Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-16084 | |
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 $1.00 | |
Trading Symbol | CZNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,274,766 | |
Entity Central Index Key | 0000810958 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and due from banks: | ||
Noninterest-bearing | $ 25,775,000 | $ 25,811,000 |
Interest-bearing | 26,883,000 | 29,237,000 |
Total cash and due from banks | 52,658,000 | 55,048,000 |
Available-for-sale debt securities, at fair value | 429,138,000 | 498,033,000 |
Loans receivable | 1,830,670,000 | 1,740,040,000 |
Allowance for credit losses on loans | (18,085,000) | (16,615,000) |
Loans, net | 1,812,585,000 | 1,723,425,000 |
Bank-owned life insurance | 31,557,000 | 31,214,000 |
Accrued interest receivable | 9,311,000 | 8,653,000 |
Bank premises and equipment, net | 21,267,000 | 21,574,000 |
Foreclosed assets held for sale | 633,000 | 275,000 |
Deferred tax asset, net | 23,731,000 | 20,884,000 |
Goodwill | 52,505,000 | 52,505,000 |
Core deposit intangibles, net | 2,571,000 | 2,877,000 |
Other assets | 47,993,000 | 39,819,000 |
TOTAL ASSETS | 2,483,949,000 | 2,454,307,000 |
Deposits: | ||
Noninterest-bearing | 495,829,000 | 563,843,000 |
Interest-bearing | 1,529,168,000 | 1,433,750,000 |
Total deposits | 2,024,997,000 | 1,997,593,000 |
Short-term borrowings | 23,253,000 | 80,062,000 |
Long-term borrowings - FHLB advances | 125,276,000 | 62,347,000 |
Senior notes, net | 14,814,000 | 14,765,000 |
Subordinated debt, net | 24,689,000 | 24,607,000 |
Accrued interest and other liabilities | 30,715,000 | 25,608,000 |
TOTAL LIABILITIES | 2,243,744,000 | 2,204,982,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $1,000 par value; authorized 30,000 shares; $1,000 liquidation preference per share; no shares issued | 0 | 0 |
Common stock, par value $1.00 per share; authorized 30,000,000 shares; issued 16,030,172 and outstanding 15,275,686 at September 30, 2023; issued 16,030,172 and outstanding 15,518,819 at December 31, 2022 | 16,030,000 | 16,030,000 |
Paid-in capital | 143,972,000 | 143,950,000 |
Retained earnings | 157,044,000 | 151,743,000 |
Treasury stock, at cost; 754,486 shares at September 30, 2023 and 511,353 shares at December 31, 2022 | (17,015,000) | (12,520,000) |
Accumulated other comprehensive loss | (59,826,000) | (49,878,000) |
TOTAL STOCKHOLDERS' EQUITY | 240,205,000 | 249,325,000 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 2,483,949,000 | $ 2,454,307,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,030,172 | 16,030,172 |
Common stock, shares outstanding (in shares) | 15,275,686 | 15,518,819 |
Treasury stock, shares (in shares) | 754,486 | 511,353 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and fees on loans: | ||||
Taxable | $ 25,529 | $ 20,085 | $ 72,322 | $ 56,561 |
Tax-exempt | 552 | 505 | 1,687 | 1,426 |
Income from available-for-sale debt securities: | ||||
Taxable | 2,077 | 2,138 | 6,440 | 6,143 |
Tax-exempt | 597 | 768 | 1,847 | 2,258 |
Other interest and dividend income | 363 | 214 | 972 | 404 |
Total interest and dividend income | 29,118 | 23,710 | 83,268 | 66,792 |
INTEREST EXPENSE | ||||
Interest on deposits | 7,264 | 1,972 | 15,593 | 4,012 |
Interest on short-term borrowings | 677 | 179 | 2,918 | 302 |
Interest on long-term borrowings - FHLB advances | 1,164 | 332 | 2,901 | 436 |
Interest on senior notes, net | 120 | 119 | 359 | 357 |
Interest on subordinated debt, net | 230 | 229 | 691 | 849 |
Total interest expense | 9,455 | 2,831 | 22,462 | 5,956 |
Net interest income | 19,663 | 20,879 | 60,806 | 60,836 |
(Credit) provision for credit losses | (1,225) | 3,794 | (765) | 4,993 |
Net interest income after (credit) provision for credit losses | 20,888 | 17,085 | 61,571 | 55,843 |
NONINTEREST INCOME | ||||
Brokerage and insurance revenue | 394 | 696 | 1,189 | 1,784 |
Net gains from sale of loans | 237 | 131 | 450 | 733 |
Increase in cash surrender value of life insurance | 160 | 133 | 450 | 405 |
Other noninterest income | 1,084 | 622 | 3,442 | 2,666 |
Realized gains on available-for-sale debt securities, net | 0 | 20 | 6 | 21 |
Total noninterest income | 6,489 | 5,671 | 18,739 | 18,323 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 10,878 | 10,826 | 33,082 | 31,698 |
Net occupancy and equipment expense | 1,268 | 1,498 | 3,993 | 4,217 |
Data processing and telecommunications expense | 1,823 | 1,719 | 5,659 | 5,062 |
Automated teller machine and interchange expense | 504 | 397 | 1,374 | 1,128 |
Pennsylvania shares tax | 403 | 487 | 1,210 | 1,463 |
Professional fees | 487 | 521 | 1,988 | 1,490 |
Other noninterest expense | 2,577 | 1,995 | 8,443 | 6,310 |
Total noninterest expense | 17,940 | 17,443 | 55,749 | 51,368 |
Income before income tax provision | 9,437 | 5,313 | 24,561 | 22,798 |
Income tax provision | 1,846 | 858 | 4,674 | 3,959 |
NET INCOME | $ 7,591 | $ 4,455 | $ 19,887 | $ 18,839 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.50 | $ 0.29 | $ 1.29 | $ 1.21 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.50 | $ 0.29 | $ 1.29 | $ 1.21 |
Trust revenue | ||||
NONINTEREST INCOME | ||||
Revenue | $ 1,919 | $ 1,744 | $ 5,500 | $ 5,245 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME | ||||
Revenue | 1,443 | 1,105 | 4,121 | 3,662 |
Interchange revenue from debit card transactions | ||||
NONINTEREST INCOME | ||||
Revenue | 1,098 | 1,031 | 3,115 | 3,050 |
Loan servicing fees, net | ||||
NONINTEREST INCOME | ||||
Revenue | $ 154 | $ 189 | $ 466 | $ 757 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net Income (Loss) | $ 7,591 | $ 4,455 | $ 19,887 | $ 18,839 |
Available-for-sale debt securities: | ||||
Unrealized holding losses on available-for-sale debt securities | (14,865) | (25,880) | (12,535) | (77,923) |
Reclassification adjustment for gains realized in income | 0 | (20) | (6) | (21) |
Other comprehensive loss on available-for-sale debt securities | (14,865) | (25,900) | (12,541) | (77,944) |
Unfunded pension and postretirement obligations: | ||||
Changes from plan amendments and actuarial gains and losses | 0 | 0 | (8) | 133 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost | (14) | (9) | (42) | (31) |
Other comprehensive (loss) income on pension and postretirement obligations | (14) | (9) | (50) | 102 |
Other comprehensive loss before income tax | (14,879) | (25,909) | (12,591) | (77,842) |
Income tax related to other comprehensive loss | 3,126 | 5,442 | 2,643 | 16,347 |
Net other comprehensive loss | (11,753) | (20,467) | (9,948) | (61,495) |
Comprehensive (loss) income | $ (4,162) | $ (16,012) | $ 9,939 | $ (42,656) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 19,887 | $ 18,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit (provision) for credit losses | (765) | 4,993 |
Realized gains on available-for-sale debt securities, net | (6) | (21) |
Net amortization of securities | 1,556 | 2,174 |
Increase in cash surrender value of life insurance | (450) | (405) |
Depreciation and amortization of bank premises and equipment | 1,633 | 1,780 |
Net accretion of purchase accounting adjustments | (198) | (1,017) |
Stock-based compensation | 1,015 | 1,169 |
Deferred income taxes | 235 | (93) |
Decrease (increase) in fair value of servicing rights | 136 | (128) |
Gains on sales of loans, net | (450) | (733) |
Origination of loans held for sale | (14,568) | (25,003) |
Proceeds from sales of loans held for sale | 14,341 | 26,752 |
Increase in accrued interest receivable and other assets | (1,175) | (1,562) |
Increase (decrease) in accrued interest payable and other liabilities | 4,588 | (352) |
Other | 22 | 148 |
Net Cash Provided by Operating Activities | 25,801 | 26,541 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of certificates of deposit | 0 | (250) |
Proceeds from maturities of certificates of deposit | 3,000 | 750 |
Proceeds from sales of available-for-sale debt securities | 18,357 | 4,100 |
Proceeds from calls and maturities of available-for-sale debt securities | 44,208 | 50,263 |
Purchase of available-for-sale debt securities | (8,215) | (104,601) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 19,503 | 10,765 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (19,905) | (12,009) |
Purchase of Federal Reserve Bank stock | (6,243) | 0 |
Net increase in loans | (89,998) | (126,792) |
Proceeds from bank owned life insurance | 147 | 0 |
Purchase of premises and equipment | (1,381) | (2,986) |
Proceeds from sale of foreclosed assets | 62 | 351 |
Other | 109 | 161 |
Net Cash Used in Investing Activities | (40,356) | (180,248) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 27,425 | 114,667 |
Net (decrease) increase in short-term borrowings | (56,809) | 654 |
Proceeds from long-term borrowings - FHLB advances | 70,049 | 39,041 |
Repayments of long-term borrowings - FHLB advances | (7,078) | (11,430) |
Redemption of subordinated debt | 0 | (8,500) |
Sale of treasury stock | 0 | 141 |
Purchases of treasury stock | (6,719) | (9,349) |
Common dividends paid | (11,703) | (11,921) |
Net Cash Provided by Financing Activities | 15,165 | 113,303 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 610 | (40,404) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 47,698 | 95,848 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 48,308 | $ 55,444 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
(Decrease) increase in accrued purchase of available-for-sale debt securities | $ (454) | $ 160 |
Assets acquired through foreclosure of real estate loans | 390 | 51 |
Leased assets obtained in exchange for new operating lease liabilities | 0 | 904 |
Interest paid | 21,392 | 5,729 |
Income taxes paid | $ 4,667 | $ 3,835 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Treasury Shares | Paid-in Capital | Retained Earnings Adoption of ASU 2016-13 (CECL) | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Adoption of ASU 2016-13 (CECL) | Total |
Balance, beginning of period at Dec. 31, 2021 | $ 16,030 | $ (6,716) | $ 144,453 | $ 142,612 | $ 5,026 | $ 301,405 | ||
Balance (in shares) at Dec. 31, 2021 | 16,030,172 | |||||||
Balance (in shares) at Dec. 31, 2021 | 271,082 | |||||||
Net Income (Loss) | 18,839 | 18,839 | ||||||
Other comprehensive loss, net | (61,495) | (61,495) | ||||||
Cash dividends declared on common stock | (13,147) | (13,147) | ||||||
Shares issued for dividend reinvestment plan | $ 1,216 | 10 | 1,226 | |||||
Shares issued for dividend reinvestment plan (in shares) | (49,221) | |||||||
Shares issued from treasury related to exercise of stock options | $ 175 | (34) | 141 | |||||
Shares issued from treasury related to exercise of stock options (in shares) | (7,024) | |||||||
Restricted stock granted | $ 1,932 | (1,932) | 0 | |||||
Restricted stock granted (in shares) | (78,243) | |||||||
Forfeiture of restricted stock | $ (228) | 228 | 0 | |||||
Forfeiture of restricted stock (in shares) | 10,782 | |||||||
Stock-based compensation expense | 1,169 | 1,169 | ||||||
Purchase of restricted stock for tax withholding | $ (175) | (175) | ||||||
Purchase of restricted stock for tax withholding (in shares) | 6,964 | |||||||
Treasury stock purchases | $ (9,174) | (9,174) | ||||||
Treasury stock purchases (in shares) | 375,416 | |||||||
Balance, end of period at Sep. 30, 2022 | $ 16,030 | $ (12,970) | 143,894 | 148,304 | (56,469) | 238,789 | ||
Balance (in shares) at Sep. 30, 2022 | 16,030,172 | |||||||
Balance (in shares) at Sep. 30, 2022 | 529,756 | |||||||
Balance, beginning of period at Jun. 30, 2022 | $ 16,030 | $ (13,013) | 143,417 | 148,187 | (36,002) | 258,619 | ||
Balance (in shares) at Jun. 30, 2022 | 16,030,172 | |||||||
Balance (in shares) at Jun. 30, 2022 | 530,958 | |||||||
Net Income (Loss) | 4,455 | 4,455 | ||||||
Other comprehensive loss, net | (20,467) | (20,467) | ||||||
Cash dividends declared on common stock | (4,338) | (4,338) | ||||||
Shares issued for dividend reinvestment plan | $ 392 | 8 | 400 | |||||
Shares issued for dividend reinvestment plan (in shares) | (16,019) | |||||||
Forfeiture of restricted stock | $ (81) | 81 | 0 | |||||
Forfeiture of restricted stock (in shares) | 3,638 | |||||||
Stock-based compensation expense | 388 | 388 | ||||||
Purchase of restricted stock for tax withholding | $ (22) | (22) | ||||||
Purchase of restricted stock for tax withholding (in shares) | 910 | |||||||
Treasury stock purchases | $ (246) | (246) | ||||||
Treasury stock purchases (in shares) | 10,269 | |||||||
Balance, end of period at Sep. 30, 2022 | $ 16,030 | $ (12,970) | 143,894 | 148,304 | (56,469) | 238,789 | ||
Balance (in shares) at Sep. 30, 2022 | 16,030,172 | |||||||
Balance (in shares) at Sep. 30, 2022 | 529,756 | |||||||
Balance, beginning of period at Dec. 31, 2022 | $ 16,030 | $ (12,520) | 143,950 | $ (1,652) | 151,743 | (49,878) | $ (1,652) | $ 249,325 |
Balance (in shares) at Dec. 31, 2022 | 16,030,172 | |||||||
Balance (in shares) at Dec. 31, 2022 | 511,353 | 511,353 | ||||||
Net Income (Loss) | 19,887 | $ 19,887 | ||||||
Other comprehensive loss, net | (9,948) | (9,948) | ||||||
Cash dividends declared on common stock | (12,934) | (12,934) | ||||||
Shares issued for dividend reinvestment plan | $ 1,413 | (182) | 1,231 | |||||
Shares issued for dividend reinvestment plan (in shares) | (60,871) | |||||||
Restricted stock granted | $ 1,314 | (1,314) | 0 | |||||
Restricted stock granted (in shares) | (53,788) | |||||||
Forfeiture of restricted stock | $ (503) | 503 | 0 | |||||
Forfeiture of restricted stock (in shares) | 23,039 | |||||||
Stock-based compensation expense | 1,015 | 1,015 | ||||||
Purchase of restricted stock for tax withholding | $ (219) | (219) | ||||||
Purchase of restricted stock for tax withholding (in shares) | 9,453 | |||||||
Treasury stock purchases | $ (6,500) | (6,500) | ||||||
Treasury stock purchases (in shares) | 325,300 | |||||||
Balance, end of period at Sep. 30, 2023 | $ 16,030 | $ (17,015) | 143,972 | 157,044 | (59,826) | $ 240,205 | ||
Balance (in shares) at Sep. 30, 2023 | 16,030,172 | |||||||
Balance (in shares) at Sep. 30, 2023 | 754,486 | 754,486 | ||||||
Balance, beginning of period at Jun. 30, 2023 | $ 16,030 | $ (17,226) | 143,661 | 153,725 | (48,073) | $ 248,117 | ||
Balance (in shares) at Jun. 30, 2023 | 16,030,172 | |||||||
Balance (in shares) at Jun. 30, 2023 | 762,076 | |||||||
Net Income (Loss) | 7,591 | 7,591 | ||||||
Other comprehensive loss, net | (11,753) | (11,753) | ||||||
Cash dividends declared on common stock | (4,272) | (4,272) | ||||||
Shares issued for dividend reinvestment plan | $ 457 | (36) | 421 | |||||
Shares issued for dividend reinvestment plan (in shares) | (20,184) | |||||||
Forfeiture of restricted stock | $ (27) | 27 | 0 | |||||
Forfeiture of restricted stock (in shares) | 1,073 | |||||||
Stock-based compensation expense | 320 | 320 | ||||||
Purchase of restricted stock for tax withholding | $ (16) | (16) | ||||||
Purchase of restricted stock for tax withholding (in shares) | 838 | |||||||
Treasury stock purchases | $ (203) | (203) | ||||||
Treasury stock purchases (in shares) | 10,683 | |||||||
Balance, end of period at Sep. 30, 2023 | $ 16,030 | $ (17,015) | $ 143,972 | $ 157,044 | $ (59,826) | $ 240,205 | ||
Balance (in shares) at Sep. 30, 2023 | 16,030,172 | |||||||
Balance (in shares) at Sep. 30, 2023 | 754,486 | 754,486 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Changes in Stockholders' Equity | ||||
Common stock, dividends, per share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.84 | $ 0.84 |
BASIS OF INTERIM PRESENTATION A
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 1. BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS The consolidated financial statements include the accounts of Citizens & Northern Corporation and its subsidiaries, Citizens & Northern Bank (“C&N Bank”), Bucktail Life Insurance Company and Citizens & Northern Investment Corporation (collectively, “Corporation”). The consolidated financial statements also include C&N Bank’s wholly-owned subsidiaries, C&N Financial Services, LLC and Northern Tier Holding LLC. C&N Bank is the sole member of C&N Financial Services, LLC and Northern Tier Holding LLC. All material intercompany balances and transactions have been eliminated in consolidation. The consolidated financial information included herein, except the consolidated balance sheet dated December 31, 2022, is unaudited. Such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows and changes in stockholders’ equity for the interim periods; however, the information does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for a complete set of financial statements. Certain 2022 information has been reclassified for consistency with the 2023 presentation. Operating results reported for the nine-month period ended September 30, 2023 might not be indicative of the results for the year ending December 31, 2023. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission. RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on the consolidated financial statements issued in the near future. Recent Accounting Pronouncements - Adopted On January 1, 2023, the Corporation adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated (“PCD”) loans will receive an initial allowance at the acquisition date that represents an adjustment to the amortized cost basis of the loan, with no impact to earnings. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Corporation adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. Therefore, upon adoption of ASC 326, the Company determined that an allowance for credit losses on available for sale debt securities was not necessary. Effective January 1, 2023, the Corporation adopted ASC 326 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). The following table illustrates the impact from the adoption of ASC 326: As Reported Under Pre-ASC 326 Impact of ASC 326 Adoption ASC 326 (In Thousands) January 1, 2023 December 31, 2022 Adoption Loans receivable $ 1,740,846 $ 1,740,040 $ 806 Allowance for credit losses on loans $ 18,719 $ 16,615 $ 2,104 Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) 1,218 425 793 Deferred tax asset, net 21,323 20,884 439 Retained earnings 150,091 151,743 (1,652) The Corporation adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”) under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of PCD assets was adjusted to establish the allowance for credit losses. Essentially all of the PCD loans were reported as nonaccrual loans at January 1, 2023 and September 30, 2023. ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This update reduces the complexity of accounting for Troubled Debt Restructurings (“TDRs”) by eliminating certain accounting guidance, enhancing disclosures and improving the consistency of vintage disclosures. The Corporation adopted ASU 2022-02 on January 1, 2023. Changes in disclosure requirements in accordance with ASU 2022-02 are reflected in Note 6. