and outstanding 15,759,090 at December 31, 2021; issued 15,982,815 and outstanding 15,911,984 at December 31, 2020 | 16,030 | 15,983 |
Paid-in capital | 144,453 | 143,644 |
Retained earnings | 142,612 | 129,703 |
Treasury stock, at cost; 271,082 shares at December 31, 2021 and 70,831 shares at December 31, 2020 | (6,716) | (1,369) |
Accumulated other comprehensive income | 5,026 | 11,795 |
TOTAL STOCKHOLDERS' EQUITY | 301,405 | 299,756 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 2,327,648 | $ 2,239,100 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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) | 16,030,172 | 15,982,815 |
Common stock, shares outstanding (in shares) | 15,759,090 | 15,911,984 |
Treasury stock, shares (in shares) | 271,082 | 70,831 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and fees on loans: | ||
Taxable | $ 74,549 | $ 67,384 |
Tax-exempt | 1,770 | 1,768 |
Income from available-for-sale debt securities: | ||
Taxable | 5,114 | 5,534 |
Tax-exempt | 2,684 | 2,143 |
Other interest and dividend income | 384 | 331 |
Total interest and dividend income | 84,501 | 77,160 |
INTEREST EXPENSE | ||
Interest on deposits | 4,538 | 7,231 |
Interest on short-term borrowings | 23 | 367 |
Interest on long-term borrowings - FHLB advances | 399 | 1,291 |
Interest on senior notes, net | 293 | 0 |
Interest on subordinated debt, net | 1,309 | 706 |
Total interest expense | 6,562 | 9,595 |
Net interest income | 77,939 | 67,565 |
Provision for loan losses | 3,661 | 3,913 |
Net interest income after provision for loan losses | 74,278 | 63,652 |
NONINTEREST INCOME | ||
Brokerage and insurance revenue | 1,860 | 1,486 |
Net gains from sale of loans | 3,428 | 5,403 |
Increase in cash surrender value of life insurance | 573 | 515 |
Other noninterest income | 3,580 | 3,355 |
Sub-total | 25,857 | 24,344 |
Realized gains on available-for-sale debt securities, net | 24 | 169 |
Total noninterest income | 25,881 | 24,513 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 37,603 | 33,062 |
Net occupancy and equipment expense | 4,984 | 4,461 |
Data processing and telecommunications expense | 5,903 | 5,316 |
Automated teller machine and interchange expense | 1,433 | 1,231 |
Pennsylvania shares tax | 1,951 | 1,689 |
Professional fees | 2,243 | 1,692 |
Loss on prepayment of borrowings | 0 | 1,636 |
Merger-related expenses | 0 | 7,708 |
Other noninterest expense | 8,355 | 8,158 |
Total noninterest expense | 62,472 | 64,953 |
Income before income tax provision | 37,687 | 23,212 |
Income tax provision | 7,133 | 3,990 |
NET INCOME | $ 30,554 | $ 19,222 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 1.92 | $ 1.30 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 1.92 | $ 1.30 |
Trust revenue | ||
NONINTEREST INCOME | ||
Revenue | $ 7,234 | $ 6,321 |
Service charges on deposit accounts | ||
NONINTEREST INCOME | ||
Revenue | 4,633 | 4,231 |
Interchange revenue from debit card transactions | ||
NONINTEREST INCOME | ||
Revenue | 3,855 | 3,094 |
Loan servicing fees, net | ||
NONINTEREST INCOME | ||
Revenue | $ 694 | $ (61) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 30,554 | $ 19,222 |
Unrealized holding (losses) gains on available-for-sale debt securities | (8,669) | 10,504 |
Reclassification adjustment for (gains) realized in income | (24) | (169) |
Other comprehensive (loss) income on available-for-sale debt securities | (8,693) | 10,335 |
Unfunded pension and postretirement obligations: | ||
Changes from plan amendments and actuarial gains and losses | 140 | (49) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost | (17) | (29) |
Other comprehensive income (loss) on pension and postretirement obligations | 123 | (78) |
Other comprehensive (loss) income before income tax | (8,570) | 10,257 |
Income tax related to other comprehensive loss (income) | 1,801 | (2,153) |
Net other comprehensive (loss) income | (6,769) | 8,104 |
Comprehensive income | $ 23,785 | $ 27,326 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
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 | 19,222 | 19,222 | ||||
Other comprehensive income (loss), net | 8,104 | 8,104 | ||||
Cash dividends declared on common stock | (15,999) | (15,999) | ||||
Shares issued for dividend reinvestment plan (in shares) | (77,525) | |||||
Shares issued for dividend reinvestment plan | $ 1,496 | 34 | $ 1,530 | |||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (10,407) | (17,222) | ||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 201 | (70) | $ 131 | |||
Restricted stock granted (in shares) | (70,940) | |||||
Restricted stock granted | $ 1,370 | (1,370) | 0 | |||
Forfeiture of restricted stock (in shares) | 5,290 | |||||
Forfeiture of restricted stock | $ (100) | 100 | 0 | |||
Stock-based compensation expense | 1,050 | 1,050 | ||||
Purchase of restricted stock for tax withholding (in shares) | 5,862 | |||||
Purchase of restricted stock for tax withholding | $ (163) | (163) | ||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs (in shares) | 2,047,819 | |||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs | $ 2,048 | 39,381 | 41,429 | |||
Balance (in shares) at Dec. 31, 2020 | 15,982,815 | 70,831 | ||||
Balance at Dec. 31, 2020 | $ 15,983 | $ (1,369) | 143,644 | 129,703 | 11,795 | 299,756 |
Net income | 30,554 | 30,554 | ||||
Other comprehensive income (loss), net | (6,769) | (6,769) | ||||
Cash dividends declared on common stock | (17,645) | (17,645) | ||||
Shares issued for dividend reinvestment plan (in shares) | 36,368 | (31,877) | ||||
Shares issued for dividend reinvestment plan | $ 36 | $ 788 | 845 | $ 1,669 | ||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (13,169) | (22,429) | ||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 245 | (33) | $ 212 | |||
Restricted stock granted (in shares) | 10,989 | (67,402) | ||||
Restricted stock granted | $ 11 | $ 1,308 | (1,319) | 0 | ||
Forfeiture of restricted stock (in shares) | 5,290 | |||||
Forfeiture of restricted stock | $ (102) | 102 | 0 | |||
Stock-based compensation expense | 1,214 | 1,214 | ||||
Purchase of restricted stock for tax withholding (in shares) | 8,350 | |||||
Purchase of restricted stock for tax withholding | $ (174) | (174) | ||||
Treasury stock purchased (in shares) | 299,059 | |||||
Treasury stock purchased | $ (7,412) | (7,412) | ||||
Balance (in shares) at Dec. 31, 2021 | 16,030,172 | 271,082 | ||||
Balance at Dec. 31, 2021 | $ 16,030 | $ (6,716) | $ 144,453 | $ 142,612 | $ 5,026 | $ 301,405 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retained Earnings | ||
Common stock, dividends, per share (in dollars per share) | $ 1.11 | $ 1.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 30,554 | $ 19,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 3,661 | 3,913 |
Loss on prepayment of borrowings | 0 | 1,636 |
Realized gains on available-for-sale debt securities, net | (24) | (169) |
Net amortization of securities | 2,204 | 1,570 |
Increase in cash surrender value of life insurance | (573) | (515) |
Depreciation and amortization of bank premises and equipment | 2,130 | 1,981 |
Net accretion of purchase accounting adjustments | (2,124) | (2,524) |
Stock-based compensation | 1,214 | 1,050 |
Deferred income taxes | (1,381) | (361) |
Decrease in fair value of servicing rights | 68 | 576 |
Gains on sales of loans, net | (3,428) | (5,403) |
Origination of loans held for sale | (105,523) | (158,909) |
Proceeds from sales of loans held for sale | 107,797 | 163,149 |
Decrease (increase) in accrued interest receivable and other assets | 186 | (2,645) |
Increase in accrued interest payable and other liabilities | 210 | 2,473 |
Other | (127) | (260) |
Net Cash Provided by Operating Activities | 34,844 | 24,784 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash and cash equivalents provided by business combination | 0 | 75,955 |
Purchase of certificates of deposit | (4,500) | (2,500) |
Proceeds from maturities of certificates of deposit | 1,240 | 740 |
Proceeds from sales of available-for-sale debt securities | 2,027 | 28,941 |
Proceeds from calls and maturities of available-for-sale debt securities | 61,684 | 94,486 |
Purchase of available-for-sale debt securities | (243,925) | (105,354) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 2,517 | 8,496 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (2,110) | (5,146) |
Net decrease in loans | 78,746 | 1,564 |
Proceeds from bank owned life insurance | 287 | 0 |
Proceeds from sales of premises and equipment | 627 | 0 |
Purchase of premises and equipment | (1,864) | (3,137) |
Proceeds from sale of foreclosed assets | 1,148 | 2,262 |
Other | 228 | 273 |
Net Cash (Used in) Provided by Investing Activities | (103,895) | 96,580 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 105,381 | 86,941 |
Net decrease in short-term borrowings | (18,154) | (99,969) |
Proceeds from long-term borrowings - FHLB advances | 0 | 25,891 |
Repayments of long-term borrowings - FHLB advances | (26,095) | (54,831) |
Proceeds from issuance of senior notes, net of issuance costs | 14,663 | 0 |
Proceeds from issuance of subordinated debt, net of issuance costs | 24,437 | 0 |
Redemption of subordinated debt | (8,000) | 0 |
Sale of treasury stock | 212 | 131 |
Purchases of treasury stock | (7,586) | (163) |
Common dividends paid | (15,976) | (14,469) |
Net Cash Provided by (Used in) Financing Activities | 68,882 | (56,469) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (169) | 64,895 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 96,017 | 31,122 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 95,848 | $ 96,017 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Increase in accrued purchase of available-for-sale debt securities | $ (994) | $ 994 |
Accrued income from life insurance claim | 0 | 279 |
Assets acquired through foreclosure of real estate loans | 394 | 273 |
Leased assets obtained in exchange for new operating lease liabilities | 739 | 167 |
Interest paid | 8,174 | 10,742 |
Income taxes paid | 10,098 | 3,137 |
NONCASH INVESTING ASSETS ACQUIRED IN BUSINESS COMBINATION: | ||
Available-for-sale debt securities | 0 | 10,754 |
Loans receivable | 0 | 464,236 |
Bank-owned life insurance | 0 | 11,170 |
Foreclosed assets held for sale | 0 | 860 |
NONCASH FINANCING ACTIVITY RELATED TO BUSINESS COMBINATION: | ||
Common stock issued | 0 | 41,429 |
Liabilities assumed: | ||
Deposits | 0 | 481,796 |
Short-term borrowings | 0 | 33,950 |
Long-term borrowings | 0 | 30,025 |
Subordinated debt | $ 0 | $ 10,091 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF CONSOLIDATION – NATURE OF OPERATIONS – The Corporation provides banking and related services to individual and corporate customers. Lending products include commercial, mortgage and consumer loans, as well as specialized instruments such as commercial letters-of-credit. Deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, Individual Retirement Accounts and certificates of deposit. The Corporation provides wealth management services through its trust department, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services. The Corporation offers a variety of personal and commercial insurance products through C&N Financial Services Corporation. C&N Financial Services Corporation also offers mutual funds, annuities, educational savings accounts and other investment products through registered agents. Management has determined that the Corporation has one reportable segment, “Community Banking.” All of the Corporation’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others. The Corporation is subject to competition from other financial institutions. It is also subject to regulation by certain federal and state agencies and undergoes periodic examination by those regulatory authorities. As a consequence, the Corporation’s business is particularly susceptible to being affected by future federal and state legislation and regulations. USE OF ESTIMATES – Material estimates that are particularly susceptible to change include: (1) the allowance for loan losses and (2) fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers. INVESTMENT SECURITIES – Available-for-sale debt securities – Other-than-temporary impairment – Marketable equity security Restricted equity securities DERIVATIVES – LOANS HELD FOR SALE – LOANS RECEIVABLE – The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. The residential mortgage segment includes the following classes: first and junior lien residential mortgages, home equity lines of credit and residential construction loans. The most significant classes of commercial loans are commercial loans secured by real estate, non-real estate secured commercial and industrial loans, loans to political subdivisions, commercial construction, multi-family residential and loans secured by farmland. Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on loans for which the risk of further loss is greater than remote are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months PURCHASED LOANS – 90 days The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable yield. The nonaccretable yield represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require us to evaluate the need for an allowance for credit losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable yield which we then reclassify as accretable yield that is recognized into interest income over the remaining life of the loan using the interest method. Our evaluation of the amount of future cash flows that we expect to collect is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable yield portion of the fair value adjustment. ALLOWANCE FOR LOAN LOSSES – 120 days 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 addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require the Corporation to recognize adjustments to the allowance based on their judgments of information available to them at the time of their examination. In the process of evaluating the loan portfolio, management also considers the Corporation’s exposure to losses from unfunded loan commitments. As of December 31, 2021 and 2020, management determined that no allowance for credit losses related to unfunded loan commitments was required. The allowance consists primarily of two major components – (1) a specific component based on a detailed assessment of certain larger loan relationships, mainly commercial purpose, determined on a loan-by-loan basis; and (2) a general component for the remainder of the portfolio 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. The specific component relates to loans that are classified as impaired based on a detailed assessment of certain larger loan relationships evaluated by a management committee referred to as the Watch List Committee. Specific loan relationships are identified for evaluation based on the related credit risk rating. For individual loans classified as impaired, an allowance is established when the collateral value less estimated selling costs, present value of discounted cash flows or observable market price of the impaired loan is lower than the carrying value of that loan. 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. All loans classified as troubled debt restructurings (TDR) 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 general component covers pools of loans by loan class 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, (2) has an outstanding balance of $400,000 or more and a credit grade of Special Mention, Substandard or Doubtful, or (3) has an estimated loss of $100,000 or more. The pools of loans for each loan segment are evaluated for loss exposure based upon average historical net charge-off rates, adjusted for qualitative factors. 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. Qualitative risk factors (described in the following paragraph) are evaluated for the impact on each of the three distinct 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. Any adjustments to the factors are supported by a narrative documentation of changes in conditions accompanying the allowance for loan losses calculation. 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. Purchased loans that did not show evidence of credit deterioration at the acquisition dates were initially recorded at fair value, including a discount for credit losses reflecting an estimate of the present value of credit losses based on market expectations. The general component of the allowance on purchased loans is evaluated separately from the rest of the portfolio. This evaluation includes consideration of the qualitative risk factors described above as well as the remaining purchased discount. 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. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. 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 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. Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve reductions in required payments, an extension of a loan’s stated maturity date or a temporary reduction in interest rate. Loans classified as troubled debt restructurings are designated as impaired. Nonaccrual troubled debt restructurings may be restored to accrual status if the ultimate collectability of principal and interest payments under the modified terms is not in doubt, and there has been a period (generally, for at least six consecutive months) of satisfactory payment performance by the borrower either immediately before or after the restructuring. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. Provisions of the CARES Act Section 4013 largely mirrored the provisions of the interagency statement, providing that modified loans were not to be considered TDRs if they were performing at December 31, 2019 and other considerations set forth in the interagency statements were met. 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 or at December 31, 2019. Consistent with this guidance, the Corporation has not reported loans that were modified in response to COVID-19 as past due, nonaccrual or as TDRs. BANK PREMISES AND EQUIPMENT – IMPAIRMENT OF LONG-LIVED ASSETS – FORECLOSED ASSETS HELD FOR SALE – GOODWILL – CORE DEPOSIT INTANGIBLES – SERVICING RIGHTS INCOME TAXES tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are not expected to be realized based upon available evidence. Tax benefits from investments in limited partnerships that have qualified for federal low-income tax credits are recognized as a reduction in the provision for income tax over the term of the investment using the effective yield method. The Corporation includes income tax penalties in the provision for income tax. The Corporation has no accrued interest related to unrecognized tax benefits. STOCK COMPENSATION PLANS The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The fair value of restricted stock is based on the current market price on the date of grant. TREASURY STOCK – . OFF-BALANCE SHEET FINANCIAL INSTRUMENTS – CASH FLOWS – REVENUE RECOGNITION – Additional disclosures related to the Corporation’s largest sources of noninterest income within the consolidated statements of income from contracts with customers that are subject to Accounting Standards Codification (ASC) Topic 606 are as follows: Trust and financial management revenue – Trust revenue is recorded on a cash basis, which is not materially different from the accrual basis. The majority (approximately 84%, based on annual 2021 results) of trust revenue is earned and collected monthly, with the amount determined based on a percentage of the fair value of the trust assets under management. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The services provided under such a contract represent a single performance obligation under the Accounting Standards Updates (ASUs) because it embodies a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. None of the contracts with trust customers provide for incentive-based fees. In addition to wealth management fees, trust revenue includes fees for provision of services, including employee benefit plan administration, tax return preparation and estate planning and settlement. Fees for such services are billed based on contractual arrangements or established fee schedules and are typically billed upon completion of providing such services. The costs of acquiring trust customers are incremental and recognized within noninterest expense in the consolidated statements of income. Service charges on deposit accounts Interchange revenue from debit card transactions – |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues ASUs to the FASB 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 foreseeable future. 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 COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATION On July 1, 2020, the Corporation completed its acquisition of Covenant, which operated banking offices in Bucks and Chester Counties of Pennsylvania. In connection with the transaction, the Corporation recorded goodwill of $24.1 million and a core deposit intangible asset of $3.1 million. Total loans acquired on July 1, 2020 were valued at $464.2 million, while total deposits assumed were valued at $481.8 million, borrowings were valued at $64.0 million and subordinated debt was valued at $10.1 million. The Corporation acquired available-for-sale debt securities valued at $10.8 million and bank-owned life insurance valued at $11.2 million. 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 acquired or liabilities assumed in the year ended December 31, 2021. Merger-related expenses related to the acquisition of Covenant totaled $7,708,000 in 2020. There were no merger-related expenses in 2021. |
PER SHARE DATA
PER SHARE DATA | 12 Months Ended |
Dec. 31, 2021 | |
PER SHARE DATA | |
PER SHARE DATA | 4. 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) Years Ended December 31, December 31, 2021 2020 Basic Net income $ 30,554 $ 19,222 Less: Dividends and undistributed earnings allocated to participating securities (241) (116) Net income attributable to common shares $ 30,313 $ 19,106 Basic weighted-average common shares outstanding 15,765,639 14,743,386 Basic earnings per common share (a) $ 1.92 $ 1.30 Diluted Net income attributable to common shares $ 30,313 $ 19,106 Basic weighted-average common shares outstanding 15,765,639 14,743,386 Dilutive effect of potential common stock arising from stock options 6,316 3,662 Diluted weighted-average common shares outstanding 15,771,955 14,747,048 Diluted earnings per common share (a) $ 1.92 $ 1.30 Weighted-average nonvested restricted shares outstanding 125,539 89,718 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares with nonforfeitable dividends (participating securities). Anti-dilutive stock options are excluded from net income per share calculations. There were no anti-dilutive instruments in 2021. Weighted-average common shares available from anti-dilutive instruments totaled 32,538 shares in 2020. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | 5. 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 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (8,669) $ 1,821 $ (6,848) Reclassification adjustment for (gains) realized in income (24) 5 (19) Other comprehensive loss from available-for-sale debt securities (8,693) 1,826 (6,867) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 140 (29) 111 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (17) 4 (13) Other comprehensive income on unfunded retirement obligations 123 (25) 98 Total other comprehensive loss $ (8,570) $ 1,801 $ (6,769) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount 2020 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 10,504 $ (2,205) $ 8,299 Reclassification adjustment for (gains) realized in income (169) 35 (134) Other comprehensive income from available-for-sale debt securities 10,335 (2,170) 8,165 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (49) 11 (38) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (29) 6 (23) Other comprehensive loss on unfunded retirement obligations (78) 17 (61) Total other comprehensive income $ 10,257 $ (2,153) $ 8,104 Items reclassified out of each component of accumulated other comprehensive income are as follows: Affected Line Item in the Description Consolidated Statements of Income Reclassification adjustment for (gains) realized in income (before-tax) Realized gains on available-for-sale debt securities, net Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax) Other noninterest expense Income tax effect Income tax provision Changes in the components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: (In Thousands) Accumulated Unrealized Unfunded Other Gains Retirement Comprehensive on Securities Obligations Income 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during year ended December 31, 2021 (6,867) 98 (6,769) Balance, end of period $ 4,809 $ 217 $ 5,026 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during year ended December 31, 2020 8,165 (61) 8,104 Balance, end of period $ 11,676 $ 119 $ 11,795 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 6. CASH AND DUE FROM BANKS Cash and due from banks at December 31, 2021 and 2020 include the following: (In Thousands) December 31, December 31, 2021 2020 Cash and cash equivalents $ 95,848 $ 96,017 Certificates of deposit 9,100 5,840 Total cash and due from banks $ 104,948 $ 101,857 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. The Corporation has not experienced any losses in such accounts. 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 December 31, 2021 or December 31, 2020. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
SECURITIES | |
SECURITIES | 7. SECURITIES Amortized cost and fair value of available-for-sale debt securities at December 31, 2021 and 2020 are summarized as follows: (In Thousands) December 31, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,058 $ 52 $ (198) $ 24,912 Obligations of U.S. Government agencies 23,936 563 (408) 24,091 Bank holding company debt securities 18,000 18 (31) 17,987 Obligations of states and political subdivisions: Tax-exempt 143,427 4,749 (148) 148,028 Taxable 72,182 1,232 (649) 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 705 (572) 98,181 Residential collateralized mortgage obligations 44,015 437 (205) 44,247 Commercial mortgage-backed securities 86,926 1,548 (1,006) 87,468 Total available-for-sale debt securities $ 511,592 $ 9,304 $ (3,217) $ 517,679 (In Thousands) December 31, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,184 $ 0 $ (2) $ 12,182 Obligations of U.S. Government agencies 25,349 1,003 (8) 26,344 Obligations of states and political subdivisions: Tax-exempt 116,427 6,000 (26) 122,401 Taxable 45,230 2,246 (24) 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,853 1,323 0 38,176 Residential collateralized mortgage obligations 56,048 1,428 (9) 57,467 Commercial mortgage-backed securities 42,461 2,849 0 45,310 Total available-for-sale debt securities $ 334,552 $ 14,849 $ (69) $ 349,332 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 December 31, 2021 and 2020: December 31, 2021 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 the U.S. Treasury $ 18,886 $ (198) $ 0 $ 0 $ 18,886 $ (198) Obligations of U.S. Government agencies 9,735 (264) 4,856 (144) 14,591 (408) Bank holding company debt securities 12,969 (31) 0 0 12,969 (31) Obligations of states and political subdivisions: Tax-exempt 17,852 (141) 549 (7) 18,401 (148) Taxable 31,261 (517) 3,277 (132) 34,538 (649) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 71,451 (572) 0 0 71,451 (572) Residential collateralized mortgage obligations 15,117 (205) 0 0 15,117 (205) Commercial mortgage-backed securities 52,867 (1,006) 0 0 52,867 (1,006) Total temporarily impaired available-for-sale debt securities $ 230,138 $ (2,934) $ 8,682 $ (283) $ 238,820 $ (3,217) December 31, 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 the U.S. Treasury $ 9,159 $ (2) $ 0 $ 0 $ 9,159 $ (2) Obligations of U.S. Government agencies 4,992 (8) 0 0 4,992 (8) Obligations of states and political subdivisions: Tax-exempt 3,811 (26) 0 0 3,811 (26) Taxable 5,235 (24) 0 0 5,235 (24) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, Residential collateralized mortgage obligations 2,861 (9) 0 0 2,861 (9) Total temporarily impaired available-for-sale debt securities $ 26,058 $ (69) $ 0 $ 0 $ 26,058 $ (69) Gross realized gains and losses from available-for-sale securities and the related income tax provision were as follows: (In Thousands) 2021 2020 Gross realized gains from sales $ 27 $ 222 Gross realized losses from sales (3) (53) Net realized gains $ 24 $ 169 Income tax provision related to net realized gains $ 5 $ 35 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of December 31, 2021. 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) December 31, 2021 Amortized Fair Cost Value Due in one year or less $ 14,454 $ 14,538 Due from one year through five years 58,561 59,116 Due from five years through ten years 79,532 81,073 Due after ten years 130,056 133,056 Sub-total 282,603 287,783 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 98,181 Residential collateralized mortgage obligations 44,015 44,247 Commercial mortgage-backed securities 86,926 87,468 Total $ 511,592 $ 517,679 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 $241,428,000 at December 31, 2021 and $247,373,000 at December 31, 2020 were pledged as collateral for public deposits, trusts and certain other deposits, as provided by law, totaling $189,383,000 at December 31, 2021 and $201,176,000 at December 31, 2020. See Note 12 for information concerning securities pledged to secure borrowing arrangements and Note 21 for information related to securities pledged against interest rate swap obligations. 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 OTTI at December 31, 2021 and 2020 is provided below. Debt Securities At December 31, 2021 and 2020, 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 these debt securities at December 31, 2021 and 2020 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 $9,313,000 at December 31, 2021 and $9,720,000 at December 31, 2020. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at December 31, 2021 and December 31, 2020. 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 $971,000 at December 31, 2021 and $1,000,000 at December 31, 2020, consisted exclusively of one mutual fund. There was an unrealized loss of $29,000 on the mutual fund at December 31, 2021 and no unrealized gain/loss at December 31, 2020. The increase in the unrealized loss of $29,000 in 2021 and the decrease in the unrealized loss of $21,000 in 2020 are included in other noninterest income in the consolidated statements of income. There were no sales of equity securities in 2021 and 2020. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2021 | |
LOANS | |