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements. Accounting Policies The Corporation’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited consolidated financial statements and notes for the year ended December 31, 2022 and are contained in the Corporation’s Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2022, except for the following: Allowance for Credit Losses – Available-for-Sale Debt Securities For available-for-sale debt securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Corporation has the intent to sell the security or it is more likely than not that the Corporation will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Corporation evaluates whether the decline in fair value is the result of credit losses or other factors. The Corporation has elected the practical expedient of zero credit loss estimates for securities issued or guaranteed by U.S. Government entities or agencies. In making the credit loss assessment of securities not issued or guaranteed by U.S. Government entities or agencies, the Corporation may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit losses when management believes an available-for-sale debt security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At September 30, 2023, there was no allowance for credit losses related to the available-for-sale portfolio. Accrued interest receivable on available-for-sale debt securities totaled $2,688,000 at September 30, 2023 and was excluded from the estimate of credit losses. Allowance for Credit Losses on Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Accrued interest receivable on loans totaled $6,590,000 at September 30, 2023 and was excluded from the estimate of credit losses. The allowance for credit losses (“ACL”) includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis), and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and which are individually evaluated for credit losses (individual basis). Evaluation of Expected Losses on Individual Loans Loans evaluated on an individual basis are identified based on a detailed assessment of certain larger loan relationships, and their related credit risk ratings, by a management committee referred to as the Watch List Committee. The allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Corporation will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. The scope of loans reviewed individually for credit loss each quarter includes 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. Additionally, all PCD loans are evaluated individually for credit loss. Collective Evaluation of Expected Losses – Pool Basis The Corporation measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Corporation has identified the following portfolio segments and calculates the allowance for credit losses for each using the weighted-average remaining maturity (“WARM”) method: Commercial real estate - nonowner occupied, further broken down into the following classes: Nonowner occupied Multi-family (5 or more) residential 1-4 Family - commercial purpose Commercial real estate - owner occupied All other commercial loans, further broken down into the following classes: Commercial and industrial Commercial lines of credit Political subdivisions Commercial construction and land Other commercial loans Residential mortgage loans, further broken down into the following classes: 1-4 Family – residential 1-4 Family residential construction and land Consumer loans, further broken down into the following classes: Consumer lines of credit (including HELOCs) All other consumer In determining the pools for collective evaluation, management uses a combination of loan purpose, collateral and payment type (for example, lines of credit vs. amortizing). The pools identified are similar to the loan classes used in the Corporation’s financial reporting for several years, with several exceptions including the following which are of the most significance: ● Commercial real estate secured loans are broken out between non-owner occupied and owner-occupied ● Loans secured by 1-4 family residential mortgages are broken out between consumer-purpose and commercial-purpose ● Commercial lines of credit are broken out as an individual category Each of these changes was made to better sort loans into pools with similar risk and cash flow characteristics. Estimation Method - WARM (Weighted-Average Remaining Maturity Method) In applying the WARM method, for each pool identified above, the Corporation determined the annual net charge-offs as a percentage of average total loan balances (net charge-off percentage). In the January 1, 2023 calculation, the Corporation used the annualized net charge-off percentage over the prior 5 calendar years. In the September 30, 2023 calculation, the Corporation used the net charge-off percentage for the 5.75 -year period ended September 30, 2023. For each loan pool, the average annualized net charge-off percentage was multiplied by the estimated weighted-average remaining average life of the loans to calculate the loss rate. The calculation of the estimated weighted-average remaining life of each loan pool was based on instrument-level data, with contractual principal payments adjusted for the estimated impact of prepayments. Commercial lines of credit and other revolving credit facilities were generally assumed to be repaid after 1 year. The estimated weighted-average remaining life of the entire portfolio was calculated to be 4.16 years at September 30, 2023 and 4.36 years at January 1, 2023. Management determined that use of the Corporation’s net charge-off experience over a 5.75 -year period at September 30, 2023 and 5-year period at January 1, 2023 would provide a reasonable time period to include in the WARM expected loss rate calculations in relationship to the weighted-average life of the portfolio overall and to each of the pools. Qualitative Factors The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are deemed likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments generally increase allowance levels and include adjustments for factors deemed relevant, including: the nature and volume of portfolio changes, including loan portfolio growth; concentrations of credit based on loan type (such as non-owner occupied commercial real estate) or industry; the volume and severity of past due, nonaccrual or adversely classified loans; trends in real estate or other collateral values; lending policies and procedures, including changes in underwriting and collections practices; credit review function; lending, credit and other relevant management experience and risk tolerance; external factors and economic conditions not already captured. Economic Forecast ASC Topic 326 requires management to consider forward-looking information that is both reasonable and supportable and relevant to the collectability of cash flows. Reasonable and supportable forecasts may extend over the entire contractual term of a financial asset or a period shorter than the contractual term. In that regard, management has selected a forecast period of 2 years , which is shorter than the estimated weighted-average remaining life of the loan portfolio. The Corporation calculated an additional expected credit loss based on establishing a correlation between past loss experience and an economic statistic. This additional credit loss is added to the allowance calculation, conceptually for the first 2 years of the weighted-average remaining life of the portfolio after which time the credit loss for each pool is determined based on the WARM historical loss rate as adjusted for qualitative factors. Allowance for Credit Losses on Off-Balance Sheet Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commercial letters of credit and credit enhancement obligations related to residential mortgage loans sold with recourse. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Corporation records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Corporation’s statements of income. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for off-balance sheet exposures is included in accrued interest and other liabilities in the Corporation’s unaudited consolidated balance sheets and the related credit expense is recorded in the provision for credit losses in the unaudited consolidated statements of income. |
PER SHARE DATA
PER SHARE DATA | 9 Months Ended |
Sep. 30, 2023 | |
PER SHARE DATA | |
PER SHARE DATA | 2. 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) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Basic Net income $ 7,591 $ 4,455 $ 19,887 $ 18,839 Less: Dividends and undistributed earnings allocated to participating securities (57) (39) (156) (169) Net income attributable to common shares $ 7,534 $ 4,416 $ 19,731 $ 18,670 Basic weighted-average common shares outstanding 15,154,797 15,364,075 15,264,391 15,482,672 Basic earnings per common share (a) $ 0.50 $ 0.29 $ 1.29 $ 1.21 Diluted Net income attributable to common shares $ 7,534 $ 4,416 $ 19,731 $ 18,670 Basic weighted-average common shares outstanding 15,154,797 15,364,075 15,264,391 15,482,672 Dilutive effect of potential common stock arising from stock options 0 3,114 4 3,276 Diluted weighted-average common shares outstanding 15,154,797 15,367,189 15,264,395 15,485,948 Diluted earnings per common share (a) $ 0.50 $ 0.29 $ 1.29 $ 1.21 Weighted-average nonvested restricted shares outstanding 113,328 136,040 120,632 139,761 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). Anti-dilutive stock options are excluded from earnings per share calculations. The weighted-average number of anti-dilutive instruments outstanding was 8,934 in the three-month period ended September 30, 2023 and 0 in the nine-month period ended September 30, 2023. There were no anti-dilutive instruments outstanding in the three-month and nine-month periods ended September 30, 2022. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
COMPREHENSIVE INCOME (LOSS) | |
COMPREHENSIVE INCOME (LOSS) | 3. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) 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 Three Months Ended September 30, 2023 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (14,865) $ 3,123 $ (11,742) Reclassification adjustment for gains realized in income 0 0 0 Other comprehensive loss from available-for-sale debt securities (14,865) 3,123 (11,742) Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (14) 3 (11) Other comprehensive loss on unfunded retirement obligations (14) 3 (11) Total other comprehensive loss $ (14,879) $ 3,126 $ (11,753) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (25,880) $ 5,437 $ (20,443) Reclassification adjustment for (gains) realized in income (20) 4 (16) Other comprehensive loss from available-for-sale debt securities (25,900) 5,441 (20,459) Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (9) 1 (8) Other comprehensive loss on unfunded retirement obligations (9) 1 (8) Total other comprehensive loss $ (25,909) $ 5,442 $ (20,467) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2023 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (12,535) $ 2,632 $ (9,903) Reclassification adjustment for (gains) realized in income (6) 1 (5) Other comprehensive loss from available-for-sale debt securities (12,541) 2,633 (9,908) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (8) 1 (7) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (42) 9 (33) Other comprehensive loss on unfunded retirement obligations (50) 10 (40) Total other comprehensive loss $ (12,591) $ 2,643 $ (9,948) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (77,923) $ 16,365 $ (61,558) Reclassification adjustment for (gains) realized in income (21) 4 (17) Other comprehensive loss from available-for-sale debt securities (77,944) 16,369 (61,575) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 133 (27) 106 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (31) 5 (26) Other comprehensive income on unfunded retirement obligations 102 (22) 80 Total other comprehensive loss $ (77,842) $ 16,347 $ (61,495) The amounts shown in the table immediately above are included in the following line items in the consolidated statements of income: Affected Line Item in the Description Consolidated Statements of Income 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 (loss) income are as follows and are presented net of tax: (In Thousands) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Three Months Ended September 30, 2023 Balance, beginning of period $ (48,536) 463 $ (48,073) Other comprehensive loss during three months ended September 30, 2023 (11,742) (11) (11,753) Balance, end of period $ (60,278) $ 452 $ (59,826) Three Months Ended September 30, 2022 Balance, beginning of period $ (36,307) $ 305 $ (36,002) Other comprehensive loss during three months ended September 30, 2022 (20,459) (8) (20,467) Balance, end of period $ (56,766) $ 297 $ (56,469) (In Thousands) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Nine Months Ended September 30, 2023 Balance, beginning of period $ (50,370) $ 492 $ (49,878) Other comprehensive loss during nine months ended September 30, 2023 (9,908) (40) (9,948) Balance, end of period $ (60,278) $ 452 $ (59,826) Nine Months Ended September 30, 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive loss during nine months ended September 30, 2022 (61,575) 80 (61,495) Balance, end of period $ (56,766) $ 297 $ (56,469) |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 9 Months Ended |
Sep. 30, 2023 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 4. CASH AND DUE FROM BANKS Cash and due from banks at September 30, 2023 and December 31, 2022 include the following: (In Thousands) September 30, December 31, 2023 2022 Cash and cash equivalents $ 48,308 $ 47,698 Certificates of deposit 4,350 7,350 Total cash and due from banks $ 52,658 $ 55,048 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. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
SECURITIES | |
SECURITIES | 5. SECURITIES Amortized cost and fair value of available-for-sale debt securities at September 30, 2023 and December 31, 2022 are summarized as follows: (In Thousands) September 30, 2023 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 33,938 $ 0 $ (3,381) $ 30,557 Obligations of U.S. Government agencies 21,372 0 (2,576) 18,796 Bank holding company debt securities 28,950 0 (6,639) 22,311 Obligations of states and political subdivisions: Tax-exempt 123,598 114 (19,259) 104,453 Taxable 65,408 0 (11,951) 53,457 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 109,102 0 (14,633) 94,469 Residential collateralized mortgage obligations 38,267 0 (4,870) 33,397 Commercial mortgage-backed securities 76,627 0 (12,955) 63,672 Private label commercial mortgage-backed securities 8,178 0 (152) 8,026 Total available-for-sale debt securities $ 505,440 $ 114 $ (76,416) $ 429,138 (In Thousands) December 31, 2022 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 35,166 $ 0 $ (3,330) $ 31,836 Obligations of U.S. Government agencies 25,938 0 (2,508) 23,430 Bank holding company debt securities 28,945 0 (3,559) 25,386 Obligations of states and political subdivisions: Tax-exempt 146,149 319 (13,845) 132,623 Taxable 68,488 0 (11,676) 56,812 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,782 0 (12,841) 99,941 Residential collateralized mortgage obligations 44,868 0 (4,572) 40,296 Commercial mortgage-backed securities 91,388 0 (11,702) 79,686 Private label commercial mortgage-backed securities 8,070 2 (49) 8,023 Total available-for-sale debt securities $ 561,794 $ 321 $ (64,082) $ 498,033 The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions aggregated by length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022: September 30, 2023 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 $ 0 0 $ 30,557 (3,381) $ 30,557 $ (3,381) Obligations of U.S. Government agencies 1,850 (8) 16,946 (2,568) 18,796 (2,576) Bank holding company debt securities 0 0 22,311 (6,639) 22,311 (6,639) Obligations of states and political subdivisions: Tax-exempt 4,172 (268) 96,600 (18,991) 100,772 (19,259) Taxable 0 0 53,457 (11,951) 53,457 (11,951) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 9,304 (412) 83,619 (14,221) 92,923 (14,633) Residential collateralized mortgage obligations 2,662 (130) 30,735 (4,740) 33,397 (4,870) Commercial mortgage-backed securities 2,211 (130) 61,461 (12,825) 63,672 (12,955) Private label commercial mortgage-backed securities 8,026 (152) 0 0 8,026 (152) Total temporarily impaired available-for-sale debt securities $ 28,225 $ (1,100) $ 395,686 $ (75,316) $ 423,911 $ (76,416) December 31, 2022 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 $ 20,192 $ (1,939) $ 11,644 $ (1,391) $ 31,836 $ (3,330) Obligations of U.S. Government agencies 8,509 (430) 12,921 (2,078) 21,430 (2,508) Bank holding company debt securities 14,248 (1,697) 11,138 (1,862) 25,386 (3,559) Obligations of states and political subdivisions: Tax-exempt 106,204 (11,023) 15,153 (2,822) 121,357 (13,845) Taxable 28,901 (4,739) 27,761 (6,937) 56,662 (11,676) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 45,410 (4,226) 54,531 (8,615) 99,941 (12,841) Residential collateralized mortgage obligations 28,670 (2,042) 11,626 (2,530) 40,296 (4,572) Commercial mortgage-backed securities 40,408 (2,585) 39,278 (9,117) 79,686 (11,702) Private label commercial mortgage-backed securities 4,762 (49) 0 0 4,762 (49) Total temporarily impaired available-for-sale debt securities $ 297,304 $ (28,730) $ 184,052 $ (35,352) $ 481,356 $ (64,082) Gross realized gains and losses from available-for-sale debt securities were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Gross realized gains from sales $ 0 $ 44 $ 89 $ 48 Gross realized losses from sales 0 (24) (83) (27) Net realized gains $ 0 $ 20 $ 6 $ 21 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of September 30, 2023. 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) September 30, 2023 Amortized Fair Cost Value Due in one year or less $ 10,899 $ 10,672 Due from one year through five years 70,095 64,235 Due from five years through ten years 80,423 66,554 Due after ten years 111,849 88,113 Sub-total 273,266 229,574 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 109,102 94,469 Residential collateralized mortgage obligations 38,267 33,397 Commercial mortgage-backed securities 76,627 63,672 Private label commercial mortgage-backed securities 8,178 8,026 Total $ 505,440 $ 429,138 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 $242,190,000 at September 30, 2023 and $277,302,000 at December 31, 2022 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 8 for information concerning securities pledged to secure borrowing arrangements and Note 11 for information related to securities pledged against interest rate swap obligations. A summary of information management considered in evaluating debt and equity securities for credit losses at September 30, 2023 and December 31, 2022 is provided below. Debt Securities As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $76,416,000 at September 30, 2023 and $64,082,000 at December 31, 2022. At September 30, 2023, the Corporation does not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis. The unrealized holding losses were consistent with significant increases in market interest rates that occurred in 2022 and 2023. At September 30, 2023 and December 31, 2022, management performed an assessment for possible credit losses 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. At September 30, 2023 and December 31, 2022, all of the Corporation’s holdings of bank holding company debt securities, obligations of states and political subdivisions and private label commercial mortgage-backed securities were investment grade and there have been no payment defaults. Based on the results of the assessment, there was no ACL required on available-for-sale debt securities in an unrealized loss position at September 30, 2023 and December 31, 2022. 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 $14,570,000 at September 30, 2023 and $14,168,000 at December 31, 2022. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at September 30, 2023 and December 31, 2022. 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. In July 2023, C&N Bank became a member of the Federal Reserve System. As a member, C&N Bank is required to purchase and maintain stock in the Federal Reserve Bank of Philadelphia. There is no active market for Federal Reserve Bank stock, and it must ordinarily be redeemed by the Federal Reserve Bank of Philadelphia in order to be liquidated. C&N Bank’s investment in Federal Reserve Bank stock, included in other assets in the consolidated balance sheets, was $6,243,000 at September 30, 2023. The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $832,000 at September 30, 2023 and $859,000 December 31, 2022, consisting exclusively of one mutual fund. There was an unrealized loss on the mutual fund of $168,000 at September 30, 2023 and $141,000 at December 31, 2022. Changes in the unrealized gains or losses on this security, which are included in other noninterest income in the consolidated statements of income, were a loss of $27,000 in the third quarter 2023 and for the nine-month period ended September 30, 2023, a loss of $38,000 in the third quarter 2022 and a loss of $114,000 in the nine-month period ended September 30, 2022. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6. LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows: Summary of Loans by Type (In Thousands) September 30, December 31, 2023 2022 (1) Commercial real estate - non-owner occupied $ 737,287 $ 675,597 Commercial real estate - owner occupied 231,112 205,910 All other commercial loans 395,703 410,077 Residential mortgage loans 410,013 393,582 Consumer loans 56,555 54,874 Total 1,830,670 1,740,040 Less: allowance for credit losses on loans (18,085) (16,615) Loans, net $ 1,812,585 $ 1,723,425 (1) Total loans at December 31, 2022 include purchased credit impaired loans of $1,027,000. In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $4,456,000 at September 30, 2023 and $4,725,000 at December 31, 2022. 