LOANS | 8. LOANS The loans receivable portfolio is segmented into commercial, residential mortgage and consumer loans. Loans outstanding at December 31, 2021 and December 31, 2020 are summarized by segment, and by classes within each segment, as follows: Summary of Loans by Type (In Thousands) December 31, December 31, 2021 2020 Commercial: Commercial loans secured by real estate $ 569,840 $ 531,810 Commercial and industrial 159,073 159,577 Paycheck Protection Program - 1st Draw 1,356 132,269 Paycheck Protection Program - 2nd Draw 25,508 0 Political subdivisions 81,301 53,221 Commercial construction and land 60,579 42,874 Loans secured by farmland 11,121 11,736 Multi-family (5 or more) residential 50,089 55,811 Agricultural loans 2,351 3,164 Other commercial loans 17,153 17,289 Total commercial 978,371 1,007,751 Residential mortgage: Residential mortgage loans - first liens 483,629 532,947 Residential mortgage loans - junior liens 23,314 27,311 Home equity lines of credit 39,252 39,301 1-4 Family residential construction 23,151 20,613 Total residential mortgage 569,346 620,172 Consumer 17,132 16,286 Total 1,564,849 1,644,209 Less: allowance for loan losses (13,537) (11,385) Loans, net $ 1,551,312 $ 1,632,824 In the table above, outstanding loan balances are presented net of deferred loan origination fees of $4,247,000 at December 31, 2021 and $6,286,000 at December 31, 2020. 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, Southeastern Pennsylvania and Southcentral 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 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. Information related to PPP loans advanced pursuant to the CARES Act are labeled “1st Draw” within the tables. Section 4013 of the CARES Act provides that, from the period beginning March 1, 2020 until 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. On December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the “CAA”), which includes provisions that broadly address additional COVID-19 responses and relief. Among the additional relief measures included are certain extensions to elements of the CARES Act, including extension of temporary relief from troubled debt restructurings established under Section 4013 of the CARES Act to the earlier of a) January 1, 2022, or b) the date that is 60 days after the date on which the national COVID-19 emergency terminates. The CAA also includes additional funding for the PPP with additional eligibility requirements for borrowers with generally the same loan terms as provided under the CARES Act. Information related to PPP loans advanced pursuant to the CAA are labeled “2nd Draw” within the tables. The maximum term of PPP loans is five years. Most of the Corporation’s 1st Draw PPP loans have two-year terms, while 2nd Draw PPP loans have five-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. Fees on PPP loans, net of origination costs and a market rate adjustment on PPP loans acquired from Covenant, are 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. Covenant also engaged in PPP lending starting in early April 2020. As of December 31, 2021, the recorded investment in 1st Draw PPP loans was $1,356,000 , including contractual principal balances of $1,410,000 , reduced by net deferred origination fees of $54,000 . The recorded investment in 2nd Draw PPP loans was $25,508,000 , including contractual principal balances of $26,356,000 reduced by net deferred origination fees of $848,000 . Accretion of fees received on PPP loans, net of amortization of the market rate adjustment on PPP loans acquired from Covenant, was $5,515,000 in 2021 and $1,901,000 in 2020. Interest and fees on PPP loans which are included in taxable interest and fees on loans in the consolidated statements of income totaled $6,530,000 in 2021 and $2,924,000 in 2020. To work with clients impacted by COVID-19, the Corporation offered 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. Prior to the merger, Covenant had a similar program in place, and these modified loans have been incorporated into the Corporation’s program. These efforts were designed to assist borrowers as they deal with the crisis and help the Corporation mitigate credit risk. For loans subject to the program, each borrower was required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts have been moved to the end of the loan term. Consistent with Section 4013 of the CARES Act, the modified loans have not been reported as past due, nonaccrual or as TDRs at December 31, 2021 and 2020. Most of the initial modifications under the program became effective in 2020 and provided a deferral of interest or principal and interest for 90-to-180 days. At December 31, 2021, there were no loans in deferral status under the program. At December 31, 2020, there were 45 loans with a total recorded investment of $37,397,000, in deferral status under the program. As described in Note 3, effective July 1, 2020, the Corporation acquired loans pursuant to its acquisition of Covenant. In 2019, the Corporation acquired loans pursuant to the acquisition of Monument Bancorp, Inc. (“Monument”). Acquired loans were recorded at their initial fair value, with adjustments made to the gross amortized cost of loans based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequent to the acquisitions, the Corporation has recognized amortization and accretion of a portion of the market rate adjustments and credit adjustments on non-impaired (performing) loans, and a partial recovery of purchased credit impaired (PCI) loans. For the years ended December 31, 2021 and 2020, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows: (In Thousands) Year Ended December 31, December 31, 2021 2020 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ 718 $ (1,415) Market rate adjustment recorded in acquisition 0 2,909 Amortization recognized in interest income (1,355) (776) Adjustments to gross amortized cost of loans at end of period $ (637) $ 718 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (5,979) $ (1,216) Credit adjustment recorded in acquisition 0 (7,219) Accretion recognized in interest income 2,644 2,456 Adjustments to gross amortized cost of loans at end of period $ (3,335) $ (5,979) A summary of PCI loans held at December 31, 2021 and December 31, 2020 is as follows: (In Thousands) December 31, December 31, 2021 2020 Outstanding balance $ 9,802 $ 10,316 Carrying amount 6,558 6,841 Transactions within the allowance for loan losses, summarized by segment and class, were as follows: December 31, December 31, Year Ended December 31, 2021 2020 Provision 2021 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 2 $ 1,352 $ 4,405 Commercial and industrial 2,245 (1,464) 20 1,922 2,723 Commercial construction and land 454 0 0 183 637 Loans secured by farmland 120 0 0 (5) 115 Multi-family (5 or more) residential 236 0 0 (21) 215 Agricultural loans 34 0 0 (9) 25 Other commercial loans 168 0 0 5 173 Total commercial 6,308 (1,464) 22 3,427 8,293 Residential mortgage: Residential mortgage loans - first liens 3,524 (11) 4 133 3,650 Residential mortgage loans - junior liens 349 0 0 (165) 184 Home equity lines of credit 281 0 2 19 302 1-4 Family residential construction 99 0 0 103 202 Total residential mortgage 4,253 (11) 6 90 4,338 Consumer 239 (100) 38 58 235 Unallocated 585 0 0 86 671 Total Allowance for Loan Losses $ 11,385 $ (1,575) $ 66 $ 3,661 $ 13,537 December 31, December 31, Year Ended December 31, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 1,921 $ 0 $ 0 $ 1,130 $ 3,051 Commercial and industrial 1,391 (2,236) 16 3,074 2,245 Commercial construction and land 966 (107) 0 (405) 454 Loans secured by farmland 158 0 0 (38) 120 Multi-family (5 or more) residential 156 0 0 80 236 Agricultural loans 41 0 0 (7) 34 Other commercial loans 155 0 0 13 168 Total commercial 4,788 (2,343) 16 3,847 6,308 Residential mortgage: Residential mortgage loans - first liens 3,405 0 39 80 3,524 Residential mortgage loans - junior liens 384 0 1 (36) 349 Home equity lines of credit 276 0 4 1 281 1-4 Family residential construction 117 0 0 (18) 99 Total residential mortgage 4,182 0 44 27 4,253 Consumer 281 (122) 41 39 239 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (2,465) $ 101 $ 3,913 $ 11,385 For the year ended December 31, 2021, the provision for loan losses was $3,661,000, a decrease in expense of $252,000 as compared to 2020. In 2021, the provision included the impact of partial charge-offs totaling $1,463,000 on a commercial loan. At December 31, 2021, the recorded investment in this loan was $1,391,000. In total, the provision for 2021 included a net charge of $1,324,000 related to specific loans (net charge-offs of $1,509,000 offset by a net decrease in specific allowances on loans of $185,000), an increase of $2,251,000 in the collectively determined potion of the allowance and an $86,000 increase in the unallocated allowance. The increase in the collectively determined portion of the allowance reflected the impact of an increase in volume of commercial loans, excluding PPP loans. In 2020, the provision included a $2,219,000 charge-off on one commercial loan for which there was no recorded investment at December 31, 2021 and 2020. 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. 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. 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. 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 December 31, 2021 and 2020: December 31, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 538,966 $ 10,510 $ 16,220 $ 0 $ 4,144 $ 569,840 Commercial and Industrial 142,775 10,841 4,694 0 763 159,073 Paycheck Protection Program - 1st Draw 1,356 0 0 0 0 1,356 Paycheck Protection Program - 2nd Draw 25,508 0 0 0 0 25,508 Political subdivisions 81,301 0 0 0 0 81,301 Commercial construction and land 59,816 715 48 0 0 60,579 Loans secured by farmland 10,011 186 924 0 0 11,121 Multi-family (5 or more) residential 47,638 0 873 0 1,578 50,089 Agricultural loans 1,802 0 549 0 0 2,351 Other commercial loans 17,150 3 0 0 0 17,153 Total commercial 926,323 22,255 23,308 0 6,485 978,371 Residential Mortgage: Residential mortgage loans - first liens 469,044 7,981 6,534 0 70 483,629 Residential mortgage loans - junior liens 22,914 114 283 0 3 23,314 Home equity lines of credit 38,652 59 541 0 0 39,252 1-4 Family residential construction 23,151 0 0 0 0 23,151 Total residential mortgage 553,761 8,154 7,358 0 73 569,346 Consumer 17,092 0 40 0 0 17,132 Totals $ 1,497,176 $ 30,409 $ 30,706 $ 0 $ 6,558 $ 1,564,849 December 31, 2020 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 494,876 $ 17,374 $ 15,262 $ 0 $ 4,298 $ 531,810 Commercial and Industrial 143,500 8,025 7,268 0 784 159,577 Paycheck Protection Program - 1st Draw 132,269 0 0 0 0 132,269 Political subdivisions 53,221 0 0 0 0 53,221 Commercial construction and land 42,110 715 49 0 0 42,874 Loans secured by farmland 10,473 405 858 0 0 11,736 Multi-family (5 or more) residential 50,563 2,405 1,229 0 1,614 55,811 Agricultural loans 2,569 0 595 0 0 3,164 Other commercial loans 17,289 0 0 0 0 17,289 Total commercial 946,870 28,924 25,261 0 6,696 1,007,751 Residential Mortgage: Residential Mortgage loans - first liens 516,685 6,192 9,994 0 76 532,947 Residential Mortgage loans - junior liens 26,480 141 621 0 69 27,311 Home equity lines of credit 38,529 59 713 0 0 39,301 1-4 Family residential construction 20,613 0 0 0 0 20,613 Total residential mortgage 602,307 6,392 11,328 0 145 620,172 Consumer 16,172 0 114 0 0 16,286 Totals $ 1,565,349 $ 35,316 $ 36,703 $ 0 $ 6,841 $ 1,644,209 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 December 31, 2021 and 2020: December 31, 2021 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 10,926 $ 558,914 $ 569,840 $ 669 $ 3,736 $ 4,405 Commercial and industrial 2,503 156,570 159,073 71 2,652 2,723 Paycheck Protection Program - 1st Draw 0 1,356 1,356 0 0 0 Paycheck Protection Program - 2nd Draw 0 25,508 25,508 0 0 0 Political subdivisions 0 81,301 81,301 0 0 0 Commercial construction and land 0 60,579 60,579 0 637 637 Loans secured by farmland 83 11,038 11,121 0 115 115 Multi-family (5 or more) residential 1,578 48,511 50,089 0 215 215 Agricultural loans 0 2,351 2,351 0 25 25 Other commercial loans 0 17,153 17,153 0 173 173 Total commercial 15,090 963,281 978,371 740 7,553 8,293 Residential mortgage: Residential mortgage loans - first liens 630 482,999 483,629 0 3,650 3,650 Residential mortgage loans - junior liens 14 23,300 23,314 0 184 184 Home equity lines of credit 0 39,252 39,252 0 302 302 1-4 Family residential construction 0 23,151 23,151 0 202 202 Total residential mortgage 644 568,702 569,346 0 4,338 4,338 Consumer 0 17,132 17,132 0 235 235 Unallocated 671 Total $ 15,734 $ 1,549,115 $ 1,564,849 $ 740 $ 12,126 $ 13,537 December 31, 2020 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,962 $ 519,848 $ 531,810 $ 692 $ 2,359 $ 3,051 Commercial and industrial 1,359 158,218 159,577 71 2,174 2,245 Paycheck Protection Program - 1st Draw 0 132,269 132,269 0 0 0 Political subdivisions 0 53,221 53,221 0 0 0 Commercial construction and land 0 42,874 42,874 0 454 454 Loans secured by farmland 84 11,652 11,736 0 120 120 Multi-family (5 or more) residential 1,614 54,197 55,811 0 236 236 Agricultural loans 0 3,164 3,164 0 34 34 Other commercial loans 0 17,289 17,289 0 168 168 Total commercial 15,019 992,732 1,007,751 763 5,545 6,308 Residential mortgage: Residential mortgage loans - first liens 2,385 530,562 532,947 9 3,515 3,524 Residential mortgage loans - junior liens 414 26,897 27,311 153 196 349 Home equity lines of credit 0 39,301 39,301 0 281 281 1-4 Family residential construction 0 20,613 20,613 0 99 99 Total residential mortgage 2,799 617,373 620,172 162 4,091 4,253 Consumer 0 16,286 16,286 0 239 239 Unallocated 585 Total $ 17,818 $ 1,626,391 $ 1,644,209 $ 925 $ 9,875 $ 11,385 Summary information related to impaired loans as of December 31, 2021 and 2020 is as follows: (In Thousands) December 31, 2021 December 31, 2020 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 6,600 $ 4,458 $ 0 $ 7,168 $ 5,398 $ 0 Commercial and industrial 5,213 2,431 0 1,781 1,287 0 Residential mortgage loans - first liens 656 630 0 1,248 1,248 0 Residential mortgage loans - junior liens 124 14 0 160 105 0 Loans secured by farmland 83 83 0 84 84 0 Multi-family (5 or more) residential 2,734 1,578 0 2,770 1,614 0 Total with no related allowance recorded 15,410 9,194 0 13,211 9,736 0 With a related allowance recorded: Commercial loans secured by real estate 6,468 6,468 668 6,501 6,501 691 Commercial and industrial 72 72 72 72 72 72 Residential mortgage loans - first liens 0 0 0 1,200 1,200 9 Residential mortgage loans - junior liens 0 0 0 309 309 153 Total with a related allowance recorded 6,540 6,540 740 8,082 8,082 925 Total $ 21,950 $ 15,734 $ 740 $ 21,293 $ 17,818 $ 925 The average balance of impaired loans and interest income recognized on impaired loans is as follows: (In Thousands) Interest Income Recognized on Average Investment in on Impaired Loans Impaired Loans on a Cash Basis Year Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Commercial: Commercial loans secured by real estate $ 11,617 $ 5,266 $ 557 $ 258 Commercial and industrial 2,636 2,542 34 34 Commercial construction and land 48 521 3 15 Loans secured by farmland 84 319 1 27 Multi-family (5 or more) residential 1,583 202 133 0 Agricultural loans 67 76 4 4 Other commercial loans 0 18 0 1 Total commercial 16,035 8,944 732 339 Residential mortgage: Residential mortgage loans - first lien 1,647 1,853 78 116 Residential mortgage loans - junior lien 361 392 11 22 Home equity lines of credit 0 57 0 3 Total residential mortgage 2,008 2,302 89 141 Total $ 18,043 $ 11,246 $ 821 $ 480 The breakdown by portfolio segment and class of nonaccrual loans and loans past due ninety days or more and still accruing is as follows: (In Thousands) December 31, 2021 December 31, 2020 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 738 $ 10,885 $ 395 $ 11,550 Commercial and industrial 30 2,299 142 970 Commercial construction and land 0 48 0 49 Loans secured by farmland 28 83 188 84 Multi-family (5 or more) residential 0 1,578 0 1,614 Agricultural loans 65 0 0 0 Other commercial 0 0 71 0 Total commercial 861 14,893 796 14,267 Residential mortgage: Residential mortgage loans - first liens 1,144 4,005 838 6,387 Residential mortgage loans - junior liens 69 3 52 378 Home equity lines of credit 102 82 233 299 Total residential mortgage 1,315 4,090 1,123 7,064 Consumer 43 16 56 85 Totals $ 2,219 $ 18,999 $ 1,975 $ 21,416 Loans past due 90 days or more for which interest continues to be accrued have been evaluated and determind to be well secured and in the process of collection. The amounts shown in the table immediately above include loans classified as troubled debt restructurings (described in more detail below), if such loans are past due ninety days or more or nonaccrual. PCI loans with a total recorded investment of $6,558,000 at December 31, 2021 and $6,841,000 at December 31, 2020 are classified as nonaccrual. The table below presents a summary of the contractual aging of loans as of December 31, 2021 and 2020. Loans modified under the Corporation’s program designed to work with clients impacted by COVID-19, as described above, are included in the current and past due less than 30 days category in the table that follows: (In Thousands) As of December 31, 2021 As of December 31, 2020 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 Commercial: Commercial loans secured by real estate $ 563,658 $ 762 $ 5,420 $ 569,840 $ 529,998 $ 66 $ 1,746 $ 531,810 Commercial and industrial 158,188 72 813 159,073 158,523 55 999 159,577 Paycheck Protection Program - 1st Draw 1,339 17 0 1,356 132,269 0 0 132,269 Paycheck Protection Program - 2nd Draw 25,508 0 0 25,508 0 0 0 0 Political subdivisions 81,301 0 0 81,301 53,221 0 0 53,221 Commercial construction and land 60,509 70 0 60,579 42,590 284 0 42,874 Loans secured by farmland 11,010 0 111 11,121 11,419 95 222 11,736 Multi-family (5 or more) residential 48,532 0 1,557 50,089 53,860 1,951 0 55,811 Agricultural loans 2,279 7 65 2,351 3,091 2 71 3,164 Other commercial loans 17,153 0 0 17,153 17,289 0 0 17,289 Total commercial 969,477 928 7,966 978,371 1,002,260 2,453 3,038 1,007,751 Residential mortgage: Residential mortgage loans - first liens 475,637 5,038 2,954 483,629 523,191 5,703 4,053 532,947 Residential mortgage loans - junior liens 23,229 16 69 23,314 27,009 111 191 27,311 Home equity lines of credit 38,830 279 143 39,252 38,919 101 281 39,301 1-4 Family residential construction 23,151 0 0 23,151 20,457 156 0 20,613 Total residential mortgage 560,847 5,333 3,166 569,346 609,576 6,071 4,525 620,172 Consumer 17,001 72 59 17,132 16,063 83 140 16,286 Totals $ 1,547,325 $ 6,333 $ 11,191 $ 1,564,849 $ 1,627,899 $ 8,607 $ 7,703 $ 1,644,209 Nonaccrual loans are included in the contractual aging immediately above. A summary of the contractual aging of nonaccrual loans at December 31, 2021 and 2020 is as follows: (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total December 31, 2021 Nonaccrual Totals $ 8,800 $ 1,227 $ 8,972 $ 18,999 December 31, 2020 Nonaccrual Totals $ 12,999 $ 2,689 $ 5,728 $ 21,416 Loans whose terms are modified are classified as TDRs if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Loans classified as TDRs are designated as impaired. The outstanding balance of loans subject to TDRs, as well as the contractual aging information at December 31, 2021 and 2020 is as follows: Troubled Debt Restructurings (TDRs): (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total December 31, 2021 Totals $ 248 $ 40 $ 65 $ 5,452 $ 5,805 December 31, 2020 Totals $ 166 $ 0 $ 418 $ 6,867 $ 7,451 At December 31, 2021 and 2020, there were no commitments to loan additional funds to borrowers whose loans have been classified as TDRs. A summary of TDRs that occurred during 2021 and 2020 is as follows: (Balances in Thousands) 2021 2020 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 1 $ 12 0 $ 0 Reduced monthly payments for a fifteen-month period 1 116 0 0 Residential mortgage - junior liens, New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted 0 0 1 30 Home equity lines of credit: Reduced monthly payments and extended maturity date 1 24 0 0 Reduced monthly payments for an eighteen-month period 1 70 0 0 Commercial loans secured by real estate: Interest only payments for a nine-month period 0 0 1 240 Principal and interest payment deferral non-COVID related 0 0 2 4,831 Multi-family (5 or more) residential, Principal and interest payment deferral non-COVID related 0 0 3 2,170 Total 4 $ 222 7 $ 7,271 In the year ended December 31, 2020, the Corporation recorded a specific allowance for loan losses of $416,000 related to a loan secured by commercial real estate for which a TDR concession was made in 2020 and included in the table above. In 2021, the allowance on this loan with a recorded investment of $3,405,000 at December 31, 2021 was increased to $427,000. The other loans for which TDRs were granted in 2021 and 2020 had no specific impact on the provision or allowance for loan losses. In 2021 and 2020, payment defaults on loans for which modifications considered to be TDRs were entered into within the previous 12 months are summarized as follows: 2021 2020 Number Number of Recorded of |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
BANK PREMISES AND EQUIPMENT | |
BANK PREMISES AND EQUIPMENT | 9. BANK PREMISES AND EQUIPMENT (In Thousands) December 31, 2021 2020 Land $ 3,623 $ 3,826 Buildings and improvements 32,606 33,058 Furniture and equipment 15,162 15,235 Construction in progress 835 8 Total 52,226 52,127 Less: accumulated depreciation (31,543) (30,601) Net $ 20,683 $ 21,526 Depreciation expense is included in the following line items of the consolidated statements of income: (In Thousands) 2021 2020 Net occupancy and equipment expense $ 1,723 $ 1,595 Data processing and telecommunications expense 407 386 Total $ 2,130 $ 1,981 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 10. GOODWILL AND OTHER INTANGIBLE ASSETS, NET Information related to the core deposit intangibles is as follows: (In Thousands) December 31, 2021 2020 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,323) (2,788) Net $ 3,316 $ 3,851 Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows: (In Thousands) Year Ended December 31, December 31, 2021 2020 Amortization expense $ 535 $ 540 The amount of amortization expense to be recognized in each of the ensuing five years is as follows: (In Thousands) 2022 $ 439 2023 408 2024 390 2025 424 2026 396 Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. Changes in the carrying amount of goodwill are summarized in the following table: (In Thousands) Year Ended December 31, December 31, 2021 2020 Balance, beginning of period $ 52,505 $ 28,388 Goodwill arising in business combination 0 24,117 Balance, end of period $ 52,505 $ 52,505 In testing goodwill for impairment at December 31, 2021, 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 amount. Accordingly, there was no goodwill impairment at December 31, 2021. There were no goodwill impairment charges recorded in the years ended December 31, 2021 and 2020. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
DEPOSITS | 11. DEPOSITS At December 31, 2021 the scheduled maturities of time deposits are as follows: (In Thousands) 2022 $ 163,170 2023 80,711 2024 22,224 2025 11,963 2026 7,825 Total $ 285,893 Time deposits of more than $250,000 totaled $75,375,000 at December 31, 2021 and $103,024,000 at December 31, 2020. As of December 31, 2021, the remaining maturities or time to next re-pricing of time deposits more than $250,000 was as follows: (In Thousands) Three months or less $ 15,981 Over 3 months through 12 months 32,648 Over 1 year through 3 years 25,438 Over 3 years 1,308 Total $ 75,375 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWED FUNDS | |
BORROWED FUNDS | 12. BORROWED FUNDS SHORT-TERM BORROWINGS Short-term borrowings (initial maturity within one year) include the following: (In Thousands) December 31, December 31, 2021 2020 FHLB-Pittsburgh borrowings $ 0 $ 18,066 Customer repurchase agreements 1,803 1,956 Total short-term borrowings $ 1,803 $ 20,022 The weighted average interest rate on total short-term borrowings outstanding was 0.10% at December 31, 2021 and 0.40% at December 31, 2020. The maximum amount of total short-term borrowings outstanding at any month-end was $17,353,000 in 2021 and $56,647,000 in 2020. The Corporation had available credit with other correspondent banks totaling $45,000,000 at December 31, 2021 and 2020. These lines of credit are primarily unsecured. No amounts were outstanding at December 31, 2021 or 2020. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At December 31, 2021, the Corporation had available credit in the amount of $13,642,000 on this line with no outstanding advances. At December 31, 2020, the Corporation had available credit in the amount of $14,654,000 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 $14,034,000 at December 31, 2021 and $15,126,000 at December 31, 2020. 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 December 31, 2021 and 2020. The carrying value of the underlying securities was $1,820,000 at December 31, 2021 and $1,980,000 at December 31, 2020. The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $1,046,242,000 at December 31, 2021 and $1,049,690,000 at December 31, 2020. 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 $9,313,000 at December 31, 2021 and $9,720,000 at December 31, 2020. The Corporation’s total credit facility with FHLB-Pittsburgh was $756,868,000 at December 31, 2021, including an unused (available) amount of $723,557,000. At December 31, 2020, the Corporation’s total credit facility with FHLB-Pittsburgh was $771,199,000, including an unused (available) amount of $698,977,000. At December 31, 2021, there were no overnight borrowings or short-term advances from FHLB-Pittsburgh. At December 31, 2020, other short-term advances from FHLB-Pittsburgh included five advances totaling $18,000,000 which are presented in the table net of the unamortized purchase accounting adjustment, with a weighted-average effective rate of 0.43%. LONG-TERM BORROWINGS – FHLB ADVANCES Long-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) December 31, December 31, 2021 2020 Loans matured in 2021 $ 0 $ 26,098 Loans maturing in 2022 with a weighted-average rate of 0.60% 15,452 15,682 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,119 7,224 Loan maturing in 2024 with a rate of 0.75% 5,099 5,137 Loan maturing in 2025 with a rate of 4.91% 372 467 Total long-term FHLB-Pittsburgh borrowings $ 28,042 $ 54,608 Note: Weighted-average rates are presented as of December 31, 2021. SENIOR NOTES On May 19, 2021, the Corporation issued and sold $15.0 million in aggregate principal amount of 2.75% Fixed Rate Senior Unsecured Notes due 2026 (the "Senior Notes"). The Senior Notes mature on June 1, 2026 and bear interest at a fixed annual rate of 2.75%. The Corporation is not entitled to redeem the Senior Notes, in whole or in part, at any time prior to maturity and the Senior Notes are not subject to redemption by the holders. The Senior Notes are unsecured and unsubordinated obligations of the Corporation only and are not obligations of, and are not guaranteed by, any subsidiary of the Corporation. The Senior Notes were recorded, net of debt issuance costs of $337,000, at an initial carrying amount of $14,663,000. Debt issuance costs are amortized over the term of the Senior Notes as an adjustment of the effective interest rate. Amortization of debt issuance costs associated with the Senior Notes totaling $38,000 in 2021 was included in interest expense in the consolidated statements of income. At December 31, 2021 and December 31, 2020, outstanding Senior Notes are as follows: (In Thousands) December 31, December 31, 2021 2020 Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 $ 14,701 $ 0 Total carrying value $ 14,701 $ 0 SUBORDINATED DEBT On May 19, 2021, the Corporation issued and sold $25.0 million in aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Subordinated Notes"). The Subordinated Notes mature on June 1, 2031 and bear interest at a fixed annual rate of 3.25%, to June 1, 2026. From June 1, 2026 to maturity or early redemption, the interest rate will reset quarterly to an interest rate per annum equal to the three-month Secured Overnight Financing Rate provided by the Federal Reserve Bank of New York plus 259 basis points. The Corporation is entitled to redeem the Subordinated Notes, in whole or in part, at any time on or after June 1, 2026, and to redeem the Subordinated Notes at any time in whole upon certain other events. Any redemption of the Subordinated Notes will be subject to prior regulatory approval to the extent required. The Subordinated Notes are not subject to redemption at the option of the holders. The Subordinated Notes are unsecured, subordinated obligations of the Corporation only and are not obligations of, and are not guaranteed by, any subsidiary of the Corporation. The Subordinated Notes rank junior in right to payment to the Corporation's current and future senior indebtedness, including the Senior Notes (described above). The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. The Subordinated Notes were recorded, net of debt issuance costs of $563,000, at an initial carrying amount of $24,437,000. Debt issuance costs are amortized through June 1, 2026 as an adjustment of the effective interest rate. Amortization of debt issuance costs associated with the Subordinated Notes totaling $63,000 in 2021 was included in interest expense in the unaudited consolidated statements of income. At December 31, 2021 and 2020, outstanding subordinated debt agreements are as follows: (In Thousands) December 31, December 31, 2021 2020 Agreements with an aggregate par value of $8,000,000; bearing interest at 6.25% with an effective interest rate of 5.49%; redeemed at par in June 2021 $ 0 $ 8,027 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemable at par in April 2022 6,500 6,500 Agreement with a par value of $2,000,000; bearing interest at 6.50% with an effective interest rate of 5.60%; maturing in July 2027 and redeemable at par in July 2022 2,008 2,026 Agreements with a par value of $25,000,000; bearing interest at 3.25% with an effective interest rate of 3.74% ; maturing in June 2031 and redeemable at par in June 2026 24,501 0 Total carrying value $ 33,009 $ 16,553 |
EMPLOYEE AND POSTRETIREMENT BEN
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | 13. EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS DEFINED BENEFIT PLANS The Corporation sponsors a defined benefit health care plan that provides postretirement medical benefits and life insurance to employees who meet certain age and length of service requirements. Full-time employees no longer accrue service time toward the Corporation-subsidized portion of the medical benefits. The plan contains a cost-sharing feature which causes participants to pay for all future increases in costs related to benefit coverage. Accordingly, actuarial assumptions related to health care cost trend rates do not significantly affect the liability balance at December 31, 2021 and 2020 and are not expected to significantly affect the Corporation’s future expenses. The Corporation uses a December 31 measurement date for the postretirement plan. In an acquisition in 2007, the Corporation assumed the Citizens Trust Company Retirement Plan, a defined benefit pension plan. This plan covers certain employees who were employed by Citizens Trust Company on December 31, 2002, when the plan was amended to discontinue admittance of any future participant and to freeze benefit accruals. Information related to the Citizens Trust Company Retirement Plan has been included in the tables that follow. The Corporation uses a December 31 measurement date for this plan. The following table shows the funded status of the defined benefit plans: Pension Postretirement (In Thousands) 2021 2020 2021 2020 CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 1,101 $ 976 $ 1,347 $ 1,326 Service cost 0 0 63 46 Interest cost 20 23 33 39 Plan participants' contributions 0 0 148 185 Actuarial loss (gain) 12 108 (65) 11 Benefits paid (5) (6) (229) (260) Benefit obligation at end of year $ 1,128 $ 1,101 $ 1,297 $ 1,347 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 1,062 $ 971 $ 0 $ 0 Actual return on plan assets 118 97 0 0 Employer contribution 0 0 81 75 Plan participants' contributions 0 0 148 185 Benefits paid (5) (6) (229) (260) Fair value of plan assets at end of year $ 1,175 $ 1,062 $ 0 $ 0 Funded status at end of year $ 47 $ (39) $ (1,297) $ (1,347) At December 31, 2021 and 2020, the following pension plan and postretirement plan asset and liability amounts were recognized in the consolidated balance sheets: Pension Postretirement (In Thousands) 2021 2020 2021 2020 Other assets $ 47 $ 0 $ 0 $ 0 Accrued interest and other liabilities 0 39 1,297 1,347 At December 31, 2021 and 2020, the following items included in accumulated other comprehensive income had not been recognized as components of expense: Pension Postretirement (In Thousands) 2021 2020 2021 2020 Prior service cost $ 0 $ 0 $ (186) $ (217) Net actuarial loss (gain) 182 277 (271) (211) Total $ 182 $ 277 $ (457) $ (428) For the defined benefit pension plan, amortization of the net actuarial loss is expected to be $8,000 in 2022. For the postretirement plan, the estimated amount of prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2022 is a reduction in expense of $31,000, and net actuarial gain of $9,000 is expected to be amortized in 2022. The accumulated benefit obligation for the defined benefit pension plan was $1,128,000 at December 31, 2021 and $1,101,000 at December 31, 2020. The components of net periodic benefit costs from defined benefit plans are as follows: Pension Postretirement (In Thousands) 2021 2020 2021 2020 Service cost $ 0 $ 0 $ 63 $ 46 Interest cost 20 23 33 39 Expected return on plan assets (30) (27) 0 0 Amortization of prior service cost 0 0 (31) (31) Recognized net actuarial loss (gain) 19 16 (5) (14) Total net periodic benefit cost $ 9 $ 12 $ 60 $ 40 The weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Postretirement 2021 2020 2021 2020 Discount rate 2.30 % 3.10 % 2.50 % 3.25 % Expected return on plan assets 4.81 % 4.99 % N/A N/A Rate of compensation increase N/A N/A N/A N/A The weighted-average assumptions used to determine benefit obligations as of December 31, 2021 and 2020 are as follows: Pension Postretirement 2021 2020 2021 2020 Discount rate 2.60 % 2.30 % 3.00 % 2.50 % Rate of compensation increase N/A N/A N/A N/A Estimated future benefit payments, including only estimated employer contributions for the postretirement plan, which reflect expected future service, are as follows: (In Thousands) Pension Postretirement 2022 $ 542 $ 84 2023 187 81 2024 8 83 2025 8 85 2026 14 95 2027-2031 360 428 No estimated minimum contribution to the defined benefit pension plan is required in 2022, though the Corporation may make discretionary contributions. The expected return on pension plan assets is a significant assumption used in the calculation of net periodic benefit cost. This assumption reflects the average long-term rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The fair values of pension plan assets at December 31, 2021 and 2020 are as follows: 2021 2020 Mutual funds invested principally in: Cash and cash equivalents 3 % 2 % Debt securities 38 % 36 % Equity securities 51 % 51 % Alternative funds 8 % 11 % Total 100 % 100 % C&N Bank’s Wealth Management Department manages the investment of the pension plan assets. The Plan’s securities include mutual funds invested principally in debt securities, a diversified mix of large, mid- and small-capitalization U.S. stocks, foreign stocks and alternative asset classes such as real estate, commodities, and inflation-protected securities. The fair values of plan assets are determined based on Level 1 inputs (as described in Note 22). The Plan’s assets do not include any shares of the Corporation’s common stock. PROFIT SHARING AND DEFERRED COMPENSATION PLANS The Corporation has a profit sharing plan that incorporates the deferred salary savings provisions of Section 401(k) of the Internal Revenue Code. The Corporation’s matching contributions to the Plan depend upon the tax deferred contributions of employees. The Corporation’s total basic and matching contributions were $1,299,000 in 2021 and $1,050,000 in 2020. The Corporation has an Employee Stock Ownership Plan (ESOP). Contributions to the ESOP are discretionary, and the ESOP uses funds contributed to purchase Corporation stock for the accounts of ESOP participants. These purchases are made in the market (not directly from the Corporation), and employees are not permitted to purchase Corporation stock under the ESOP. The ESOP includes a diversification feature, which allows participants, upon reaching age 55 and 10 years of service (as defined), to sell up to 50% of their Corporation shares over a period of 6 years. As of December 31, 2021, and 2020, there were no shares allocated for repurchase by the ESOP. Dividends paid on shares held by the ESOP are charged to retained earnings. All Corporation shares owned through the ESOP are included in the calculation of weighted-average shares outstanding for purposes of calculating earnings per share – basic and diluted. The ESOP held 513,494 shares of Corporation stock at December 31, 2021 and 481,478 shares at December 31, 2020, all of which had been allocated to Plan participants. The Corporation’s contributions to the ESOP totaled $1,040,000 in 2021 and $912,000 in 2020. The Corporation has a nonqualified supplemental deferred compensation arrangement with its key officers. Charges to operating expense for officers’ supplemental deferred compensation were $314,000 in 2021 and $286,000 in 2020. In connection with the Covenant acquisition, the Corporation assumed an obligation to provide a supplemental retirement benefit to a former Covenant executive. Under the terms of the agreement, the executive or his heirs will receive monthly payments totaling $1 million over a 10-year period starting in October 2025. Effective July 1, 2020, the Corporation recorded a liability of $499,000 representing the present value of the obligation prior to the executive fully vesting in the benefit. In 2020, the Corporation recorded expense of $360,000, which is included in merger-related expenses in the consolidated statements of income, representing the impact of the executive fully vesting upon the change in control. In addition, the Corporation recorded expense of $13,000 in 2021 and $6,000 in 2020, which is included in pensions and other employee benefits in the consolidated statements of income, representing the effective interest cost on the obligation. The discount rate used to measure the liability is 1.5%. The balance of the liability, which is included in accrued interest and other liabilities in the consolidated balance sheets, is $878,000 at December 31, 2021 and $865,000 at December 31, 2020. The Corporation also has a nonqualified deferred compensation plan that allows selected officers the option to defer receipt of cash compensation, including base salary and any cash bonuses or other cash incentives. This nonqualified deferred compensation plan does not provide for Corporation contributions. STOCK-BASED COMPENSATION PLANS The Corporation has a Stock Incentive Plan for a selected group of senior officers. A total of 850,000 shares of common stock may be issued under the Stock Incentive Plan. Awards may be made under the Stock Incentive Plan in the form of qualified options (“Incentive Stock Options,” as defined in the Internal Revenue Code), nonqualified options, stock appreciation rights or restricted stock. Historically through December 31, 2021, all awards made under this Plan have consisted of Incentive Stock Options or restricted stock. Incentive Stock Options have an exercise price equal to the market value of the stock at the date of grant, vest after 6 months and expire after 10 years. There are 110,800 shares available for issuance under the Stock Incentive Plan as of December 31, 2021. Also, the Corporation has an Independent Directors Stock Incentive Plan. This plan permits awards of nonqualified stock options and/or restricted stock to non-employee directors. A total of 235,000 shares of common stock may be issued under the Independent Directors Stock Incentive Plan. The recipients’ rights to exercise stock options under this plan expire 10 years from the date of grant. The exercise prices of all stock options awarded under the Independent Directors Stock Incentive Plan are equal to market value as of the dates of grant. There are 96,309 shares available for issuance under the Independent Directors Stock Incentive Plan as of December 31, 2021. Total stock-based compensation expense is as follows: (In Thousands) 2021 2020 Restricted stock $ 1,214 $ 1,050 Stock options 0 0 Total $ 1,214 $ 1,050 The following summarizes non-vested restricted stock activity for the year ended December 31, 2021: Weighted Average Number Grant Date of Shares Fair Value Outstanding, December 31, 2020 101,942 $ 23.42 Granted 78,391 $ 20.28 Vested (48,016) $ 23.85 Forfeited (5,290) $ 22.10 Outstanding, December 31, 2021 127,027 $ 21.37 Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. As of December 31, 2021, there was $1,498,000 total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.4 years. In 2021 and 2020, the Corporation awarded shares of restricted stock under the Stock Incentive Plan, as follows: 2021 2020 Time-based awards to independent directors 10,989 7,580 Time-based awards to employees 50,178 45,457 Performance-based awards to employees 17,224 17,903 Total 78,391 70,940 Time-based restricted stock awards granted under the Independent Directors Stock Incentive Plan in 2021 and 2020 vest over one-year terms. Time-based restricted stock awards granted to employees in 2021 and 2020 vest ratably over three-year terms, subject to continued employment and satisfactory job performance. Performance-based restricted stock awards granted in 2021 and 2020 vest ratably over three-year terms, with vesting contingent upon meeting conditions based on the Corporation’s earnings as specified in the agreements. There were no stock options granted in 2021 or 2020. A summary of stock option activity is presented below: 2021 2020 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 57,111 $ 18.92 75,897 $ 18.69 Granted 0 0 Exercised (22,429) $ 18.96 (17,222) $ 18.25 Forfeited (3,156) $ 19.20 (1,564) $ 15.06 Expired (7,308) $ 15.06 0 $ Outstanding, end of year 24,218 $ 20.01 57,111 $ 18.92 Options exercisable at year-end 24,218 $ 20.01 57,111 $ 18.92 Weighted-average fair value of options forfeited $ 4.59 $ 4.26 The weighted-average remaining contractual term of outstanding stock options at December 31, 2021 was 1.6 years. The aggregate intrinsic value of stock options outstanding was $148,000 at December 31, 2021. The total intrinsic value of options exercised was $97,000 in 2021 and $128,000 in 2020. The Corporation has issued shares from treasury stock for almost all stock option exercises through December 31, 2021. Management does not anticipate that stock repurchases will be necessary to accommodate stock option exercises in 2022. In January 2022, the Corporation awarded 66,405 shares of restricted stock under the Stock Incentive Plan and 9,588 shares of restricted stock under the Independent Directors Stock Incentive Plans. The January 2022 restricted stock awards under the Stock Incentive Plan vest ratably over three years. The 2022 restricted stock issued under the Independent Directors Stock Incentive Plan vests over one year. Total estimated stock-based compensation for 2022 is $1,600,000. The restricted stock awards made in January 2022 are not included in the tables above. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
INCOME TAXES | 14. INCOME TAXES The net deferred tax asset at December 31, 2021 and 2020 represents the following temporary difference components: December 31, December 31, (In Thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,935 $ 2,154 Purchase accounting adjustments on loans 1,621 1,930 Net operating loss carryforward 778 896 Operating leases liability 821 724 Other deferred tax assets 3,260 3,089 Total deferred tax assets 9,415 8,793 Deferred tax liabilities: Unrealized holding gains on securities 1,278 3,104 Defined benefit plans - ASC 835 57 32 Bank premises and equipment 460 1,216 Core deposit intangibles 725 840 Right-of-use assets from operating leases 821 724 Other deferred tax liabilities 187 172 Total deferred tax liabilities 3,528 6,088 Deferred tax asset, net $ 5,887 $ 2,705 The provision for income taxes includes the following: (In Thousands) 2021 2020 Currently payable $ 8,386 $ 4,230 Tax expense resulting from allocations of certain tax benefits 128 121 Deferred (1,381) (361) Total provision $ 7,133 $ 3,990 A reconciliation of income tax at the statutory rate to the Corporation’s effective rate is as follows: 2021 2020 (Dollars In Thousands) Amount % Amount % Expected provision $ 7,914 21.0 $ 4,875 21.0 Tax-exempt interest income (921) (2.4) (808) (3.5) Increase in cash surrender value and other income from life insurance, net (118) (0.3) (170) (0.7) ESOP dividends (120) (0.3) (110) (0.5) State income tax, net of Federal benefit 375 1.0 172 0.7 Other, net 3 0.0 31 0.1 Effective income tax provision $ 7,133 18.9 $ 3,990 17.2 In connection with the 2020 Covenant merger, the Corporation received a net operating loss (“NOL”) available to be carried forward against future federal taxable income of $4.6 million. Availability of the NOL does not expire; however, the amount that may be offset against taxable income is limited to approximately $563,000 per year and further limited annually to no more than 80% of taxable income without regard to the NOL. At December 31, 2021, the unused amount of the NOL is $3.7 million. The Corporation has no unrecognized tax benefits, nor pending examination issues related to tax positions taken in preparation of its income tax returns. With limited exceptions, the Corporation is no longer subject to examination by the Internal Revenue Service for years prior to 2018. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Loans to executive officers, directors of the Corporation and its subsidiaries and any associates of the foregoing persons are as follows: Beginning New Other Ending (In Thousands) Balance Loans Repayments Changes Balance 13 directors, 9 executive officers 2021 $ 18,445 $ 1,249 $ (6,034) $ 251 $ 13,911 13 directors, 9 executive officers 2020 $ 14,455 $ 242 $ (2,150) $ 5,898 $ 18,445 In the table above, other changes represent net changes in the balance of existing lines of credit and transfers in and out of the related party category. Deposits from related parties held by the Corporation amounted to $10,124,000 at December 31, 2021 and $13,182,000 at December 31, 2020. |
OFF-BALANCE SHEET RISK
OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2021 | |
OFF-BALANCE SHEET RISK | |
OFF-BALANCE SHEET RISK | 16. OFF-BALANCE SHEET RISK The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit, interest rate or liquidity risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of these instruments express the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments whose contract amounts represent credit risk at December 31, 2021 and 2020 are as follows: (In Thousands) 2021 2020 Commitments to extend credit $ 366,076 $ 317,470 Standby letters of credit 10,079 9,107 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation, for extensions of credit is based on management’s credit assessment of the counterparty. Standby letters of credit are conditional commitments issued by the Corporation guaranteeing performance by a customer to a third party. Those guarantees are issued primarily to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Some of the standby letters of credit are collateralized by real estate or other assets, and others are unsecured. The extent to which proceeds from liquidation of collateral would be expected to cover the maximum potential amount of future payments related to standby letters of credit is not estimable. The Corporation has recorded no liability associated with standby letters of credit as of December 31, 2021 and 2020. Standby letters of credit as of December 31, 2021 expire as follows: Year of Expiration (In Thousands) 2022 $ 10,021 2023 13 2024 20 2026 25 Total $ 10,079 |
OPERATING LEASE COMMITMENTS AND
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES | |
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | 17. OPERATING LEASE COMMITMENTS AND CONTINGENCIES Operating Lease Commitments Operating leases in which the Corporation is the lessee are recorded as operating lease Right of Use ("ROU") assets and operating lease liabilities, included in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. The Corporation does not currently have any finance leases. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities were recognized as of the date of adoption of ASU 2017-02 based on the present value of the remaining lease payments using a discount rate that represented the then Corporation’s incremental borrowing rate at the date of initial application. Operating lease expense, which is comprised of amortization of the ROU assets and the implicit interest accreted on the operating lease liability, is recognized on a straight line basis over the remaining lease term of the operating lease, and is recorded in office occupancy expense in the Consolidated Statements of Income. The leases relate to Bank branches with remaining lease terms of generally 1 The Corporation leases certain branch locations, office space and equipment. All leases are classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term from one As shown in the table below, at December 31, 2021, right-of-use assets of $3,751,000 were included in other assets December 31, December 31, (In Thousands) 2021 2020 Other assets $ 3,751 $ 3,446 Other liabilities $ 3,751 $ 3,446 In 2021 and 2020, operating lease expenses are included in the following line item of the consolidated statements of income: (In Thousands) 2021 2020 Net occupancy and equipment expense $ 492 $ 371 Total $ 492 $ 371 A maturity analysis of the Corporation’s lease liabilities at December 31, 2021 is as follows: (In Thousands) Lease Payments Due 2022 $ 540 2023 528 2024 521 2025 501 2026 438 Thereafter 1,524 Total lease payments 4,052 Discount on cash flows (301) Total lease liabilities $ 3,751 Litigation Matters In the normal course of business, the Corporation is subject to pending and threatened litigation in which claims for monetary damages are asserted. In management’s opinion, the Corporation’s financial position and results of operations would not be materially affected by the outcome of these legal proceedings. Trust Department Tax Reporting Contingency The Corporation has incurred operational losses from compliance oversight related to trust department tax preparation and administration activities that occurred prior to 2020. In 2020, the Corporation made changes in internal controls and personnel responsible for trust department tax administration activities. Management implemented the changes in internal controls and personnel in an effort to mitigate and prevent the likelihood of new instances of non-compliance from trust department tax administration activities. Losses related to trust department tax compliance matters totaled $164,000 in 2021 and $571,000 in 2020. These losses are included in other noninterest expense in the consolidated statements of income. The balance of accrued interest and other liabilities in the consolidated balance sheets includes $465,000 at December 31, 2021 and $322,000 at December 31, 2020 related to specific tax compliance matters that have been identified; however, no estimate can be made of the amount of additional expenses that may be incurred related to these matters. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2021 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | 18. REGULATORY MATTERS In August 2018, the Federal Reserve Board issued an interim final rule that expanded applicability of the Board’s small bank holding company policy statement. The interim final rule raised the policy statement’s asset threshold from $1 billion to $3 billion in total consolidated assets for a bank holding company or savings and loan holding company that: (1) is not engaged in significant nonbanking activities; (2) does not conduct significant off-balance sheet activities; and (3) does not have a material amount of debt or equity securities, other than trust-preferred securities, outstanding. The interim final rule provides that, if warranted for supervisory purposes, the Federal Reserve may exclude a company from the threshold increase. Management believes the Corporation meets the conditions of the Federal Reserve’s small bank holding company policy statement and is therefore excluded from consolidated capital requirements at December 31, 2021; however, C&N Bank remains subject to regulatory capital requirements administered by the federal banking agencies. Details concerning capital ratios at December 31, 2021 and December 31, 2020 are presented below. Management believes, as of December 31, 2021, that C&N Bank meets all capital adequacy requirements to which it is subject and maintains a capital conservation buffer (described in more detail below) that allows the Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. Further, as reflected in the table below, the Corporation’s and C&N Bank’s capital ratios at December 31, 2021 and December 31, 2020 exceed the Corporation’s Board policy threshold levels. Minimum To Be Well Minimum Minimum To Maintain Capitalized Under Minimum To Meet Capital Capital Conservation Prompt Corrective the Corporation's Actual Requirement Buffer at Reporting Date Action Provisions Policy Thresholds (Dollars In Thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021: Total capital to risk-weighted assets: Consolidated $ 287,614 18.21 % N/A N/A N/A N/A N/A N/A $ 165,846 ³ 10.5 % C&N Bank 252,606 16.04 % 126,012 ³ 8 % 165,390 ³ 10.5 % 157,514 ³ 10 % 165,390 ³ 10.5 % Tier 1 capital to risk-weighted assets: Consolidated 240,433 15.22 % N/A N/A N/A N/A N/A N/A 134,256 ³ 8.5 % C&N Bank 238,434 15.14 % 94,509 ³ 6 % 133,887 ³ 8.5 % 126,012 ³ 8 % 133,887 ³ 8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 240,433 15.22 % N/A N/A N/A N/A N/A N/A 110,564 ³ 7 % C&N Bank 238,434 15.14 % 70,881 ³ 4.5 % 110,260 ³ 7.0 % 102,384 ³ 6.5 % 110,260 ³ 7 % Tier 1 capital to average assets: Consolidated 240,433 10.53 % N/A N/A N/A N/A N/A N/A 182,683 ³ 8 % C&N Bank 238,434 10.52 % 90,688 ³ 4 % N/A N/A 113,360 ³ 5 % 181,376 ³ 8 % December 31, 2020: Total capital to risk-weighted assets: Consolidated $ 260,015 17.49 % N/A N/A N/A N/A N/A N/A $ 156,113 ³ 10.5 % C&N Bank 236,943 15.98 % 118,602 ³ 8 % 155,665 ³ 10.5 % 148,252 ³ 10 % 155,665 ³ 10.5 % Tier 1 capital to risk-weighted assets: Consolidated 231,577 15.58 % N/A N/A N/A N/A N/A N/A 126,377 ³ 8.5 % C&N Bank 225,058 15.18 % 88,951 ³ 6 % 126,015 ³ 8.5 % 118,602 ³ 8 % 126,015 ³ 8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 231,577 15.58 % N/A N/A N/A N/A N/A N/A 104,075 ³ 7 % C&N Bank 225,058 15.18 % 66,714 ³ 4.5 % 103,777 ³ 7.0 % 96,364 ³ 6.5 % 103,777 ³ 7 % Tier 1 capital to average assets: Consolidated 231,577 10.34 % N/A N/A N/A N/A N/A N/A 179,206 ³ 8 % C&N Bank 225,058 10.12 % 88,959 ³ 4 % N/A N/A 111,199 ³ 5 % 177,919 ³ 8 % Federal regulatory authorities impose a capital rule providing that, to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization subject to the rule must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. At December 31, 2021, the minimum risk-based capital ratios, and the capital ratios including the capital conservation buffer, are as follows: Minimum common equity tier 1 capital ratio 4.5 % Minimum common equity tier 1 capital ratio plus capital conservation buffer 7.0 % Minimum tier 1 capital ratio 6.0 % Minimum tier 1 capital ratio plus capital conservation buffer 8.5 % Minimum total capital ratio 8.0 % Minimum total capital ratio plus capital conservation buffer 10.5 % A banking organization with a buffer greater than 2.5% over the minimum risk-based capital ratios would not be subject to additional limits on dividend payments or discretionary bonus payments; however, a banking organization with a buffer less than 2.5% would be subject to increasingly stringent limitations as the buffer approaches zero. Also, a banking organization is prohibited from making dividend payments or discretionary bonus payments if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% as of the beginning of that quarter. Eligible net income is defined as net income for the four calendar quarters preceding the current calendar quarter, net of any distributions and associated tax effects not already reflected in net income. A summary of payout restrictions based on the capital conservation buffer is as follows: Capital Conservation Buffer Maximum Payout (as a % of risk-weighted assets) (as a % of eligible retained income) Greater than 2.5% No payout limitation applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % At December 31, 2021, C&N Bank’s Capital Conservation Buffer, determined based on the minimum total capital ratio, was 8.04%. Banking regulators limit the amount of dividends that may be paid by C&N Bank to the Corporation. Retained earnings against which dividends may be paid without prior approval of the banking regulators amounted to approximately $88,252,000 at December 31, 2021, subject to the minimum capital ratio requirements noted above. Restrictions imposed by federal law prohibit the Corporation from borrowing from C&N Bank unless the loans are secured in specific amounts. Such secured loans to the Corporation are generally limited to 10% of C&N Bank’s tangible stockholder’s equity (excluding accumulated other comprehensive income) or $23,856,000 at December 31, 2021. |
PARENT COMPANY ONLY
PARENT COMPANY ONLY | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY | |
PARENT COMPANY ONLY | 19. PARENT COMPANY ONLY The following is condensed financial information for Citizens & Northern Corporation: CONDENSED BALANCE SHEET Dec. 31, Dec. 31, (In Thousands) 2021 2020 ASSETS Cash $ 33,518 $ 7,246 Investment in subsidiaries: Citizens & Northern Bank 298,797 292,455 Citizens & Northern Investment Corporation 13,085 12,959 Bucktail Life Insurance Company 3,825 3,804 Other assets 33 4 TOTAL ASSETS $ 349,258 $ 316,468 LIABILITIES AND STOCKHOLDERS' EQUITY Senior notes, net $ 14,701 $ 0 Subordinated debt, net 33,009 16,553 Other liabilities 143 159 Stockholders' equity 301,405 299,756 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 349,258 $ 316,468 CONDENSED INCOME STATEMENT (In Thousands) 2021 2020 Dividends from Citizens & Northern Bank $ 20,200 $ 38,507 Expenses (1,691) (1,488) Income before equity in undistributed income (excess distributions) of subsidiaries 18,509 37,019 Equity in undistributed income (excess distributions) of subsidiaries 12,045 (17,797) NET INCOME $ 30,554 $ 19,222 CONDENSED STATEMENT OF CASH FLOWS (In Thousands) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 30,554 $ 19,222 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of purchase accounting adjustment (43) (38) Amortization of debt issuance costs 101 0 Equity in (undistributed income) excess distributions of subsidiaries (12,045) 17,797 (Increase) decrease in other assets (29) 105 (Decrease) increase in other liabilities (16) 13 Net Cash Provided by Operating Activities 18,522 37,099 CASH FLOWS FROM INVESTING ACTIVITIES, Net cash used in business combination 0 (21,837) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of senior notes and subordinated debt 39,100 0 Repayment of subordinated debt (8,000) 0 Proceeds from sale of treasury stock 212 131 Purchase of treasury stock (7,586) (163) Dividends paid (15,976) (14,469) Net Cash Provided by (Used in) Financing Activities 7,750 (14,501) INCREASE IN CASH AND CASH EQUIVALENTS 26,272 761 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 7,246 6,485 CASH AND CASH EQUIVALENTS, END OF YEAR $ 33,518 $ 7,246 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Investment of net assets acquired in business combination in Citizens & Northern Bank $ 0 $ 73,426 Common equity issued in business combination $ 0 $ 41,429 Subordinated debt assumed in business combination $ 0 $ 10,091 Other liabilities assumed in business combination $ 0 $ 69 Interest paid $ 1,567 $ 655 |
SUMMARY OF QUARTERLY CONSOLIDAT
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA | 20. SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) The following tables present summarized quarterly financial data for 2021 and 2020: 2021 Quarter Ended March 31, June 30, Sept. 30, Dec. 31, (In Thousands Except Per Share Data) (Unaudited) 2021 2021 2021 2021 Interest income $ 21,754 $ 20,428 $ 21,073 $ 21,246 Interest expense 1,671 1,747 1,614 1,530 Net interest income 20,083 18,681 19,459 19,716 Provision for loan losses 259 744 1,530 1,128 Net interest income after provision for loan losses 19,824 17,937 17,929 18,588 Noninterest income 6,782 6,300 6,359 6,416 Net gains (losses) on available-for-sale debt securities 0 2 23 (1) Other noninterest expenses 15,709 15,399 15,346 16,018 Income before income tax provision 10,897 8,840 8,965 8,985 Income tax provision 2,110 1,780 1,566 1,677 Net income $ 8,787 $ 7,060 $ 7,399 $ 7,308 Net income attributable to common shares $ 8,722 $ 6,999 $ 7,336 $ 7,256 Net income per share – basic $ 0.55 $ 0.44 $ 0.47 $ 0.46 Net income per share – diluted $ 0.55 $ 0.44 $ 0.47 $ 0.46 2020 Quarter Ended March 31, June 30, Sept. 30, Dec. 31, (In Thousands Except Per Share Data) (Unaudited) 2020 2020 2020 2020 Interest income $ 17,037 $ 16,513 $ 21,751 $ 21,859 Interest expense 2,755 2,267 2,469 2,104 Net interest income 14,282 14,246 19,282 19,755 Provision (credit) for loan losses 1,528 (176) 1,941 620 Net interest income after provision (credit) for loan losses 12,754 14,422 17,341 19,135 Noninterest income 5,281 5,528 6,970 6,565 Net gains on available-for-sale debt securities 0 0 25 144 Loss on prepayment of borrowings 0 0 0 1,636 Merger-related expenses 141 983 6,402 182 Other expenses 12,912 12,274 14,648 15,775 Income before income tax provision 4,982 6,693 3,286 8,251 Income tax provision 816 1,255 438 1,481 Net income $ 4,166 $ 5,438 $ 2,848 $ 6,770 Net income attributable to common shares $ 4,146 $ 5,405 $ 2,830 $ 6,727 Net income per share – basic $ 0.30 $ 0.39 $ 0.18 $ 0.43 Net income per share – diluted $ 0.30 $ 0.39 $ 0.18 $ 0.43 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 21. DERIVATIVE FINANCIAL INSTRUMENTS The Corporation is a party to derivative financial instruments. These financial instruments consist of interest rate swap agreements which contain master netting and collateral provisions designed to protect the party at risk. Interest rate swaps with commercial loan banking customers were executed to facilitate their respective risk management strategies. Under the terms of these arrangements, the commercial banking customers effectively exchanged their floating interest rate exposures on loans into fixed interest rate exposures. Those interest rate swaps have been simultaneously economically hedged by offsetting interest rate swaps with a third party, such that the Corporation has effectively exchanged its fixed interest rate exposures for floating rate exposures. These derivatives are not designated as hedges and are not speculative. Rather, these derivatives result from a service provided to certain customers. As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The aggregate notional amount of interest rate swaps was $123,094,000 at December 31, 2021 and $135,740,000 at December 31, 2020. The Corporation originated no interest rate swaps in 2021 or 2020. There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at December 31, 2021. The net impact on the consolidated statements of income from interest rate swaps was a reduction in interest income on loans of $1,347,000 in 2021 and $698,000 in 2020. The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the consolidated balance sheets at December 31, 2021: (In Thousands) At December 31, 2021 At December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Fair Notional Fair Notional Fair Notional Fair Amount Value (1) Amount Value (2) Amount Value (1) Amount Value (2) Interest rate swap agreements $ 61,547 $ 3,104 $ 61,547 $ 3,104 $ 67,870 $ 6,566 $ 67,870 $ 6,566 (1) Included in other assets in the consolidated balance sheets. (2) Included in accrued interest and other liabilities in the consolidated balance sheets. The Corporation’s agreement with its derivative counterparty provides that if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. Further, if the Corporation were to fail to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Corporation would be required to settle its obligations under the agreements. Available-for-sale securities with a carrying value of $7,027,000 were pledged as collateral against the Corporation’s liability related to the interest rate swaps at December 31, 2021. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 22. 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 ASC 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 December 31, 2021 and 2020, assets measured at fair value and the valuation methods used are as follows: December 31, 2021 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, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 24,912 $ 0 $ 0 $ 24,912 Obligations of U.S. Government agencies 0 24,091 0 24,091 Bank holding company debt securities 0 17,987 0 17,987 Obligations of states and political subdivisions: Tax-exempt 0 148,028 0 148,028 Taxable 0 72,765 0 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 98,181 0 98,181 Residential collateralized mortgage obligations 0 44,247 0 44,247 Commercial mortgage-backed securities 0 87,468 0 87,468 Total available-for-sale debt securities 24,912 492,767 0 517,679 Marketable equity security 971 0 0 971 Servicing rights 0 0 2,329 2,329 Interest rate swap agreements, assets 0 3,104 0 3,104 Total recurring fair value measurements, assets $ 25,883 $ 495,871 $ 2,329 $ 524,083 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,104 $ 0 $ 3,104 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,800 $ 5,800 Foreclosed assets held for sale 0 0 684 684 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,484 $ 6,484 December 31, 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, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 12,182 $ 0 $ 0 $ 12,182 Obligations of U.S. Government agencies 0 26,344 0 26,344 Obligations of states and political subdivisions: Tax-exempt 0 122,401 0 122,401 Taxable 0 47,452 0 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 38,176 0 38,176 Residential collateralized mortgage obligations 0 57,467 0 57,467 Commercial mortgage-backed securities 0 45,310 0 45,310 Total available-for-sale debt securities 12,182 337,150 0 349,332 Marketable equity security 1,000 0 0 1,000 Servicing rights 0 0 1,689 1,689 Interest rate swap agreements, assets 0 6,566 0 6,566 Total recurring fair value measurements, assets $ 13,182 $ 343,716 $ 1,689 $ 358,587 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 6,566 $ 0 $ 6,566 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 7,157 $ 7,157 Foreclosed assets held for sale 0 0 1,338 1,338 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,495 $ 8,495 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. The following table shows quantitative information regarding significant techniques and inputs used at December 31, 2021 and 2020 for servicing rights assets measured using unobservable inputs (Level 3 methodologies) on a recurring basis: Fair Value at 12/31/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2021 Servicing rights $ 2,329 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 209.00 % 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 12/31/2020 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2020 Servicing rights $ 1,689 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 277.00 % 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. Following is a reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis: (In Thousands) Years Ended December 31, 2021 2020 Servicing rights balance, beginning of period $ 1,689 $ 1,277 Originations of servicing rights 708 988 Unrealized loss included in earnings (68) (576) Servicing rights balance, end of period $ 2,329 $ 1,689 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. At December 31, 2021 and 2020, quantitative information regarding significant techniques and inputs used for nonrecurring fair value measurements using unobservable inputs (Level 3 methodologies) are as follows: (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2021 12/31/2021 12/31/2021 Technique Inputs 12/31/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,468 $ 668 $ 5,800 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,540 $ 740 $ 5,800 Foreclosed assets held for sale - real estate: Commercial real estate $ 428 $ 0 $ 428 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 684 $ 0 $ 684 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2020 12/31/2020 12/31/2020 Technique Inputs 12/31/2020 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,501 $ 691 $ 5,810 Sales comparison Discount to appraised value 28 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 1,509 162 1,347 Sales comparison Discount to appraised value 31 % Total impaired loans $ 8,082 $ 925 $ 7,157 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,258 $ 0 $ 1,258 Sales comparison Discount to appraised value 44 % Residential (1-4 family) 80 0 80 Sales comparison Discount to appraised value 36 % Total foreclosed assets held for sale $ 1,338 $ 0 $ 1,338 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 December 31, 2021 December 31, 2020 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 95,848 $ 95,848 $ 96,017 $ 96,017 Certificates of deposit Level 2 9,100 9,142 5,840 6,054 Restricted equity securities (included in Other Assets) Level 2 9,562 9,562 9,970 9,970 Loans, net Level 3 1,551,312 1,573,955 1,632,824 1,646,207 Accrued interest receivable Level 2 7,235 7,235 8,293 8,293 Financial liabilities: Deposits with no stated maturity Level 2 1,639,167 1,639,167 1,430,062 1,430,062 Time deposits Level 2 285,893 286,962 390,407 393,566 Short-term borrowings Level 2 1,803 1,603 20,022 19,974 Long-term borrowings Level 2 28,042 28,347 54,608 55,723 Senior debt Level 2 14,701 15,016 0 0 Subordinated debt Level 2 33,009 33,171 16,553 16,680 Accrued interest payable Level 2 205 205 548 548 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF CONSOLIDATION | BASIS OF CONSOLIDATION – |