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. Acquired loans were initially recorded at fair value, with adjustments made to gross amortized cost based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequently, the Corporation has recognized amortization and accretion of a portion of the market rate adjustments and credit adjustments on performing loans. For the three-month and nine-month periods ended September 30, 2023 and 2022, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (1,000) $ (866) $ (916) $ (637) (Amortization) accretion recognized in interest income (16) 5 (100) (224) Adjustments to gross amortized cost of loans at end of period $ (1,016) $ (861) $ (1,016) $ (861) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,446) $ (2,403) $ (1,840) $ (3,335) Accretion recognized in interest income 147 308 541 1,240 Adjustments to gross amortized cost of loans at end of period $ (1,299) $ (2,095) $ (1,299) $ (2,095) The following table presents an analysis of past due loans as of September 30, 2023: (In Thousands) As of September 30, 2023 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 4 $ 132 $ 9,031 $ 728,120 $ 737,287 Commercial real estate - owner occupied 151 0 1,586 229,375 231,112 All other commercial loans 1,438 162 1,390 392,713 395,703 Residential mortgage loans 1,569 892 3,244 404,308 410,013 Consumer loans 513 106 250 55,686 56,555 Total $ 3,675 $ 1,292 $ 15,501 $ 1,810,202 $ 1,830,670 The following table presents an analysis of past due loans as of December 31, 2022: (In Thousands) As of December 31, 2022 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 644 $ 947 $ 6,350 $ 667,656 $ 675,597 Commercial real estate - owner occupied 723 141 19 204,099 204,982 All other commercial loans 537 151 11,528 397,762 409,978 Residential mortgage loans 4,540 866 3,974 384,202 393,582 Consumer loans 635 132 187 53,920 54,874 Purchased credit impaired 0 0 1,027 0 1,027 Total $ 7,079 $ 2,237 $ 23,085 $ 1,707,639 $ 1,740,040 In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” rows in the table that follows. The following table presents the recorded investment in loans by credit quality indicators by year of origination as of September 30, 2023: (In Thousands) Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total Commercial real estate - non-owner occupied Pass $ 83,002 $ 188,426 $ 91,246 $ 55,618 $ 80,858 $ 211,778 $ 0 $ 710,928 Special Mention 0 0 2,475 0 119 8,147 0 10,741 Substandard 0 0 0 2,577 610 12,431 0 15,618 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - non-owner occupied $ 83,002 $ 188,426 $ 93,721 $ 58,195 $ 81,587 $ 232,356 $ 0 $ 737,287 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Commercial real estate - owner occupied Pass $ 28,058 $ 37,306 $ 52,680 $ 13,245 $ 17,722 $ 75,113 $ 0 $ 224,124 Special Mention 0 0 2,617 0 0 1,301 0 3,918 Substandard 0 0 0 0 0 3,070 0 3,070 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - owner occupied $ 28,058 $ 37,306 $ 55,297 $ 13,245 $ 17,722 $ 79,484 $ 0 $ 231,112 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 All other commercial loans Pass $ 39,638 $ 94,942 $ 53,556 $ 29,097 $ 17,364 $ 25,489 $ 112,698 $ 372,784 Special Mention 0 0 4,642 0 0 805 400 5,847 Substandard 0 3,091 1,250 435 2,151 1,121 9,024 17,072 Doubtful 0 0 0 0 0 0 0 0 Total all other commercial loans $ 39,638 $ 98,033 $ 59,448 $ 29,532 $ 19,515 $ 27,415 $ 122,122 $ 395,703 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 12 $ 12 Residential mortgage loans Pass $ 44,449 $ 88,378 $ 57,166 $ 40,943 $ 33,257 $ 140,684 $ 0 $ 404,877 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 0 289 369 4,478 0 5,136 Doubtful 0 0 0 0 0 0 0 0 Total residential mortgage loans $ 44,449 $ 88,378 $ 57,166 $ 41,232 $ 33,626 $ 145,162 $ 0 $ 410,013 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 33 $ 0 $ 33 Consumer loans Pass $ 5,216 $ 5,070 $ 2,227 $ 1,372 $ 238 $ 991 $ 40,512 $ 55,626 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 1 12 5 78 833 929 Doubtful 0 0 0 0 0 0 0 0 Total consumer loans $ 5,216 $ 5,070 $ 2,228 $ 1,384 $ 243 $ 1,069 $ 41,345 $ 56,555 Year-to-date gross charge-offs $ 0 $ 134 $ 0 $ 18 $ 3 $ 3 $ 96 $ 254 The following table presents the recorded investment in loans by credit quality indicators as of December 31, 2022: Special (In Thousands) Pass Mention Substandard Doubtful Total Commercial real estate - non-owner occupied $ 654,430 $ 9,486 $ 11,681 $ 0 $ 675,597 Commercial real estate - owner occupied 202,702 1,909 371 0 204,982 All other commercial loans 383,846 2,516 23,616 0 409,978 Residential mortgage loans 387,944 0 5,638 0 393,582 Consumer loans 54,353 0 521 0 54,874 Purchased credit impaired 0 0 1,027 0 1,027 Total $ 1,683,275 $ 13,911 $ 42,854 $ 0 $ 1,740,040 The following table is a summary of the Corporation’s nonaccrual loans by major categories for the periods indicated. September 30, 2023 December 31, 2022 Nonaccrual Loans with Nonaccrual Loans Total Nonaccrual (In Thousands) No Allowance with an Allowance Loans Nonaccrual Loans Commercial real estate - non-owner occupied $ 1,669 $ 7,362 $ 9,031 $ 6,350 Commercial real estate - owner occupied 1,283 303 1,586 19 All other commercial loans 1,194 196 1,390 11,528 Residential mortgage loans 3,244 0 3,244 3,974 Consumer loans 250 0 250 187 Purchased credit impaired 0 0 0 1,027 Total $ 7,640 $ 7,861 $ 15,501 $ 23,085 The Corporation recognized $317,000 and $744,000 of interest income on nonaccrual loans during the three months and nine months ended September 30, 2023, respectively. The following table represents the accrued interest receivable written off by reversing interest income during the three-month and nine-month periods ended September 30, 2023: Three Months Ended Nine Months Ended (In Thousands) September 30, 2023 September 30, 2023 Commercial real estate - non-owner occupied $ 22 $ 48 Residential mortgage loans 11 17 Consumer loans 0 2 Total $ 33 $ 67 The Corporation has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: ● Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate. ● All other commercial loans are typically secured by business assets including inventory, equipment and receivables. ● Residential mortgage loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage. ● Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral. The following table details the amortized cost of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses on loans allocated to these loans: September 30, 2023 Amortized (In Thousands) Cost Allowance Commercial real estate - non-owner occupied $ 9,031 $ 664 Commercial real estate - owner occupied 1,586 61 All other commercial loans 1,390 95 Total $ 12,007 $ 820 The following table summarizes the activity related to the ACL for the three and nine months ended September 30, 2023 under the CECL methodology. Commercial Commercial All real estate - real estate - other Residential nonowner owner commercial mortgage Consumer (In Thousands) occupied occupied loans loans loans Unallocated Total Balance, June 30, 2023 $ 10,603 $ 2,025 $ 3,686 $ 2,464 $ 278 $ 0 $ 19,056 Charge-offs 0 0 (7) 0 (91) 0 (98) Recoveries 0 0 34 8 18 0 60 (Credit) provision for credit losses on loans (268) (161) (161) (479) 136 0 (933) Balance, September 30, 2023 $ 10,335 $ 1,864 $ 3,552 $ 1,993 $ 341 $ 0 $ 18,085 Commercial Commercial All real estate - real estate - other Residential nonowner owner commercial mortgage Consumer (In Thousands) occupied occupied loans loans loans Unallocated Total Balance, December 31, 2022 $ 6,305 $ 1,942 $ 4,142 $ 2,751 $ 475 $ 1,000 $ 16,615 Adoption of ASU 2016-13 (CECL) 3,763 7 (88) (344) (234) (1,000) 2,104 Charge-offs 0 0 (12) (33) (254) 0 (299) Recoveries 0 0 34 10 30 0 74 (Credit) provision for credit losses on loans 267 (85) (524) (391) 324 0 (409) Balance, September 30, 2023 $ 10,335 $ 1,864 $ 3,552 $ 1,993 $ 341 $ 0 $ 18,085 Prior to the adoption of ASC 326 on January 1, 2023, the Corporation calculated the allowance for loan losses under the incurred loss methodology. The following tables are disclosed related to the allowance for loan losses in prior periods. Three Months Ended September 30, 2022 June 30, 2022 September 30, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,982 $ (2,160) $ 0 $ 3,225 $ 6,047 Commercial and industrial 2,792 0 0 31 2,823 Commercial construction and land 515 0 0 169 684 Loans secured by farmland 112 0 0 1 113 Multi-family (5 or more) residential 339 0 0 88 427 Agricultural loans 23 0 0 (1) 22 Other commercial loans 131 0 0 (9) 122 Total commercial 8,894 (2,160) 0 3,504 10,238 Residential mortgage: Residential mortgage loans - first liens 3,689 0 1 229 3,919 Residential mortgage loans - junior liens 180 0 0 14 194 Home equity lines of credit 308 0 0 25 333 1-4 Family residential construction 215 0 0 36 251 Total residential mortgage 4,392 0 1 304 4,697 Consumer 261 (36) 24 (14) 235 Unallocated 1,000 0 0 0 1,000 Total Allowance for Loan Losses $ 14,547 $ (2,196) $ 25 $ 3,794 $ 16,170 Nine Months Ended September 30, 2022 December 31, 2021 September 30, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,405 $ (2,160) $ 0 $ 3,802 $ 6,047 Commercial and industrial 2,723 (150) 0 250 2,823 Commercial construction and land 637 0 0 47 684 Loans secured by farmland 115 0 0 (2) 113 Multi-family (5 or more) residential 215 0 0 212 427 Agricultural loans 25 0 0 (3) 22 Other commercial loans 173 0 0 (51) 122 Total commercial 8,293 (2,310) 0 4,255 10,238 Residential mortgage: Residential mortgage loans - first liens 3,650 0 3 266 3,919 Residential mortgage loans - junior liens 184 0 0 10 194 Home equity lines of credit 302 0 15 16 333 1-4 Family residential construction 202 0 0 49 251 Total residential mortgage 4,338 0 18 341 4,697 Consumer 235 (107) 39 68 235 Unallocated 671 0 0 329 1,000 Total Allowance for Loan Losses $ 13,537 $ (2,417) $ 57 $ 4,993 $ 16,170 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, 2022. December 31, 2022 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 7,154 $ 675,095 $ 682,249 $ 427 $ 6,647 $ 7,074 Commercial and industrial 11,223 167,048 178,271 26 2,883 2,909 Paycheck Protection Program - 1st Draw 0 5 5 0 0 0 Paycheck Protection Program - 2nd Draw 0 163 163 0 0 0 Political subdivisions 0 90,719 90,719 0 0 0 Commercial construction and land 244 73,719 73,963 0 647 647 Loans secured by farmland 76 12,874 12,950 0 112 112 Multi-family (5 or more) residential 0 55,886 55,886 0 411 411 Agricultural loans 57 2,378 2,435 0 21 21 Other commercial loans 0 14,857 14,857 0 124 124 Total commercial 18,754 1,092,744 1,111,498 453 10,845 11,298 Residential mortgage: Residential mortgage loans - first liens 506 509,276 509,782 0 3,413 3,413 Residential mortgage loans - junior liens 30 24,919 24,949 0 167 167 Home equity lines of credit 68 43,730 43,798 0 282 282 1-4 Family residential construction 0 30,577 30,577 0 211 211 Total residential mortgage 604 608,502 609,106 0 4,073 4,073 Consumer 0 19,436 19,436 0 244 244 Unallocated 1,000 Total $ 19,358 $ 1,720,682 $ 1,740,040 $ 453 $ 15,162 $ 16,615 Prior to the adoption of ASU 2016-13, loans were classified as impaired when, based on current information and events, it was probable that the Corporation would 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 included payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experienced insignificant payment delays and payment shortfalls generally were not classified as impaired. Management determined 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 was measured on a loan-by-loan basis for commercial loans by the fair value of the collateral (if the loan is collateral dependent), by future cash flows discounted at the loan’s effective rate or by the loan’s observable market price. The scope of loans reviewed individually each quarter to determine if they were impaired included all commercial loan relationships greater than $200,000 and any residential mortgage or consumer loans of $400,000 or more Summary information related to impaired loans at December 31, 2022 is provided in the table immediately below. (In Thousands) December 31, 2022 Unpaid Principal Recorded Related Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 8,563 $ 3,754 $ 0 Commercial and industrial 12,926 11,163 0 Residential mortgage loans - first liens 506 506 0 Residential mortgage loans - junior liens 68 30 0 Home equity lines of credit 68 68 0 Loans secured by farmland 76 76 0 Agricultural loans 57 57 0 Construction and other land loans 244 244 0 Total with no related allowance recorded 22,508 15,898 0 With a related allowance recorded: Commercial loans secured by real estate 3,400 3,400 427 Commercial and industrial 60 60 26 Total with a related allowance recorded 3,460 3,460 453 Total $ 25,968 $ 19,358 $ 453 The average balance of impaired loans and interest income recognized on these impaired loans is as follows: (In Thousands) Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2022 2022 2022 Commercial: Commercial loans secured by real estate $ 9,710 $ 9,804 $ 143 $ 483 Commercial and industrial 371 839 4 207 Commercial construction and land 47 47 0 1 Loans secured by farmland 79 81 0 0 Multi-family (5 or more) residential 0 263 0 1,156 Agricultural loans 59 61 0 2 Total commercial 10,266 11,095 147 1,849 Residential mortgage: Residential mortgage loans - first lien 612 587 5 17 Residential mortgage loans - junior lien 31 33 0 6 Home equity lines of credit 68 34 1 3 Total residential mortgage 711 654 6 26 Total $ 10,977 $ 11,749 $ 153 $ 1,875 The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty, such as extensions of terms, insignificant payment delays and interest rate reductions, is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Corporation modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. There were no loans modified to borrowers experiencing financial difficulty in the three-month and nine-month periods ended September 30, 2023. The carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in foreclosed assets held for sale in the unaudited consolidated balance sheets) is as follows: (In Thousands) September 30, December 31, 2023 2022 Foreclosed residential real estate $ 202 $ 0 The recorded investment of consumer mortgage loans secured by residential real properties for which formal foreclosure proceedings were in process is as follows: (In Thousands) September 30, December 31, 2023 2022 Residential real estate in process of foreclosure $ 1,049 $ 1,229 The Corporation maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, commercial letters of credit and credit enhancement obligations related to residential mortgage loans sold with recourse, when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable (i.e. commitment cannot be canceled at any time). The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. The allowance for credit losses for off-balance sheet exposures of $900,000 at September 30, 2023 and $425,000 at December 31, 2022, is included in accrued interest and other liabilities on the unaudited consolidated balance sheets. The following table presents the balance and activity in the allowance for credit losses for off-balance sheet exposures for the three and nine months ended September 30, 2023. Three Months Nine Months Ended Ended (In Thousands) September 30, 2023 September 30, 2023 Beginning Balance $ 1,154 $ 425 Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13 0 793 Recoveries 38 38 Credit for unfunded commitments (292) (356) Balance, September 30, 2023 $ 900 $ 900 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. At September 30, 2023 and December 31, 2022, the net carrying value of goodwill was $52,505,000. Information related to core deposit intangibles is as follows: (In Thousands) September 30, December 31, 2023 2022 Gross amount $ 6,639 $ 6,639 Accumulated amortization (4,068) (3,762) Net $ 2,571 $ 2,877 Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Amortization expense $ 102 $ 110 $ 306 $ 329 |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2023 | |
BORROWED FUNDS | |
BORROWED FUNDS | 8. BORROWED FUNDS SHORT-TERM BORROWINGS Short-term borrowings (initial maturity within one year) include the following: (In Thousands) September 30, December 31, 2023 2022 FHLB-Pittsburgh borrowings $ 21,500 $ 77,000 Customer repurchase agreements 1,753 3,062 Total short-term borrowings $ 23,253 $ 80,062 The Corporation had available credit with other correspondent banks totaling $95,000,000 at September 30, 2023 and December 31, 2022. These lines of credit are primarily unsecured. No amounts were outstanding at September 30, 2023 or December 31, 2022. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At September 30, 2023, the Corporation had available credit in the amount of $20,766,000 on this line with no outstanding advances. At December 31, 2022, the Corporation had available credit in the amount of $23,107,000 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 $21,731,000 at September 30, 2023 and $24,113,000 at December 31, 2022. 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 September 30, 2023 and December 31, 2022. The carrying value of the underlying securities was $1,770,000 at September 30, 2023 and $3,080,000 at December 31, 2022. The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $1,321,417,000 at September 30, 2023 and $1,209,179,000 at December 31, 2022. 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 in the consolidated balance sheets) were $14,570,000 at September 30, 2023 and $14,168,000 at December 31, 2022. The Corporation’s total credit facility with FHLB-Pittsburgh was $918,798,000 at September 30, 2023, including an unused (available) amount of $752,847,000. At December 31, 2022, the Corporation’s total credit facility with FHLB-Pittsburgh was $839,378,000, including an unused (available) amount of $689,279,000. At September 30, 2023, short-term borrowings included an overnight borrowing from FHLB-Pittsburgh of $6,500,000 at an interest rate of 5.68% and an advance of $15,000,000 maturing in October 2023 with an interest rate of 5.61%. At December 31, 2022, the overnight borrowing from FHLB-Pittsburgh was $77,000,000 at an interest rate of 4.45% with no other short-term advances. LONG-TERM BORROWINGS – FHLB ADVANCES Long-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) September 30, December 31, 2023 2022 Loan maturing in 2023 with a rate of 3.25% $ 2,290 $ 9,303 Loans maturing in 2024 with a weighted-average rate of 2.89% 29,784 29,813 Loans maturing in 2025 with a weighted-average rate of 4.12% 35,653 23,231 Loans maturing in 2026 with a weighted-average rate of 4.44% 31,518 0 Loans maturing in 2027 with a weighted-average rate of 4.00% 24,031 0 Loan maturing in 2028 with a rate of 3.72% 2,000 0 Total long-term FHLB-Pittsburgh borrowings $ 125,276 $ 62,347 Note: Weighted-average rates are presented as of September 30, 2023. SENIOR NOTES In 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 $16,000 in the third quarter 2023 and $49,000 in the nine-month period ended September 30, 2023, and $16,000 in the third quarter 2022 and $48,000 in the nine month-period ended September 30, 2022, was included in interest expense in the unaudited consolidated statements of income. At September 30, 2023 and December 31, 2022, outstanding Senior Notes are as follows: (In Thousands) September 30, December 31, 2023 2022 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 $ 14,814 $ 14,765 Total carrying value $ 14,814 $ 14,765 SUBORDINATED DEBT In 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 $28,000 in the third quarter 2023 and $82,000 in the nine-month period ended September 30, 2023, and $27,000 in the third quarter 2022 and $79,000 in the nine-month period ended September 30, 2022, was included in interest expense in the unaudited consolidated statements of income. At September 30, 2023 and December 31, 2022, the carrying amounts of subordinated debt agreements are as follows: (In Thousands) September 30, December 31, 2023 2022 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 $ 24,689 $ 24,607 Total carrying value $ 24,689 $ 24,607 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 9. STOCK-BASED COMPENSATION PLANS The Corporation had a Stock Incentive Plan for a selected group of officers and an Independent Directors Stock Incentive Plan. The 2023 restricted stock awards under the Stock Incentive Plan vest ratably over three years, and the 2023 restricted stock issued under the Independent Directors Stock Incentive Plan vests over one year. There were no restricted stock awards granted in the three-month periods ended September 30, 2023 and June 30, 2023. Following is a summary of restricted stock awards granted in the three-month period ended March 31, 2023: (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2023 awards: Time-based awards to independent directors 11,000 $ 257 Time-based awards to employees 31,684 740 Performance-based awards to employees 11,104 259 Total 53,788 $ 1,256 Effective April 20, 2023, the Corporation’s shareholders approved a new plan, the Citizens & Northern Corporation 2023 Equity Incentive Plan (the “2023 Equity Incentive Plan”). New awards to employees and independent directors will be governed under the 2023 Equity Incentive Plan, while outstanding awards under the prior plans (including the awards made in the first quarter 2023) will be governed under the prior plans. Compensation cost related to restricted stock is recognized based on the fair value of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. Total annual stock-based compensation for the year ending December 31, 2023 is estimated to total $1,340,000. Total stock-based compensation expense attributable to restricted stock awards amounted to $320,000 in the third quarter 2023 and $388,000 in the third quarter 2022. Total stock-based compensation expense attributable to restricted stock awards amount to $1,015,000 in the nine-month period ended September 30, 2023 and $1,169,000 in the nine-month period ended September 30, 2022. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
CONTINGENCIES | |