NATURE OF OPERATIONS | NATURE OF OPERATIONS – The Corporation provides banking and related services to individual and corporate customers. Lending products include commercial, mortgage and consumer loans, as well as specialized instruments such as commercial letters-of-credit. Deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, Individual Retirement Accounts and certificates of deposit. The Corporation provides wealth management services through its trust department, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services. The Corporation offers a variety of personal and commercial insurance products through C&N Financial Services Corporation. C&N Financial Services Corporation also offers mutual funds, annuities, educational savings accounts and other investment products through registered agents. Management has determined that the Corporation has one reportable segment, “Community Banking.” All of the Corporation’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others. The Corporation is subject to competition from other financial institutions. It is also subject to regulation by certain federal and state agencies and undergoes periodic examination by those regulatory authorities. As a consequence, the Corporation’s business is particularly susceptible to being affected by future federal and state legislation and regulations. |
USE OF ESTIMATES | USE OF ESTIMATES – Material estimates that are particularly susceptible to change include: (1) the allowance for loan losses and (2) fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers. |
INVESTMENT SECURITIES | INVESTMENT SECURITIES – Available-for-sale debt securities – Other-than-temporary impairment – Marketable equity security Restricted equity securities |
DERIVATIVES | DERIVATIVES – |
LOANS HELD FOR SALE | LOANS HELD FOR SALE – |
LOANS RECEIVABLE | LOANS RECEIVABLE – The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. The residential mortgage segment includes the following classes: first and junior lien residential mortgages, home equity lines of credit and residential construction loans. The most significant classes of commercial loans are commercial loans secured by real estate, non-real estate secured commercial and industrial loans, loans to political subdivisions, commercial construction, multi-family residential and loans secured by farmland. Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on loans for which the risk of further loss is greater than remote are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months |
PURCHASED LOANS | PURCHASED LOANS – 90 days The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable yield. The nonaccretable yield represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require us to evaluate the need for an allowance for credit losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable yield which we then reclassify as accretable yield that is recognized into interest income over the remaining life of the loan using the interest method. Our evaluation of the amount of future cash flows that we expect to collect is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable yield portion of the fair value adjustment. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES – 120 days 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 addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require the Corporation to recognize adjustments to the allowance based on their judgments of information available to them at the time of their examination. In the process of evaluating the loan portfolio, management also considers the Corporation’s exposure to losses from unfunded loan commitments. As of December 31, 2021 and 2020, management determined that no allowance for credit losses related to unfunded loan commitments was required. The allowance consists primarily of two major components – (1) a specific component based on a detailed assessment of certain larger loan relationships, mainly commercial purpose, determined on a loan-by-loan basis; and (2) a general component for the remainder of the portfolio 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. The specific component relates to loans that are classified as impaired based on a detailed assessment of certain larger loan relationships evaluated by a management committee referred to as the Watch List Committee. Specific loan relationships are identified for evaluation based on the related credit risk rating. For individual loans classified as impaired, an allowance is established when the collateral value less estimated selling costs, present value of discounted cash flows or observable market price of the impaired loan is lower than the carrying value of that loan. 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. All loans classified as troubled debt restructurings (TDR) 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 general component covers pools of loans by loan class 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, (2) has an outstanding balance of $400,000 or more and a credit grade of Special Mention, Substandard or Doubtful, or (3) has an estimated loss of $100,000 or more. The pools of loans for each loan segment are evaluated for loss exposure based upon average historical net charge-off rates, adjusted for qualitative factors. 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. Qualitative risk factors (described in the following paragraph) are evaluated for the impact on each of the three distinct 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. Any adjustments to the factors are supported by a narrative documentation of changes in conditions accompanying the allowance for loan losses calculation. 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. Purchased loans that did not show evidence of credit deterioration at the acquisition dates were initially recorded at fair value, including a discount for credit losses reflecting an estimate of the present value of credit losses based on market expectations. The general component of the allowance on purchased loans is evaluated separately from the rest of the portfolio. This evaluation includes consideration of the qualitative risk factors described above as well as the remaining purchased discount. 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. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. 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 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. Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve reductions in required payments, an extension of a loan’s stated maturity date or a temporary reduction in interest rate. Loans classified as troubled debt restructurings are designated as impaired. Nonaccrual troubled debt restructurings may be restored to accrual status if the ultimate collectability of principal and interest payments under the modified terms is not in doubt, and there has been a period (generally, for at least six consecutive months) of satisfactory payment performance by the borrower either immediately before or after the restructuring. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. Provisions of the CARES Act Section 4013 largely mirrored the provisions of the interagency statement, providing that modified loans were not to be considered TDRs if they were performing at December 31, 2019 and other considerations set forth in the interagency statements were met. 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 or at December 31, 2019. Consistent with this guidance, the Corporation has not reported loans that were modified in response to COVID-19 as past due, nonaccrual or as TDRs. |
BANK PREMISES AND EQUIPMENT | BANK PREMISES AND EQUIPMENT – |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS – |
FORECLOSED ASSETS HELD FOR SALE | FORECLOSED ASSETS HELD FOR SALE – |
GOODWILL | GOODWILL – |
CORE DEPOSIT INTANGIBLES | CORE DEPOSIT INTANGIBLES – |
SERVICING RIGHTS | SERVICING RIGHTS |
INCOME TAXES | INCOME TAXES tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are not expected to be realized based upon available evidence. Tax benefits from investments in limited partnerships that have qualified for federal low-income tax credits are recognized as a reduction in the provision for income tax over the term of the investment using the effective yield method. The Corporation includes income tax penalties in the provision for income tax. The Corporation has no accrued interest related to unrecognized tax benefits. |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The fair value of restricted stock is based on the current market price on the date of grant. |
TREASURY STOCK | TREASURY STOCK – . |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | OFF-BALANCE SHEET FINANCIAL INSTRUMENTS – |
CASH FLOWS | CASH FLOWS – |
REVENUE RECOGNITION | REVENUE RECOGNITION – Additional disclosures related to the Corporation’s largest sources of noninterest income within the consolidated statements of income from contracts with customers that are subject to Accounting Standards Codification (ASC) Topic 606 are as follows: Trust and financial management revenue – Trust revenue is recorded on a cash basis, which is not materially different from the accrual basis. The majority (approximately 84%, based on annual 2021 results) of trust revenue is earned and collected monthly, with the amount determined based on a percentage of the fair value of the trust assets under management. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The services provided under such a contract represent a single performance obligation under the Accounting Standards Updates (ASUs) because it embodies a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. None of the contracts with trust customers provide for incentive-based fees. In addition to wealth management fees, trust revenue includes fees for provision of services, including employee benefit plan administration, tax return preparation and estate planning and settlement. Fees for such services are billed based on contractual arrangements or established fee schedules and are typically billed upon completion of providing such services. The costs of acquiring trust customers are incremental and recognized within noninterest expense in the consolidated statements of income. Service charges on deposit accounts Interchange revenue from debit card transactions – |
PER SHARE DATA (Tables)
PER SHARE DATA (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) Years Ended December 31, December 31, 2021 2020 Basic Net income $ 30,554 $ 19,222 Less: Dividends and undistributed earnings allocated to participating securities (241) (116) Net income attributable to common shares $ 30,313 $ 19,106 Basic weighted-average common shares outstanding 15,765,639 14,743,386 Basic earnings per common share (a) $ 1.92 $ 1.30 Diluted Net income attributable to common shares $ 30,313 $ 19,106 Basic weighted-average common shares outstanding 15,765,639 14,743,386 Dilutive effect of potential common stock arising from stock options 6,316 3,662 Diluted weighted-average common shares outstanding 15,771,955 14,747,048 Diluted earnings per common share (a) $ 1.92 $ 1.30 Weighted-average nonvested restricted shares outstanding 125,539 89,718 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares with nonforfeitable dividends (participating securities). |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (8,669) $ 1,821 $ (6,848) Reclassification adjustment for (gains) realized in income (24) 5 (19) Other comprehensive loss from available-for-sale debt securities (8,693) 1,826 (6,867) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 140 (29) 111 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (17) 4 (13) Other comprehensive income on unfunded retirement obligations 123 (25) 98 Total other comprehensive loss $ (8,570) $ 1,801 $ (6,769) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount 2020 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 10,504 $ (2,205) $ 8,299 Reclassification adjustment for (gains) realized in income (169) 35 (134) Other comprehensive income from available-for-sale debt securities 10,335 (2,170) 8,165 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (49) 11 (38) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (29) 6 (23) Other comprehensive loss on unfunded retirement obligations (78) 17 (61) Total other comprehensive income $ 10,257 $ (2,153) $ 8,104 |
Schedule of components of other comprehensive income (loss) and affected line item in the consolidated statements of income | Affected Line Item in the Description Consolidated Statements of Income Reclassification adjustment for (gains) realized in income (before-tax) Realized gains on available-for-sale debt securities, net Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax) Other noninterest expense Income tax effect Income tax provision |
Schedule of changes in the components of accumulated other comprehensive income (loss) | (In Thousands) Accumulated Unrealized Unfunded Other Gains Retirement Comprehensive on Securities Obligations Income 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during year ended December 31, 2021 (6,867) 98 (6,769) Balance, end of period $ 4,809 $ 217 $ 5,026 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during year ended December 31, 2020 8,165 (61) 8,104 Balance, end of period $ 11,676 $ 119 $ 11,795 |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In Thousands) December 31, December 31, 2021 2020 Cash and cash equivalents $ 95,848 $ 96,017 Certificates of deposit 9,100 5,840 Total cash and due from banks $ 104,948 $ 101,857 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale debt securities | (In Thousands) December 31, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,058 $ 52 $ (198) $ 24,912 Obligations of U.S. Government agencies 23,936 563 (408) 24,091 Bank holding company debt securities 18,000 18 (31) 17,987 Obligations of states and political subdivisions: Tax-exempt 143,427 4,749 (148) 148,028 Taxable 72,182 1,232 (649) 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 705 (572) 98,181 Residential collateralized mortgage obligations 44,015 437 (205) 44,247 Commercial mortgage-backed securities 86,926 1,548 (1,006) 87,468 Total available-for-sale debt securities $ 511,592 $ 9,304 $ (3,217) $ 517,679 (In Thousands) December 31, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,184 $ 0 $ (2) $ 12,182 Obligations of U.S. Government agencies 25,349 1,003 (8) 26,344 Obligations of states and political subdivisions: Tax-exempt 116,427 6,000 (26) 122,401 Taxable 45,230 2,246 (24) 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,853 1,323 0 38,176 Residential collateralized mortgage obligations 56,048 1,428 (9) 57,467 Commercial mortgage-backed securities 42,461 2,849 0 45,310 Total available-for-sale debt securities $ 334,552 $ 14,849 $ (69) $ 349,332 |
Schedule of gross unrealized losses and fair value of available-for-sale debt securities | December 31, 2021 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 the U.S. Treasury $ 18,886 $ (198) $ 0 $ 0 $ 18,886 $ (198) Obligations of U.S. Government agencies 9,735 (264) 4,856 (144) 14,591 (408) Bank holding company debt securities 12,969 (31) 0 0 12,969 (31) Obligations of states and political subdivisions: Tax-exempt 17,852 (141) 549 (7) 18,401 (148) Taxable 31,261 (517) 3,277 (132) 34,538 (649) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 71,451 (572) 0 0 71,451 (572) Residential collateralized mortgage obligations 15,117 (205) 0 0 15,117 (205) Commercial mortgage-backed securities 52,867 (1,006) 0 0 52,867 (1,006) Total temporarily impaired available-for-sale debt securities $ 230,138 $ (2,934) $ 8,682 $ (283) $ 238,820 $ (3,217) December 31, 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 the U.S. Treasury $ 9,159 $ (2) $ 0 $ 0 $ 9,159 $ (2) Obligations of U.S. Government agencies 4,992 (8) 0 0 4,992 (8) Obligations of states and political subdivisions: Tax-exempt 3,811 (26) 0 0 3,811 (26) Taxable 5,235 (24) 0 0 5,235 (24) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, Residential collateralized mortgage obligations 2,861 (9) 0 0 2,861 (9) Total temporarily impaired available-for-sale debt securities $ 26,058 $ (69) $ 0 $ 0 $ 26,058 $ (69) |
Schedule of gross realized gains and losses from available-for-sale | (In Thousands) 2021 2020 Gross realized gains from sales $ 27 $ 222 Gross realized losses from sales (3) (53) Net realized gains $ 24 $ 169 Income tax provision related to net realized gains $ 5 $ 35 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) December 31, 2021 Amortized Fair Cost Value Due in one year or less $ 14,454 $ 14,538 Due from one year through five years 58,561 59,116 Due from five years through ten years 79,532 81,073 Due after ten years 130,056 133,056 Sub-total 282,603 287,783 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 98,181 Residential collateralized mortgage obligations 44,015 44,247 Commercial mortgage-backed securities 86,926 87,468 Total $ 511,592 $ 517,679 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOANS | |
Summary of loans outstanding | December 31, December 31, 2021 2020 Commercial: Commercial loans secured by real estate $ 569,840 $ 531,810 Commercial and industrial 159,073 159,577 Paycheck Protection Program - 1st Draw 1,356 132,269 Paycheck Protection Program - 2nd Draw 25,508 0 Political subdivisions 81,301 53,221 Commercial construction and land 60,579 42,874 Loans secured by farmland 11,121 11,736 Multi-family (5 or more) residential 50,089 55,811 Agricultural loans 2,351 3,164 Other commercial loans 17,153 17,289 Total commercial 978,371 1,007,751 Residential mortgage: Residential mortgage loans - first liens 483,629 532,947 Residential mortgage loans - junior liens 23,314 27,311 Home equity lines of credit 39,252 39,301 1-4 Family residential construction 23,151 20,613 Total residential mortgage 569,346 620,172 Consumer 17,132 16,286 Total 1,564,849 1,644,209 Less: allowance for loan losses (13,537) (11,385) Loans, net $ 1,551,312 $ 1,632,824 |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) Year Ended December 31, December 31, 2021 2020 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ 718 $ (1,415) Market rate adjustment recorded in acquisition 0 2,909 Amortization recognized in interest income (1,355) (776) Adjustments to gross amortized cost of loans at end of period $ (637) $ 718 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (5,979) $ (1,216) Credit adjustment recorded in acquisition 0 (7,219) Accretion recognized in interest income 2,644 2,456 Adjustments to gross amortized cost of loans at end of period $ (3,335) $ (5,979) |
Schedule of PCI loans | (In Thousands) December 31, December 31, 2021 2020 Outstanding balance $ 9,802 $ 10,316 Carrying amount 6,558 6,841 |
Schedule of transactions within the allowance for loan losses | December 31, December 31, Year Ended December 31, 2021 2020 Provision 2021 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 2 $ 1,352 $ 4,405 Commercial and industrial 2,245 (1,464) 20 1,922 2,723 Commercial construction and land 454 0 0 183 637 Loans secured by farmland 120 0 0 (5) 115 Multi-family (5 or more) residential 236 0 0 (21) 215 Agricultural loans 34 0 0 (9) 25 Other commercial loans 168 0 0 5 173 Total commercial 6,308 (1,464) 22 3,427 8,293 Residential mortgage: Residential mortgage loans - first liens 3,524 (11) 4 133 3,650 Residential mortgage loans - junior liens 349 0 0 (165) 184 Home equity lines of credit 281 0 2 19 302 1-4 Family residential construction 99 0 0 103 202 Total residential mortgage 4,253 (11) 6 90 4,338 Consumer 239 (100) 38 58 235 Unallocated 585 0 0 86 671 Total Allowance for Loan Losses $ 11,385 $ (1,575) $ 66 $ 3,661 $ 13,537 December 31, December 31, Year Ended December 31, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 1,921 $ 0 $ 0 $ 1,130 $ 3,051 Commercial and industrial 1,391 (2,236) 16 3,074 2,245 Commercial construction and land 966 (107) 0 (405) 454 Loans secured by farmland 158 0 0 (38) 120 Multi-family (5 or more) residential 156 0 0 80 236 Agricultural loans 41 0 0 (7) 34 Other commercial loans 155 0 0 13 168 Total commercial 4,788 (2,343) 16 3,847 6,308 Residential mortgage: Residential mortgage loans - first liens 3,405 0 39 80 3,524 Residential mortgage loans - junior liens 384 0 1 (36) 349 Home equity lines of credit 276 0 4 1 281 1-4 Family residential construction 117 0 0 (18) 99 Total residential mortgage 4,182 0 44 27 4,253 Consumer 281 (122) 41 39 239 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (2,465) $ 101 $ 3,913 $ 11,385 |
Schedule of aggregate credit quality classification of outstanding loans by risk | December 31, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 538,966 $ 10,510 $ 16,220 $ 0 $ 4,144 $ 569,840 Commercial and Industrial 142,775 10,841 4,694 0 763 159,073 Paycheck Protection Program - 1st Draw 1,356 0 0 0 0 1,356 Paycheck Protection Program - 2nd Draw 25,508 0 0 0 0 25,508 Political subdivisions 81,301 0 0 0 0 81,301 Commercial construction and land 59,816 715 48 0 0 60,579 Loans secured by farmland 10,011 186 924 0 0 11,121 Multi-family (5 or more) residential 47,638 0 873 0 1,578 50,089 Agricultural loans 1,802 0 549 0 0 2,351 Other commercial loans 17,150 3 0 0 0 17,153 Total commercial 926,323 22,255 23,308 0 6,485 978,371 Residential Mortgage: Residential mortgage loans - first liens 469,044 7,981 6,534 0 70 483,629 Residential mortgage loans - junior liens 22,914 114 283 0 3 23,314 Home equity lines of credit 38,652 59 541 0 0 39,252 1-4 Family residential construction 23,151 0 0 0 0 23,151 Total residential mortgage 553,761 8,154 7,358 0 73 569,346 Consumer 17,092 0 40 0 0 17,132 Totals $ 1,497,176 $ 30,409 $ 30,706 $ 0 $ 6,558 $ 1,564,849 December 31, 2020 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 494,876 $ 17,374 $ 15,262 $ 0 $ 4,298 $ 531,810 Commercial and Industrial 143,500 8,025 7,268 0 784 159,577 Paycheck Protection Program - 1st Draw 132,269 0 0 0 0 132,269 Political subdivisions 53,221 0 0 0 0 53,221 Commercial construction and land 42,110 715 49 0 0 42,874 Loans secured by farmland 10,473 405 858 0 0 11,736 Multi-family (5 or more) residential 50,563 2,405 1,229 0 1,614 55,811 Agricultural loans 2,569 0 595 0 0 3,164 Other commercial loans 17,289 0 0 0 0 17,289 Total commercial 946,870 28,924 25,261 0 6,696 1,007,751 Residential Mortgage: Residential Mortgage loans - first liens 516,685 6,192 9,994 0 76 532,947 Residential Mortgage loans - junior liens 26,480 141 621 0 69 27,311 Home equity lines of credit 38,529 59 713 0 0 39,301 1-4 Family residential construction 20,613 0 0 0 0 20,613 Total residential mortgage 602,307 6,392 11,328 0 145 620,172 Consumer 16,172 0 114 0 0 16,286 Totals $ 1,565,349 $ 35,316 $ 36,703 $ 0 $ 6,841 $ 1,644,209 |
Summary of loan balances and the related allowance for loan losses | December 31, 2021 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 10,926 $ 558,914 $ 569,840 $ 669 $ 3,736 $ 4,405 Commercial and industrial 2,503 156,570 159,073 71 2,652 2,723 Paycheck Protection Program - 1st Draw 0 1,356 1,356 0 0 0 Paycheck Protection Program - 2nd Draw 0 25,508 25,508 0 0 0 Political subdivisions 0 81,301 81,301 0 0 0 Commercial construction and land 0 60,579 60,579 0 637 637 Loans secured by farmland 83 11,038 11,121 0 115 115 Multi-family (5 or more) residential 1,578 48,511 50,089 0 215 215 Agricultural loans 0 2,351 2,351 0 25 25 Other commercial loans 0 17,153 17,153 0 173 173 Total commercial 15,090 963,281 978,371 740 7,553 8,293 Residential mortgage: Residential mortgage loans - first liens 630 482,999 483,629 0 3,650 3,650 Residential mortgage loans - junior liens 14 23,300 23,314 0 184 184 Home equity lines of credit 0 39,252 39,252 0 302 302 1-4 Family residential construction 0 23,151 23,151 0 202 202 Total residential mortgage 644 568,702 569,346 0 4,338 4,338 Consumer 0 17,132 17,132 0 235 235 Unallocated 671 Total $ 15,734 $ 1,549,115 $ 1,564,849 $ 740 $ 12,126 $ 13,537 December 31, 2020 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,962 $ 519,848 $ 531,810 $ 692 $ 2,359 $ 3,051 Commercial and industrial 1,359 158,218 159,577 71 2,174 2,245 Paycheck Protection Program - 1st Draw 0 132,269 132,269 0 0 0 Political subdivisions 0 53,221 53,221 0 0 0 Commercial construction and land 0 42,874 42,874 0 454 454 Loans secured by farmland 84 11,652 11,736 0 120 120 Multi-family (5 or more) residential 1,614 54,197 55,811 0 236 236 Agricultural loans 0 3,164 3,164 0 34 34 Other commercial loans 0 17,289 17,289 0 168 168 Total commercial 15,019 992,732 1,007,751 763 5,545 6,308 Residential mortgage: Residential mortgage loans - first liens 2,385 530,562 532,947 9 3,515 3,524 Residential mortgage loans - junior liens 414 26,897 27,311 153 196 349 Home equity lines of credit 0 39,301 39,301 0 281 281 1-4 Family residential construction 0 20,613 20,613 0 99 99 Total residential mortgage 2,799 617,373 620,172 162 4,091 4,253 Consumer 0 16,286 16,286 0 239 239 Unallocated 585 Total $ 17,818 $ 1,626,391 $ 1,644,209 $ 925 $ 9,875 $ 11,385 |
Summary of information related to impaired loans | (In Thousands) December 31, 2021 December 31, 2020 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 6,600 $ 4,458 $ 0 $ 7,168 $ 5,398 $ 0 Commercial and industrial 5,213 2,431 0 1,781 1,287 0 Residential mortgage loans - first liens 656 630 0 1,248 1,248 0 Residential mortgage loans - junior liens 124 14 0 160 105 0 Loans secured by farmland 83 83 0 84 84 0 Multi-family (5 or more) residential 2,734 1,578 0 2,770 1,614 0 Total with no related allowance recorded 15,410 9,194 0 13,211 9,736 0 With a related allowance recorded: Commercial loans secured by real estate 6,468 6,468 668 6,501 6,501 691 Commercial and industrial 72 72 72 72 72 72 Residential mortgage loans - first liens 0 0 0 1,200 1,200 9 Residential mortgage loans - junior liens 0 0 0 309 309 153 Total with a related allowance recorded 6,540 6,540 740 8,082 8,082 925 Total $ 21,950 $ 15,734 $ 740 $ 21,293 $ 17,818 $ 925 |
Schedule of average balance of impaired loans and interest income recognized on impaired loans | (In Thousands) Interest Income Recognized on Average Investment in on Impaired Loans Impaired Loans on a Cash Basis Year Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Commercial: Commercial loans secured by real estate $ 11,617 $ 5,266 $ 557 $ 258 Commercial and industrial 2,636 2,542 34 34 Commercial construction and land 48 521 3 15 Loans secured by farmland 84 319 1 27 Multi-family (5 or more) residential 1,583 202 133 0 Agricultural loans 67 76 4 4 Other commercial loans 0 18 0 1 Total commercial 16,035 8,944 732 339 Residential mortgage: Residential mortgage loans - first lien 1,647 1,853 78 116 Residential mortgage loans - junior lien 361 392 11 22 Home equity lines of credit 0 57 0 3 Total residential mortgage 2,008 2,302 89 141 Total $ 18,043 $ 11,246 $ 821 $ 480 |
Schedule of breakdown by portfolio segment and class of non accrual loans | (In Thousands) December 31, 2021 December 31, 2020 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 738 $ 10,885 $ 395 $ 11,550 Commercial and industrial 30 2,299 142 970 Commercial construction and land 0 48 0 49 Loans secured by farmland 28 83 188 84 Multi-family (5 or more) residential 0 1,578 0 1,614 Agricultural loans 65 0 0 0 Other commercial 0 0 71 0 Total commercial 861 14,893 796 14,267 Residential mortgage: Residential mortgage loans - first liens 1,144 4,005 838 6,387 Residential mortgage loans - junior liens 69 3 52 378 Home equity lines of credit 102 82 233 299 Total residential mortgage 1,315 4,090 1,123 7,064 Consumer 43 16 56 85 Totals $ 2,219 $ 18,999 $ 1,975 $ 21,416 |
Summary of the contractual aging of loans | (In Thousands) As of December 31, 2021 As of December 31, 2020 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 Commercial: Commercial loans secured by real estate $ 563,658 $ 762 $ 5,420 $ 569,840 $ 529,998 $ 66 $ 1,746 $ 531,810 Commercial and industrial 158,188 72 813 159,073 158,523 55 999 159,577 Paycheck Protection Program - 1st Draw 1,339 17 0 1,356 132,269 0 0 132,269 Paycheck Protection Program - 2nd Draw 25,508 0 0 25,508 0 0 0 0 Political subdivisions 81,301 0 0 81,301 53,221 0 0 53,221 Commercial construction and land 60,509 70 0 60,579 42,590 284 0 42,874 Loans secured by farmland 11,010 0 111 11,121 11,419 95 222 11,736 Multi-family (5 or more) residential 48,532 0 1,557 50,089 53,860 1,951 0 55,811 Agricultural loans 2,279 7 65 2,351 3,091 2 71 3,164 Other commercial loans 17,153 0 0 17,153 17,289 0 0 17,289 Total commercial 969,477 928 7,966 978,371 1,002,260 2,453 3,038 1,007,751 Residential mortgage: Residential mortgage loans - first liens 475,637 5,038 2,954 483,629 523,191 5,703 4,053 532,947 Residential mortgage loans - junior liens 23,229 16 69 23,314 27,009 111 191 27,311 Home equity lines of credit 38,830 279 143 39,252 38,919 101 281 39,301 1-4 Family residential construction 23,151 0 0 23,151 20,457 156 0 20,613 Total residential mortgage 560,847 5,333 3,166 569,346 609,576 6,071 4,525 620,172 Consumer 17,001 72 59 17,132 16,063 83 140 16,286 Totals $ 1,547,325 $ 6,333 $ 11,191 $ 1,564,849 $ 1,627,899 $ 8,607 $ 7,703 $ 1,644,209 |
Summary of the contractual aging of nonaccrual loans | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total December 31, 2021 Nonaccrual Totals $ 8,800 $ 1,227 $ 8,972 $ 18,999 December 31, 2020 Nonaccrual Totals $ 12,999 $ 2,689 $ 5,728 $ 21,416 |
Summary of troubled debt restructurings | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total December 31, 2021 Totals $ 248 $ 40 $ 65 $ 5,452 $ 5,805 December 31, 2020 Totals $ 166 $ 0 $ 418 $ 6,867 $ 7,451 |
Schedule of loan modifications considered as TDRs | 2021 2020 Number Number of Recorded of Recorded (Balances in Thousands) Loans Investment Loans Investment Commercial loans secured by real estate 1 $ 3,405 1 $ 240 Total 1 $ 3,405 1 $ 240 |
Schedule of carrying amount of foreclosed residential real estate properties | (In Thousands) December 31, December 31, 2021 2020 Foreclosed residential real estate $ 256 $ 80 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) December 31, December 31, 2021 2020 Residential real estate in process of foreclosure $ 1,260 $ 1,246 |
Troubled Debt Restructuring | |
LOANS | |
Summary of troubled debt restructurings | (Balances in Thousands) 2021 2020 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 1 $ 12 0 $ 0 Reduced monthly payments for a fifteen-month period 1 116 0 0 Residential mortgage - junior liens, New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted 0 0 1 30 Home equity lines of credit: Reduced monthly payments and extended maturity date 1 24 0 0 Reduced monthly payments for an eighteen-month period 1 70 0 0 Commercial loans secured by real estate: Interest only payments for a nine-month period 0 0 1 240 Principal and interest payment deferral non-COVID related 0 0 2 4,831 Multi-family (5 or more) residential, Principal and interest payment deferral non-COVID related 0 0 3 2,170 Total 4 $ 222 7 $ 7,271 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of bank premises and equipment | (In Thousands) December 31, 2021 2020 Land $ 3,623 $ 3,826 Buildings and improvements 32,606 33,058 Furniture and equipment 15,162 15,235 Construction in progress 835 8 Total 52,226 52,127 Less: accumulated depreciation (31,543) (30,601) Net $ 20,683 $ 21,526 |
Schedule of depreciation expense in consolidated statements of income | (In Thousands) 2021 2020 Net occupancy and equipment expense $ 1,723 $ 1,595 Data processing and telecommunications expense 407 386 Total $ 2,130 $ 1,981 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of core deposit intangibles | (In Thousands) December 31, 2021 2020 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,323) (2,788) Net $ 3,316 $ 3,851 |
Schedule of amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income | (In Thousands) Year Ended December 31, December 31, 2021 2020 Amortization expense $ 535 $ 540 |
Schedule of amortization expense to be recognized in each of the ensuing five years | (In Thousands) 2022 $ 439 2023 408 2024 390 2025 424 2026 396 |
Schedule of changes in the carrying amount of goodwill | (In Thousands) Year Ended December 31, December 31, 2021 2020 Balance, beginning of period $ 52,505 $ 28,388 Goodwill arising in business combination 0 24,117 Balance, end of period $ 52,505 $ 52,505 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Scheduled maturities of time deposits | (In Thousands) 2022 $ 163,170 2023 80,711 2024 22,224 2025 11,963 2026 7,825 Total $ 285,893 |
Schedule of remaining maturities of time deposits in excess of $250,000 | (In Thousands) Three months or less $ 15,981 Over 3 months through 12 months 32,648 Over 1 year through 3 years 25,438 Over 3 years 1,308 Total $ 75,375 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWED FUNDS | |
Schedule of short term borrowings | (In Thousands) December 31, December 31, 2021 2020 FHLB-Pittsburgh borrowings $ 0 $ 18,066 Customer repurchase agreements 1,803 1,956 Total short-term borrowings $ 1,803 $ 20,022 |
Schedule of long term borrowings | (In Thousands) December 31, December 31, 2021 2020 Loans matured in 2021 $ 0 $ 26,098 Loans maturing in 2022 with a weighted-average rate of 0.60% 15,452 15,682 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,119 7,224 Loan maturing in 2024 with a rate of 0.75% 5,099 5,137 Loan maturing in 2025 with a rate of 4.91% 372 467 Total long-term FHLB-Pittsburgh borrowings $ 28,042 $ 54,608 |
Schedule of outstanding senior notes | (In Thousands) December 31, December 31, 2021 2020 Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 $ 14,701 $ 0 Total carrying value $ 14,701 $ 0 |
Schedule of outstanding subordinated debt | (In Thousands) December 31, December 31, 2021 2020 Agreements with an aggregate par value of $8,000,000; bearing interest at 6.25% with an effective interest rate of 5.49%; redeemed at par in June 2021 $ 0 $ 8,027 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemable at par in April 2022 6,500 6,500 Agreement with a par value of $2,000,000; bearing interest at 6.50% with an effective interest rate of 5.60%; maturing in July 2027 and redeemable at par in July 2022 2,008 2,026 Agreements with a par value of $25,000,000; bearing interest at 3.25% with an effective interest rate of 3.74% ; maturing in June 2031 and redeemable at par in June 2026 24,501 0 Total carrying value $ 33,009 $ 16,553 |
EMPLOYEE AND POSTRETIREMENT B_2
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of funded status of the defined benefit plans | Pension Postretirement (In Thousands) 2021 2020 2021 2020 CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 1,101 $ 976 $ 1,347 $ 1,326 Service cost 0 0 63 46 Interest cost 20 23 33 39 Plan participants' contributions 0 0 148 185 Actuarial loss (gain) 12 108 (65) 11 Benefits paid (5) (6) (229) (260) Benefit obligation at end of year $ 1,128 $ 1,101 $ 1,297 $ 1,347 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 1,062 $ 971 $ 0 $ 0 Actual return on plan assets 118 97 0 0 Employer contribution 0 0 81 75 Plan participants' contributions 0 0 148 185 Benefits paid (5) (6) (229) (260) Fair value of plan assets at end of year $ 1,175 $ 1,062 $ 0 $ 0 Funded status at end of year $ 47 $ (39) $ (1,297) $ (1,347) |
Schedule of pension plan and postretirement plan liability amounts were recognized in the consolidated balance sheets | Pension Postretirement (In Thousands) 2021 2020 2021 2020 Other assets $ 47 $ 0 $ 0 $ 0 Accrued interest and other liabilities 0 39 1,297 1,347 |
Summary of items not yet recognized as a component of net periodic benefit cost | Pension Postretirement (In Thousands) 2021 2020 2021 2020 Prior service cost $ 0 $ 0 $ (186) $ (217) Net actuarial loss (gain) 182 277 (271) (211) Total $ 182 $ 277 $ (457) $ (428) |
Summary of components of net periodic benefit costs from defined benefit plans | Pension Postretirement (In Thousands) 2021 2020 2021 2020 Service cost $ 0 $ 0 $ 63 $ 46 Interest cost 20 23 33 39 Expected return on plan assets (30) (27) 0 0 Amortization of prior service cost 0 0 (31) (31) Recognized net actuarial loss (gain) 19 16 (5) (14) Total net periodic benefit cost $ 9 $ 12 $ 60 $ 40 |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | Pension Postretirement 2021 2020 2021 2020 Discount rate 2.30 % 3.10 % 2.50 % 3.25 % Expected return on plan assets 4.81 % 4.99 % N/A N/A Rate of compensation increase N/A N/A N/A N/A Pension Postretirement 2021 2020 2021 2020 Discount rate 2.60 % 2.30 % 3.00 % 2.50 % Rate of compensation increase N/A N/A N/A N/A |
Schedule of Estimated future benefit payments | (In Thousands) Pension Postretirement 2022 $ 542 $ 84 2023 187 81 2024 8 83 2025 8 85 2026 14 95 2027-2031 360 428 |
Schedule of fair values of pension plan assets | 2021 2020 Mutual funds invested principally in: Cash and cash equivalents 3 % 2 % Debt securities 38 % 36 % Equity securities 51 % 51 % Alternative funds 8 % 11 % Total 100 % 100 % |
Schedule of stock-based compensation expense | (In Thousands) 2021 2020 Restricted stock $ 1,214 $ 1,050 Stock options 0 0 Total $ 1,214 $ 1,050 |
Summary of non-vested restricted stock activity | Weighted Average Number Grant Date of Shares Fair Value Outstanding, December 31, 2020 101,942 $ 23.42 Granted 78,391 $ 20.28 Vested (48,016) $ 23.85 Forfeited (5,290) $ 22.10 Outstanding, December 31, 2021 127,027 $ 21.37 |
Summary of stock option activity | 2021 2020 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 57,111 $ 18.92 75,897 $ 18.69 Granted 0 0 Exercised (22,429) $ 18.96 (17,222) $ 18.25 Forfeited (3,156) $ 19.20 (1,564) $ 15.06 Expired (7,308) $ 15.06 0 $ Outstanding, end of year 24,218 $ 20.01 57,111 $ 18.92 Options exercisable at year-end 24,218 $ 20.01 57,111 $ 18.92 Weighted-average fair value of options forfeited $ 4.59 $ 4.26 |
Restricted Stock | |
Notes Tables | |
Summary of awarded shares of restricted stock under the Stock Incentive Plan, | 2021 2020 Time-based awards to independent directors 10,989 7,580 Time-based awards to employees 50,178 45,457 Performance-based awards to employees 17,224 17,903 Total 78,391 70,940 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of deferred tax assets and deferred tax liabilities | December 31, December 31, (In Thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,935 $ 2,154 Purchase accounting adjustments on loans 1,621 1,930 Net operating loss carryforward 778 896 Operating leases liability 821 724 Other deferred tax assets 3,260 3,089 Total deferred tax assets 9,415 8,793 Deferred tax liabilities: Unrealized holding gains on securities 1,278 3,104 Defined benefit plans - ASC 835 57 32 Bank premises and equipment 460 1,216 Core deposit intangibles 725 840 Right-of-use assets from operating leases 821 724 Other deferred tax liabilities 187 172 Total deferred tax liabilities 3,528 6,088 Deferred tax asset, net $ 5,887 $ 2,705 |
Schedule of components of income tax expense | (In Thousands) 2021 2020 Currently payable $ 8,386 $ 4,230 Tax expense resulting from allocations of certain tax benefits 128 121 Deferred (1,381) (361) Total provision $ 7,133 $ 3,990 |
Schedule of reconciliation of income tax | 2021 2020 (Dollars In Thousands) Amount % Amount % Expected provision $ 7,914 21.0 $ 4,875 21.0 Tax-exempt interest income (921) (2.4) (808) (3.5) Increase in cash surrender value and other income from life insurance, net (118) (0.3) (170) (0.7) ESOP dividends (120) (0.3) (110) (0.5) State income tax, net of Federal benefit 375 1.0 172 0.7 Other, net 3 0.0 31 0.1 Effective income tax provision $ 7,133 18.9 $ 3,990 17.2 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of loans to executive officers and directors and associates | Beginning New Other Ending (In Thousands) Balance Loans Repayments Changes Balance 13 directors, 9 executive officers 2021 $ 18,445 $ 1,249 $ (6,034) $ 251 $ 13,911 13 directors, 9 executive officers 2020 $ 14,455 $ 242 $ (2,150) $ 5,898 $ 18,445 |
OFF-BALANCE SHEET RISK (Tables)
OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of financial instruments whose contract amounts represent credit risk | (In Thousands) 2021 2020 Commitments to extend credit $ 366,076 $ 317,470 Standby letters of credit 10,079 9,107 |
Schedule of expirations of standby letters of credit | Year of Expiration (In Thousands) 2022 $ 10,021 2023 13 2024 20 2026 25 Total $ 10,079 |
OPERATING LEASE COMMITMENTS A_2
OPERATING LEASE COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES | |
Schedule of balance sheet information relating to operating leases | December 31, December 31, (In Thousands) 2021 2020 Other assets $ 3,751 $ 3,446 Other liabilities $ 3,751 $ 3,446 |
Schedule of operating lease expenses | (In Thousands) 2021 2020 Net occupancy and equipment expense $ 492 $ 371 Total $ 492 $ 371 |
Schedule of operating lease maturities | Lease Payments Due 2022 $ 540 2023 528 2024 521 2025 501 2026 438 Thereafter 1,524 Total lease payments 4,052 Discount on cash flows (301) Total lease liabilities $ 3,751 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
REGULATORY MATTERS | |
Schedule of capital ratios | Minimum To Be Well Minimum Minimum To Maintain Capitalized Under Minimum To Meet Capital Capital Conservation Prompt Corrective the Corporation's Actual Requirement Buffer at Reporting Date Action Provisions Policy Thresholds (Dollars In Thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021: Total capital to risk-weighted assets: Consolidated $ 287,614 18.21 % N/A N/A N/A N/A N/A N/A $ 165,846 ³ 10.5 % C&N Bank 252,606 16.04 % 126,012 ³ 8 % 165,390 ³ 10.5 % 157,514 ³ 10 % 165,390 ³ 10.5 % Tier 1 capital to risk-weighted assets: Consolidated 240,433 15.22 % N/A N/A N/A N/A N/A N/A 134,256 ³ 8.5 % C&N Bank 238,434 15.14 % 94,509 ³ 6 % 133,887 ³ 8.5 % 126,012 ³ 8 % 133,887 ³ 8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 240,433 15.22 % N/A N/A N/A N/A N/A N/A 110,564 ³ 7 % C&N Bank 238,434 15.14 % 70,881 ³ 4.5 % 110,260 ³ 7.0 % 102,384 ³ 6.5 % 110,260 ³ 7 % Tier 1 capital to average assets: Consolidated 240,433 10.53 % N/A N/A N/A N/A N/A N/A 182,683 ³ 8 % C&N Bank 238,434 10.52 % 90,688 ³ 4 % N/A N/A 113,360 ³ 5 % 181,376 ³ 8 % December 31, 2020: Total capital to risk-weighted assets: Consolidated $ 260,015 17.49 % N/A N/A N/A N/A N/A N/A $ 156,113 ³ 10.5 % C&N Bank 236,943 15.98 % 118,602 ³ 8 % 155,665 ³ 10.5 % 148,252 ³ 10 % 155,665 ³ 10.5 % Tier 1 capital to risk-weighted assets: Consolidated 231,577 15.58 % N/A N/A N/A N/A N/A N/A 126,377 ³ 8.5 % C&N Bank 225,058 15.18 % 88,951 ³ 6 % 126,015 ³ 8.5 % 118,602 ³ 8 % 126,015 ³ 8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 231,577 15.58 % N/A N/A N/A N/A N/A N/A 104,075 ³ 7 % C&N Bank 225,058 15.18 % 66,714 ³ 4.5 % 103,777 ³ 7.0 % 96,364 ³ 6.5 % 103,777 ³ 7 % Tier 1 capital to average assets: Consolidated 231,577 10.34 % N/A N/A N/A N/A N/A N/A 179,206 ³ 8 % C&N Bank 225,058 10.12 % 88,959 ³ 4 % N/A N/A 111,199 ³ 5 % 177,919 ³ 8 % |
Schedule of minimum risk-based capital ratios, and the capital ratios including the capital conservation buffer | Minimum common equity tier 1 capital ratio 4.5 % Minimum common equity tier 1 capital ratio plus capital conservation buffer 7.0 % Minimum tier 1 capital ratio 6.0 % Minimum tier 1 capital ratio plus capital conservation buffer 8.5 % Minimum total capital ratio 8.0 % Minimum total capital ratio plus capital conservation buffer 10.5 % |
Schedule of summary of payout restrictions based on the capital conservation buffer | Capital Conservation Buffer Maximum Payout (as a % of risk-weighted assets) (as a % of eligible retained income) Greater than 2.5% No payout limitation applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % |
PARENT COMPANY ONLY (Tables)
PARENT COMPANY ONLY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY | |
Schedule of parent company condensed balance sheet | CONDENSED BALANCE SHEET Dec. 31, Dec. 31, (In Thousands) 2021 2020 ASSETS Cash $ 33,518 $ 7,246 Investment in subsidiaries: Citizens & Northern Bank 298,797 292,455 Citizens & Northern Investment Corporation 13,085 12,959 Bucktail Life Insurance Company 3,825 3,804 Other assets 33 4 TOTAL ASSETS $ 349,258 $ 316,468 LIABILITIES AND STOCKHOLDERS' EQUITY Senior notes, net $ 14,701 $ 0 Subordinated debt, net 33,009 16,553 Other liabilities 143 159 Stockholders' equity 301,405 299,756 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 349,258 $ 316,468 |
Schedule of parent company condensed income statement | CONDENSED INCOME STATEMENT (In Thousands) 2021 2020 Dividends from Citizens & Northern Bank $ 20,200 $ 38,507 Expenses (1,691) (1,488) Income before equity in undistributed income (excess distributions) of subsidiaries 18,509 37,019 Equity in undistributed income (excess distributions) of subsidiaries 12,045 (17,797) NET INCOME $ 30,554 $ 19,222 |
Schedule of parent company condensed statement of cash flows | CONDENSED STATEMENT OF CASH FLOWS (In Thousands) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 30,554 $ 19,222 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of purchase accounting adjustment (43) (38) Amortization of debt issuance costs 101 0 Equity in (undistributed income) excess distributions of subsidiaries (12,045) 17,797 (Increase) decrease in other assets (29) 105 (Decrease) increase in other liabilities (16) 13 Net Cash Provided by Operating Activities 18,522 37,099 CASH FLOWS FROM INVESTING ACTIVITIES, Net cash used in business combination 0 (21,837) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of senior notes and subordinated debt 39,100 0 Repayment of subordinated debt (8,000) 0 Proceeds from sale of treasury stock 212 131 Purchase of treasury stock (7,586) (163) Dividends paid (15,976) (14,469) Net Cash Provided by (Used in) Financing Activities 7,750 (14,501) INCREASE IN CASH AND CASH EQUIVALENTS 26,272 761 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 7,246 6,485 CASH AND CASH EQUIVALENTS, END OF YEAR $ 33,518 $ 7,246 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Investment of net assets acquired in business combination in Citizens & Northern Bank $ 0 $ 73,426 Common equity issued in business combination $ 0 $ 41,429 Subordinated debt assumed in business combination $ 0 $ 10,091 Other liabilities assumed in business combination $ 0 $ 69 Interest paid $ 1,567 $ 655 |
SUMMARY OF QUARTERLY CONSOLID_2
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA | |
Summarized quarterly financial data | 2021 Quarter Ended March 31, June 30, Sept. 30, Dec. 31, (In Thousands Except Per Share Data) (Unaudited) 2021 2021 2021 2021 Interest income $ 21,754 $ 20,428 $ 21,073 $ 21,246 Interest expense 1,671 1,747 1,614 1,530 Net interest income 20,083 18,681 19,459 19,716 Provision for loan losses 259 744 1,530 1,128 Net interest income after provision for loan losses 19,824 17,937 17,929 18,588 Noninterest income 6,782 6,300 6,359 6,416 Net gains (losses) on available-for-sale debt securities 0 2 23 (1) Other noninterest expenses 15,709 15,399 15,346 16,018 Income before income tax provision 10,897 8,840 8,965 8,985 Income tax provision 2,110 1,780 1,566 1,677 Net income $ 8,787 $ 7,060 $ 7,399 $ 7,308 Net income attributable to common shares $ 8,722 $ 6,999 $ 7,336 $ 7,256 Net income per share – basic $ 0.55 $ 0.44 $ 0.47 $ 0.46 Net income per share – diluted $ 0.55 $ 0.44 $ 0.47 $ 0.46 2020 Quarter Ended March 31, June 30, Sept. 30, Dec. 31, (In Thousands Except Per Share Data) (Unaudited) 2020 2020 2020 2020 Interest income $ 17,037 $ 16,513 $ 21,751 $ 21,859 Interest expense 2,755 2,267 2,469 2,104 Net interest income 14,282 14,246 19,282 19,755 Provision (credit) for loan losses 1,528 (176) 1,941 620 Net interest income after provision (credit) for loan losses 12,754 14,422 17,341 19,135 Noninterest income 5,281 5,528 6,970 6,565 Net gains on available-for-sale debt securities 0 0 25 144 Loss on prepayment of borrowings 0 0 0 1,636 Merger-related expenses 141 983 6,402 182 Other expenses 12,912 12,274 14,648 15,775 Income before income tax provision 4,982 6,693 3,286 8,251 Income tax provision 816 1,255 438 1,481 Net income $ 4,166 $ 5,438 $ 2,848 $ 6,770 Net income attributable to common shares $ 4,146 $ 5,405 $ 2,830 $ 6,727 Net income per share – basic $ 0.30 $ 0.39 $ 0.18 $ 0.43 Net income per share – diluted $ 0.30 $ 0.39 $ 0.18 $ 0.43 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Summary of fair value of the Corporation's derivative financial instruments as well as their classification on the consolidated balance sheet | (In Thousands) At December 31, 2021 At December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Fair Notional Fair Notional Fair Notional Fair Amount Value (1) Amount Value (2) Amount Value (1) Amount Value (2) Interest rate swap agreements $ 61,547 $ 3,104 $ 61,547 $ 3,104 $ 67,870 $ 6,566 $ 67,870 $ 6,566 (1) Included in other assets in the consolidated balance sheets. (2) Included in accrued interest and other liabilities in the consolidated balance sheets. |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets measured at fair value and the valuation methods used | December 31, 2021 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, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 24,912 $ 0 $ 0 $ 24,912 Obligations of U.S. Government agencies 0 24,091 0 24,091 Bank holding company debt securities 0 17,987 0 17,987 Obligations of states and political subdivisions: Tax-exempt 0 148,028 0 148,028 Taxable 0 72,765 0 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 98,181 0 98,181 Residential collateralized mortgage obligations 0 44,247 0 44,247 Commercial mortgage-backed securities 0 87,468 0 87,468 Total available-for-sale debt securities 24,912 492,767 0 517,679 Marketable equity security 971 0 0 971 Servicing rights 0 0 2,329 2,329 Interest rate swap agreements, assets 0 3,104 0 3,104 Total recurring fair value measurements, assets $ 25,883 $ 495,871 $ 2,329 $ 524,083 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,104 $ 0 $ 3,104 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,800 $ 5,800 Foreclosed assets held for sale 0 0 684 684 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,484 $ 6,484 December 31, 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, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 12,182 $ 0 $ 0 $ 12,182 Obligations of U.S. Government agencies 0 26,344 0 26,344 Obligations of states and political subdivisions: Tax-exempt 0 122,401 0 122,401 Taxable 0 47,452 0 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 38,176 0 38,176 Residential collateralized mortgage obligations 0 57,467 0 57,467 Commercial mortgage-backed securities 0 45,310 0 45,310 Total available-for-sale debt securities 12,182 337,150 0 349,332 Marketable equity security 1,000 0 0 1,000 Servicing rights 0 0 1,689 1,689 Interest rate swap agreements, assets 0 6,566 0 6,566 Total recurring fair value measurements, assets $ 13,182 $ 343,716 $ 1,689 $ 358,587 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 6,566 $ 0 $ 6,566 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 7,157 $ 7,157 Foreclosed assets held for sale 0 0 1,338 1,338 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,495 $ 8,495 |
Schedule of reconciliation of level 3 activity | (In Thousands) Years Ended December 31, 2021 2020 Servicing rights balance, beginning of period $ 1,689 $ 1,277 Originations of servicing rights 708 988 Unrealized loss included in earnings (68) (576) Servicing rights balance, end of period $ 2,329 $ 1,689 |
Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value | (In Thousands) Fair Value December 31, 2021 December 31, 2020 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 95,848 $ 95,848 $ 96,017 $ 96,017 Certificates of deposit Level 2 9,100 9,142 5,840 6,054 Restricted equity securities (included in Other Assets) Level 2 9,562 9,562 9,970 9,970 Loans, net Level 3 1,551,312 1,573,955 1,632,824 1,646,207 Accrued interest receivable Level 2 7,235 7,235 8,293 8,293 Financial liabilities: Deposits with no stated maturity Level 2 1,639,167 1,639,167 1,430,062 1,430,062 Time deposits Level 2 285,893 286,962 390,407 393,566 Short-term borrowings Level 2 1,803 1,603 20,022 19,974 Long-term borrowings Level 2 28,042 28,347 54,608 55,723 Senior debt Level 2 14,701 15,016 0 0 Subordinated debt Level 2 33,009 33,171 16,553 16,680 Accrued interest payable Level 2 205 205 548 548 |
Recurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | Fair Value at 12/31/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2021 Servicing rights $ 2,329 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 209.00 % 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 12/31/2020 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2020 Servicing rights $ 1,689 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 277.00 % 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 |
Nonrecurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2021 12/31/2021 12/31/2021 Technique Inputs 12/31/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,468 $ 668 $ 5,800 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,540 $ 740 $ 5,800 Foreclosed assets held for sale - real estate: Commercial real estate $ 428 $ 0 $ 428 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 684 $ 0 $ 684 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2020 12/31/2020 12/31/2020 Technique Inputs 12/31/2020 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,501 $ 691 $ 5,810 Sales comparison Discount to appraised value 28 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 1,509 162 1,347 Sales comparison Discount to appraised value 31 % Total impaired loans $ 8,082 $ 925 $ 7,157 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,258 $ 0 $ 1,258 Sales comparison Discount to appraised value 44 % Residential (1-4 family) 80 0 80 Sales comparison Discount to appraised value 36 % Total foreclosed assets held for sale $ 1,338 $ 0 $ 1,338 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Number of reportable segments | segment | 1 | ||
Contractual performance period of nonaccrual loans to be restored to accrual status | 6 months | ||
Purchased loans past due as deterioration indicator | 90 days | ||
Minimum period past due to charge off loans | 120 days | ||
Number of distinct segments in loan portfolio | segment | 3 | ||
Credit losses related to unfunded loan commitments | $ 13,537,000 | $ 11,385,000 | $ 9,836,000 |
Threshold amount of estimate loss for evaluating individual loans for impairment | 100,000 | ||
Accrued interest related to unrecognized tax benefits | 0 | ||
Fair value of trust assets under management | $ 1,232,919,000 | 1,103,228,000 | |
Trust revenue is earned and collected monthly | 84.00% | ||
Commercial | |||
Credit losses related to unfunded loan commitments | $ 8,293,000 | 6,308,000 | 4,788,000 |
Commercial | Maximum | |||
Threshold amount of loan balance for evaluating individual impairment loss | 200,000 | ||
Residential mortgage | |||
Credit losses related to unfunded loan commitments | 4,338,000 | 4,253,000 | 4,182,000 |
Residential mortgage | Maximum | |||
Threshold amount of loan balance for evaluating individual impairment loss | 400,000 | ||
Consumer | |||
Credit losses related to unfunded loan commitments | 235,000 | 239,000 | $ 281,000 |
Consumer | Maximum | |||
Threshold amount of loan balance for evaluating individual impairment loss | 400,000 | ||
Unfunded Loan Commitment | |||
Credit losses related to unfunded loan commitments | $ 0 | $ 0 |
BUSINESS COMBINATIONS - Covenan
BUSINESS COMBINATIONS - Covenant Acquisition (Details) - USD ($) | Jul. 01, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
BUSINESS COMBINATIONS | ||||||||
Goodwill | $ 52,505,000 | $ 52,505,000 | $ 52,505,000 | $ 28,388,000 | ||||
Merger-related expenses | $ 182,000 | $ 6,402,000 | $ 983,000 | $ 141,000 | 0 | 7,708,000 | ||
Covenant Financial Inc. | ||||||||
BUSINESS COMBINATIONS | ||||||||
Goodwill | $ 24,100,000 | |||||||
Loans | 464,200,000 | |||||||
Deposits | 481,800,000 | |||||||
Borrowings | 64,000,000 | |||||||
Subordinated debt | 10,100,000 | |||||||
Available-for-sale debt securities | 10,800,000 | |||||||
Bank owned life insurance | $ 11,200,000 | |||||||
Refinement term of assets and liabilities | 1 year | |||||||
Merger-related expenses | $ 0 | $ 7,708,000 | ||||||
Covenant Financial Inc. | Core Deposits | ||||||||
BUSINESS COMBINATIONS | ||||||||
Core deposit intangible asset | $ 3,100,000 |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | ||||||||||
Net income | $ 7,308 | $ 7,399 | $ 7,060 | $ 8,787 | $ 6,770 | $ 2,848 | $ 5,438 | $ 4,166 | $ 30,554 | $ 19,222 |
Less: Dividends and undistributed earnings allocated to participating securities | (241) | (116) | ||||||||
Net income attributable to common shares | $ 7,256 | $ 7,336 | $ 6,999 | $ 8,722 | $ 6,727 | $ 2,830 | $ 5,405 | $ 4,146 | $ 30,313 | $ 19,106 |
Basic weighted-average common shares outstanding (in shares) | 15,765,639 | 14,743,386 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.46 | $ 0.47 | $ 0.44 | $ 0.55 | $ 0.43 | $ 0.18 | $ 0.39 | $ 0.30 | $ 1.92 | $ 1.30 |
Diluted | ||||||||||
Net income attributable to common shares | $ 30,313 | $ 19,106 | ||||||||
Basic weighted-average common shares outstanding (in shares) | 15,765,639 | 14,743,386 | ||||||||
Dilutive effect of potential common stock arising from stock options (in shares) | 6,316 | 3,662 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 15,771,955 | 14,747,048 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.46 | $ 0.47 | $ 0.44 | $ 0.55 | $ 0.43 | $ 0.18 | $ 0.39 | $ 0.30 | $ 1.92 | $ 1.30 |
Weighted-average nonvested restricted shares outstanding (in shares) | 125,539 | 89,718 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 32,538 |
COMPREHENSIVE INCOME - Componen
COMPREHENSIVE INCOME - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
COMPREHENSIVE INCOME | ||
Unrealized holding income (losses) on available-for-sale debt securities | $ (8,669) | $ 10,504 |
Unrealized holding income (losses) on available-for-sale debt securities, Income Tax Effect | 1,821 | (2,205) |
Unrealized holding income (losses) on available-for-sale debt securities, Net of Tax Amount | (6,848) | 8,299 |
Reclassification adjustment for gains realized in income, Before-Tax Amount | (24) | (169) |
Reclassification adjustment for (gains) realized in income, Income Tax Effect | 5 | 35 |
Reclassification adjustment for (gains) realized in income. Net of Tax Amount | (19) | (134) |
Other comprehensive loss from available-for-sale debt securities, Before-Tax Amount | (8,693) | 10,335 |
Other comprehensive income on available-for-sale debt securities, income tax effect | 1,826 | (2,170) |
Other comprehensive loss from available-for-sale debt securities, Net-of-Tax Amount | (6,867) | 8,165 |
Changes from plan amendments and actuarial gains and losses, Before-Tax Amount | 140 | (49) |
Changes from plan amendments and actuarial gains and losses, Income Tax Effect | (29) | 11 |
Changes from plan amendments and actuarial gains and losses, Net-of-Tax Amount | 111 | (38) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Before-Tax Amount | (17) | (29) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Income Tax Effect | 4 | 6 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Net-of-Tax Amount | (13) | (23) |
Other comprehensive income (loss) on pension and postretirement obligations | 123 | (78) |
Other comprehensive income (loss) on unfunded retirement obligations, Income Tax Effect | (25) | 17 |
Other comprehensive income (loss) on unfunded retirement obligations, Net-of-Tax Amount | 98 | (61) |
Other comprehensive (loss) income before income tax | (8,570) | 10,257 |
Total other comprehensive income (loss), Income Tax Effect | 1,801 | (2,153) |
Total other comprehensive income (loss) | $ (6,769) | $ 8,104 |
COMPREHENSIVE INCOME - Changes
COMPREHENSIVE INCOME - Changes of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 299,756 | $ 244,452 |
Other comprehensive income (loss) during year | (6,769) | 8,104 |
Balance | 301,405 | 299,756 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||
Balance | 11,676 | 3,511 |
Other comprehensive income (loss) during year | (6,867) | 8,165 |
Balance | 4,809 | 11,676 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Balance | 119 | 180 |
Other comprehensive income (loss) during year | 98 | (61) |
Balance | 217 | 119 |
Accumulated Other Comprehensive Income | ||
Balance | 11,795 | 3,691 |
Other comprehensive income (loss) during year | (6,769) | 8,104 |
Balance | $ 5,026 | $ 11,795 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 95,848,000 | $ 96,017,000 |
Certificates of deposit | 9,100,000 | 5,840,000 |
Total cash and due from banks | 104,948,000 | 101,857,000 |
Cash Reserve Deposit Required and Made | $ 0 | $ 0 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | $ 511,592 | $ 334,552 |
Available-for-sale securities, gross unrealized holding gains | 9,304 | 14,849 |
Available-for-sale securities, gross unrealized holding losses | (3,217) | (69) |
Available-for-sale debt securities, fair value | 517,679 | 349,332 |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 25,058 | 12,184 |
Available-for-sale securities, gross unrealized holding gains | 52 | 0 |
Available-for-sale securities, gross unrealized holding losses | (198) | (2) |
Available-for-sale debt securities, fair value | 24,912 | 12,182 |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 23,936 | 25,349 |
Available-for-sale securities, gross unrealized holding gains | 563 | 1,003 |
Available-for-sale securities, gross unrealized holding losses | (408) | (8) |
Available-for-sale debt securities, fair value | 24,091 | 26,344 |
Bank holding company debt securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 18,000 | |
Available-for-sale securities, gross unrealized holding gains | 18 | |
Available-for-sale securities, gross unrealized holding losses | (31) | |
Available-for-sale debt securities, fair value | 17,987 | |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 143,427 | 116,427 |
Available-for-sale securities, gross unrealized holding gains | 4,749 | 6,000 |
Available-for-sale securities, gross unrealized holding losses | (148) | (26) |
Available-for-sale debt securities, fair value | 148,028 | 122,401 |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 72,182 | 45,230 |
Available-for-sale securities, gross unrealized holding gains | 1,232 | 2,246 |
Available-for-sale securities, gross unrealized holding losses | (649) | (24) |
Available-for-sale debt securities, fair value | 72,765 | 47,452 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 98,048 | 36,853 |
Available-for-sale securities, gross unrealized holding gains | 705 | 1,323 |
Available-for-sale securities, gross unrealized holding losses | (572) | 0 |
Available-for-sale debt securities, fair value | 98,181 | 38,176 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 44,015 | 56,048 |
Available-for-sale securities, gross unrealized holding gains | 437 | 1,428 |
Available-for-sale securities, gross unrealized holding losses | (205) | (9) |
Available-for-sale debt securities, fair value | 44,247 | 57,467 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 86,926 | 42,461 |
Available-for-sale securities, gross unrealized holding gains | 1,548 | 2,849 |
Available-for-sale securities, gross unrealized holding losses | (1,006) | 0 |
Available-for-sale debt securities, fair value | $ 87,468 | $ 45,310 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | $ 230,138 | $ 26,058 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (2,934) | (69) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 8,682 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (283) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 238,820 | 26,058 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (3,217) | (69) |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 18,886 | 9,159 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (198) | (2) |
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 | 18,886 | 9,159 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (198) | (2) |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 9,735 | 4,992 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (264) | (8) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 4,856 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (144) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 14,591 | 4,992 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (408) | (8) |