CONTINGENCIES | 10. CONTINGENCIES 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. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 11. DERIVATIVE FINANCIAL INSTRUMENTS The Corporation is a party to derivative financial instruments. These financial instruments consist of interest rate swap agreements and risk participation agreements (RPAs) 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 $152,536,000 at September 30, 2023 and $155,214,000 at December 31, 2022. There were no interest rate swaps originated in the three or nine-month periods ended September 30, 2023 and 2022. There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at September 30, 2023. The net impact on the consolidated statements of income from interest rate swaps was an increase in interest income on loans of $502,000 in the third quarter 2023 and $1,286,000 in the nine-month period ended September 30, 2023 as compared to a reduction in interest income on loans of $4,000 in third quarter 2022 and $541,000 in the nine months ended September 30, 2022. The Corporation has entered into an RPA with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA In.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Corporation has provided a loan structured with a derivative, the Corporation purchased an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA Out.” The net impact on the consolidated statements of income from RPAs was an increase in other noninterest income of $1,000 in the third quarter 2023 and $19,000 in the nine-month period ended September 30, 2023 with no comparable amount in the third quarter 2022 and in the nine months ended September 30, 2022. 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 September 30, 2023 and December 31, 2022: (In Thousands) At September 30, 2023 At December 31, 2022 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 $ 76,268 $ 4,545 $ 76,268 $ 4,545 $ 77,607 $ 3,638 $ 77,607 $ 3,638 RPA Out 7,111 6 0 0 7,200 0 0 0 RPA In 0 0 10,000 6 0 0 10,000 19 (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 agreements with its derivative counterparties provide 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 counterparties 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 $2,251,000 were pledged as collateral against the Corporation’s obligations related to the interest rate swaps at September 30, 2023. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 12. FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS The Corporation measures certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB topic 820, “Fair Value Measurements and Disclosures” establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Corporation for identical assets or liabilities. 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 or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities 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 or liability becoming active or inactive, changes in the availability of quoted prices, or changes in the availability of other market data. At September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value and the valuation methods used are as follows: September 30, 2023 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 $ 30,557 $ 0 $ 0 $ 30,557 Obligations of U.S. Government agencies 0 18,796 0 18,796 Bank holding company debt securities 0 22,311 0 22,311 Obligations of states and political subdivisions: Tax-exempt 0 104,453 0 104,453 Taxable 0 53,457 0 53,457 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 94,469 0 94,469 Residential collateralized mortgage obligations 0 33,397 0 33,397 Commercial mortgage-backed securities 0 63,672 0 63,672 Private label commercial mortgage-backed securities 0 8,026 0 8,026 Total available-for-sale debt securities 30,557 398,581 0 429,138 Marketable equity security 832 0 0 832 Servicing rights 0 0 2,630 2,630 RPA Out 0 6 0 6 Interest rate swap agreements, assets 0 4,545 0 4,545 Total recurring fair value measurements, assets $ 31,389 $ 403,132 $ 2,630 $ 437,151 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 4,545 $ 0 $ 4,545 Nonrecurring fair value measurements, assets: Loans individually evaluated for credit loss, net $ 0 $ 0 $ 7,041 $ 7,041 Foreclosed assets held for sale 0 0 633 633 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 7,674 $ 7,674 December 31, 2022 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 $ 31,836 $ 0 $ 0 $ 31,836 Obligations of U.S. Government agencies 0 23,430 0 23,430 Bank holding company debt securities 0 25,386 0 25,386 Obligations of states and political subdivisions: Tax-exempt 0 132,623 0 132,623 Taxable 0 56,812 0 56,812 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 99,941 0 99,941 Residential collateralized mortgage obligations 0 40,296 0 40,296 Commercial mortgage-backed securities 0 79,686 0 79,686 Private label commercial mortgage-backed securities 0 8,023 0 8,023 Total available-for-sale debt securities 31,836 466,197 0 498,033 Marketable equity security 859 0 0 859 Servicing rights 0 0 2,653 2,653 Interest rate swap agreements, assets 0 3,638 0 3,638 Total recurring fair value measurements, assets $ 32,695 $ 469,835 $ 2,653 $ 505,183 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,638 $ 0 $ 3,638 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 3,007 $ 3,007 Foreclosed assets held for sale 0 0 275 275 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 3,282 $ 3,282 Management’s evaluation and selection of valuation techniques and the unobservable inputs used in determining the fair values of assets valued using Level 3 methodologies include sensitive assumptions. Other market participants might use substantially different assumptions, which could result in calculations of fair values that would be substantially different than the amount calculated by management. At September 30, 2023 and December 31, 2022, quantitative information regarding valuation techniques and the significant unobservable inputs used for assets measured on a recurring basis using unobservable inputs (Level 3 methodologies) are as follows: Fair Value at 9/30/2023 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 9/30/2023 Servicing rights $ 2,630 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 129.00 % 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 12/31/2022 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2022 Servicing rights $ 2,653 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 133.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs The fair value of servicing rights is affected by expected future interest rates. Increases (decreases) in future expected interest rates tend to increase (decrease) the fair value of the Corporation’s servicing rights because of changes in expected prepayment behavior by the borrowers on the underlying loans. Unrealized gains (losses) in fair value of servicing rights are included in Loan servicing fees, net, in the unaudited consolidated statements of income. Following is a reconciliation of activity for Level 3 assets measured at fair value on a recurring basis: (In Thousands) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Servicing rights balance, beginning of period $ 2,607 $ 2,640 $ 2,653 $ 2,329 Originations of servicing rights 64 33 113 192 Unrealized (loss) gain included in earnings (41) (24) (136) 128 Servicing rights balance, end of period $ 2,630 $ 2,649 $ 2,630 $ 2,649 Loans are individually evaluated for credit loss 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 individually evaluated 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 September 30, 2023 and December 31, 2022, quantitative information regarding valuation techniques and the significant unobservable inputs used for nonrecurring fair value measurements using Level 3 methodologies are as follows: (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 9/30/2023 9/30/2023 9/30/2023 Technique Inputs 9/30/2023 Loans individually evaluated for credit loss: Commercial real estate - nonowner occupied $ 7,362 $ 664 $ 6,698 Sales comparison Discount to appraised value 25 % Commercial real estate - owner occupied 303 61 242 Sales comparison & SBA guaranty Discount to appraised value 57 % All other commercial loans 196 95 101 Liquidation & SBA guaranty Discount to appraised value 18 % Total loans individually evaluated for credit loss $ 7,861 $ 820 $ 7,041 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 202 $ 0 $ 202 Sales comparison Discount to appraised value 38 % Commercial real estate 431 0 431 Sales comparison Discount to appraised value 45 % Total foreclosed assets held for sale $ 633 $ 0 $ 633 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2022 12/31/2022 12/31/2022 Technique Inputs 12/31/2022 Impaired loans: Commercial: Commercial loans secured by real estate $ 3,400 $ 427 $ 2,973 Sales comparison Discount to appraised value 25 % Commercial and industrial 60 26 34 Liquidation of assets Discount to appraised value 33 % Total impaired loans $ 3,460 $ 453 $ 3,007 Foreclosed assets held for sale - real estate: Commercial real estate $ 275 $ 0 $ 275 Sales comparison Discount to appraised value 50 % Total foreclosed assets held for sale $ 275 $ 0 $ 275 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 September 30, 2023 December 31, 2022 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 48,308 $ 48,308 $ 47,698 $ 47,698 Certificates of deposit Level 2 4,350 4,033 7,350 6,956 Restricted equity securities (included in other assets) Level 2 21,062 21,062 14,418 14,418 Loans, net Level 3 1,812,585 1,732,232 1,723,425 1,674,002 Accrued interest receivable Level 2 9,311 9,311 8,653 8,653 Financial liabilities: Deposits with no stated maturity Level 2 1,603,033 1,603,033 1,702,404 1,702,404 Time deposits Level 2 421,964 419,686 295,189 293,814 Short-term borrowings Level 2 23,253 23,253 80,062 80,062 Long-term borrowings Level 2 125,276 123,056 62,347 60,944 Senior debt Level 2 14,814 12,870 14,765 9,712 Subordinated debt Level 2 24,689 20,184 24,607 16,186 Accrued interest payable Level 2 1,464 1,464 461 461 The Corporation has commitments to extend credit and has issued standby letters of credit. Standby letters of credit are conditional guarantees of performance by a customer to a third party. Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties. |
BASIS OF INTERIM PRESENTATION_2
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements - Adopted | Recent Accounting Pronouncements - Adopted On January 1, 2023, the Corporation adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated (“PCD”) loans will receive an initial allowance at the acquisition date that represents an adjustment to the amortized cost basis of the loan, with no impact to earnings. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Corporation adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. Therefore, upon adoption of ASC 326, the Company determined that an allowance for credit losses on available for sale debt securities was not necessary. Effective January 1, 2023, the Corporation adopted ASC 326 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). The following table illustrates the impact from the adoption of ASC 326: As Reported Under Pre-ASC 326 Impact of ASC 326 Adoption ASC 326 (In Thousands) January 1, 2023 December 31, 2022 Adoption Loans receivable $ 1,740,846 $ 1,740,040 $ 806 Allowance for credit losses on loans $ 18,719 $ 16,615 $ 2,104 Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) 1,218 425 793 Deferred tax asset, net 21,323 20,884 439 Retained earnings 150,091 151,743 (1,652) The Corporation adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”) under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of PCD assets was adjusted to establish the allowance for credit losses. Essentially all of the PCD loans were reported as nonaccrual loans at January 1, 2023 and September 30, 2023. ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This update reduces the complexity of accounting for Troubled Debt Restructurings (“TDRs”) by eliminating certain accounting guidance, enhancing disclosures and improving the consistency of vintage disclosures. The Corporation adopted ASU 2022-02 on January 1, 2023. Changes in disclosure requirements in accordance with ASU 2022-02 are reflected in Note 6. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements. |
Allowance for Credit Losses - Available-for-Sale Debt Securities | Allowance for Credit Losses – Available-for-Sale Debt Securities For available-for-sale debt securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Corporation has the intent to sell the security or it is more likely than not that the Corporation will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Corporation evaluates whether the decline in fair value is the result of credit losses or other factors. The Corporation has elected the practical expedient of zero credit loss estimates for securities issued or guaranteed by U.S. Government entities or agencies. In making the credit loss assessment of securities not issued or guaranteed by U.S. Government entities or agencies, the Corporation may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit losses when management believes an available-for-sale debt security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At September 30, 2023, there was no allowance for credit losses related to the available-for-sale portfolio. Accrued interest receivable on available-for-sale debt securities totaled $2,688,000 at September 30, 2023 and was excluded from the estimate of credit losses. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Accrued interest receivable on loans totaled $6,590,000 at September 30, 2023 and was excluded from the estimate of credit losses. The allowance for credit losses (“ACL”) includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis), and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and which are individually evaluated for credit losses (individual basis). Evaluation of Expected Losses on Individual Loans Loans evaluated on an individual basis are identified based on a detailed assessment of certain larger loan relationships, and their related credit risk ratings, by a management committee referred to as the Watch List Committee. The allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Corporation will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. The scope of loans reviewed individually for credit loss each quarter includes 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. Additionally, all PCD loans are evaluated individually for credit loss. Collective Evaluation of Expected Losses – Pool Basis The Corporation measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Corporation has identified the following portfolio segments and calculates the allowance for credit losses for each using the weighted-average remaining maturity (“WARM”) method: Commercial real estate - nonowner occupied, further broken down into the following classes: Nonowner occupied Multi-family (5 or more) residential 1-4 Family - commercial purpose Commercial real estate - owner occupied All other commercial loans, further broken down into the following classes: Commercial and industrial Commercial lines of credit Political subdivisions Commercial construction and land Other commercial loans Residential mortgage loans, further broken down into the following classes: 1-4 Family – residential 1-4 Family residential construction and land Consumer loans, further broken down into the following classes: Consumer lines of credit (including HELOCs) All other consumer In determining the pools for collective evaluation, management uses a combination of loan purpose, collateral and payment type (for example, lines of credit vs. amortizing). The pools identified are similar to the loan classes used in the Corporation’s financial reporting for several years, with several exceptions including the following which are of the most significance: ● Commercial real estate secured loans are broken out between non-owner occupied and owner-occupied ● Loans secured by 1-4 family residential mortgages are broken out between consumer-purpose and commercial-purpose ● Commercial lines of credit are broken out as an individual category Each of these changes was made to better sort loans into pools with similar risk and cash flow characteristics. Estimation Method - WARM (Weighted-Average Remaining Maturity Method) In applying the WARM method, for each pool identified above, the Corporation determined the annual net charge-offs as a percentage of average total loan balances (net charge-off percentage). In the January 1, 2023 calculation, the Corporation used the annualized net charge-off percentage over the prior 5 calendar years. In the September 30, 2023 calculation, the Corporation used the net charge-off percentage for the 5.75 -year period ended September 30, 2023. For each loan pool, the average annualized net charge-off percentage was multiplied by the estimated weighted-average remaining average life of the loans to calculate the loss rate. The calculation of the estimated weighted-average remaining life of each loan pool was based on instrument-level data, with contractual principal payments adjusted for the estimated impact of prepayments. Commercial lines of credit and other revolving credit facilities were generally assumed to be repaid after 1 year. The estimated weighted-average remaining life of the entire portfolio was calculated to be 4.16 years at September 30, 2023 and 4.36 years at January 1, 2023. Management determined that use of the Corporation’s net charge-off experience over a 5.75 -year period at September 30, 2023 and 5-year period at January 1, 2023 would provide a reasonable time period to include in the WARM expected loss rate calculations in relationship to the weighted-average life of the portfolio overall and to each of the pools. Qualitative Factors The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are deemed likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments generally increase allowance levels and include adjustments for factors deemed relevant, including: the nature and volume of portfolio changes, including loan portfolio growth; concentrations of credit based on loan type (such as non-owner occupied commercial real estate) or industry; the volume and severity of past due, nonaccrual or adversely classified loans; trends in real estate or other collateral values; lending policies and procedures, including changes in underwriting and collections practices; credit review function; lending, credit and other relevant management experience and risk tolerance; external factors and economic conditions not already captured. Economic Forecast ASC Topic 326 requires management to consider forward-looking information that is both reasonable and supportable and relevant to the collectability of cash flows. Reasonable and supportable forecasts may extend over the entire contractual term of a financial asset or a period shorter than the contractual term. In that regard, management has selected a forecast period of 2 years , which is shorter than the estimated weighted-average remaining life of the loan portfolio. The Corporation calculated an additional expected credit loss based on establishing a correlation between past loss experience and an economic statistic. This additional credit loss is added to the allowance calculation, conceptually for the first 2 years of the weighted-average remaining life of the portfolio after which time the credit loss for each pool is determined based on the WARM historical loss rate as adjusted for qualitative factors. |
Allowance for Credit Losses on Off-Balance Sheet Exposures | Allowance for Credit Losses on Off-Balance Sheet Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commercial letters of credit and credit enhancement obligations related to residential mortgage loans sold with recourse. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Corporation records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Corporation’s statements of income. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for off-balance sheet exposures is included in accrued interest and other liabilities in the Corporation’s unaudited consolidated balance sheets and the related credit expense is recorded in the provision for credit losses in the unaudited consolidated statements of income. |
BASIS OF INTERIM PRESENTATION_3
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Schedule of impact on the allowance for credit losses from the adoption of ASC 326 | As Reported Under Pre-ASC 326 Impact of ASC 326 Adoption ASC 326 (In Thousands) January 1, 2023 December 31, 2022 Adoption Loans receivable $ 1,740,846 $ 1,740,040 $ 806 Allowance for credit losses on loans $ 18,719 $ 16,615 $ 2,104 Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) 1,218 425 793 Deferred tax asset, net 21,323 20,884 439 Retained earnings 150,091 151,743 (1,652) |
PER SHARE DATA (Tables)
PER SHARE DATA (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Basic Net income $ 7,591 $ 4,455 $ 19,887 $ 18,839 Less: Dividends and undistributed earnings allocated to participating securities (57) (39) (156) (169) Net income attributable to common shares $ 7,534 $ 4,416 $ 19,731 $ 18,670 Basic weighted-average common shares outstanding 15,154,797 15,364,075 15,264,391 15,482,672 Basic earnings per common share (a) $ 0.50 $ 0.29 $ 1.29 $ 1.21 Diluted Net income attributable to common shares $ 7,534 $ 4,416 $ 19,731 $ 18,670 Basic weighted-average common shares outstanding 15,154,797 15,364,075 15,264,391 15,482,672 Dilutive effect of potential common stock arising from stock options 0 3,114 4 3,276 Diluted weighted-average common shares outstanding 15,154,797 15,367,189 15,264,395 15,485,948 Diluted earnings per common share (a) $ 0.50 $ 0.29 $ 1.29 $ 1.21 Weighted-average nonvested restricted shares outstanding 113,328 136,040 120,632 139,761 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
COMPREHENSIVE INCOME (LOSS) | |
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 Three Months Ended September 30, 2023 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (14,865) $ 3,123 $ (11,742) Reclassification adjustment for gains realized in income 0 0 0 Other comprehensive loss from available-for-sale debt securities (14,865) 3,123 (11,742) Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (14) 3 (11) Other comprehensive loss on unfunded retirement obligations (14) 3 (11) Total other comprehensive loss $ (14,879) $ 3,126 $ (11,753) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (25,880) $ 5,437 $ (20,443) Reclassification adjustment for (gains) realized in income (20) 4 (16) Other comprehensive loss from available-for-sale debt securities (25,900) 5,441 (20,459) Unfunded pension and postretirement obligations: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (9) 1 (8) Other comprehensive loss on unfunded retirement obligations (9) 1 (8) Total other comprehensive loss $ (25,909) $ 5,442 $ (20,467) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2023 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (12,535) $ 2,632 $ (9,903) Reclassification adjustment for (gains) realized in income (6) 1 (5) Other comprehensive loss from available-for-sale debt securities (12,541) 2,633 (9,908) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (8) 1 (7) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (42) 9 (33) Other comprehensive loss on unfunded retirement obligations (50) 10 (40) Total other comprehensive loss $ (12,591) $ 2,643 $ (9,948) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (77,923) $ 16,365 $ (61,558) Reclassification adjustment for (gains) realized in income (21) 4 (17) Other comprehensive loss from available-for-sale debt securities (77,944) 16,369 (61,575) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 133 (27) 106 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (31) 5 (26) Other comprehensive income on unfunded retirement obligations 102 (22) 80 Total other comprehensive loss $ (77,842) $ 16,347 $ (61,495) |
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) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Three Months Ended September 30, 2023 Balance, beginning of period $ (48,536) 463 $ (48,073) Other comprehensive loss during three months ended September 30, 2023 (11,742) (11) (11,753) Balance, end of period $ (60,278) $ 452 $ (59,826) Three Months Ended September 30, 2022 Balance, beginning of period $ (36,307) $ 305 $ (36,002) Other comprehensive loss during three months ended September 30, 2022 (20,459) (8) (20,467) Balance, end of period $ (56,766) $ 297 $ (56,469) (In Thousands) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Nine Months Ended September 30, 2023 Balance, beginning of period $ (50,370) $ 492 $ (49,878) Other comprehensive loss during nine months ended September 30, 2023 (9,908) (40) (9,948) Balance, end of period $ (60,278) $ 452 $ (59,826) Nine Months Ended September 30, 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive loss during nine months ended September 30, 2022 (61,575) 80 (61,495) Balance, end of period $ (56,766) $ 297 $ (56,469) |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In Thousands) September 30, December 31, 2023 2022 Cash and cash equivalents $ 48,308 $ 47,698 Certificates of deposit 4,350 7,350 Total cash and due from banks $ 52,658 $ 55,048 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale debt securities | (In Thousands) September 30, 2023 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 33,938 $ 0 $ (3,381) $ 30,557 Obligations of U.S. Government agencies 21,372 0 (2,576) 18,796 Bank holding company debt securities 28,950 0 (6,639) 22,311 Obligations of states and political subdivisions: Tax-exempt 123,598 114 (19,259) 104,453 Taxable 65,408 0 (11,951) 53,457 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 109,102 0 (14,633) 94,469 Residential collateralized mortgage obligations 38,267 0 (4,870) 33,397 Commercial mortgage-backed securities 76,627 0 (12,955) 63,672 Private label commercial mortgage-backed securities 8,178 0 (152) 8,026 Total available-for-sale debt securities $ 505,440 $ 114 $ (76,416) $ 429,138 (In Thousands) December 31, 2022 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 35,166 $ 0 $ (3,330) $ 31,836 Obligations of U.S. Government agencies 25,938 0 (2,508) 23,430 Bank holding company debt securities 28,945 0 (3,559) 25,386 Obligations of states and political subdivisions: Tax-exempt 146,149 319 (13,845) 132,623 Taxable 68,488 0 (11,676) 56,812 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,782 0 (12,841) 99,941 Residential collateralized mortgage obligations 44,868 0 (4,572) 40,296 Commercial mortgage-backed securities 91,388 0 (11,702) 79,686 Private label commercial mortgage-backed securities 8,070 2 (49) 8,023 Total available-for-sale debt securities $ 561,794 $ 321 $ (64,082) $ 498,033 |
Schedule of gross unrealized losses and fair value of available-for-sale debt securities | September 30, 2023 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 $ 0 0 $ 30,557 (3,381) $ 30,557 $ (3,381) Obligations of U.S. Government agencies 1,850 (8) 16,946 (2,568) 18,796 (2,576) Bank holding company debt securities 0 0 22,311 (6,639) 22,311 (6,639) Obligations of states and political subdivisions: Tax-exempt 4,172 (268) 96,600 (18,991) 100,772 (19,259) Taxable 0 0 53,457 (11,951) 53,457 (11,951) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 9,304 (412) 83,619 (14,221) 92,923 (14,633) Residential collateralized mortgage obligations 2,662 (130) 30,735 (4,740) 33,397 (4,870) Commercial mortgage-backed securities 2,211 (130) 61,461 (12,825) 63,672 (12,955) Private label commercial mortgage-backed securities 8,026 (152) 0 0 8,026 (152) Total temporarily impaired available-for-sale debt securities $ 28,225 $ (1,100) $ 395,686 $ (75,316) $ 423,911 $ (76,416) December 31, 2022 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 $ 20,192 $ (1,939) $ 11,644 $ (1,391) $ 31,836 $ (3,330) Obligations of U.S. Government agencies 8,509 (430) 12,921 (2,078) 21,430 (2,508) Bank holding company debt securities 14,248 (1,697) 11,138 (1,862) 25,386 (3,559) Obligations of states and political subdivisions: Tax-exempt 106,204 (11,023) 15,153 (2,822) 121,357 (13,845) Taxable 28,901 (4,739) 27,761 (6,937) 56,662 (11,676) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 45,410 (4,226) 54,531 (8,615) 99,941 (12,841) Residential collateralized mortgage obligations 28,670 (2,042) 11,626 (2,530) 40,296 (4,572) Commercial mortgage-backed securities 40,408 (2,585) 39,278 (9,117) 79,686 (11,702) Private label commercial mortgage-backed securities 4,762 (49) 0 0 4,762 (49) Total temporarily impaired available-for-sale debt securities $ 297,304 $ (28,730) $ 184,052 $ (35,352) $ 481,356 $ (64,082) |
Schedule of gross realized gains and losses from available-for-sale | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Gross realized gains from sales $ 0 $ 44 $ 89 $ 48 Gross realized losses from sales 0 (24) (83) (27) Net realized gains $ 0 $ 20 $ 6 $ 21 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) September 30, 2023 Amortized Fair Cost Value Due in one year or less $ 10,899 $ 10,672 Due from one year through five years 70,095 64,235 Due from five years through ten years 80,423 66,554 Due after ten years 111,849 88,113 Sub-total 273,266 229,574 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 109,102 94,469 Residential collateralized mortgage obligations 38,267 33,397 Commercial mortgage-backed securities 76,627 63,672 Private label commercial mortgage-backed securities 8,178 8,026 Total $ 505,440 $ 429,138 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Summary of loans outstanding | Summary of Loans by Type (In Thousands) September 30, December 31, 2023 2022 (1) Commercial real estate - non-owner occupied $ 737,287 $ 675,597 Commercial real estate - owner occupied 231,112 205,910 All other commercial loans 395,703 410,077 Residential mortgage loans 410,013 393,582 Consumer loans 56,555 54,874 Total 1,830,670 1,740,040 Less: allowance for credit losses on loans (18,085) (16,615) Loans, net $ 1,812,585 $ 1,723,425 (1) Total loans at December 31, 2022 include purchased credit impaired loans of $1,027,000. |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (1,000) $ (866) $ (916) $ (637) (Amortization) accretion recognized in interest income (16) 5 (100) (224) Adjustments to gross amortized cost of loans at end of period $ (1,016) $ (861) $ (1,016) $ (861) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,446) $ (2,403) $ (1,840) $ (3,335) Accretion recognized in interest income 147 308 541 1,240 Adjustments to gross amortized cost of loans at end of period $ (1,299) $ (2,095) $ (1,299) $ (2,095) |
Summary of the past due loans | (In Thousands) As of September 30, 2023 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 4 $ 132 $ 9,031 $ 728,120 $ 737,287 Commercial real estate - owner occupied 151 0 1,586 229,375 231,112 All other commercial loans 1,438 162 1,390 392,713 395,703 Residential mortgage loans 1,569 892 3,244 404,308 410,013 Consumer loans 513 106 250 55,686 56,555 Total $ 3,675 $ 1,292 $ 15,501 $ 1,810,202 $ 1,830,670 The following table presents an analysis of past due loans as of December 31, 2022: (In Thousands) As of December 31, 2022 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 644 $ 947 $ 6,350 $ 667,656 $ 675,597 Commercial real estate - owner occupied 723 141 19 204,099 204,982 All other commercial loans 537 151 11,528 397,762 409,978 Residential mortgage loans 4,540 866 3,974 384,202 393,582 Consumer loans 635 132 187 53,920 54,874 Purchased credit impaired 0 0 1,027 0 1,027 Total $ 7,079 $ 2,237 $ 23,085 $ 1,707,639 $ 1,740,040 |
Schedule of aggregate credit quality classification of outstanding loans by risk | (In Thousands) Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total Commercial real estate - non-owner occupied Pass $ 83,002 $ 188,426 $ 91,246 $ 55,618 $ 80,858 $ 211,778 $ 0 $ 710,928 Special Mention 0 0 2,475 0 119 8,147 0 10,741 Substandard 0 0 0 2,577 610 12,431 0 15,618 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - non-owner occupied $ 83,002 $ 188,426 $ 93,721 $ 58,195 $ 81,587 $ 232,356 $ 0 $ 737,287 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Commercial real estate - owner occupied Pass $ 28,058 $ 37,306 $ 52,680 $ 13,245 $ 17,722 $ 75,113 $ 0 $ 224,124 Special Mention 0 0 2,617 0 0 1,301 0 3,918 Substandard 0 0 0 0 0 3,070 0 3,070 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - owner occupied $ 28,058 $ 37,306 $ 55,297 $ 13,245 $ 17,722 $ 79,484 $ 0 $ 231,112 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 All other commercial loans Pass $ 39,638 $ 94,942 $ 53,556 $ 29,097 $ 17,364 $ 25,489 $ 112,698 $ 372,784 Special Mention 0 0 4,642 0 0 805 400 5,847 Substandard 0 3,091 1,250 435 2,151 1,121 9,024 17,072 Doubtful 0 0 0 0 0 0 0 0 Total all other commercial loans $ 39,638 $ 98,033 $ 59,448 $ 29,532 $ 19,515 $ 27,415 $ 122,122 $ 395,703 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 12 $ 12 Residential mortgage loans Pass $ 44,449 $ 88,378 $ 57,166 $ 40,943 $ 33,257 $ 140,684 $ 0 $ 404,877 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 0 289 369 4,478 0 5,136 Doubtful 0 0 0 0 0 0 0 0 Total residential mortgage loans $ 44,449 $ 88,378 $ 57,166 $ 41,232 $ 33,626 $ 145,162 $ 0 $ 410,013 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 33 $ 0 $ 33 Consumer loans Pass $ 5,216 $ 5,070 $ 2,227 $ 1,372 $ 238 $ 991 $ 40,512 $ 55,626 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 1 12 5 78 833 929 Doubtful 0 0 0 0 0 0 0 0 Total consumer loans $ 5,216 $ 5,070 $ 2,228 $ 1,384 $ 243 $ 1,069 $ 41,345 $ 56,555 Year-to-date gross charge-offs $ 0 $ 134 $ 0 $ 18 $ 3 $ 3 $ 96 $ 254 The following table presents the recorded investment in loans by credit quality indicators as of December 31, 2022: Special (In Thousands) Pass Mention Substandard Doubtful Total Commercial real estate - non-owner occupied $ 654,430 $ 9,486 $ 11,681 $ 0 $ 675,597 Commercial real estate - owner occupied 202,702 1,909 371 0 204,982 All other commercial loans 383,846 2,516 23,616 0 409,978 Residential mortgage loans 387,944 0 5,638 0 393,582 Consumer loans 54,353 0 521 0 54,874 Purchased credit impaired 0 0 1,027 0 1,027 Total $ 1,683,275 $ 13,911 $ 42,854 $ 0 $ 1,740,040 |
Schedule of nonaccrual loans by major categories for the periods | September 30, 2023 December 31, 2022 Nonaccrual Loans with Nonaccrual Loans Total Nonaccrual (In Thousands) No Allowance with an Allowance Loans Nonaccrual Loans Commercial real estate - non-owner occupied $ 1,669 $ 7,362 $ 9,031 $ 6,350 Commercial real estate - owner occupied 1,283 303 1,586 19 All other commercial loans 1,194 196 1,390 11,528 Residential mortgage loans 3,244 0 3,244 3,974 Consumer loans 250 0 250 187 Purchased credit impaired 0 0 0 1,027 Total $ 7,640 $ 7,861 $ 15,501 $ 23,085 |
Schedule of accrued Interest receivables written off | Three Months Ended Nine Months Ended (In Thousands) September 30, 2023 September 30, 2023 Commercial real estate - non-owner occupied $ 22 $ 48 Residential mortgage loans 11 17 Consumer loans 0 2 Total $ 33 $ 67 |
Schedule of collateral dependent loans | September 30, 2023 Amortized (In Thousands) Cost Allowance Commercial real estate - non-owner occupied $ 9,031 $ 664 Commercial real estate - owner occupied 1,586 61 All other commercial loans 1,390 95 Total $ 12,007 $ 820 |
Schedule of transactions within the allowance for loan losses | Commercial Commercial All real estate - real estate - other Residential nonowner owner commercial mortgage Consumer (In Thousands) occupied occupied loans loans loans Unallocated Total Balance, June 30, 2023 $ 10,603 $ 2,025 $ 3,686 $ 2,464 $ 278 $ 0 $ 19,056 Charge-offs 0 0 (7) 0 (91) 0 (98) Recoveries 0 0 34 8 18 0 60 (Credit) provision for credit losses on loans (268) (161) (161) (479) 136 0 (933) Balance, September 30, 2023 $ 10,335 $ 1,864 $ 3,552 $ 1,993 $ 341 $ 0 $ 18,085 Commercial Commercial All real estate - real estate - other Residential nonowner owner commercial mortgage Consumer (In Thousands) occupied occupied loans loans loans Unallocated Total Balance, December 31, 2022 $ 6,305 $ 1,942 $ 4,142 $ 2,751 $ 475 $ 1,000 $ 16,615 Adoption of ASU 2016-13 (CECL) 3,763 7 (88) (344) (234) (1,000) 2,104 Charge-offs 0 0 (12) (33) (254) 0 (299) Recoveries 0 0 34 10 30 0 74 (Credit) provision for credit losses on loans 267 (85) (524) (391) 324 0 (409) Balance, September 30, 2023 $ 10,335 $ 1,864 $ 3,552 $ 1,993 $ 341 $ 0 $ 18,085 Three Months Ended September 30, 2022 June 30, 2022 September 30, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,982 $ (2,160) $ 0 $ 3,225 $ 6,047 Commercial and industrial 2,792 0 0 31 2,823 Commercial construction and land 515 0 0 169 684 Loans secured by farmland 112 0 0 1 113 Multi-family (5 or more) residential 339 0 0 88 427 Agricultural loans 23 0 0 (1) 22 Other commercial loans 131 0 0 (9) 122 Total commercial 8,894 (2,160) 0 3,504 10,238 Residential mortgage: Residential mortgage loans - first liens 3,689 0 1 229 3,919 Residential mortgage loans - junior liens 180 0 0 14 194 Home equity lines of credit 308 0 0 25 333 1-4 Family residential construction 215 0 0 36 251 Total residential mortgage 4,392 0 1 304 4,697 Consumer 261 (36) 24 (14) 235 Unallocated 1,000 0 0 0 1,000 Total Allowance for Loan Losses $ 14,547 $ (2,196) $ 25 $ 3,794 $ 16,170 Nine Months Ended September 30, 2022 December 31, 2021 September 30, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,405 $ (2,160) $ 0 $ 3,802 $ 6,047 Commercial and industrial 2,723 (150) 0 250 2,823 Commercial construction and land 637 0 0 47 684 Loans secured by farmland 115 0 0 (2) 113 Multi-family (5 or more) residential 215 0 0 212 427 Agricultural loans 25 0 0 (3) 22 Other commercial loans 173 0 0 (51) 122 Total commercial 8,293 (2,310) 0 4,255 10,238 Residential mortgage: Residential mortgage loans - first liens 3,650 0 3 266 3,919 Residential mortgage loans - junior liens 184 0 0 10 194 Home equity lines of credit 302 0 15 16 333 1-4 Family residential construction 202 0 0 49 251 Total residential mortgage 4,338 0 18 341 4,697 Consumer 235 (107) 39 68 235 Unallocated 671 0 0 329 1,000 Total Allowance for Loan Losses $ 13,537 $ (2,417) $ 57 $ 4,993 $ 16,170 |
Summary of loan balances and the related allowance for loan losses | December 31, 2022 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 7,154 $ 675,095 $ 682,249 $ 427 $ 6,647 $ 7,074 Commercial and industrial 11,223 167,048 178,271 26 2,883 2,909 Paycheck Protection Program - 1st Draw 0 5 5 0 0 0 Paycheck Protection Program - 2nd Draw 0 163 163 0 0 0 Political subdivisions 0 90,719 90,719 0 0 0 Commercial construction and land 244 73,719 73,963 0 647 647 Loans secured by farmland 76 12,874 12,950 0 112 112 Multi-family (5 or more) residential 0 55,886 55,886 0 411 411 Agricultural loans 57 2,378 2,435 0 21 21 Other commercial loans 0 14,857 14,857 0 124 124 Total commercial 18,754 1,092,744 1,111,498 453 10,845 11,298 Residential mortgage: Residential mortgage loans - first liens 506 509,276 509,782 0 3,413 3,413 Residential mortgage loans - junior liens 30 24,919 24,949 0 167 167 Home equity lines of credit 68 43,730 43,798 0 282 282 1-4 Family residential construction 0 30,577 30,577 0 211 211 Total residential mortgage 604 608,502 609,106 0 4,073 4,073 Consumer 0 19,436 19,436 0 244 244 Unallocated 1,000 Total $ 19,358 $ 1,720,682 $ 1,740,040 $ 453 $ 15,162 $ 16,615 |
Summary of information related to impaired loans | (In Thousands) December 31, 2022 Unpaid Principal Recorded Related Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 8,563 $ 3,754 $ 0 Commercial and industrial 12,926 11,163 0 Residential mortgage loans - first liens 506 506 0 Residential mortgage loans - junior liens 68 30 0 Home equity lines of credit 68 68 0 Loans secured by farmland 76 76 0 Agricultural loans 57 57 0 Construction and other land loans 244 244 0 Total with no related allowance recorded 22,508 15,898 0 With a related allowance recorded: Commercial loans secured by real estate 3,400 3,400 427 Commercial and industrial 60 60 26 Total with a related allowance recorded 3,460 3,460 453 Total $ 25,968 $ 19,358 $ 453 |
Schedule of average balance of impaired loans and interest income recognized on impaired loans | (In Thousands) Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2022 2022 2022 Commercial: Commercial loans secured by real estate $ 9,710 $ 9,804 $ 143 $ 483 Commercial and industrial 371 839 4 207 Commercial construction and land 47 47 0 1 Loans secured by farmland 79 81 0 0 Multi-family (5 or more) residential 0 263 0 1,156 Agricultural loans 59 61 0 2 Total commercial 10,266 11,095 147 1,849 Residential mortgage: Residential mortgage loans - first lien 612 587 5 17 Residential mortgage loans - junior lien 31 33 0 6 Home equity lines of credit 68 34 1 3 Total residential mortgage 711 654 6 26 Total $ 10,977 $ 11,749 $ 153 $ 1,875 |
Schedule of carrying amount of foreclosed residential real estate properties | (In Thousands) September 30, December 31, 2023 2022 Foreclosed residential real estate $ 202 $ 0 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) September 30, December 31, 2023 2022 Residential real estate in process of foreclosure $ 1,049 $ 1,229 |
Schedule of Off-Balance-Sheet | Three Months Nine Months Ended Ended (In Thousands) September 30, 2023 September 30, 2023 Beginning Balance $ 1,154 $ 425 Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13 0 793 Recoveries 38 38 Credit for unfunded commitments (292) (356) Balance, September 30, 2023 $ 900 $ 900 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of core deposit intangibles | (In Thousands) September 30, December 31, 2023 2022 Gross amount $ 6,639 $ 6,639 Accumulated amortization (4,068) (3,762) Net $ 2,571 $ 2,877 |
Schedule of amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Amortization expense $ 102 $ 110 $ 306 $ 329 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
BORROWED FUNDS | |
Schedule of short term borrowings | (In Thousands) September 30, December 31, 2023 2022 FHLB-Pittsburgh borrowings $ 21,500 $ 77,000 Customer repurchase agreements 1,753 3,062 Total short-term borrowings $ 23,253 $ 80,062 |
Schedule of long term borrowings | (In Thousands) September 30, December 31, 2023 2022 Loan maturing in 2023 with a rate of 3.25% $ 2,290 $ 9,303 Loans maturing in 2024 with a weighted-average rate of 2.89% 29,784 29,813 Loans maturing in 2025 with a weighted-average rate of 4.12% 35,653 23,231 Loans maturing in 2026 with a weighted-average rate of 4.44% 31,518 0 Loans maturing in 2027 with a weighted-average rate of 4.00% 24,031 0 Loan maturing in 2028 with a rate of 3.72% 2,000 0 Total long-term FHLB-Pittsburgh borrowings $ 125,276 $ 62,347 |
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 | |
BORROWED FUNDS | |
Schedule of outstanding debt | (In Thousands) September 30, December 31, 2023 2022 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 $ 14,814 $ 14,765 Total carrying value $ 14,814 $ 14,765 |
3.25% maturing in June 2031 and redeemable at par in June 2026 | |
BORROWED FUNDS | |
Schedule of outstanding debt | (In Thousands) September 30, December 31, 2023 2022 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 $ 24,689 $ 24,607 Total carrying value $ 24,689 $ 24,607 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