Bank holding company debt securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 12,969 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (31) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, fair value | 12,969 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (31) | |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 17,852 | 3,811 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (141) | (26) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 549 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (7) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 18,401 | 3,811 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (148) | (26) |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 31,261 | 5,235 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (517) | (24) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 3,277 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (132) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 34,538 | 5,235 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (649) | (24) |
Residential Passthrough Securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 71,451 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (572) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, fair value | 71,451 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (572) | |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 15,117 | 2,861 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (205) | (9) |
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 | 15,117 | 2,861 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (205) | $ (9) |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 52,867 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (1,006) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, fair value | 52,867 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (1,006) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
SECURITIES | ||||||||||
Gross realized gains from sales | $ 27 | $ 222 | ||||||||
Gross realized losses from sales | (3) | (53) | ||||||||
Net realized gains | $ (1) | $ 23 | $ 2 | $ 0 | $ 144 | $ 25 | $ 0 | $ 0 | 24 | 169 |
Income tax provision related to net realized gains | $ 5 | $ 35 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Securities | ||
Due in one year or less, amortized cost | $ 14,454,000 | |
Due in one year or less, fair value | 14,538,000 | |
Due from one year through five years. amortized cost | 58,561,000 | |
Due from one year through five years, fair value | 59,116,000 | |
Due from five years through ten years, amortized cost | 79,532,000 | |
Due from five years through ten years, fair value | 81,073,000 | |
Due after ten years, amortized cost | 130,056,000 | |
Due after ten years, fair value | 133,056,000 | |
Sub-total, amortized cost | 282,603,000 | |
Sub-total, fair value | 287,783,000 | |
Total, amortized cost | 511,592,000 | $ 334,552,000 |
Total, fair value | 517,679,000 | 349,332,000 |
Secured public deposits, trusts and certain other deposits | 189,383,000 | 201,176,000 |
Investment Securities [Member] | ||
Available-for-sale Securities | ||
Investment pledged as collateral | 241,428,000 | 247,373,000 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 98,048,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 98,181,000 | |
Total, amortized cost | 98,048,000 | 36,853,000 |
Total, fair value | 98,181,000 | 38,176,000 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 44,015,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 44,247,000 | |
Total, amortized cost | 44,015,000 | 56,048,000 |
Total, fair value | 44,247,000 | $ 57,467,000 |
Commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 86,926,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | $ 87,468,000 |
SECURITIES - Equity Securities
SECURITIES - Equity Securities (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Equity Securities | ||
Marketable equity security | $ 971,000 | $ 1,000,000 |
Number of equity securities sold | security | 0 | 0 |
Mutual Fund | ||
Equity Securities | ||
Number of mutual funds | 1 | |
Unrealized gain/loss on the mutual fund | $ 29,000 | $ 0 |
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date | (29,000) | (21,000) |
Other Assets | Federal Home Loan Bank of Pittsburgh | ||
Equity Securities | ||
Federal Home Loan Bank Stock | $ 9,313,000 | $ 9,720,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS | |||
Loans receivable | $ 1,564,849 | $ 1,644,209 | |
Allowance for loan losses | (13,537) | (11,385) | $ (9,836) |
Loans, net | 1,551,312 | 1,632,824 | |
Commercial | |||
LOANS | |||
Loans receivable | 978,371 | 1,007,751 | |
Allowance for loan losses | (8,293) | (6,308) | (4,788) |
Commercial | Real estate loan | |||
LOANS | |||
Loans receivable | 569,840 | 531,810 | |
Allowance for loan losses | (4,405) | (3,051) | (1,921) |
Commercial | Commercial and industrial | |||
LOANS | |||
Loans receivable | 159,073 | 159,577 | |
Allowance for loan losses | (2,723) | (2,245) | (1,391) |
Commercial | Paycheck Protection Program - 1st Draw | |||
LOANS | |||
Loans receivable | 1,356 | 132,269 | |
Allowance for loan losses | 0 | 0 | |
Commercial | Paycheck Protection Program - 2nd Draw | |||
LOANS | |||
Loans receivable | 25,508 | 0 | |
Allowance for loan losses | 0 | ||
Commercial | Political subdivisions | |||
LOANS | |||
Loans receivable | 81,301 | 53,221 | |
Allowance for loan losses | 0 | 0 | |
Commercial | Construction Loans | |||
LOANS | |||
Loans receivable | 60,579 | 42,874 | |
Commercial | Commercial Construction And Land | |||
LOANS | |||
Loans receivable | 60,579 | 42,874 | |
Allowance for loan losses | (637) | (454) | (966) |
Commercial | Loans secured by farm land | |||
LOANS | |||
Loans receivable | 11,121 | 11,736 | |
Allowance for loan losses | (115) | (120) | (158) |
Commercial | Multi-family (5 or more) residential | |||
LOANS | |||
Loans receivable | 50,089 | 55,811 | |
Allowance for loan losses | (215) | (236) | (156) |
Commercial | Agricultural loans | |||
LOANS | |||
Loans receivable | 2,351 | 3,164 | |
Allowance for loan losses | (25) | (34) | (41) |
Commercial | Other commercial loans | |||
LOANS | |||
Loans receivable | 17,153 | 17,289 | |
Allowance for loan losses | (173) | (168) | (155) |
Residential mortgage | |||
LOANS | |||
Loans receivable | 569,346 | 620,172 | |
Allowance for loan losses | (4,338) | (4,253) | (4,182) |
Residential mortgage | Real estate loan | |||
LOANS | |||
Loans receivable | 569,840 | ||
Residential mortgage | Real estate loan | first liens | |||
LOANS | |||
Loans receivable | 483,629 | 532,947 | |
Allowance for loan losses | (3,650) | (3,524) | (3,405) |
Residential mortgage | Real estate loan | junior liens | |||
LOANS | |||
Loans receivable | 23,314 | 27,311 | |
Allowance for loan losses | (184) | (349) | (384) |
Residential mortgage | Construction Loans | |||
LOANS | |||
Loans receivable | 23,151 | 20,613 | |
Allowance for loan losses | (202) | (99) | (117) |
Residential mortgage | Home equity lines of credit | |||
LOANS | |||
Loans receivable | 39,252 | 39,301 | |
Allowance for loan losses | (302) | (281) | (276) |
Consumer | |||
LOANS | |||
Loans receivable | 17,132 | 16,286 | |
Allowance for loan losses | $ (235) | $ (239) | $ (281) |
LOANS - Adjustments to Initial
LOANS - Adjustments to Initial Discounts and Carrying Amounts of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Market Rate Adjustment | ||
LOANS | ||
Adjustments to gross amortized cost of loans at beginning of period | $ 718 | $ (1,415) |
Adjustment recorded in acquisition | 0 | 2,909 |
(Amortization) accretion recognized in interest income | (1,355) | (776) |
Adjustments to gross amortized cost of loans at end of period | (637) | 718 |
Credit Adjustment on Non-impaired Loans | ||
LOANS | ||
Adjustments to gross amortized cost of loans at beginning of period | (5,979) | (1,216) |
Adjustment recorded in acquisition | 0 | (7,219) |
(Amortization) accretion recognized in interest income | 2,644 | 2,456 |
Adjustments to gross amortized cost of loans at end of period | $ (3,335) | $ (5,979) |
LOANS - Summary of PCI Loans He
LOANS - Summary of PCI Loans Held (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LOANS | ||
Outstanding balance | $ 9,802 | $ 10,316 |
Carrying amount | $ 6,558 | $ 6,841 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
LOANS | ||||||||||
Allowance for Loan losses | $ 11,385,000 | $ 9,836,000 | $ 11,385,000 | $ 9,836,000 | ||||||
Allowance for Loan losses, Charge-offs | (1,575,000) | (2,465,000) | ||||||||
Allowance for Loan losses, Recoveries | 66,000 | 101,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | $ 1,128,000 | $ 1,530,000 | $ 744,000 | 259,000 | $ 620,000 | $ 1,941,000 | $ (176,000) | 1,528,000 | 3,661,000 | 3,913,000 |
Allowance for Loan losses | 13,537,000 | 11,385,000 | 13,537,000 | 11,385,000 | ||||||
Commercial | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 6,308,000 | 4,788,000 | 6,308,000 | 4,788,000 | ||||||
Allowance for Loan losses, Charge-offs | (1,464,000) | (2,343,000) | ||||||||
Allowance for Loan losses, Recoveries | 22,000 | 16,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 3,427,000 | 3,847,000 | ||||||||
Allowance for Loan losses | 8,293,000 | 6,308,000 | 8,293,000 | 6,308,000 | ||||||
Commercial | Loan Customer Major Write Off [Member] | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses, Charge-offs | (1,463,000) | (2,219,000) | ||||||||
Commercial | Real estate loan | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 3,051,000 | 1,921,000 | 3,051,000 | 1,921,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 2,000 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | 1,352,000 | 1,130,000 | ||||||||
Allowance for Loan losses | 4,405,000 | 3,051,000 | 4,405,000 | 3,051,000 | ||||||
Commercial | Commercial and industrial | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 2,245,000 | 1,391,000 | 2,245,000 | 1,391,000 | ||||||
Allowance for Loan losses, Charge-offs | (1,464,000) | (2,236,000) | ||||||||
Allowance for Loan losses, Recoveries | 20,000 | 16,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 1,922,000 | 3,074,000 | ||||||||
Allowance for Loan losses | 2,723,000 | 2,245,000 | 2,723,000 | 2,245,000 | ||||||
Commercial | Commercial Construction And Land | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 454,000 | 966,000 | 454,000 | 966,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | (107,000) | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | 183,000 | (405,000) | ||||||||
Allowance for Loan losses | 637,000 | 454,000 | 637,000 | 454,000 | ||||||
Commercial | Loans secured by farm land | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 120,000 | 158,000 | 120,000 | 158,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | (5,000) | (38,000) | ||||||||
Allowance for Loan losses | 115,000 | 120,000 | 115,000 | 120,000 | ||||||
Commercial | Multi-family (5 or more) residential | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 236,000 | 156,000 | 236,000 | 156,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | (21,000) | 80,000 | ||||||||
Allowance for Loan losses | 215,000 | 236,000 | 215,000 | 236,000 | ||||||
Commercial | Agricultural loans | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 34,000 | 41,000 | 34,000 | 41,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | (9,000) | (7,000) | ||||||||
Allowance for Loan losses | 25,000 | 34,000 | 25,000 | 34,000 | ||||||
Commercial | Other commercial loans | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 168,000 | 155,000 | 168,000 | 155,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | 5,000 | 13,000 | ||||||||
Allowance for Loan losses | 173,000 | 168,000 | 173,000 | 168,000 | ||||||
Residential mortgage | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 4,253,000 | 4,182,000 | 4,253,000 | 4,182,000 | ||||||
Allowance for Loan losses, Charge-offs | (11,000) | 0 | ||||||||
Allowance for Loan losses, Recoveries | 6,000 | 44,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 90,000 | 27,000 | ||||||||
Allowance for Loan losses | 4,338,000 | 4,253,000 | 4,338,000 | 4,253,000 | ||||||
Residential mortgage | Real estate loan | first liens | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 3,524,000 | 3,405,000 | 3,524,000 | 3,405,000 | ||||||
Allowance for Loan losses, Charge-offs | (11,000) | 0 | ||||||||
Allowance for Loan losses, Recoveries | 4,000 | 39,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 133,000 | 80,000 | ||||||||
Allowance for Loan losses | 3,650,000 | 3,524,000 | 3,650,000 | 3,524,000 | ||||||
Residential mortgage | Real estate loan | junior liens | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 349,000 | 384,000 | 349,000 | 384,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 1,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | (165,000) | (36,000) | ||||||||
Allowance for Loan losses | 184,000 | 349,000 | 184,000 | 349,000 | ||||||
Residential mortgage | Construction Loans | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 99,000 | 117,000 | 99,000 | 117,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | |||||||||
Allowance for Loan losses, Recoveries | 0 | |||||||||
Allowance for Loan losses, Provision (Credit) | (18,000) | |||||||||
Allowance for Loan losses | 202,000 | 99,000 | 202,000 | 99,000 | ||||||
Residential mortgage | Home equity lines of credit | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 281,000 | 276,000 | 281,000 | 276,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 2,000 | 4,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 19,000 | 1,000 | ||||||||
Allowance for Loan losses | 302,000 | 281,000 | 302,000 | 281,000 | ||||||
Residential mortgage | 1-4 Family residential construction | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 99,000 | 99,000 | ||||||||
Allowance for Loan losses, Charge-offs | 0 | |||||||||
Allowance for Loan losses, Recoveries | 0 | |||||||||
Allowance for Loan losses, Provision (Credit) | 103,000 | |||||||||
Allowance for Loan losses | 202,000 | 99,000 | 202,000 | 99,000 | ||||||
Consumer | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | 239,000 | 281,000 | 239,000 | 281,000 | ||||||
Allowance for Loan losses, Charge-offs | (100,000) | (122,000) | ||||||||
Allowance for Loan losses, Recoveries | 38,000 | 41,000 | ||||||||
Allowance for Loan losses, Provision (Credit) | 58,000 | 39,000 | ||||||||
Allowance for Loan losses | 235,000 | 239,000 | 235,000 | 239,000 | ||||||
Unallocated | ||||||||||
LOANS | ||||||||||
Allowance for Loan losses | $ 585,000 | $ 585,000 | 585,000 | 585,000 | ||||||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||||||||
Allowance for Loan losses, Recoveries | 0 | 0 | ||||||||
Allowance for Loan losses, Provision (Credit) | 86,000 | 0 | ||||||||
Allowance for Loan losses | $ 671,000 | $ 585,000 | $ 671,000 | $ 585,000 |
LOANS - Outstanding Loans by Ri
LOANS - Outstanding Loans by Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans receivable | $ 1,564,849 | $ 1,644,209 |
Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 6,558 | 6,841 |
Commercial | ||
LOANS | ||
Loans receivable | 978,371 | 1,007,751 |
Commercial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 6,485 | 6,696 |
Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 569,840 | 531,810 |
Commercial | Real estate loan | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 4,298 | |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 159,073 | 159,577 |
Commercial | Commercial and industrial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 763 | 784 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 1,356 | 132,269 |
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 25,508 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | |
Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,301 | 53,221 |
Commercial | Political subdivisions | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 60,579 | 42,874 |
Commercial | Commercial Construction And Land | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 60,579 | 42,874 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 11,121 | 11,736 |
Commercial | Loans secured by farm land | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 50,089 | 55,811 |
Commercial | Multi-family (5 or more) residential | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 1,578 | 1,614 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,351 | 3,164 |
Commercial | Agricultural loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 17,153 | 17,289 |
Commercial | Other commercial loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans receivable | 569,346 | 620,172 |
Residential mortgage | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 73 | 145 |
Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 569,840 | |
Residential mortgage | Real estate loan | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 4,144 | |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 483,629 | 532,947 |
Residential mortgage | Real estate loan | first liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 70 | 76 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 23,314 | 27,311 |
Residential mortgage | Real estate loan | junior liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 3 | 69 |
Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 23,151 | 20,613 |
Residential mortgage | Construction Loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 39,252 | 39,301 |
Residential mortgage | Home equity lines of credit | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Consumer | ||
LOANS | ||
Loans receivable | 17,132 | 16,286 |
Consumer | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Pass | ||
LOANS | ||
Loans receivable | 1,497,176 | 1,565,349 |
Pass | Commercial | ||
LOANS | ||
Loans receivable | 926,323 | 946,870 |
Pass | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 494,876 | |
Pass | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 142,775 | 143,500 |
Pass | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 1,356 | 132,269 |
Pass | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 25,508 | |
Pass | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,301 | 53,221 |
Pass | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 59,816 | 42,110 |
Pass | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 10,011 | 10,473 |
Pass | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 47,638 | 50,563 |
Pass | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 1,802 | 2,569 |
Pass | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 17,150 | 17,289 |
Pass | Residential mortgage | ||
LOANS | ||
Loans receivable | 553,761 | 602,307 |
Pass | Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 538,966 | |
Pass | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 469,044 | 516,685 |
Pass | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 22,914 | 26,480 |
Pass | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 23,151 | 20,613 |
Pass | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 38,652 | 38,529 |
Pass | Consumer | ||
LOANS | ||
Loans receivable | 17,092 | 16,172 |
Special Mention | ||
LOANS | ||
Loans receivable | 30,409 | 35,316 |
Special Mention | Commercial | ||
LOANS | ||
Loans receivable | 22,255 | 28,924 |
Special Mention | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 17,374 | |
Special Mention | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 10,841 | 8,025 |
Special Mention | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Special Mention | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 715 | 715 |
Special Mention | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 186 | 405 |
Special Mention | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 0 | 2,405 |
Special Mention | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 3 | 0 |
Special Mention | Residential mortgage | ||
LOANS | ||
Loans receivable | 8,154 | 6,392 |
Special Mention | Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 10,510 | |
Special Mention | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 7,981 | 6,192 |
Special Mention | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 114 | 141 |
Special Mention | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 59 | 59 |
Special Mention | Consumer | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | ||
LOANS | ||
Loans receivable | 30,706 | 36,703 |
Substandard | Commercial | ||
LOANS | ||
Loans receivable | 23,308 | 25,261 |
Substandard | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 15,262 | |
Substandard | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 4,694 | 7,268 |
Substandard | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Substandard | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 48 | 49 |
Substandard | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 924 | 858 |
Substandard | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 873 | 1,229 |
Substandard | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 549 | 595 |
Substandard | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Residential mortgage | ||
LOANS | ||
Loans receivable | 7,358 | 11,328 |
Substandard | Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 16,220 | |
Substandard | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 6,534 | 9,994 |
Substandard | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 283 | 621 |
Substandard | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 541 | 713 |
Substandard | Consumer | ||
LOANS | ||
Loans receivable | 40 | 114 |
Doubtful | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 0 | |
Doubtful | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Doubtful | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 0 | |
Doubtful | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Consumer | ||
LOANS | ||
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 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS | |||
Loans receivable: Individually Evaluated | $ 15,734 | $ 17,818 | |
Loans receivable: Collectively Evaluated | 1,549,115 | 1,626,391 | |
Loans receivable | 1,564,849 | 1,644,209 | |
Allowance for loan losses: individually evaluated | 740 | 925 | |
Allowance for loan losses: collectively evaluated | 12,126 | 9,875 | |
Allowance for loan losses | 13,537 | 11,385 | $ 9,836 |
Commercial | |||
LOANS | |||
Loans receivable: Individually Evaluated | 15,090 | 15,019 | |
Loans receivable: Collectively Evaluated | 963,281 | 992,732 | |
Loans receivable | 978,371 | 1,007,751 | |
Allowance for loan losses: individually evaluated | 740 | 763 | |
Allowance for loan losses: collectively evaluated | 7,553 | 5,545 | |
Allowance for loan losses | 8,293 | 6,308 | 4,788 |
Commercial | Real estate loan | |||
LOANS | |||
Loans receivable: Individually Evaluated | 10,926 | 11,962 | |
Loans receivable: Collectively Evaluated | 558,914 | 519,848 | |
Loans receivable | 569,840 | 531,810 | |
Allowance for loan losses: individually evaluated | 669 | 692 | |
Allowance for loan losses: collectively evaluated | 3,736 | 2,359 | |
Allowance for loan losses | 4,405 | 3,051 | 1,921 |
Commercial | Commercial and industrial | |||
LOANS | |||
Loans receivable: Individually Evaluated | 2,503 | 1,359 | |
Loans receivable: Collectively Evaluated | 156,570 | 158,218 | |
Loans receivable | 159,073 | 159,577 | |
Allowance for loan losses: individually evaluated | 71 | 71 | |
Allowance for loan losses: collectively evaluated | 2,652 | 2,174 | |
Allowance for loan losses | 2,723 | 2,245 | 1,391 |
Commercial | Paycheck Protection Program - 1st Draw | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 1,356 | 132,269 | |
Loans receivable | 1,356 | 132,269 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 0 | 0 | |
Allowance for loan losses | 0 | 0 | |
Commercial | Paycheck Protection Program - 2nd Draw | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | ||
Loans receivable: Collectively Evaluated | 25,508 | ||
Loans receivable | 25,508 | 0 | |
Allowance for loan losses: individually evaluated | 0 | ||
Allowance for loan losses: collectively evaluated | 0 | ||
Allowance for loan losses | 0 | ||
Commercial | Political subdivisions | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 81,301 | 53,221 | |
Loans receivable | 81,301 | 53,221 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 0 | 0 | |
Allowance for loan losses | 0 | 0 | |
Commercial | Construction Loans | |||
LOANS | |||
Loans receivable | 60,579 | 42,874 | |
Commercial | Commercial Construction And Land | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 60,579 | 42,874 | |
Loans receivable | 60,579 | 42,874 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 637 | 454 | |
Allowance for loan losses | 637 | 454 | 966 |
Commercial | Loans secured by farm land | |||
LOANS | |||
Loans receivable: Individually Evaluated | 83 | 84 | |
Loans receivable: Collectively Evaluated | 11,038 | 11,652 | |
Loans receivable | 11,121 | 11,736 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 115 | 120 | |
Allowance for loan losses | 115 | 120 | 158 |
Commercial | Multi-family (5 or more) residential | |||
LOANS | |||
Loans receivable: Individually Evaluated | 1,578 | 1,614 | |
Loans receivable: Collectively Evaluated | 48,511 | 54,197 | |
Loans receivable | 50,089 | 55,811 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 215 | 236 | |
Allowance for loan losses | 215 | 236 | 156 |
Commercial | Agricultural loans | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 2,351 | 3,164 | |
Loans receivable | 2,351 | 3,164 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 25 | 34 | |
Allowance for loan losses | 25 | 34 | 41 |
Commercial | Other commercial loans | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 17,153 | 17,289 | |
Loans receivable | 17,153 | 17,289 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 173 | 168 | |
Allowance for loan losses | 173 | 168 | 155 |
Residential mortgage | |||
LOANS | |||
Loans receivable: Individually Evaluated | 644 | 2,799 | |
Loans receivable: Collectively Evaluated | 568,702 | 617,373 | |
Loans receivable | 569,346 | 620,172 | |
Allowance for loan losses: individually evaluated | 0 | 162 | |
Allowance for loan losses: collectively evaluated | 4,338 | 4,091 | |
Allowance for loan losses | 4,338 | 4,253 | 4,182 |
Residential mortgage | Real estate loan | |||
LOANS | |||
Loans receivable | 569,840 | ||
Residential mortgage | Real estate loan | first liens | |||
LOANS | |||
Loans receivable: Individually Evaluated | 630 | 2,385 | |
Loans receivable: Collectively Evaluated | 482,999 | 530,562 | |
Loans receivable | 483,629 | 532,947 | |
Allowance for loan losses: individually evaluated | 0 | 9 | |
Allowance for loan losses: collectively evaluated | 3,650 | 3,515 | |
Allowance for loan losses | 3,650 | 3,524 | 3,405 |
Residential mortgage | Real estate loan | junior liens | |||
LOANS | |||
Loans receivable: Individually Evaluated | 14 | 414 | |
Loans receivable: Collectively Evaluated | 23,300 | 26,897 | |
Loans receivable | 23,314 | 27,311 | |
Allowance for loan losses: individually evaluated | 0 | 153 | |
Allowance for loan losses: collectively evaluated | 184 | 196 | |
Allowance for loan losses | 184 | 349 | 384 |
Residential mortgage | Construction Loans | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 23,151 | 20,613 | |
Loans receivable | 23,151 | 20,613 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 202 | 99 | |
Allowance for loan losses | 202 | 99 | 117 |
Residential mortgage | Home equity lines of credit | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 39,252 | 39,301 | |
Loans receivable | 39,252 | 39,301 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 302 | 281 | |
Allowance for loan losses | 302 | 281 | 276 |
Consumer | |||
LOANS | |||
Loans receivable: Individually Evaluated | 0 | 0 | |
Loans receivable: Collectively Evaluated | 17,132 | 16,286 | |
Loans receivable | 17,132 | 16,286 | |
Allowance for loan losses: individually evaluated | 0 | 0 | |
Allowance for loan losses: collectively evaluated | 235 | 239 | |
Allowance for loan losses | 235 | 239 | 281 |
Unallocated | |||
LOANS | |||
Allowance for loan losses | $ 671 | $ 585 | $ 585 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS | ||
Unpaid Principal Balance - with no allowance | $ 15,410,000 | $ 13,211,000 |
Recorded Investment - with no allowance | 9,194,000 | 9,736,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 6,540,000 | 8,082,000 |
Recorded investment - with allowance | 6,540,000 | 8,082,000 |
Related Allowance - with allowance | 740,000 | 925,000 |
Unpaid Principal Balance | 21,950,000 | 21,293,000 |
Recorded Investment | 15,734,000 | 17,818,000 |
Commercial | ||
LOANS | ||
Recorded Investment | 1,391,000 | |
Commercial | Real estate loan | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 6,600,000 | 7,168,000 |
Recorded Investment - with no allowance | 4,458,000 | 5,398,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 6,468,000 | 6,501,000 |
Recorded investment - with allowance | 6,468,000 | 6,501,000 |
Related Allowance - with allowance | 668,000 | 691,000 |
Commercial | Commercial and industrial | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 5,213,000 | 1,781,000 |
Recorded Investment - with no allowance | 2,431,000 | 1,287,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 72,000 | 72,000 |
Recorded investment - with allowance | 72,000 | 72,000 |
Related Allowance - with allowance | 72,000 | 72,000 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 83,000 | 84,000 |
Recorded Investment - with no allowance | 83,000 | 84,000 |
Related Allowance - with no allowance | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 2,734,000 | 2,770,000 |
Recorded Investment - with no allowance | 1,578,000 | 1,614,000 |
Related Allowance - with no allowance | 0 | 0 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 656,000 | 1,248,000 |
Recorded Investment - with no allowance | 630,000 | 1,248,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 0 | 1,200,000 |
Recorded investment - with allowance | 0 | 1,200,000 |
Related Allowance - with allowance | 0 | 9,000 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 124,000 | 160,000 |
Recorded Investment - with no allowance | 14,000 | 105,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 0 | 309,000 |
Recorded investment - with allowance | 0 | 309,000 |
Related Allowance - with allowance | $ 0 | $ 153,000 |
LOANS - Average Balance of Impa
LOANS - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LOANS | ||
Average Investment in Impaired Loans | $ 18,043 | $ 11,246 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 821 | 480 |
Commercial | ||
LOANS | ||
Average Investment in Impaired Loans | 16,035 | 8,944 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 732 | 339 |
Commercial | Real estate loan | ||
LOANS | ||
Average Investment in Impaired Loans | 11,617 | 5,266 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 557 | 258 |
Commercial | Commercial and industrial | ||
LOANS | ||
Average Investment in Impaired Loans | 2,636 | 2,542 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 34 | 34 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Average Investment in Impaired Loans | 48 | 521 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 3 | 15 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Average Investment in Impaired Loans | 84 | 319 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 27 |
Commercial | Multi-family (5 or more) residential. | ||
LOANS | ||
Average Investment in Impaired Loans | 1,583 | 202 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 133 | 0 |
Commercial | Agricultural loans | ||
LOANS | ||
Average Investment in Impaired Loans | 67 | 76 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 4 | 4 |
Commercial | Other commercial loans | ||
LOANS | ||
Average Investment in Impaired Loans | 0 | 18 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 1 |
Residential mortgage | ||
LOANS | ||
Average Investment in Impaired Loans | 2,008 | 2,302 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 89 | 141 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Average Investment in Impaired Loans | 1,647 | 1,853 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 78 | 116 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Average Investment in Impaired Loans | 361 | 392 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 11 | 22 |
Residential mortgage | Home Equity Line of Credit [Member] | ||
LOANS | ||
Average Investment in Impaired Loans | 0 | 57 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 0 | $ 3 |
LOANS - Nonaccrual Loans and Lo
LOANS - Nonaccrual Loans and Loans Past Due Ninety Days or More and Still Accruing (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS | ||
Past Due 90+ Days and Accruing | $ 2,219 | $ 1,975 |
Nonaccrual | 18,999 | 21,416 |
Commercial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 861 | 796 |
Nonaccrual | 14,893 | 14,267 |
Commercial | Real estate loan | ||
LOANS | ||
Past Due 90+ Days and Accruing | 738 | 395 |
Nonaccrual | 10,885 | 11,550 |
Commercial | Commercial and industrial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 30 | 142 |
Nonaccrual | 2,299 | 970 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 48 | 49 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Past Due 90+ Days and Accruing | 28 | 188 |
Nonaccrual | 83 | 84 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 1,578 | 1,614 |
Commercial | Agricultural loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 65 | 0 |
Nonaccrual | 0 | 0 |
Commercial | Other commercial loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 71 |
Nonaccrual | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Past Due 90+ Days and Accruing | 1,315 | 1,123 |
Nonaccrual | 4,090 | 7,064 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 1,144 | 838 |
Nonaccrual | 4,005 | 6,387 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 69 | 52 |
Nonaccrual | 3 | 378 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Past Due 90+ Days and Accruing | 102 | 233 |
Nonaccrual | 82 | 299 |
Consumer | ||
LOANS | ||
Past Due 90+ Days and Accruing | 43 | 56 |
Nonaccrual | $ 16 | $ 85 |
LOANS - Contractual Aging of Lo
LOANS - Contractual Aging of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans receivable | $ 1,564,849 | $ 1,644,209 |
Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 1,547,325 | 1,627,899 |
Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 6,333 | 8,607 |
Past Due 90+ Days | ||
LOANS | ||
Loans past due | 11,191 | 7,703 |
Commercial | ||
LOANS | ||
Loans receivable | 978,371 | 1,007,751 |
Commercial | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 969,477 | 1,002,260 |
Commercial | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 928 | 2,453 |
Commercial | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 7,966 | 3,038 |
Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 569,840 | 531,810 |
Commercial | Real estate loan | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 563,658 | 529,998 |
Commercial | Real estate loan | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 762 | 66 |
Commercial | Real estate loan | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 5,420 | 1,746 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 159,073 | 159,577 |
Commercial | Commercial and industrial | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 158,188 | 158,523 |
Commercial | Commercial and industrial | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 72 | 55 |
Commercial | Commercial and industrial | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 813 | 999 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 1,356 | 132,269 |
Commercial | Paycheck Protection Program - 1st Draw | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 1,339 | 132,269 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 17 | 0 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 25,508 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 25,508 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,301 | 53,221 |
Commercial | Political subdivisions | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 81,301 | 53,221 |
Commercial | Political subdivisions | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 60,579 | 42,874 |
Commercial | Commercial Construction And Land | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 60,509 | 42,590 |
Commercial | Commercial Construction And Land | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 70 | 284 |
Commercial | Commercial Construction And Land | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 60,579 | 42,874 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 11,121 | 11,736 |
Commercial | Loans secured by farm land | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 11,010 | 11,419 |
Commercial | Loans secured by farm land | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 95 |
Commercial | Loans secured by farm land | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 111 | 222 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 50,089 | 55,811 |
Commercial | Multi-family (5 or more) residential | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 48,532 | 53,860 |
Commercial | Multi-family (5 or more) residential | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 1,951 |
Commercial | Multi-family (5 or more) residential | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 1,557 | 0 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,351 | 3,164 |
Commercial | Agricultural loans | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 2,279 | 3,091 |
Commercial | Agricultural loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 7 | 2 |
Commercial | Agricultural loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 65 | 71 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 17,153 | 17,289 |
Commercial | Other commercial loans | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 17,153 | 17,289 |
Commercial | Other commercial loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Other commercial loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans receivable | 569,346 | 620,172 |
Residential mortgage | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 560,847 | 609,576 |
Residential mortgage | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 5,333 | 6,071 |
Residential mortgage | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 3,166 | 4,525 |
Residential mortgage | Real estate loan | ||
LOANS | ||
Loans receivable | 569,840 | |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 483,629 | 532,947 |
Residential mortgage | Real estate loan | first liens | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 475,637 | 523,191 |
Residential mortgage | Real estate loan | first liens | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 5,038 | 5,703 |
Residential mortgage | Real estate loan | first liens | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 2,954 | 4,053 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 23,314 | 27,311 |
Residential mortgage | Real estate loan | junior liens | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 23,229 | 27,009 |
Residential mortgage | Real estate loan | junior liens | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 16 | 111 |
Residential mortgage | Real estate loan | junior liens | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 69 | 191 |
Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 23,151 | 20,613 |
Residential mortgage | Construction Loans | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 23,151 | 20,457 |
Residential mortgage | Construction Loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 156 |
Residential mortgage | Construction Loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 39,252 | 39,301 |
Residential mortgage | Home equity lines of credit | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 38,830 | 38,919 |
Residential mortgage | Home equity lines of credit | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 279 | 101 |
Residential mortgage | Home equity lines of credit | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 143 | 281 |
Consumer | ||
LOANS | ||
Loans receivable | 17,132 | 16,286 |
Consumer | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 17,001 | 16,063 |
Consumer | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 72 | 83 |
Consumer | Past Due 90+ Days | ||
LOANS | ||
Loans past due | $ 59 | $ 140 |
LOANS - Contractual Aging of No
LOANS - Contractual Aging of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS | ||
Nonaccrual loans | $ 18,999 | $ 21,416 |
Non accrual Loans [Member] | ||
LOANS | ||
Nonaccrual loans | 18,999 | 21,416 |
Non accrual Loans [Member] | Current & Past Due Less than 30 Days | ||
LOANS | ||
Nonaccrual loans | 8,800 | 12,999 |
Non accrual Loans [Member] | Past Due 30-89 Days | ||
LOANS | ||
Nonaccrual loans | 1,227 | 2,689 |
Non accrual Loans [Member] | Past Due 90+ Days | ||
LOANS | ||
Nonaccrual loans | $ 8,972 | $ 5,728 |
LOANS - Aging of Troubled Debt
LOANS - Aging of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Troubled Debt Restructurings | ||
Nonaccrual loans | $ 18,999 | $ 21,416 |
Troubled Debt Restructuring | ||
Troubled Debt Restructurings | ||
Nonaccrual loans | 5,452 | 6,867 |
Troubled debt restructurings | 5,805 | 7,451 |
Troubled Debt Restructuring | Current & Past Due Less than 30 Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | 248 | 166 |
Troubled Debt Restructuring | Past Due 30-89 Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | 40 | 0 |
Troubled Debt Restructuring | Past Due 90+ Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | $ 65 | $ 418 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 4 | 7 |
Troubled debt restructurings, post-modification recorded investment | $ 222 | $ 7,271 |
Commercial | Commercial and industrial | Principal and interest payment deferral non-COVID related | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 0 | 2 |
Troubled debt restructurings, post-modification recorded investment | $ 0 | $ 4,831 |
Commercial | Commercial and industrial | Interest only payments for a nine-month period | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 0 | 1 |
Troubled debt restructurings, post-modification recorded investment | $ 0 | $ 240 |
Commercial | Multi-family (5 or more) residential | Principal and interest payment deferral non-COVID related | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 0 | 3 |
Troubled debt restructurings, post-modification recorded investment | $ 0 | $ 2,170 |
Residential mortgage | Real estate loan | first liens | Reduced monthly payments for a fifteen-month period | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ 116 | $ 0 |
Residential mortgage | Real estate loan | first liens | Monthly Payment Reduction and Extended Maturity Date [Member] | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ 12 | $ 0 |
Residential mortgage | Real estate loan | junior liens | New Loan at Lower Than Risk-adjusted Market Rate to Borrower [Member] | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 0 | 1 |
Troubled debt restructurings, post-modification recorded investment | $ 0 | $ 30 |
Residential mortgage | Home equity lines of credit | Monthly Payment Reduction and Extended Maturity Date [Member] | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ 24 | $ 0 |
Residential mortgage | Home equity lines of credit | Reduced monthly payments for eighteen-month period | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ 70 | $ 0 |
LOANS - Payment Defaults on TDR
LOANS - Payment Defaults on TDR Loans (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Number of Loans | 1 | 1 |
Recorded Investment | $ 3,405,000 | $ 240,000 |
Real estate loan | junior liens | ||
Number of Loans | 1 | 1 |
Recorded Investment | $ 3,405,000 | $ 240,000 |
LOANS - Foreclosed Residential
LOANS - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Residential mortgage | ||
LOANS | ||
Foreclosed residential real estate | $ 256 | $ 80 |
LOANS - Mortgage Loans in Proce
LOANS - Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Residential mortgage | ||
LOANS | ||
Residential real estate in process of foreclosure | $ 1,260 | $ 1,246 |
LOANS - Additional information
LOANS - Additional information (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)loan | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
LOANS | |||||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 4,247,000 | $ 6,286,000 | $ 4,247,000 | $ 6,286,000 | |||||||
Recorded investment - with allowance | 6,540,000 | 8,082,000 | 6,540,000 | 8,082,000 | |||||||
Specific allowances | 740,000 | 925,000 | 740,000 | 925,000 | |||||||
Loans receivable | 1,564,849,000 | 1,644,209,000 | 1,564,849,000 | 1,644,209,000 | |||||||
Allowance for Loan losses | 13,537,000 | 11,385,000 | 13,537,000 | 11,385,000 | $ 9,836,000 | ||||||
Interest and fees | 74,549,000 | 67,384,000 | |||||||||
Financing receivable charge-offs | 1,575,000 | 2,465,000 | |||||||||
Provision (credit) for loan losses | 1,128,000 | $ 1,530,000 | $ 744,000 | $ 259,000 | 620,000 | $ 1,941,000 | $ (176,000) | $ 1,528,000 | 3,661,000 | 3,913,000 | |
Increase (decrease) in provision for loan losses | (252,000) | ||||||||||
Amount of net charge related to specific loans | 1,324,000 | ||||||||||
Amount of net increase (decrease) in specific allowances on loans | (185,000) | ||||||||||
Amount of net charge offs related to a specific loan | 1,509,000 | ||||||||||
Amount of increase (decrease) in the provision for loan losses from collectively determined portion of allowance | 2,251,000 | ||||||||||
Amount of increase (decrease) in the provision for loan losses from unallocated portion of allowance | 86,000 | ||||||||||
Recorded Investment | 15,734,000 | 17,818,000 | 15,734,000 | 17,818,000 | |||||||
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend | 0 | 0 | 0 | 0 | |||||||
Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 6,558,000 | 6,841,000 | 6,558,000 | 6,841,000 | |||||||
Loans Modified, Recorded Investment | $ 6,558,000 | $ 6,841,000 | $ 6,558,000 | $ 6,841,000 | |||||||
COVID-19-related loan modifications | |||||||||||
LOANS | |||||||||||
Loans Modified, Number of Loans | loan | 0 | 45 | 0 | 45 | |||||||
Loans Modified, Recorded Investment | $ 37,397,000 | $ 37,397,000 | |||||||||
Small Business Administration - Paycheck Protection Program | |||||||||||
LOANS | |||||||||||
Accretion of fees received | $ 5,515,000 | 1,901,000 | |||||||||
Interest and fees | 6,530,000 | 2,924,000 | |||||||||
Paycheck Protection Program - 1st Draw | |||||||||||
LOANS | |||||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 54,000 | 54,000 | |||||||||
Contractual principal balances | 1,410,000 | 1,410,000 | |||||||||
Recorded Investment | 1,356,000 | 1,356,000 | |||||||||
Paycheck Protection Program - 2nd Draw | |||||||||||
LOANS | |||||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 848,000 | 848,000 | |||||||||
Contractual principal balances | 26,356,000 | 26,356,000 | |||||||||
Recorded Investment | 25,508,000 | 25,508,000 | |||||||||
Unfunded Loan Commitment | |||||||||||
LOANS | |||||||||||
Allowance for Loan losses | 0 | 0 | 0 | 0 | |||||||
Commercial | |||||||||||
LOANS | |||||||||||
Loans receivable | 978,371,000 | 1,007,751,000 | 978,371,000 | 1,007,751,000 | |||||||
Allowance for Loan losses | 8,293,000 | 6,308,000 | 8,293,000 | 6,308,000 | 4,788,000 | ||||||
Financing receivable charge-offs | 1,464,000 | 2,343,000 | |||||||||
Provision (credit) for loan losses | 3,427,000 | 3,847,000 | |||||||||
Recorded Investment | 1,391,000 | 1,391,000 | |||||||||
Commercial | Maximum | |||||||||||
LOANS | |||||||||||
Threshold amount of loan balance for evaluating individual impairment loss | 200,000 | 200,000 | |||||||||
Commercial | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 6,485,000 | 6,696,000 | 6,485,000 | 6,696,000 | |||||||
Commercial | Loan Customer Major Write Off [Member] | |||||||||||
LOANS | |||||||||||
Financing receivable charge-offs | 1,463,000 | $ 2,219,000 | |||||||||
Number of loan charged off | loan | 1 | ||||||||||
Recorded Investment | 0 | 0 | 0 | $ 0 | |||||||
Commercial | Paycheck Protection Program - 1st Draw | |||||||||||
LOANS | |||||||||||
Loans receivable | 1,356,000 | 132,269,000 | 1,356,000 | 132,269,000 | |||||||
Allowance for Loan losses | 0 | 0 | 0 | 0 | |||||||
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 0 | 0 | 0 | 0 | |||||||
Commercial | Paycheck Protection Program - 2nd Draw | |||||||||||
LOANS | |||||||||||
Loans receivable | 25,508,000 | 0 | 25,508,000 | 0 | |||||||
Allowance for Loan losses | 0 | 0 | |||||||||
Commercial | Paycheck Protection Program - 2nd Draw | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 0 | 0 | |||||||||
Commercial | Commercial and industrial | |||||||||||
LOANS | |||||||||||
Recorded investment - with allowance | 72,000 | 72,000 | 72,000 | 72,000 | |||||||
Specific allowances | 72,000 | 72,000 | 72,000 | 72,000 | |||||||
Loans receivable | 159,073,000 | 159,577,000 | 159,073,000 | 159,577,000 | |||||||
Allowance for Loan losses | 2,723,000 | 2,245,000 | 2,723,000 | 2,245,000 | 1,391,000 | ||||||
Financing receivable charge-offs | 1,464,000 | 2,236,000 | |||||||||
Provision (credit) for loan losses | 1,922,000 | 3,074,000 | |||||||||
Commercial | Commercial and industrial | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 763,000 | 784,000 | 763,000 | 784,000 | |||||||
Commercial | Real estate loan | |||||||||||
LOANS | |||||||||||
Recorded investment - with allowance | 6,468,000 | 6,501,000 | 6,468,000 | 6,501,000 | |||||||
Specific allowances | 668,000 | 691,000 | 668,000 | 691,000 | |||||||
Loans receivable | 569,840,000 | 531,810,000 | 569,840,000 | 531,810,000 | |||||||
Allowance for Loan losses | 4,405,000 | 3,051,000 | 4,405,000 | 3,051,000 | 1,921,000 | ||||||
Financing receivable charge-offs | 0 | 0 | |||||||||
Provision (credit) for loan losses | 1,352,000 | 1,130,000 | |||||||||
Commercial | Real estate loan | TDRs for which payment defaults occurred | |||||||||||
LOANS | |||||||||||
Specific allowances | 427,000 | 416,000 | 427,000 | 416,000 | |||||||
Commercial | Real estate loan | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 4,298,000 | 4,298,000 | |||||||||
Unallocated | |||||||||||
LOANS | |||||||||||
Allowance for Loan losses | 671,000 | 585,000 | 671,000 | 585,000 | 585,000 | ||||||
Financing receivable charge-offs | 0 | 0 | |||||||||
Provision (credit) for loan losses | 86,000 | 0 | |||||||||
Residential mortgage | |||||||||||
LOANS | |||||||||||
Loans receivable | 569,346,000 | 620,172,000 | 569,346,000 | 620,172,000 | |||||||
Allowance for Loan losses | 4,338,000 | 4,253,000 | 4,338,000 | 4,253,000 | $ 4,182,000 | ||||||
Financing receivable charge-offs | 11,000 | 0 | |||||||||
Provision (credit) for loan losses | 90,000 | 27,000 | |||||||||
Residential mortgage | Maximum | |||||||||||
LOANS | |||||||||||
Threshold amount of loan balance for evaluating individual impairment loss | 400,000 | 400,000 | |||||||||
Residential mortgage | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | 73,000 | $ 145,000 | 73,000 | $ 145,000 | |||||||
Residential mortgage | Real estate loan | |||||||||||
LOANS | |||||||||||
Loans receivable | 569,840,000 | 569,840,000 | |||||||||
Residential mortgage | Real estate loan | Purchased Credit Impaired | |||||||||||
LOANS | |||||||||||
Loans receivable | $ 4,144,000 | $ 4,144,000 |
BANK PREMISES AND EQUIPMENT - S
BANK PREMISES AND EQUIPMENT - Summary of Bank Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | $ 52,226 | $ 52,127 |
Less: accumulated depreciation | (31,543) | (30,601) |
Net | 20,683 | 21,526 |
Land | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 3,623 | 3,826 |
Building and Building Improvements | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 32,606 | 33,058 |
Furniture and Fixtures | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 15,162 | 15,235 |
Construction in Progress | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | $ 835 | $ 8 |
BANK PREMISES AND EQUIPMENT - D
BANK PREMISES AND EQUIPMENT - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation expense | $ 2,130 | $ 1,981 |
Net occupancy and equipment expense | ||
Depreciation expense | 1,723 | 1,595 |
Data processing and telecommunications expense | ||
Depreciation expense | $ 407 | $ 386 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross amount | $ 6,639 | $ 6,639 |
Accumulated amortization | (3,323) | (2,788) |
Net | $ 3,316 | $ 3,851 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Amortization expense | $ 535 | $ 540 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
2022, Amortization expense | $ 439 |
2023, Amortization expense | 408 |
2024, Amortization expense | 390 |
2025, Amortization expense | 424 |
2026, Amortization expense | $ 396 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in the carrying amount of goodwill | ||
Balance, beginning of period | $ 52,505,000 | $ 28,388,000 |
Goodwill arising in business combination | 0 | 24,117,000 |
Balance, end of period | 52,505,000 | 52,505,000 |
Goodwill impairment | $ 0 | $ 0 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2021USD ($) |
DEPOSITS | |
2022 | $ 163,170 |
2023 | 80,711 |
2024 | 22,224 |
2025 | 11,963 |
2026 | 7,825 |
Total | $ 285,893 |
DEPOSITS - Remaining Maturities
DEPOSITS - Remaining Maturities of Time Deposits In Excess of 250,000 (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 75,375,000 | $ 103,024,000 |
Three months or less | 15,981,000 | |
Over 3 months through 12 months | 32,648,000 | |
Over 1 year through 3 years | 25,438,000 | |
Over 3 years | 1,308,000 | |
Total | $ 75,375,000 | $ 103,024,000 |
BORROWED FUNDS - Short-term bor
BORROWED FUNDS - Short-term borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 1,803 | $ 20,022 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 0 | 18,066 |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 1,803 | $ 1,956 |
BORROWED FUNDS - Short-term b_2
BORROWED FUNDS - Short-term borrowings - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.10% | 0.40% |
Letter of credit | $ 0 | $ 0 |
Line of Credit Facility, Maximum Month-end Outstanding Amount | 17,353,000 | 56,647,000 |
Other Correspondent Banks | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
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 | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Investment pledged as collateral | $ 14,034,000 | $ 15,126,000 |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Debt, Weighted Average Interest Rate | 0.10% | 0.10% |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned, Total | $ 1,820,000 | $ 1,980,000 |
Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 756,868,000 | 771,199,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,046,242,000 | 1,049,690,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 723,557,000 | 698,977,000 |
Federal Home Loan Bank of Pittsburgh | Other Assets | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Federal Home Loan Bank Stock | 9,313,000 | 9,720,000 |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 13,642,000 | 14,654,000 |
Long-term Line of Credit, Total | $ 0 | $ 0 |
Federal Home Loan Bank of Pittsburgh | Federal Home Loan Bank Advances 1 | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Number of Short-term Advances | 5 | |
Short-term Borrowing, Amount of Each Borrowing | $ 18,000,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.43% |
BORROWED FUNDS - Long-term Borr
BORROWED FUNDS - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Borrowing | ||
Long-term borrowings | $ 28,042 | $ 54,608 |
Loans maturing in 2022 with a weighted-average rate of 0.60% | ||
Long-term Borrowing | ||
Rate | 0.60% | 0.60% |
Loans maturing in 2023 with a weighted-average rate of 0.73% | ||
Long-term Borrowing | ||
Rate | 0.73% | 0.73% |
Loans maturing in 2024 with a weighted-average rate of 0.75% | ||
Long-term Borrowing | ||
Rate | 0.75% | 0.75% |
Loan maturing in 2025 with a rate of 4.91% | ||
Long-term Borrowing | ||
Rate | 4.91% | 4.91% |
Federal Home Loan Bank of Pittsburgh | ||
Long-term Borrowing | ||
Long-term borrowings | $ 28,042 | $ 54,608 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2021 with a weighted-average effective rate of 1.36% | ||
Long-term Borrowing | ||
Long-term borrowings | 0 | 26,098 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2022 with a weighted-average rate of 0.60% | ||
Long-term Borrowing | ||
Long-term borrowings | 15,452 | 15,682 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2023 with a weighted-average rate of 0.73% | ||
Long-term Borrowing | ||
Long-term borrowings | 7,119 | 7,224 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2024 with a weighted-average rate of 0.75% | ||
Long-term Borrowing | ||
Long-term borrowings | 5,099 | 5,137 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2025 with a rate of 4.91% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 372 | $ 467 |
BORROWED FUNDS - Senior Notes (
BORROWED FUNDS - Senior Notes (Details) - USD ($) | May 19, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Senior notes, net | $ 14,701,000 | $ 0 | |
Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 | |||
Debt Instrument [Line Items] | |||
Aggregate par value | $ 15,000,000 | $ 15,000,000 | |
Stated interest rate | 2.75% | 2.75% | |
Debt issuance costs | $ 337,000 | ||
Senior notes, net | 14,663,000 | $ 14,701,000 | $ 0 |
Amortization of debt issuance costs | $ 38,000 | ||
Effective interest rate | 3.23% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt (Details) - USD ($) | May 19, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Subordinated debt, net | $ 33,009,000 | $ 16,553,000 | |
6.25% maturing in June 2026 and redeemable at par in June 2021 | |||
Debt Instrument [Line Items] | |||
Aggregate par value | $ 8,000,000 | ||
Stated interest rate | 6.25% | ||
Subordinated debt, net | 0 | $ 8,027,000 | |
Effective interest rate | 5.49% | ||
6.50% maturing in April 2027 and redeemable at par in April 2022 | |||
Debt Instrument [Line Items] | |||
Aggregate par value | $ 6,500,000 | $ 6,500,000 | |
Stated interest rate | 6.50% | 6.50% | |
Subordinated debt, net | $ 6,500,000 | $ 6,500,000 | |
6.50% maturing in July 2027 and redeemable at par in July 2022 | |||
Debt Instrument [Line Items] | |||
Aggregate par value | $ 2,000,000 | $ 2,000,000 | |
Stated interest rate | 6.50% | 6.50% | |
Subordinated debt, net | $ 2,008,000 | $ 2,026,000 | |
Effective interest rate | 5.60% | 5.60% | |
3.25% maturing in June 2031 and redeemable at par in June 2026 | |||
Debt Instrument [Line Items] | |||
Aggregate par value | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 |
Stated interest rate | 3.25% | 3.25% | 3.25% |
Debt issuance costs | $ 563,000 | ||
Subordinated debt, net | $ 24,437,000 | $ 24,501,000 | $ 0 |
Amortization of debt issuance costs | $ 63,000 | ||
Effective interest rate | 3.74% | 3.74% | |
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.25% | ||
Debt Instrument, Redemption Period, Start Date | May 19, 2021 | ||
Debt Instrument, Redemption Period, End Date | Jun. 1, 2031 | ||
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Period, Start Date | Jun. 1, 2026 | ||
Debt Instrument, Redemption Period, End Date | Jun. 1, 2026 | ||
Debt Instrument, Basis Spread on Variable Rate | 2.59% |
EMPLOYEE AND POSTRETIREMENT B_3
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Funded Status of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Benefit obligation at beginning of year | $ 1,101 | $ 976 |
Service cost | 0 | 0 |
Interest cost | 20 | 23 |
Plan participants' contributions | 0 | 0 |
Actuarial (gain) loss | 12 | 108 |
Benefits paid | (5) | (6) |
Benefit obligation at end of year | 1,128 | 1,101 |
Fair value of plan assets at beginning of year | 1,062 | 971 |
Actual return on plan assets | 118 | 97 |
Employer contribution | 0 | 0 |
Plan participants' contributions | 0 | 0 |
Benefits paid | (5) | (6) |
Fair value of plan assets at end of year | 1,175 | 1,062 |
Funded status at end of year | 47 | (39) |
Other Postretirement Benefits Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Benefit obligation at beginning of year | 1,347 | 1,326 |
Service cost | 63 | 46 |
Interest cost | 33 | 39 |
Plan participants' contributions | 148 | 185 |
Actuarial (gain) loss | (65) | 11 |
Benefits paid | (229) | (260) |
Benefit obligation at end of year | 1,297 | 1,347 |
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contribution | 81 | 75 |
Plan participants' contributions | 148 | 185 |
Benefits paid | (229) | (260) |
Fair value of plan assets at end of year | 0 | 0 |
Funded status at end of year | $ (1,297) | $ (1,347) |
EMPLOYEE AND POSTRETIREMENT B_4
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Other assets | $ 47 | $ 0 |
Accrued interest and other liabilities | 0 | 39 |
Other Postretirement Benefits Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Other assets | 0 | 0 |
Accrued interest and other liabilities | $ 1,297 | $ 1,347 |
EMPLOYEE AND POSTRETIREMENT B_5
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Items Included in Accumulated Other Comprehensive Income (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Prior service cost | $ 0 | $ 0 |
Net actuarial loss (gain) | 182,000 | 277,000 |
Total | 182,000 | 277,000 |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 8,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,128,000 | 1,101,000 |
Other Postretirement Benefits Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Prior service cost | (186,000) | (217,000) |
Net actuarial loss (gain) | (271,000) | (211,000) |
Total | (457,000) | $ (428,000) |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 9,000 | |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ 31,000 |
EMPLOYEE AND POSTRETIREMENT B_6
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Service cost | $ 0 | $ 0 |
Interest cost | 20 | 23 |
Expected return on plan assets | (30) | (27) |
Prior service cost | 0 | 0 |
Recognized net actuarial loss (gain) | 19 | 16 |
Total net periodic benefit cost | 9 | 12 |
Other Postretirement Benefits Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Service cost | 63 | 46 |
Interest cost | 33 | 39 |
Expected return on plan assets | 0 | 0 |
Prior service cost | (31) | (31) |
Recognized net actuarial loss (gain) | (5) | (14) |
Total net periodic benefit cost | $ 60 | $ 40 |
EMPLOYEE AND POSTRETIREMENT B_7
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Discount rate | 2.30% | 3.10% |
Expected return on plan assets | 4.81% | 4.99% |
Discount rate | 2.60% | 2.30% |
Other Postretirement Benefits Plan [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Discount rate | 2.50% | 3.25% |
Discount rate | 3.00% | 2.50% |
EMPLOYEE AND POSTRETIREMENT B_8
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Future Benefit Payments (Details) | Dec. 31, 2021USD ($) |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
Estimated Minimum Contribution to Defined Benefit Pension Plan | $ 0 |
Pension Plan [Member] | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
2022 | 542,000 |
2023 | 187,000 |
2024 | 8,000 |
2025 | 8,000 |
2026 | 14,000 |
2027-2031 | 360,000 |
Other Postretirement Benefits Plan [Member] | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
2022 | 84,000 |
2023 | 81,000 |
2024 | 83,000 |
2025 | 85,000 |
2026 | 95,000 |
2027-2031 | $ 428,000 |
EMPLOYEE AND POSTRETIREMENT B_9
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Plan Assets Allocation (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 3.00% | 2.00% |
Debt Securities [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 38.00% | 36.00% |
Equity Securities [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 51.00% | 51.00% |
Alternative Funds [Member] | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 8.00% | 11.00% |
EMPLOYEE AND POSTRETIREMENT _10
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Profit Sharing and Deferred Compensation Plans (Details) | Dec. 31, 2020USD ($)shares | Jul. 01, 2020USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contributions | $ 1,299,000 | $ 1,050,000 | ||
Employee Stock Ownership Plan (ESOP), Diversification Feature, Age Requirement | 55 | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | |||
Employee Stock Ownership Plan (ESOP), Diversification Feature Percentage | 50.00% | |||
Employee Stock Ownership Plan (ESOP), Policy Diversification Feature Term | 6 years | |||
Employee Stock Ownership Plan (ESOP), Shares Repurchased | shares | 0 | 0 | ||
Employee Stock Ownership Plan (ESOP), Shares in ESOP, Total | shares | 481,478 | 513,494 | 481,478 | |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 1,040,000 | $ 912,000 | ||
Deferred Compensation, Monthly Payments To Be Made To Executives Or His Heirs | $ 1,000,000 | |||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 10 years | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 499,000 | |||
Deferred Compensation Liability Discount Rate | 1.50% | 1.50% | ||
Deferred Compensation Liability, Current and Noncurrent | $ 865,000 | 878,000 | 865,000 | |
Merger Related Expenses | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 360,000 | |||
Pension And Other Employee Benefits Expenses | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 13,000 | 6,000 | ||
Officers Nonqualified Deferred Compensation Arrangement [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 314,000 | $ 286,000 |
EMPLOYEE AND POSTRETIREMENT _11
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock Based Compensation Paragraphs (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 7 months 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 148,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 97,000 | $ 128,000 | ||
Share-based Payment Arrangement, Expense | 1,214,000 | 1,050,000 | ||
Forecast | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Payment Arrangement, Expense | $ 1,600,000 | |||
Share-based Payment Arrangement, Option [Member] | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Payment Arrangement, Expense | 0 | 0 | ||
Restricted Stock | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,498,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |||
Granted (in shares) | 78,391 | |||
Share-based Payment Arrangement, Expense | $ 1,214,000 | $ 1,050,000 | ||
Stock Incentive Plan | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 850,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 110,800 | |||