Summary of restricted stock awards granted | (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2023 awards: Time-based awards to independent directors 11,000 $ 257 Time-based awards to employees 31,684 740 Performance-based awards to employees 11,104 259 Total 53,788 $ 1,256 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 At December 31, 2022 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 $ 76,268 $ 4,545 $ 76,268 $ 4,545 $ 77,607 $ 3,638 $ 77,607 $ 3,638 RPA Out 7,111 6 0 0 7,200 0 0 0 RPA In 0 0 10,000 6 0 0 10,000 19 (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) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets measured at fair value and the valuation methods used | September 30, 2023 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 $ 30,557 $ 0 $ 0 $ 30,557 Obligations of U.S. Government agencies 0 18,796 0 18,796 Bank holding company debt securities 0 22,311 0 22,311 Obligations of states and political subdivisions: Tax-exempt 0 104,453 0 104,453 Taxable 0 53,457 0 53,457 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 94,469 0 94,469 Residential collateralized mortgage obligations 0 33,397 0 33,397 Commercial mortgage-backed securities 0 63,672 0 63,672 Private label commercial mortgage-backed securities 0 8,026 0 8,026 Total available-for-sale debt securities 30,557 398,581 0 429,138 Marketable equity security 832 0 0 832 Servicing rights 0 0 2,630 2,630 RPA Out 0 6 0 6 Interest rate swap agreements, assets 0 4,545 0 4,545 Total recurring fair value measurements, assets $ 31,389 $ 403,132 $ 2,630 $ 437,151 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 4,545 $ 0 $ 4,545 Nonrecurring fair value measurements, assets: Loans individually evaluated for credit loss, net $ 0 $ 0 $ 7,041 $ 7,041 Foreclosed assets held for sale 0 0 633 633 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 7,674 $ 7,674 December 31, 2022 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 $ 31,836 $ 0 $ 0 $ 31,836 Obligations of U.S. Government agencies 0 23,430 0 23,430 Bank holding company debt securities 0 25,386 0 25,386 Obligations of states and political subdivisions: Tax-exempt 0 132,623 0 132,623 Taxable 0 56,812 0 56,812 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 99,941 0 99,941 Residential collateralized mortgage obligations 0 40,296 0 40,296 Commercial mortgage-backed securities 0 79,686 0 79,686 Private label commercial mortgage-backed securities 0 8,023 0 8,023 Total available-for-sale debt securities 31,836 466,197 0 498,033 Marketable equity security 859 0 0 859 Servicing rights 0 0 2,653 2,653 Interest rate swap agreements, assets 0 3,638 0 3,638 Total recurring fair value measurements, assets $ 32,695 $ 469,835 $ 2,653 $ 505,183 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,638 $ 0 $ 3,638 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 3,007 $ 3,007 Foreclosed assets held for sale 0 0 275 275 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 3,282 $ 3,282 |
Schedule of reconciliation of level 3 activity | (In Thousands) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Servicing rights balance, beginning of period $ 2,607 $ 2,640 $ 2,653 $ 2,329 Originations of servicing rights 64 33 113 192 Unrealized (loss) gain included in earnings (41) (24) (136) 128 Servicing rights balance, end of period $ 2,630 $ 2,649 $ 2,630 $ 2,649 |
Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value | (In Thousands) Fair Value September 30, 2023 December 31, 2022 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 48,308 $ 48,308 $ 47,698 $ 47,698 Certificates of deposit Level 2 4,350 4,033 7,350 6,956 Restricted equity securities (included in other assets) Level 2 21,062 21,062 14,418 14,418 Loans, net Level 3 1,812,585 1,732,232 1,723,425 1,674,002 Accrued interest receivable Level 2 9,311 9,311 8,653 8,653 Financial liabilities: Deposits with no stated maturity Level 2 1,603,033 1,603,033 1,702,404 1,702,404 Time deposits Level 2 421,964 419,686 295,189 293,814 Short-term borrowings Level 2 23,253 23,253 80,062 80,062 Long-term borrowings Level 2 125,276 123,056 62,347 60,944 Senior debt Level 2 14,814 12,870 14,765 9,712 Subordinated debt Level 2 24,689 20,184 24,607 16,186 Accrued interest payable Level 2 1,464 1,464 461 461 |
Recurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | Fair Value at 9/30/2023 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 9/30/2023 Servicing rights $ 2,630 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 129.00 % 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 12/31/2022 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2022 Servicing rights $ 2,653 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 133.00 % 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 9/30/2023 9/30/2023 9/30/2023 Technique Inputs 9/30/2023 Loans individually evaluated for credit loss: Commercial real estate - nonowner occupied $ 7,362 $ 664 $ 6,698 Sales comparison Discount to appraised value 25 % Commercial real estate - owner occupied 303 61 242 Sales comparison & SBA guaranty Discount to appraised value 57 % All other commercial loans 196 95 101 Liquidation & SBA guaranty Discount to appraised value 18 % Total loans individually evaluated for credit loss $ 7,861 $ 820 $ 7,041 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 202 $ 0 $ 202 Sales comparison Discount to appraised value 38 % Commercial real estate 431 0 431 Sales comparison Discount to appraised value 45 % Total foreclosed assets held for sale $ 633 $ 0 $ 633 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2022 12/31/2022 12/31/2022 Technique Inputs 12/31/2022 Impaired loans: Commercial: Commercial loans secured by real estate $ 3,400 $ 427 $ 2,973 Sales comparison Discount to appraised value 25 % Commercial and industrial 60 26 34 Liquidation of assets Discount to appraised value 33 % Total impaired loans $ 3,460 $ 453 $ 3,007 Foreclosed assets held for sale - real estate: Commercial real estate $ 275 $ 0 $ 275 Sales comparison Discount to appraised value 50 % Total foreclosed assets held for sale $ 275 $ 0 $ 275 |
BASIS OF INTERIM PRESENTATION_4
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS - Recent Accounting Pronouncements (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |||
Loans receivable | $ 1,740,040,000 | ||
Allowance for credit losses | $ 18,085,000 | 16,615,000 | |
Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) | 900,000 | $ 1,154,000 | 425,000 |
Deferred tax asset, net | 23,731,000 | 20,884,000 | |
Retained earnings | $ 157,044,000 | 151,743,000 | |
Accounting Standards Update 2022-02 [Member] | Adjustment | |||
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |||
Loans receivable | 806,000 | ||
Allowance for credit losses | 2,104,000 | ||
Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) | $ 0 | 793,000 | |
Deferred tax asset, net | 439,000 | ||
Retained earnings | (1,652,000) | ||
Accounting Standards Update 2022-02 [Member] | Adoption under ASC 326 | |||
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |||
Loans receivable | 1,740,846,000 | ||
Allowance for credit losses | 18,719,000 | ||
Allowance for credit losses on off-balance sheet exposures (included in accrued interest and other liabilities) | 1,218,000 | ||
Deferred tax asset, net | 21,323,000 | ||
Retained earnings | $ 150,091,000 |
BASIS OF INTERIM PRESENTATION_5
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS - ACL Debt Securities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
RECENT ACCOUNTING PRONOUNCEMENTS | ||
Allowance for credit loss available for sale debt securities | $ 0 | $ 0 |
Interest receivable | $ 2,688,000 |
BASIS OF INTERIM PRESENTATION_6
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS - ACL on Loans (Details) - USD ($) | 9 Months Ended | |
Jan. 01, 2023 | Sep. 30, 2023 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | ||
Interest receivable excluded from the estimate of credit losses | $ 6,590,000 | |
Financing Receivable, Estimated Weighted Average Remaining Maturity Average Life | 4 years 4 months 9 days | 4 years 1 month 28 days |
Past period charge offs used to calculate current charge offs | 5 years | 5 years 9 months |
Forecast relevant to collectability of cash flows | 2 years | |
Weighted-average remaining life of portfolio allowance calculation to which loss based on correlation between past loss and economic statistic is added | 2 years | |
Commercial | ||
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | ||
Threshold amount of financing receivables for credit losses | $ 200,000 | |
Residential mortgage loans | ||
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | ||
Threshold amount of financing receivables for credit losses | 400,000 | |
Consumer loans | ||
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | ||
Threshold amount of financing receivables for credit losses | $ 400,000 |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic | ||||
Net Income (Loss) | $ 7,591 | $ 4,455 | $ 19,887 | $ 18,839 |
Less: Dividends and undistributed earnings allocated to participating securities | (57) | (39) | (156) | (169) |
Net income attributable to common shares | $ 7,534 | $ 4,416 | $ 19,731 | $ 18,670 |
Basic weighted-average common shares outstanding (in shares) | 15,154,797 | 15,364,075 | 15,264,391 | 15,482,672 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.50 | $ 0.29 | $ 1.29 | $ 1.21 |
Diluted | ||||
Net income attributable to common shares | $ 7,534 | $ 4,416 | $ 19,731 | $ 18,670 |
Basic weighted-average common shares outstanding (in shares) | 15,154,797 | 15,364,075 | 15,264,391 | 15,482,672 |
Dilutive effect of potential common stock arising from stock options (in shares) | 0 | 3,114 | 4 | 3,276 |
Diluted weighted-average common shares outstanding (in shares) | 15,154,797 | 15,367,189 | 15,264,395 | 15,485,948 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.50 | $ 0.29 | $ 1.29 | $ 1.21 |
Weighted-average nonvested restricted shares outstanding (in shares) | 113,328 | 136,040 | 120,632 | 139,761 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 8,934 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) - C
COMPREHENSIVE INCOME (LOSS) - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized holding losses on available-for-sale debt securities | $ (14,865) | $ (25,880) | $ (12,535) | $ (77,923) |
Unrealized holding losses on available-for-sale debt securities, Income Tax Effect | 3,123 | 5,437 | 2,632 | 16,365 |
Unrealized holding gains (losses) on available-for-sale debt securities, Net of Tax Amount | (11,742) | (20,443) | (9,903) | (61,558) |
Reclassification adjustment for gains realized in income | 0 | (20) | (6) | (21) |
Reclassification adjustment for gains realized in income, Income Tax Effect | 0 | 4 | 1 | 4 |
Reclassification adjustment for gains realized in income. Net of Tax Amount | 0 | (16) | (5) | (17) |
Other comprehensive loss from available-for-sale debt securities, Before-Tax Amount | (14,865) | (25,900) | (12,541) | (77,944) |
Other comprehensive loss on available-for-sale debt securities, Income tax effect | 3,123 | 5,441 | 2,633 | 16,369 |
Other comprehensive loss from available-for-sale debt securities, Net-of-Tax Amount | (11,742) | (20,459) | (9,908) | (61,575) |
Changes from plan amendments and actuarial gains and losses, Before-Tax Amount | 0 | 0 | (8) | 133 |
Changes from plan amendments and actuarial gains and losses, Income Tax Effect | 1 | (27) | ||
Changes from plan amendments and actuarial gains and losses, Net-of-Tax Amount | (7) | 106 | ||
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Before-Tax Amount | (14) | (9) | (42) | (31) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Income Tax Effect | 3 | 1 | 9 | 5 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Net-of-Tax Amount | (11) | (8) | (33) | (26) |
Other comprehensive (loss) income on pension and postretirement obligations | (14) | (9) | (50) | 102 |
Other comprehensive income (loss) on unfunded retirement obligations, Income Tax Effect | 3 | 1 | 10 | (22) |
Other comprehensive income (loss) on unfunded retirement obligations, Net-of-Tax Amount | (11) | (8) | (40) | 80 |
Other comprehensive loss before income tax | (14,879) | (25,909) | (12,591) | (77,842) |
Total other comprehensive loss, Income Tax Effect | 3,126 | 5,442 | 2,643 | 16,347 |
Total other comprehensive loss, Net-of-Tax Amount | $ (11,753) | $ (20,467) | $ (9,948) | $ (61,495) |
COMPREHENSIVE INCOME (LOSS) -_2
COMPREHENSIVE INCOME (LOSS) - Changes of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance, beginning of period | $ 248,117 | $ 258,619 | $ 249,325 | $ 301,405 |
Other comprehensive loss | (11,753) | (20,467) | (9,948) | (61,495) |
Balance, end of period | 240,205 | 238,789 | 240,205 | 238,789 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Balance, beginning of period | (48,536) | (36,307) | (50,370) | 4,809 |
Other comprehensive loss | (11,742) | (20,459) | (9,908) | (61,575) |
Balance, end of period | (60,278) | (56,766) | (60,278) | (56,766) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Balance, beginning of period | 463 | 305 | 492 | 217 |
Other comprehensive loss | (11) | (8) | (40) | 80 |
Balance, end of period | 452 | 297 | 452 | 297 |
Accumulated Other Comprehensive (Loss) Income | ||||
Balance, beginning of period | (48,073) | (36,002) | (49,878) | 5,026 |
Other comprehensive loss | (11,753) | (20,467) | (9,948) | (61,495) |
Balance, end of period | $ (59,826) | $ (56,469) | $ (59,826) | $ (56,469) |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 48,308 | $ 47,698 |
Certificates of deposit | 4,350 | 7,350 |
Total cash and due from banks | $ 52,658 | $ 55,048 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | $ 505,440 | $ 561,794 |
Available-for-sale securities, gross unrealized holding gains | 114 | 321 |
Available-for-sale securities, gross unrealized holding losses | (76,416) | (64,082) |
Available-for-sale debt securities, at fair value | 429,138 | 498,033 |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 33,938 | 35,166 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (3,381) | (3,330) |
Available-for-sale debt securities, at fair value | 30,557 | 31,836 |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 21,372 | 25,938 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (2,576) | (2,508) |
Available-for-sale debt securities, at fair value | 18,796 | 23,430 |
Bank holding company debt securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 28,950 | 28,945 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (6,639) | (3,559) |
Available-for-sale debt securities, at fair value | 22,311 | 25,386 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 123,598 | 146,149 |
Available-for-sale securities, gross unrealized holding gains | 114 | 319 |
Available-for-sale securities, gross unrealized holding losses | (19,259) | (13,845) |
Available-for-sale debt securities, at fair value | 104,453 | 132,623 |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 65,408 | 68,488 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (11,951) | (11,676) |
Available-for-sale debt securities, at fair value | 53,457 | 56,812 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 109,102 | 112,782 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (14,633) | (12,841) |
Available-for-sale debt securities, at fair value | 94,469 | 99,941 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 38,267 | 44,868 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (4,870) | (4,572) |
Available-for-sale debt securities, at fair value | 33,397 | 40,296 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 76,627 | 91,388 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (12,955) | (11,702) |
Available-for-sale debt securities, at fair value | 63,672 | 79,686 |
Private label commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 8,178 | 8,070 |
Available-for-sale securities, gross unrealized holding gains | 0 | 2 |
Available-for-sale securities, gross unrealized holding losses | (152) | (49) |
Available-for-sale debt securities, at fair value | $ 8,026 | $ 8,023 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | $ 28,225,000 | $ 297,304,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (1,100,000) | (28,730,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 395,686,000 | 184,052,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (75,316,000) | (35,352,000) |
Available-for-sale securities with unrealized loss positions, fair value | 423,911,000 | 481,356,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (76,416,000) | (64,082,000) |
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 | 0 | 20,192,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | 0 | (1,939,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 30,557,000 | 11,644,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (3,381,000) | (1,391,000) |
Available-for-sale securities with unrealized loss positions, fair value | 30,557,000 | 31,836,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (3,381,000) | (3,330,000) |
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 | 1,850,000 | 8,509,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (8,000) | (430,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 16,946,000 | 12,921,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (2,568,000) | (2,078,000) |
Available-for-sale securities with unrealized loss positions, fair value | 18,796,000 | 21,430,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (2,576,000) | (2,508,000) |
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 | 0 | 14,248,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | 0 | (1,697,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 22,311,000 | 11,138,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (6,639,000) | (1,862,000) |
Available-for-sale securities with unrealized loss positions, fair value | 22,311,000 | 25,386,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (6,639,000) | (3,559,000) |
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 | 4,172,000 | 106,204,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (268,000) | (11,023,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 96,600,000 | 15,153,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (18,991,000) | (2,822,000) |
Available-for-sale securities with unrealized loss positions, fair value | 100,772,000 | 121,357,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (19,259,000) | (13,845,000) |
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 | 0 | 28,901,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | 0 | (4,739,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 53,457,000 | 27,761,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (11,951,000) | (6,937,000) |
Available-for-sale securities with unrealized loss positions, fair value | 53,457,000 | 56,662,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (11,951,000) | (11,676,000) |
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 | 9,304,000 | 45,410,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (412,000) | (4,226,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 83,619,000 | 54,531,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (14,221,000) | (8,615,000) |
Available-for-sale securities with unrealized loss positions, fair value | 92,923,000 | 99,941,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (14,633,000) | (12,841,000) |
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 | 2,662,000 | 28,670,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (130,000) | (2,042,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 30,735,000 | 11,626,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (4,740,000) | (2,530,000) |
Available-for-sale securities with unrealized loss positions, fair value | 33,397,000 | 40,296,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (4,870,000) | (4,572,000) |
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 | 2,211,000 | 40,408,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (130,000) | (2,585,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 61,461,000 | 39,278,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (12,825,000) | (9,117,000) |
Available-for-sale securities with unrealized loss positions, fair value | 63,672,000 | 79,686,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (12,955,000) | (11,702,000) |
Private label 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 | 8,026,000 | 4,762,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (152,000) | (49,000) |
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 | 8,026,000 | 4,762,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (152,000) | $ (49,000) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
SECURITIES | ||||
Gross realized gains from sales | $ 0 | $ 44 | $ 89 | $ 48 |
Gross realized losses from sales | 0 | (24) | (83) | (27) |
Net realized gains | $ 0 | $ 20 | $ 6 | $ 21 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale Securities | ||
Due in one year or less, amortized cost | $ 10,899 | |
Due in one year or less, fair value | 10,672 | |
Due from one year through five years. amortized cost | 70,095 | |
Due from one year through five years, fair value | 64,235 | |
Due from five years through ten years, amortized cost | 80,423 | |
Due from five years through ten years, fair value | 66,554 | |
Due after ten years, amortized cost | 111,849 | |
Due after ten years, fair value | 88,113 | |
Sub-total, amortized cost | 273,266 | |
Sub-total, fair value | 229,574 | |
Total, amortized cost | 505,440 | $ 561,794 |
Total, fair value | 429,138 | 498,033 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 109,102 | 112,782 |
Total, fair value | 94,469 | 99,941 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Total, amortized cost | 38,267 | 44,868 |
Total, fair value | 33,397 | 40,296 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 76,627 | 91,388 |
Total, fair value | 63,672 | 79,686 |
Private label commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 8,178 | 8,070 |
Total, fair value | $ 8,026 | $ 8,023 |
SECURITIES - Collateral (Detail
SECURITIES - Collateral (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investment Securities [Member] | ||
SECURITIES | ||
Investment pledged as collateral | $ 242,190,000 | $ 277,302,000 |
SECURITIES - Debt Securities (D
SECURITIES - Debt Securities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
SECURITIES | ||
Gross unrealized holding losses on available-for-sale debt securities | $ 76,416,000 | $ 64,082,000 |
Allowance for credit loss | $ 0 | $ 0 |
SECURITIES - Equity Securities
SECURITIES - Equity Securities (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) security | |
Equity Securities | |||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (27,000) | $ (38,000) | $ (27,000) | $ (114,000) | |
Mutual Fund | |||||
Equity Securities | |||||
Number of mutual funds | security | 1 | 1 | 1 | ||
Net gains recognized during the period on equity securities | $ 168,000 | $ (141,000) | |||
Other assets | |||||
Equity Securities | |||||
Federal Home Loan Bank Stock | $ 6,243,000 | 6,243,000 | |||
Marketable equity security | 832,000 | 832,000 | 859,000 | ||
Other assets | Federal Home Loan Bank of Pittsburgh | |||||
Equity Securities | |||||
Federal Home Loan Bank Stock | $ 14,570,000 | $ 14,570,000 | $ 14,168,000 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loans by Type (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | $ 1,830,670,000 | $ 1,740,040,000 | ||||
Allowance for credit losses on loans | (18,085,000) | $ (19,056,000) | (16,615,000) | $ (16,170,000) | $ (14,547,000) | $ (13,537,000) |
Purchased credit impaired loans | 1,027,000 | |||||
Loans, net | 1,812,585,000 | 1,723,425,000 | ||||
Commercial | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 1,111,498,000 | |||||
Allowance for credit losses on loans | (11,298,000) | $ (10,238,000) | $ (8,894,000) | $ (8,293,000) | ||
Commercial | Commercial real estate - non-owner occupied | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 737,287,000 | 675,597,000 | ||||
Allowance for credit losses on loans | (10,335,000) | (10,603,000) | (6,305,000) | |||
Commercial | Commercial real estate - owner occupied | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 231,112,000 | 205,910,000 | ||||
Allowance for credit losses on loans | (1,864,000) | (2,025,000) | (1,942,000) | |||
Commercial | All other commercial loans | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 395,703,000 | 410,077,000 | ||||
Allowance for credit losses on loans | (3,552,000) | (3,686,000) | (4,142,000) | |||
Residential mortgage loans | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 410,013,000 | 393,582,000 | ||||
Allowance for credit losses on loans | (1,993,000) | (2,464,000) | (2,751,000) | |||
Consumer loans | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans and Leases Receivable, Gross, Total | 56,555,000 | 54,874,000 | ||||
Allowance for credit losses on loans | $ (341,000) | $ (278,000) | $ (475,000) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Adjustments to Initial Discounts and Carrying Amounts of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Market Rate Adjustment | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Adjustments to gross amortized cost of loans at beginning of period | $ (1,000) | $ (866) | $ (916) | $ (637) |
Accretion (amortization) recognized in interest income | (16) | 5 | (100) | (224) |
Adjustments to gross amortized cost of loans at end of period | (1,016) | (861) | (1,016) | (861) |
Credit Adjustment on Non-impaired Loans | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Adjustments to gross amortized cost of loans at beginning of period | (1,446) | (2,403) | (1,840) | (3,335) |
Accretion (amortization) recognized in interest income | 147 | 308 | 541 | 1,240 |
Adjustments to gross amortized cost of loans at end of period | $ (1,299) | $ (2,095) | $ (1,299) | $ (2,095) |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Analysis of past due loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | $ 15,501 | $ 23,085 |
Loans and Leases Receivable, Gross, Total | 1,830,670 | 1,740,040 |
Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 3,675 | 7,079 |
Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,292 | 2,237 |
Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 1,810,202 | 1,707,639 |
Purchased Credit Impaired | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,027 | |
Loans and Leases Receivable, Gross, Total | 1,027 | |
Purchased Credit Impaired | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 0 | |
Purchased Credit Impaired | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 0 | |
Purchased Credit Impaired | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 0 | |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 1,111,498 | |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 9,031 | 6,350 |
Loans and Leases Receivable, Gross, Total | 737,287 | 675,597 |
Commercial | Commercial real estate - non-owner occupied | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 4 | 644 |
Commercial | Commercial real estate - non-owner occupied | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 132 | 947 |
Commercial | Commercial real estate - non-owner occupied | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 728,120 | 667,656 |
Commercial | Commercial real estate - owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,586 | 19 |
Loans and Leases Receivable, Gross, Total | 231,112 | 204,982 |
Commercial | Commercial real estate - owner occupied | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 151 | 723 |
Commercial | Commercial real estate - owner occupied | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 0 | 141 |
Commercial | Commercial real estate - owner occupied | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 229,375 | 204,099 |
Commercial | All other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,390 | 11,528 |
Loans and Leases Receivable, Gross, Total | 395,703 | 409,978 |
Commercial | All other commercial loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,438 | 537 |
Commercial | All other commercial loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 162 | 151 |
Commercial | All other commercial loans | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 392,713 | 397,762 |
Residential mortgage loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 3,244 | 3,974 |
Loans and Leases Receivable, Gross, Total | 410,013 | 393,582 |
Residential mortgage loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,569 | 4,540 |
Residential mortgage loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 892 | 866 |
Residential mortgage loans | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | 404,308 | 384,202 |
Consumer loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 250 | 187 |
Loans and Leases Receivable, Gross, Total | 56,555 | 54,874 |
Consumer loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 513 | 635 |
Consumer loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 106 | 132 |
Consumer loans | Financial Asset, Not Past Due [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans and Leases Receivable, Gross, Total | $ 55,686 | $ 53,920 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans By Credit Quality Indicators and Origination Year (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
LOANS | ||
Loans receivable | $ 1,830,670 | $ 1,740,040 |
Pass | ||
LOANS | ||
Loans receivable | 1,683,275 | |
Special Mention | ||
LOANS | ||
Loans receivable | 13,911 | |
Substandard | ||
LOANS | ||
Loans receivable | 42,854 | |
Doubtful | ||
LOANS | ||
Loans receivable | 0 | |
Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 1,027 | |
Purchased Credit Impaired | Pass | ||
LOANS | ||
Loans receivable | 0 | |
Purchased Credit Impaired | Special Mention | ||
LOANS | ||
Loans receivable | 0 | |
Purchased Credit Impaired | Substandard | ||
LOANS | ||
Loans receivable | 1,027 | |
Purchased Credit Impaired | Doubtful | ||
LOANS | ||
Loans receivable | 0 | |
Commercial | ||
LOANS | ||
Loans receivable | 1,111,498 | |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS | ||
2023 | 83,002 | |
2022 | 188,426 | |
2021 | 93,721 | |
2020 | 58,195 | |
2019 | 81,587 | |
Prior | 232,356 | |
Revolving | 0 | |
Loans receivable | 737,287 | 675,597 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial | Commercial real estate - non-owner occupied | Pass | ||
LOANS | ||
2023 | 83,002 | |
2022 | 188,426 | |
2021 | 91,246 | |
2020 | 55,618 | |
2019 | 80,858 | |
Prior | 211,778 | |
Revolving | 0 | |
Loans receivable | 710,928 | 654,430 |
Commercial | Commercial real estate - non-owner occupied | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,475 | |
2020 | 0 | |
2019 | 119 | |
Prior | 8,147 | |
Revolving | 0 | |
Loans receivable | 10,741 | 9,486 |
Commercial | Commercial real estate - non-owner occupied | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 2,577 | |
2019 | 610 | |
Prior | 12,431 | |
Revolving | 0 | |
Loans receivable | 15,618 | 11,681 |
Commercial | Commercial real estate - non-owner occupied | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | 0 |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | ||
LOANS | ||
Loans receivable | 231,112 | 204,982 |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Pass | ||
LOANS | ||
Loans receivable | 202,702 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Special Mention | ||
LOANS | ||
Loans receivable | 1,909 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Substandard | ||
LOANS | ||
Loans receivable | 371 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Doubtful | ||
LOANS | ||
Loans receivable | 0 | |
Commercial | Commercial real estate - owner occupied | ||
LOANS | ||
2023 | 28,058 | |
2022 | 37,306 | |
2021 | 55,297 | |
2020 | 13,245 | |
2019 | 17,722 | |
Prior | 79,484 | |
Revolving | 0 | |
Loans receivable | 231,112 | 205,910 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial | Commercial real estate - owner occupied | Pass | ||
LOANS | ||
2023 | 28,058 | |
2022 | 37,306 | |
2021 | 52,680 | |
2020 | 13,245 | |
2019 | 17,722 | |
Prior | 75,113 | |
Revolving | 0 | |
Loans receivable | 224,124 | |
Commercial | Commercial real estate - owner occupied | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,617 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1,301 | |
Revolving | 0 | |
Loans receivable | 3,918 | |
Commercial | Commercial real estate - owner occupied | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 3,070 | |
Revolving | 0 | |
Loans receivable | 3,070 | |
Commercial | Commercial real estate - owner occupied | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | ||
LOANS | ||
Loans receivable | 395,703 | 409,978 |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Pass | ||
LOANS | ||
Loans receivable | 383,846 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Special Mention | ||
LOANS | ||
Loans receivable | 2,516 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Substandard | ||
LOANS | ||
Loans receivable | 23,616 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Doubtful | ||
LOANS | ||
Loans receivable | 0 | |
Commercial | All other commercial loans | ||
LOANS | ||
Loans receivable | 395,703 | 410,077 |
Commercial | Other commercial loans | ||
LOANS | ||
2023 | 39,638 | |
2022 | 98,033 | |
2021 | 59,448 | |
2020 | 29,532 | |
2019 | 19,515 | |
Prior | 27,415 | |
Revolving | 122,122 | |
Loans receivable | 395,703 | 14,857 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 12 | |
Total | 12 | |
Commercial | Other commercial loans | Pass | ||
LOANS | ||
2023 | 39,638 | |
2022 | 94,942 | |
2021 | 53,556 | |
2020 | 29,097 | |
2019 | 17,364 | |
Prior | 25,489 | |
Revolving | 112,698 | |
Loans receivable | 372,784 | |
Commercial | Other commercial loans | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 4,642 | |
2020 | 0 | |
2019 | 0 | |
Prior | 805 | |
Revolving | 400 | |
Loans receivable | 5,847 | |
Commercial | Other commercial loans | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 3,091 | |
2021 | 1,250 | |
2020 | 435 | |
2019 | 2,151 | |
Prior | 1,121 | |
Revolving | 9,024 | |
Loans receivable | 17,072 | |
Commercial | Other commercial loans | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Residential mortgage | ||
LOANS | ||
2023 | 44,449 | |
2022 | 88,378 | |
2021 | 57,166 | |
2020 | 41,232 | |
2019 | 33,626 | |
Prior | 145,162 | |
Revolving | 0 | |
Loans receivable | 410,013 | 609,106 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 33 | |
Revolving | 0 | |
Total | 33 | |
Residential mortgage | Pass | ||
LOANS | ||
2023 | 44,449 | |
2022 | 88,378 | |
2021 | 57,166 | |
2020 | 40,943 | |
2019 | 33,257 | |
Prior | 140,684 | |
Revolving | 0 | |
Loans receivable | 404,877 | |
Residential mortgage | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Residential mortgage | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 289 | |
2019 | 369 | |
Prior | 4,478 | |
Revolving | 0 | |
Loans receivable | 5,136 | |
Residential mortgage | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Consumer | ||
LOANS | ||
2023 | 5,216 | |
2022 | 5,070 | |
2021 | 2,228 | |
2020 | 1,384 | |
2019 | 243 | |
Prior | 1,069 | |
Revolving | 41,345 | |
Loans receivable | 56,555 | $ 19,436 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 134 | |
2021 | 0 | |
2020 | 18 | |
2019 | 3 | |
Prior | 3 | |
Revolving | 96 | |
Total | 254 | |
Consumer | Pass | ||
LOANS | ||
2023 | 5,216 | |
2022 | 5,070 | |
2021 | 2,227 | |
2020 | 1,372 | |
2019 | 238 | |
Prior | 991 | |
Revolving | 40,512 | |
Loans receivable | 55,626 | |
Consumer | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Consumer | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 1 | |
2020 | 12 | |
2019 | 5 | |
Prior | 78 | |
Revolving | 833 | |
Loans receivable | 929 | |
Consumer | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 1,830,670 | $ 1,740,040 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,683,275 | |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 13,911 | |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 42,854 | |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Purchased Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,027 | |
Purchased Credit Impaired | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Purchased Credit Impaired | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Purchased Credit Impaired | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,027 | |
Purchased Credit Impaired | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,111,498 | |
Commercial | Commercial real estate - non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 737,287 | 675,597 |
Commercial | Commercial real estate - non-owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 710,928 | 654,430 |
Commercial | Commercial real estate - non-owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 10,741 | 9,486 |
Commercial | Commercial real estate - non-owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 15,618 | 11,681 |
Commercial | Commercial real estate - non-owner occupied | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 231,112 | 204,982 |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 202,702 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,909 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 371 | |
Commercial | Commercial Real Estate Loans Owner Occupied, Excluding Purchased Credit Impaired [ Member] | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Commercial | Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 231,112 | 205,910 |
Commercial | Commercial real estate - owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 224,124 | |
Commercial | Commercial real estate - owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 3,918 | |
Commercial | Commercial real estate - owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 3,070 | |
Commercial | Commercial real estate - owner occupied | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 395,703 | 409,978 |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 383,846 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 2,516 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 23,616 | |
Commercial | Commercial Loans Other Than Nonowner Occupied And Owner Occupied, Excluding Purchased Credit Impaired [Member] | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Commercial | All other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 395,703 | 410,077 |
Commercial | Other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 395,703 | 14,857 |
Commercial | Other commercial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 372,784 | |
Commercial | Other commercial loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 5,847 | |
Commercial | Other commercial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 17,072 | |
Commercial | Other commercial loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 410,013 | 393,582 |
Residential mortgage loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 387,944 | |
Residential mortgage loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Residential mortgage loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 5,638 | |
Residential mortgage loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 56,555 | 54,874 |
Consumer loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 54,353 | |
Consumer loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Consumer loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 521 | |
Consumer loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | $ 7,640 | |
Nonaccrual loans with an allowance | 7,861 | |
Total nonaccrual loans | 15,501 | $ 23,085 |
Purchased Credit Impaired | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 0 | |
Nonaccrual loans with an allowance | 0 | |
Total nonaccrual loans | 0 | 1,027 |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 1,669 | |
Nonaccrual loans with an allowance | 7,362 | |
Total nonaccrual loans | 9,031 | 6,350 |
Commercial | Commercial real estate - owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 1,283 | |
Nonaccrual loans with an allowance | 303 | |
Total nonaccrual loans | 1,586 | 19 |
Commercial | All other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 1,194 | |
Nonaccrual loans with an allowance | 196 | |
Total nonaccrual loans | 1,390 | 11,528 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 3,244 | |
Nonaccrual loans with an allowance | 0 | |
Total nonaccrual loans | 3,244 | 3,974 |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 250 | |
Nonaccrual loans with an allowance | 0 | |
Total nonaccrual loans | $ 250 | $ 187 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Accrued Interest Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Accrued Interest, written off | $ 33 | $ 67 |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Accrued Interest, written off | 22 | 48 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Accrued Interest, written off | 11 | 17 |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Accrued Interest, written off | $ 0 | $ 2 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Of Collateral Dependent Loans (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | $ 12,007 |
Allowance | 820 |
Commercial | Commercial real estate - non-owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 9,031 |
Allowance | 664 |
Commercial | Commercial real estate - owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 1,586 |
Allowance | 61 |
Commercial | All other commercial loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 1,390 |
Allowance | $ 95 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - CECL Adoption On Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | $ 18,085 | $ 19,056 | $ 16,615 | $ 16,170 | $ 14,547 | $ 13,537 |
Adoption of ASU 2016-13 (CECL) | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | $ 2,104 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | $ 19,056 | $ 14,547 | $ 16,615 | $ 13,537 | |
Allowance for credit losses | 18,085 | 18,085 | $ 16,615 | ||
Allowance for Loan losses, Charge-offs | (98) | (2,196) | (299) | (2,417) | |
Allowance for Loan losses, Recoveries | 60 | 25 | 74 | 57 | |
(Credit) provision for credit losses on loans | (933) | 3,794 | (409) | 4,993 | |
Allowance for Loan losses | 18,085 | 16,170 | 18,085 | 16,170 | |
Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 2,104 | ||||
Commercial | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 8,894 | 11,298 | 8,293 | ||
Allowance for Loan losses, Charge-offs | (2,160) | (2,310) | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 3,504 | 4,255 | |||
Allowance for Loan losses | 10,238 | 10,238 | |||
Commercial | Commercial real estate - non-owner occupied | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 10,603 | 6,305 | |||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | (268) | 267 | |||
Allowance for Loan losses | 10,335 | 10,335 | |||
Commercial | Commercial real estate - non-owner occupied | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 3,763 | ||||