Stock Incentive Plan | Share-based Payment Arrangement, Option [Member] | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Stock Incentive Plan | Restricted Stock | Subsequent event | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||
Granted (in shares) | 66,405 | |||
Stock Incentive Plan | Restricted Stock | Employees [Member] | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | ||
Stock Incentive Plan | Performance Shares | Employees [Member] | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | ||
Independent Directors Stock Incentive Plan | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 235,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 96,309 | |||
Independent Directors Stock Incentive Plan | Restricted Stock | Subsequent event | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |||
Granted (in shares) | 9,588 | |||
Independent Directors Stock Incentive Plan | Restricted Stock | Director [Member] | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | 1 year |
EMPLOYEE AND POSTRETIREMENT _12
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | ||
Share-based Payment Arrangement, Expense | $ 1,214 | $ 1,050 |
Restricted Stock | ||
STOCK-BASED COMPENSATION PLANS | ||
Share-based Payment Arrangement, Expense | 1,214 | 1,050 |
Share-based Payment Arrangement, Option [Member] | ||
STOCK-BASED COMPENSATION PLANS | ||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 |
EMPLOYEE AND POSTRETIREMENT _13
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Non-vested Stock Options and Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in shares) | shares | 101,942 |
Granted (in shares) | shares | 78,391 |
Vested (in shares) | shares | (48,016) |
Forfeited (in shares) | shares | (5,290) |
Outstanding, end of period (in shares) | shares | 127,027 |
Weighted Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 23.42 |
Granted, (in dollars per share) | $ / shares | 20.28 |
Vested, (in dollars per share) | $ / shares | 23.85 |
Forfeited, (in dollars per share) | $ / shares | 22.10 |
Outstanding, at end period, (in dollars per share) | $ / shares | $ 21.37 |
EMPLOYEE AND POSTRETIREMENT _14
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Awarded Shares of Restricted Stock Under Stock Incentive Plan (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | Independent Directors Stock Incentive Plan | Director [Member] | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 10,989 | 7,580 |
Restricted Stock | Stock Incentive Plan | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 78,391 | 70,940 |
Restricted Stock | Stock Incentive Plan | Employees [Member] | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 50,178 | 45,457 |
Performance Shares | Stock Incentive Plan | Employees [Member] | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 17,224 | 17,903 |
EMPLOYEE AND POSTRETIREMENT _15
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of year (in shares) | 57,111 | 75,897 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (22,429) | (17,222) |
Forfeited (in shares) | (3,156) | (1,564) |
Expired (in shares) | (7,308) | 0 |
Outstanding, end of year (in shares) | 24,218 | 57,111 |
Options exercisable at year-end (in shares) | 24,218 | 57,111 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, beginning of year (in dollars per share) | $ 18.92 | $ 18.69 |
Exercised (in dollars per share) | 18.96 | 18.25 |
Forfeited (in dollars per share) | 19.20 | 15.06 |
Expired (in dollars per share) | 15.06 | |
Outstanding, end of year (in dollars per share) | 20.01 | 18.92 |
Options exercisable at year-end (in dollars per share) | 20.01 | 18.92 |
Weighted-average fair value of options forfeited (in dollars per share) | $ 4.59 | $ 4.26 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,935 | $ 2,154 |
Purchase accounting adjustments on loans | 1,621 | 1,930 |
Net operating loss carryforward | 778 | 896 |
Operating leases liability | 821 | 724 |
Other deferred tax assets | 3,260 | 3,089 |
Total deferred tax assets | 9,415 | 8,793 |
Deferred tax liabilities: | ||
Unrealized holding gains on securities | 1,278 | 3,104 |
Defined benefit plans - ASC 835 | 57 | 32 |
Bank premises and equipment | 460 | 1,216 |
Core deposit intangibles | 725 | 840 |
Right-of-use assets from operating leases | 821 | 724 |
Other deferred tax liabilities | 187 | 172 |
Total deferred tax liabilities | 3,528 | 6,088 |
Deferred tax asset, net | $ 5,887 | $ 2,705 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provision for income taxes | ||
Currently payable | $ 8,386 | $ 4,230 |
Tax expense resulting from allocations of certain tax benefits to equity or as a reduction in other assets | 128 | 121 |
Deferred | (1,381) | (361) |
Total provision | $ 7,133 | $ 3,990 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||||||||||
Expected provision | $ 7,914 | $ 4,875 | ||||||||
Tax-exempt interest income | (921) | (808) | ||||||||
Increase in cash surrender value and other income from life insurance, net | (118) | (170) | ||||||||
ESOP Dividends | (120) | (110) | ||||||||
State income tax, net of Federal benefit | 375 | 172 | ||||||||
Other, net | 3 | 31 | ||||||||
Income Tax Expense (Benefit), Total | $ 1,677 | $ 1,566 | $ 1,780 | $ 2,110 | $ 1,481 | $ 438 | $ 1,255 | $ 816 | $ 7,133 | $ 3,990 |
Expected provision, percentage | 21.00% | 21.00% | ||||||||
Tax-exempt interest income, percentage | (2.40%) | (3.50%) | ||||||||
Increase in cash surrender value and other income from life insurance, net, percentage | (0.30%) | (0.70%) | ||||||||
ESOP Dividends, percentage | (0.30%) | (0.50%) | ||||||||
State income tax, net of federal benefit, percentage | 1.00% | 0.70% | ||||||||
Other, net, percentage | 0.00% | 0.10% | ||||||||
Effective income tax provision, percentage | 18.90% | 17.20% |
INCOME TAXES - Paragraphs (Deta
INCOME TAXES - Paragraphs (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Net operating loss | $ 3,700,000 |
Annual offset of net operating loss | $ 563,000 |
Threshold percentage of taxable income to use net operating loss | 80.00% |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Covenant Financial Inc. | |
Net operating loss | $ 4,600,000 |
RELATED PARTY TRANSACTIONS - (D
RELATED PARTY TRANSACTIONS - (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)persondirector | Dec. 31, 2020USD ($)persondirector | |
Related Party Transactions | ||
Number of directors | director | 13 | 13 |
Number of executive directors | person | 9 | 9 |
Related Party Deposit Liabilities | $ 10,124,000 | $ 13,182,000 |
Management | ||
Related Party Transactions | ||
Beginning Balance | 18,445,000 | 14,455,000 |
New Loans | 1,249,000 | 242,000 |
Repayments | (6,034,000) | (2,150,000) |
Other Changes | 251,000 | 5,898,000 |
Ending Balance | $ 13,911,000 | $ 18,445,000 |
OFF-BALANCE SHEET RISK - Financ
OFF-BALANCE SHEET RISK - Financial Instruments Whose Contract Amounts Represent Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to Extend Credit | ||
Off-Balance Sheet Risk | ||
Credit risk financial instrument | $ 366,076 | $ 317,470 |
Standby Letters of Credit | ||
Off-Balance Sheet Risk | ||
Credit risk financial instrument | $ 10,079 | $ 9,107 |
OFF-BALANCE SHEET RISK - Standb
OFF-BALANCE SHEET RISK - Standby Letters of Credit Expirations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Off-Balance Sheet Risk | ||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 |
Standby Letters of Credit | ||
Off-Balance Sheet Risk | ||
2022 | 10,021 | |
2023 | 13 | |
2024 | 20 | |
2026 | 25 | |
Total | $ 10,079 | $ 9,107 |
OPERATING LEASE COMMITMENTS A_3
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases Commitments | ||
Operating Lease, Weighted Average Discount Rate, Percent | 1.90% | |
Operating Lease, Liability | $ 3,751,000 | $ 3,446,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Other Assets | ||
Operating Leases Commitments | ||
Operating Lease, Right-of-Use Asset | $ 3,751,000 | $ 3,446,000 |
Minimum | ||
Operating Leases Commitments | ||
Lessee, Operating Lease, Remaining Lease Term | 1 year | |
Lessee, Operating Lease, Renewal Term | 1 year | |
Lessee, Operating Lease, Discount Rate | 0.84% | |
Maximum | ||
Operating Leases Commitments | ||
Lessee, Operating Lease, Remaining Lease Term | 10 years | |
Lessee, Operating Lease, Renewal Term | 8 years | |
Lessee, Operating Lease, Discount Rate | 3.50% | |
Weighted average | ||
Operating Leases Commitments | ||
Lessee, Operating Lease, Remaining Lease Term | 4 years 9 months 18 days |
OPERATING LEASE COMMITMENTS A_4
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leases Commitments | ||
Operating lease expense | $ 492 | $ 371 |
Net occupancy and equipment expense | ||
Operating Leases Commitments | ||
Operating lease expense | $ 492 | $ 371 |
OPERATING LEASE COMMITMENTS A_5
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Maturity (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
2022 | $ 540,000 | |
2023 | 528,000 | |
2024 | 521,000 | |
2025 | 501,000 | |
2026 | 438,000 | |
Thereafter | 1,524,000 | |
Total lease payments | 4,052,000 | |
Discount on cash flows | (301,000) | |
Total lease liabilities | 3,751,000 | $ 3,446,000 |
Trust Department Tax Reporting Contingency | ||
Lessee, Lease, Description [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 164,000 | 571,000 |
Accrued Interest and Other Liabilities | Trust Department Tax Reporting Contingency | ||
Lessee, Lease, Description [Line Items] | ||
Loss Contingency Accrual | $ 465,000 | $ 322,000 |
REGULATORY MATTERS - Capital Am
REGULATORY MATTERS - Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Total capital to risk-weighted assets - actual amount | $ 287,614 | $ 260,015 |
Total capital to risk-weighted assets - actual ratio | 18.21 | 17.49 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 165,846 | $ 156,113 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds ratio | 10.50% | 10.50% |
Tier 1 capital to risk-weighted assets - actual amount | $ 240,433 | $ 231,577 |
Tier 1 capital to risk-weighted assets - actual ratio | 15.22 | 15.58 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 134,256 | $ 126,377 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds ratio | 8.50% | 8.50% |
Tier 1 capital to risk-weighted assets - minimum capital requirement with conservation buffer ratio | 8.50% | |
Common equity Tier 1 - amount | $ 240,433 | $ 231,577 |
Common equity Tier 1 - ratio | 15.22 | 15.58 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds amount | $ 110,564 | $ 104,075 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds ratio | 7.00% | 7.00% |
Tier 1 capital average - amount | $ 240,433 | $ 231,577 |
Tier 1 capital average - ratio | 10.53 | 10.34 |
Tier 1 capital average - minimum to meet the corporation's policy threshold amount | $ 182,683 | $ 179,206 |
Tier 1 capital average - minimum to meet the corporation's policy threshold ratio | 8.00% | 8.00% |
Citizens and Northern Bank | ||
Total capital to risk-weighted assets - actual amount | $ 252,606 | $ 236,943 |
Total capital to risk-weighted assets - actual ratio | 16.04 | 15.98 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 165,390 | $ 155,665 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds ratio | 10.50% | 10.50% |
Total capital to risk-weighted assets - minimum capital requirement amount | $ 126,012 | $ 118,602 |
Minimum total capital ratio | 8 | 8 |
Total capital to risk-weighted assets - minimum capital requirement with conservation buffer amount | $ 165,390 | $ 155,665 |
Total capital to risk-weighted assets - minimum capital requirement with conservation buffer ratio | 10.50% | 10.50% |
Total capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions amount | $ 157,514 | $ 148,252 |
Total capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions ratio | 10 | 10 |
Tier 1 capital to risk-weighted assets - actual amount | $ 238,434 | $ 225,058 |
Tier 1 capital to risk-weighted assets - actual ratio | 15.14 | 15.18 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 133,887 | $ 126,015 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds ratio | 8.50% | 8.50% |
Tier 1 capital to risk-weighted assets - minimum capital requirement amount | $ 94,509 | $ 88,951 |
Minimum tier 1 capital ratio | 6 | 6 |
Tier 1 capital to risk-weighted assets - minimum capital requirement with conservation buffer amount | $ 133,887 | $ 126,015 |
Tier 1 capital to risk-weighted assets - minimum capital requirement with conservation buffer ratio | 8.50% | |
Tier 1 capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions amount | $ 126,012 | $ 118,602 |
Tier 1 capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions ratio | 8 | 8 |
Common equity Tier 1 - amount | $ 238,434 | $ 225,058 |
Common equity Tier 1 - ratio | 15.14 | 15.18 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds amount | $ 110,260 | $ 103,777 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds ratio | 7.00% | 7.00% |
Common equity Tier 1 - minimum capital requirement amount | $ 70,881 | $ 66,714 |
Minimum common equity tier 1 capital ratio | 4.50% | 4.50% |
Common equity Tier 1 - capital conservation buffer amount | $ 110,260 | $ 103,777 |
Common equity Tier 1 - capital conservation buffer ratio | 7.00% | 7.00% |
Common equity Tier 1 Capital - minimum to be well capitalized under prompt corrective action provisions amount | $ 102,384 | $ 96,364 |
Common equity Tier 1 Capital - minimum to be well capitalized under prompt corrective action provisions ratio | 6.50% | 6.50% |
Tier 1 capital average - amount | $ 238,434 | $ 225,058 |
Tier 1 capital average - ratio | 10.52 | 10.12 |
Tier 1 capital average - minimum to meet the corporation's policy threshold amount | $ 181,376 | $ 177,919 |
Tier 1 capital average - minimum to meet the corporation's policy threshold ratio | 8.00% | 8.00% |
Tier 1 capital average - minimum capital amount | $ 90,688 | $ 88,959 |
Tier 1 capital average - minimum capital ratio | 4 | 4 |
Tier 1 capital average - minimum to be well capitalized amount | $ 113,360 | $ 111,199 |
Tier 1 capital average - minimum to be well capitalized ratio | 5 | 5 |
REGULATORY MATTERS - Transition
REGULATORY MATTERS - Transition Schedule for New Ratios, Including the Capital Conservation Buffer (Details) - Phased in Beginning 2018 [Member] | Dec. 31, 2021 |
Minimum common equity tier 1 capital ratio | 4.50% |
Minimum common equity tier 1 capital ratio plus capital conservation buffer | 7.00% |
Minimum tier 1 capital ratio | 6 |
Minimum tier 1 capital ratio plus capital conservation buffer | 8.50% |
Minimum total capital ratio | 8 |
Minimum total capital ratio plus capital conservation buffer | 10.50% |
REGULATORY MATTERS - Payout Res
REGULATORY MATTERS - Payout Restrictions Based on the Capital Conservation Buffer (Details) | Dec. 31, 2021 |
Capital Conservation Buffer, Lower Limit | 2.50% |
Range One [Member] | |
Maximum Payout | 60.00% |
Capital Conservation Buffer, Lower Limit | 2.50% |
Capital Conservation Buffer, Upper Limit | 1.875% |
Range Two [Member] | |
Maximum Payout | 40.00% |
Capital Conservation Buffer, Lower Limit | 1.875% |
Capital Conservation Buffer, Upper Limit | 1.25% |
Range Three [Member] | |
Maximum Payout | 20.00% |
Capital Conservation Buffer, Lower Limit | 1.25% |
Capital Conservation Buffer, Upper Limit | 0.625% |
Range Four [Member] | |
Maximum Payout | 0.00% |
Capital Conservation Buffer, Upper Limit | 0.625% |
REGULATORY MATTERS - Paragraphs
REGULATORY MATTERS - Paragraphs (Details) | Dec. 31, 2021USD ($) |
REGULATORY MATTERS | |
Capital Conservation Buffer | 8.04% |
Retained Earnings, Unappropriated | $ 88,252,000 |
Tangible Capital to Tangible Assets | 10 |
Tangible Capital | $ 23,856,000 |
PARENT COMPANY ONLY - Condensed
PARENT COMPANY ONLY - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Other assets | $ 32,730 | $ 34,773 | |
TOTAL ASSETS | 2,327,648 | 2,239,100 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Senior Notes | 14,701 | 0 | |
Subordinated debt, net | 33,009 | 16,553 | |
Other liabilities | 23,628 | 27,692 | |
Stockholders' equity | 301,405 | 299,756 | $ 244,452 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,327,648 | 2,239,100 | |
Parent Company | |||
ASSETS | |||
Cash | 33,518 | 7,246 | |
Other assets | 33 | 4 | |
TOTAL ASSETS | 349,258 | 316,468 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Senior Notes | 14,701 | 0 | |
Subordinated debt, net | 33,009 | 16,553 | |
Other liabilities | 143 | 159 | |
Stockholders' equity | 301,405 | 299,756 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 349,258 | 316,468 | |
Subsidiaries | Citizens and Northern Bank | |||
ASSETS | |||
Investment in subsidiaries | 298,797 | 292,455 | |
Subsidiaries | Citizens and Northern Investment Corporation | |||
ASSETS | |||
Investment in subsidiaries | 13,085 | 12,959 | |
Subsidiaries | Bucktail Life Insurance Company | |||
ASSETS | |||
Investment in subsidiaries | $ 3,825 | $ 3,804 |
PARENT COMPANY ONLY - Condens_2
PARENT COMPANY ONLY - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income before distributions in excess of income from subsidiaries | $ 8,985 | $ 8,965 | $ 8,840 | $ 10,897 | $ 8,251 | $ 3,286 | $ 6,693 | $ 4,982 | $ 37,687 | $ 23,212 |
NET INCOME | $ 7,308 | $ 7,399 | $ 7,060 | $ 8,787 | $ 6,770 | $ 2,848 | $ 5,438 | $ 4,166 | 30,554 | 19,222 |
Parent Company | ||||||||||
Dividends from Citizens & Northern Bank | 20,200 | 38,507 | ||||||||
Expenses | 1,691 | 1,488 | ||||||||
Income before distributions in excess of income from subsidiaries | 18,509 | 37,019 | ||||||||
Distributions in excess of income from subsidiaries | 12,045 | (17,797) | ||||||||
NET INCOME | $ 30,554 | $ 19,222 |
PARENT COMPANY ONLY - Condens_3
PARENT COMPANY ONLY - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ 7,308 | $ 7,399 | $ 7,060 | $ 8,787 | $ 6,770 | $ 2,848 | $ 5,438 | $ 4,166 | $ 30,554 | $ 19,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Decrease (increase) in other assets | 186 | (2,645) | ||||||||
Increase (decrease) in other liabilities | 210 | 2,473 | ||||||||
Net Cash Provided by Operating Activities | 34,844 | 24,784 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from issuance of senior notes and subordinated debt | 14,663 | 0 | ||||||||
Repayment of subordinated debt | 8,000 | 0 | ||||||||
Dividends paid | (15,976) | (14,469) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 68,882 | (56,469) | ||||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (169) | 64,895 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 96,017 | 31,122 | 96,017 | 31,122 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 95,848 | 96,017 | 95,848 | 96,017 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||
Interest paid | 8,174 | 10,742 | ||||||||
Parent Company | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 30,554 | 19,222 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Accretion of purchase accounting adjustment | (43) | (38) | ||||||||
Amortization of Debt Issuance Costs | 101 | 0 | ||||||||
Distributions in excess of income from subsidiaries | (12,045) | 17,797 | ||||||||
Decrease (increase) in other assets | (29) | 105 | ||||||||
Increase (decrease) in other liabilities | (16) | 13 | ||||||||
Net Cash Provided by Operating Activities | 18,522 | 37,099 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Net cash used in business combination | 0 | (21,837) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from issuance of senior notes and subordinated debt | 39,100 | 0 | ||||||||
Repayment of subordinated debt | 8,000 | 0 | ||||||||
Proceeds from sale of treasury stock | 212 | 131 | ||||||||
Purchases of treasury stock | (7,586) | (163) | ||||||||
Dividends paid | (15,976) | (14,469) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 7,750 | (14,501) | ||||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 26,272 | 761 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 7,246 | $ 6,485 | 7,246 | 6,485 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 33,518 | $ 7,246 | 33,518 | 7,246 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||
Investment of net assets acquired in business combination in Citizens & Northern Bank | 0 | 73,426 | ||||||||
Common equity issued in business combination | 0 | 41,429 | ||||||||
Subordinated debt assumed in business combination | 0 | 10,091 | ||||||||
Other liabilities assumed in business combination | 0 | 69 | ||||||||
Interest paid | $ 1,567 | $ 655 |
SUMMARY OF QUARTERLY CONSOLID_3
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) - Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL DATA | ||||||||||
Interest income | $ 21,246,000 | $ 21,073,000 | $ 20,428,000 | $ 21,754,000 | $ 21,859,000 | $ 21,751,000 | $ 16,513,000 | $ 17,037,000 | $ 84,501,000 | $ 77,160,000 |
Interest expense | 1,530,000 | 1,614,000 | 1,747,000 | 1,671,000 | 2,104,000 | 2,469,000 | 2,267,000 | 2,755,000 | 6,562,000 | 9,595,000 |
Net interest income | 19,716,000 | 19,459,000 | 18,681,000 | 20,083,000 | 19,755,000 | 19,282,000 | 14,246,000 | 14,282,000 | 77,939,000 | 67,565,000 |
Provision (credit) for loan losses | 1,128,000 | 1,530,000 | 744,000 | 259,000 | 620,000 | 1,941,000 | (176,000) | 1,528,000 | 3,661,000 | 3,913,000 |
Net interest income after provision (credit) for loan losses | 18,588,000 | 17,929,000 | 17,937,000 | 19,824,000 | 19,135,000 | 17,341,000 | 14,422,000 | 12,754,000 | 74,278,000 | 63,652,000 |
Other income | 6,416,000 | 6,359,000 | 6,300,000 | 6,782,000 | 6,565,000 | 6,970,000 | 5,528,000 | 5,281,000 | 25,857,000 | 24,344,000 |
Net gains on available-for-sale debt securities | (1,000) | 23,000 | 2,000 | 0 | 144,000 | 25,000 | 0 | 0 | 24,000 | 169,000 |
Loss on prepayment of borrowings | 1,636,000 | 0 | 0 | 0 | ||||||
Merger-related expenses | 182,000 | 6,402,000 | 983,000 | 141,000 | 0 | 7,708,000 | ||||
Other expenses | 16,018,000 | 15,346,000 | 15,399,000 | 15,709,000 | 15,775,000 | 14,648,000 | 12,274,000 | 12,912,000 | ||
Income before income tax provision | 8,985,000 | 8,965,000 | 8,840,000 | 10,897,000 | 8,251,000 | 3,286,000 | 6,693,000 | 4,982,000 | 37,687,000 | 23,212,000 |
Income tax provision | 1,677,000 | 1,566,000 | 1,780,000 | 2,110,000 | 1,481,000 | 438,000 | 1,255,000 | 816,000 | 7,133,000 | 3,990,000 |
Net income | 7,308,000 | 7,399,000 | 7,060,000 | 8,787,000 | 6,770,000 | 2,848,000 | 5,438,000 | 4,166,000 | 30,554,000 | 19,222,000 |
Net income attributable to common shares | $ 7,256,000 | $ 7,336,000 | $ 6,999,000 | $ 8,722,000 | $ 6,727,000 | $ 2,830,000 | $ 5,405,000 | $ 4,146,000 | $ 30,313,000 | $ 19,106,000 |
Net income per share - basic (in dollars per share) | $ 0.46 | $ 0.47 | $ 0.44 | $ 0.55 | $ 0.43 | $ 0.18 | $ 0.39 | $ 0.30 | $ 1.92 | $ 1.30 |
Net income per share - diluted (in dollars per share) | $ 0.46 | $ 0.47 | $ 0.44 | $ 0.55 | $ 0.43 | $ 0.18 | $ 0.39 | $ 0.30 | $ 1.92 | $ 1.30 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset pledged | ||
Derivative Financial Instruments | ||
Available-for-sale securities pledged as collateral | $ 7,027,000 | |
Interest rate swap agreements | ||
Derivative Financial Instruments | ||
Aggregate notional amount | 123,094,000 | $ 135,740,000 |
Asset Derivatives, Notional Amount | 61,547,000 | 67,870,000 |
Asset Derivatives, Fair Value | 3,104,000 | 6,566,000 |
Liability Derivatives, Notional Amount | 61,547,000 | 67,870,000 |
Liability Derivatives, Fair Value | 3,104,000 | 6,566,000 |
Derivatives not designated as hedging instruments | Interest rate swap agreements | ||
Derivative Financial Instruments | ||
Interest rate swap | 0 | 0 |
Increase (decrease) in interest income | $ 1,347,000 | $ 698,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets Measured at Fair Value | ||
Total, fair value | $ 517,679,000 | $ 349,332,000 |
Marketable equity security | 971,000 | 1,000,000 |
Impaired loans with a valuation allowance | 6,540,000 | 8,082,000 |
Valuation allowance | (740,000) | (925,000) |
Impaired loans, net | 6,540,000 | 8,082,000 |
Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,104,000 | 6,566,000 |
Fair value of the derivative liability | 3,104,000 | 6,566,000 |
Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,912,000 | 12,182,000 |
Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,091,000 | 26,344,000 |
Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 17,987,000 | |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 148,028,000 | 122,401,000 |
Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 72,765,000 | 47,452,000 |
Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 98,181,000 | 38,176,000 |
Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,247,000 | 57,467,000 |
Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 87,468,000 | 45,310,000 |
Recurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total, fair value | 517,679,000 | 349,332,000 |
Marketable equity security | 971,000 | 1,000,000 |
Servicing rights | 2,329,000 | 1,689,000 |
Total asset fair value measurements | 524,083,000 | 358,587,000 |
Recurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,912,000 | 12,182,000 |
Marketable equity security | 971,000 | 1,000,000 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 25,883,000 | 13,182,000 |
Recurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 492,767,000 | 337,150,000 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 495,871,000 | 343,716,000 |
Recurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 2,329,000 | 1,689,000 |
Total asset fair value measurements | 2,329,000 | 1,689,000 |
Recurring fair value measurements | Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,104,000 | 6,566,000 |
Fair value of the derivative liability | 3,104,000 | 6,566,000 |
Recurring fair value measurements | Interest rate swap agreements | Level 1 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Interest rate swap agreements | Level 2 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,104,000 | 6,566,000 |
Fair value of the derivative liability | 3,104,000 | 6,566,000 |
Recurring fair value measurements | Interest rate swap agreements | Level 3 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,912,000 | 12,182,000 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,912,000 | 12,182,000 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,091,000 | 26,344,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,091,000 | 26,344,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 17,987,000 | |
Recurring fair value measurements | Bank holding company debt securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Recurring fair value measurements | Bank holding company debt securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 17,987,000 | |
Recurring fair value measurements | Bank holding company debt securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 148,028,000 | 122,401,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 148,028,000 | 122,401,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 72,765,000 | 47,452,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 72,765,000 | 47,452,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 98,181,000 | 38,176,000 |
Recurring fair value measurements | Residential Passthrough Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 98,181,000 | 38,176,000 |
Recurring fair value measurements | Residential Passthrough Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,247,000 | 57,467,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,247,000 | 57,467,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 87,468,000 | 45,310,000 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 87,468,000 | 45,310,000 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Nonrecurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 6,484,000 | 8,495,000 |
Impaired loans, net | 5,800,000 | 7,157,000 |
Foreclosed assets held for sale | 684,000 | 1,338,000 |
Nonrecurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 6,484,000 | 8,495,000 |
Impaired loans, net | 5,800,000 | 7,157,000 |
Foreclosed assets held for sale | $ 684,000 | $ 1,338,000 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Recurring (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Recurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,329,000 | $ 1,689,000 |
Valuation Technique, Discounted cash flow | Servicing rights. | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 13.00% | 13.00% |
Weighted-average PSA | 209.00% | 277.00% |
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% |
Valuation Technique, Discounted cash flow | Recurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,329,000 | $ 1,689,000 |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Reconciliation (Details) - Level 3 - Servicing rights. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis | ||
Servicing rights balance, beginning of period | $ 1,689 | $ 1,277 |
Originations of servicing rights | 708 | 988 |
Unrealized (loss) gain included in earnings | (68) | (576) |
Servicing rights balance, end of period | $ 2,329 | $ 1,689 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 6,540 | $ 8,082 |
Related allowance | 740 | 925 |
Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 5,800 | 7,157 |
Foreclosed assets held for sale | 684 | 1,338 |
Residential mortgage | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 256 | 80 |
Commercial | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,468 | 6,501 |
Related allowance | 668 | 691 |
Commercial | Commercial and industrial | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 72 | 72 |
Related allowance | 72 | 72 |
Impaired Loans | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,540 | |
Related allowance | 740 | |
Fair value | 5,800 | |
Impaired Loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 8,082 | |
Related allowance | 925 | |
Fair value | 7,157 | |
Impaired Loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 1,509 | |
Valuation allowance | 162 | |
Fair value | $ 1,347 | |
Impaired Loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 31.00% | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,468 | $ 6,501 |
Related allowance | 668 | 691 |
Fair value | $ 5,800 | $ 5,810 |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 27.00% | 28.00% |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Measurement Input Discount To Borrowers Financial Statement Value Member | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 72 | |
Related allowance | 72 | |
Fair value | $ 0 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 72 | |
Valuation allowance | 72 | |
Fair value | $ 0 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Measurement Input Discount To Borrowers Financial Statement Value Member | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 100.00% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 100.00% | |
Foreclosed Assets Held For Sale | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 684 | |
Valuation allowance | 0 | |
Fair value | 684 | |
Foreclosed Assets Held For Sale | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 1,338 | |
Valuation allowance | 0 | |
Fair value | 1,338 | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial Real Estate Receivables | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 428 | 1,258 |
Valuation allowance | 0 | 0 |
Fair value | $ 428 | $ 1,258 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial Real Estate Receivables | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 50.00% | 44.00% |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 256 | $ 80 |
Valuation allowance | 0 | 0 |
Fair value | $ 256 | $ 80 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 53.00% | 36.00% |
FAIR VALUE MEASUREMENTS AND F_7
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest rate swap agreements | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Fair value derivative asset | $ 3,104 | $ 6,566 |
Reported value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 95,848 | 96,017 |
Reported value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 9,100 | 5,840 |
Restricted equity securities (included in Other Assets) | 9,562 | 9,970 |
Accrued interest receivable | 7,235 | 8,293 |
Short-term borrowings | 1,803 | 20,022 |
Long-term borrowings | 28,042 | 54,608 |
Senior debt | 14,701 | 0 |
Subordinated debt | 33,009 | 16,553 |
Accrued interest payable | 205 | 548 |
Reported value measurement | Level 2 | Deposits with no stated maturity | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 1,639,167 | 1,430,062 |
Reported value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 285,893 | 390,407 |
Reported value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | 1,551,312 | 1,632,824 |
Estimate of fair value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 95,848 | 96,017 |
Estimate of fair value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 9,142 | 6,054 |
Restricted equity securities (included in Other Assets) | 9,562 | 9,970 |
Accrued interest receivable | 7,235 | 8,293 |
Short-term borrowings | 1,603 | 19,974 |
Long-term borrowings | 28,347 | 55,723 |
Senior debt | 15,016 | 0 |
Subordinated debt | 33,171 | 16,680 |
Accrued interest payable | 205 | 548 |
Estimate of fair value measurement | Level 2 | Deposits with no stated maturity | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 1,639,167 | 1,430,062 |
Estimate of fair value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 286,962 | 393,566 |
Estimate of fair value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | $ 1,573,955 | $ 1,646,207 |