Commercial | Commercial real estate - owner occupied | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 2,025 | 1,942 | |||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | (161) | (85) | |||
Allowance for Loan losses | 1,864 | 1,864 | |||
Commercial | Commercial real estate - owner occupied | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 7 | ||||
Commercial | All other commercial loans | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 3,686 | 4,142 | |||
Allowance for Loan losses, Charge-offs | (7) | (12) | |||
Allowance for Loan losses, Recoveries | 34 | 34 | |||
(Credit) provision for credit losses on loans | (161) | (524) | |||
Allowance for Loan losses | 3,552 | 3,552 | |||
Commercial | All other commercial loans | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | (88) | ||||
Commercial | Other commercial loans | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 131 | 124 | 173 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | (9) | (51) | |||
Allowance for Loan losses | 122 | 122 | |||
Commercial | Commercial and industrial | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 2,792 | 2,909 | 2,723 | ||
Allowance for Loan losses, Charge-offs | 0 | (150) | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 31 | 250 | |||
Allowance for Loan losses | 2,823 | 2,823 | |||
Commercial | Real estate loan | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 4,982 | 7,074 | 4,405 | ||
Allowance for Loan losses, Charge-offs | (2,160) | (2,160) | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 3,225 | 3,802 | |||
Allowance for Loan losses | 6,047 | 6,047 | |||
Commercial | Commercial Construction And Land | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 515 | 647 | 637 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 169 | 47 | |||
Allowance for Loan losses | 684 | 684 | |||
Commercial | Loans secured by farm land | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 112 | 112 | 115 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 1 | (2) | |||
Allowance for Loan losses | 113 | 113 | |||
Commercial | Multi-family (5 or more) residential | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 339 | 411 | 215 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 88 | 212 | |||
Allowance for Loan losses | 427 | 427 | |||
Commercial | Agricultural loans | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 23 | 21 | 25 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | (1) | (3) | |||
Allowance for Loan losses | 22 | 22 | |||
Residential mortgage loans | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 2,464 | 2,751 | |||
Allowance for Loan losses, Charge-offs | 0 | (33) | |||
Allowance for Loan losses, Recoveries | 8 | 10 | |||
(Credit) provision for credit losses on loans | (479) | (391) | |||
Allowance for Loan losses | 1,993 | 1,993 | |||
Residential mortgage loans | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | (344) | ||||
Residential mortgage | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 4,392 | 4,073 | 4,338 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 1 | 18 | |||
(Credit) provision for credit losses on loans | 304 | 341 | |||
Allowance for Loan losses | 4,697 | 4,697 | |||
Residential mortgage | Real estate loan | first liens | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 3,689 | 3,413 | 3,650 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 1 | 3 | |||
(Credit) provision for credit losses on loans | 229 | 266 | |||
Allowance for Loan losses | 3,919 | 3,919 | |||
Residential mortgage | Real estate loan | junior liens | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 180 | 167 | 184 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 14 | 10 | |||
Allowance for Loan losses | 194 | 194 | |||
Residential mortgage | 1-4 Family residential construction | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 215 | 211 | 202 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 0 | |||
(Credit) provision for credit losses on loans | 36 | 49 | |||
Allowance for Loan losses | 251 | 251 | |||
Residential mortgage | Home equity lines of credit | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 308 | 282 | 302 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | |||
Allowance for Loan losses, Recoveries | 0 | 15 | |||
(Credit) provision for credit losses on loans | 25 | 16 | |||
Allowance for Loan losses | 333 | 333 | |||
Consumer loans | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 278 | 475 | |||
Allowance for Loan losses, Charge-offs | (91) | (254) | |||
Allowance for Loan losses, Recoveries | 18 | 30 | |||
(Credit) provision for credit losses on loans | 136 | 324 | |||
Allowance for Loan losses | 341 | 341 | |||
Consumer loans | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | (234) | ||||
Consumer | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 261 | 244 | 235 | ||
Allowance for Loan losses, Charge-offs | (36) | (107) | |||
Allowance for Loan losses, Recoveries | 24 | 39 | |||
(Credit) provision for credit losses on loans | (14) | 68 | |||
Allowance for Loan losses | 235 | 235 | |||
Unallocated | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | 0 | 1,000 | 1,000 | 671 | |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 | |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 | |
(Credit) provision for credit losses on loans | 0 | 0 | 0 | 329 | |
Allowance for Loan losses | $ 0 | $ 1,000 | 0 | $ 1,000 | |
Unallocated | Adoption of ASU 2016-13 (CECL) | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Allowance for Loan losses | $ (1,000) |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Balances and Allowance for Loan Losses for Each Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | $ 19,358 | |||||
Loans receivable: Collectively Evaluated | 1,720,682 | |||||
Loans receivable | $ 1,830,670 | 1,740,040 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 453 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 15,162 | |||||
Allowance for loan losses | 18,085 | $ 19,056 | 16,615 | $ 16,170 | $ 14,547 | $ 13,537 |
Commercial | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 18,754 | |||||
Loans receivable: Collectively Evaluated | 1,092,744 | |||||
Loans receivable | 1,111,498 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 453 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 10,845 | |||||
Allowance for loan losses | 11,298 | 10,238 | 8,894 | 8,293 | ||
Commercial | Real estate loan | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 7,154 | |||||
Loans receivable: Collectively Evaluated | 675,095 | |||||
Loans receivable | 682,249 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 427 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 6,647 | |||||
Allowance for loan losses | 7,074 | 6,047 | 4,982 | 4,405 | ||
Commercial | Commercial and industrial | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 11,223 | |||||
Loans receivable: Collectively Evaluated | 167,048 | |||||
Loans receivable | 178,271 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 26 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 2,883 | |||||
Allowance for loan losses | 2,909 | 2,823 | 2,792 | 2,723 | ||
Commercial | Paycheck Protection Program - 1st Draw | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 5 | |||||
Loans receivable | 5 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 0 | |||||
Allowance for loan losses | 0 | |||||
Commercial | Paycheck Protection Program - 2nd Draw | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 163 | |||||
Loans receivable | 163 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 0 | |||||
Allowance for loan losses | 0 | |||||
Commercial | Political subdivisions | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 90,719 | |||||
Loans receivable | 90,719 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 0 | |||||
Allowance for loan losses | 0 | |||||
Commercial | Commercial Construction And Land | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 244 | |||||
Loans receivable: Collectively Evaluated | 73,719 | |||||
Loans receivable | 73,963 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 647 | |||||
Allowance for loan losses | 647 | 684 | 515 | 637 | ||
Commercial | Loans secured by farm land | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 76 | |||||
Loans receivable: Collectively Evaluated | 12,874 | |||||
Loans receivable | 12,950 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 112 | |||||
Allowance for loan losses | 112 | 113 | 112 | 115 | ||
Commercial | Multi-family (5 or more) residential | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 55,886 | |||||
Loans receivable | 55,886 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 411 | |||||
Allowance for loan losses | 411 | 427 | 339 | 215 | ||
Commercial | Agricultural loans | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 57 | |||||
Loans receivable: Collectively Evaluated | 2,378 | |||||
Loans receivable | 2,435 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 21 | |||||
Allowance for loan losses | 21 | 22 | 23 | 25 | ||
Commercial | Other commercial loans | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 14,857 | |||||
Loans receivable | 395,703 | 14,857 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 124 | |||||
Allowance for loan losses | 124 | 122 | 131 | 173 | ||
Residential mortgage | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 604 | |||||
Loans receivable: Collectively Evaluated | 608,502 | |||||
Loans receivable | 410,013 | 609,106 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 4,073 | |||||
Allowance for loan losses | 4,073 | 4,697 | 4,392 | 4,338 | ||
Residential mortgage | Real estate loan | first liens | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 506 | |||||
Loans receivable: Collectively Evaluated | 509,276 | |||||
Loans receivable | 509,782 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 3,413 | |||||
Allowance for loan losses | 3,413 | 3,919 | 3,689 | 3,650 | ||
Residential mortgage | Real estate loan | junior liens | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 30 | |||||
Loans receivable: Collectively Evaluated | 24,919 | |||||
Loans receivable | 24,949 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 167 | |||||
Allowance for loan losses | 167 | 194 | 180 | 184 | ||
Residential mortgage | Home equity lines of credit | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 68 | |||||
Loans receivable: Collectively Evaluated | 43,730 | |||||
Loans receivable | 43,798 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 282 | |||||
Allowance for loan losses | 282 | 333 | 308 | 302 | ||
Residential mortgage | 1-4 Family residential construction | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 30,577 | |||||
Loans receivable | 30,577 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 211 | |||||
Allowance for loan losses | 211 | 251 | 215 | 202 | ||
Consumer | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 19,436 | |||||
Loans receivable | 56,555 | 19,436 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment2 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment1 | 244 | |||||
Allowance for loan losses | 244 | 235 | 261 | 235 | ||
Unallocated | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Allowance for loan losses | $ 0 | $ 0 | $ 1,000 | $ 1,000 | $ 1,000 | $ 671 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | $ 22,508 |
Recorded Investment - with no allowance | 15,898 |
Related Allowance - with no allowance | 0 |
Unpaid Principal Balance - with allowance | 3,460 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment1 | 3,460 |
Related Allowance - with allowance | 453 |
Unpaid Principal Balance | 25,968 |
Recorded Investment | 19,358 |
Commercial | Real estate loan | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 8,563 |
Recorded Investment - with no allowance | 3,754 |
Related Allowance - with no allowance | 0 |
Unpaid Principal Balance - with allowance | 3,400 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment1 | 3,400 |
Related Allowance - with allowance | 427 |
Commercial | Commercial and industrial | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 12,926 |
Recorded Investment - with no allowance | 11,163 |
Related Allowance - with no allowance | 0 |
Unpaid Principal Balance - with allowance | 60 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment1 | 60 |
Related Allowance - with allowance | 26 |
Commercial | Home equity lines of credit | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 68 |
Recorded Investment - with no allowance | 68 |
Related Allowance - with no allowance | 0 |
Commercial | Loans secured by farm land | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 76 |
Recorded Investment - with no allowance | 76 |
Related Allowance - with no allowance | 0 |
Commercial | Agricultural loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 57 |
Recorded Investment - with no allowance | 57 |
Related Allowance - with no allowance | 0 |
Commercial | Construction And Other Land Loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 244 |
Recorded Investment - with no allowance | 244 |
Related Allowance - with no allowance | 0 |
Residential mortgage | Real estate loan | first liens | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 506 |
Recorded Investment - with no allowance | 506 |
Related Allowance - with no allowance | 0 |
Residential mortgage | Real estate loan | junior liens | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 68 |
Recorded Investment - with no allowance | 30 |
Related Allowance - with no allowance | $ 0 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | $ 10,977 | $ 11,749 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 153 | 1,875 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 10,266 | 11,095 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 147 | 1,849 |
Commercial | Real estate loan | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 9,710 | 9,804 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 143 | 483 |
Commercial | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 371 | 839 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 4 | 207 |
Commercial | Commercial Construction And Land | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 47 | 47 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 1 |
Commercial | Loans secured by farm land | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 79 | 81 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 0 |
Commercial | Multi-family (5 or more) residential. | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 0 | 263 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 1,156 |
Commercial | Agricultural loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 59 | 61 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 2 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 711 | 654 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 6 | 26 |
Residential mortgage | Real estate loan | first liens | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 612 | 587 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 5 | 17 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 31 | 33 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 6 |
Residential mortgage | Home Equity Line of Credit [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 68 | 34 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 1 | $ 3 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Foreclosed residential real estate | $ 202 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES- Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Residential real estate in process of foreclosure | $ 1,049 | $ 1,229 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Losses For Off- Balance Sheet (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Balance | $ 1,154,000 | $ 425,000 | ||
Credit for unfunded commitments | (292,000) | (356,000) | ||
Balance | 900,000 | $ 1,154,000 | 900,000 | $ 425,000 |
Accounting Standards Update 2022-02 [Member] | Adoption of ASU 2016-13 (CECL) | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Balance | $ 0 | $ 793,000 | ||
Recoveries | 38,000 | 38,000 | ||
Balance | $ 0 | $ 793,000 |
LOANS AND ALLOWANCE FOR CRED_19
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) item | Sep. 30, 2023 USD ($) item | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Interest income on nonaccrual loans | $ 317,000 | $ 744,000 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 4,456,000 | 4,456,000 | $ 4,725,000 | |
Credit losses for off-balance sheet exposures | $ 900,000 | $ 900,000 | $ 1,154,000 | $ 425,000 |
Financing Receivable, Individually Evaluated for Impairment, Number of Extension for Credit Graded | item | 1 | 1 | ||
Estimated loss amount of financing receivables | $ 100,000 | |||
Commercial | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Threshold amount of financing receivables of TDR | 200,000 | 200,000 | ||
Threshold amount of financing receivables for credit losses | $ 200,000 | $ 200,000 | ||
Residential mortgage | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Threshold amount of financing receivables for credit losses | 400,000 | 400,000 | ||
Consumer | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Threshold amount of financing receivables for credit losses | $ 400,000 | $ 400,000 | ||
Other Loans [Member] | ||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Threshold amount of financing receivables of TDR | 400,000 | 400,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross amount | $ 6,639 | $ 6,639 |
Accumulated amortization | (4,068) | (3,762) |
Net | $ 2,571 | $ 2,877 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||
Amortization expense | $ 102 | $ 110 | $ 306 | $ 329 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill | $ 52,505,000 | $ 52,505,000 |
BORROWED FUNDS - Short-term bor
BORROWED FUNDS - Short-term borrowings (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 23,253,000 | $ 80,062,000 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 21,500,000 | 77,000,000 |
FHLB-Pittsburgh borrowings | Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 15,000,000 | |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 1,753,000 | $ 3,062,000 |
BORROWED FUNDS - Short-term b_2
BORROWED FUNDS - Short-term borrowings - Additional information (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
BORROWED FUNDS | ||
Short-term borrowings | $ 23,253,000 | $ 80,062,000 |
Other assets | ||
BORROWED FUNDS | ||
Federal Home Loan Bank Stock | 6,243,000 | |
Other Correspondent Banks | ||
BORROWED FUNDS | ||
Line of Credit Facility, Maximum Borrowing Capacity | 95,000,000 | 95,000,000 |
Long-term Line of Credit, Total | 0 | 0 |
Federal Reserve Bank of Philadelphia | Collateral Pledged | ||
BORROWED FUNDS | ||
Investment pledged as collateral | $ 21,731,000 | $ 24,113,000 |
Customer repurchase agreements | ||
BORROWED FUNDS | ||
Debt, Weighted Average Interest Rate | 0.10% | 0.10% |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned, Total | $ 1,770,000 | $ 3,080,000 |
Short-term borrowings | 1,753,000 | 3,062,000 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS | ||
Short-term borrowings | 21,500,000 | 77,000,000 |
Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS | ||
Line of Credit Facility, Maximum Borrowing Capacity | 918,798,000 | 839,378,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,321,417,000 | 1,209,179,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 752,847,000 | 689,279,000 |
Short-term advances | 0 | |
Federal Home Loan Bank of Pittsburgh | Other assets | ||
BORROWED FUNDS | ||
Federal Home Loan Bank Stock | 14,570,000 | 14,168,000 |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | ||
BORROWED FUNDS | ||
Line of Credit Facility, Maximum Borrowing Capacity | 20,766,000 | 23,107,000 |
Long-term Line of Credit, Total | $ 0 | $ 0 |
Federal Home Loan Bank of Pittsburgh | Overnight Borrowing | ||
BORROWED FUNDS | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 5.68% | 4.45% |
Short-term borrowings | $ 6,500,000 | $ 77,000,000 |
Federal Home Loan Bank of Pittsburgh | FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 5.61% | |
Short-term borrowings | $ 15,000,000 |
BORROWED FUNDS - Long-term Borr
BORROWED FUNDS - Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Long-term Borrowing | ||
Long-term borrowings | $ 125,276 | $ 62,347 |
Rate | 4.12% | 4.12% |
Loan maturing in 2023 with a rate of 3.25% | ||
Long-term Borrowing | ||
Rate | 3.25% | 3.25% |
Loans maturing in 2024 with a weighted-average rate of 2.89% | ||
Long-term Borrowing | ||
Rate | 2.89% | 2.89% |
Loans maturing in 2026 with a weighted-average rate of 4.30% | ||
Long-term Borrowing | ||
Rate | 4.44% | 4.44% |
Loans maturing in 2027 with a weighted-average rate of 4.00% | ||
Long-term Borrowing | ||
Rate | 4% | 4% |
Loan maturing in 2028 with a rate of 3.72% | ||
Long-term Borrowing | ||
Rate | 3.72% | 3.72% |
Federal Home Loan Bank of Pittsburgh | ||
Long-term Borrowing | ||
Long-term borrowings | $ 125,276 | $ 62,347 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2023 with a rate of 3.25% | ||
Long-term Borrowing | ||
Long-term borrowings | 2,290 | 9,303 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2024 with a weighted-average rate of 2.89% | ||
Long-term Borrowing | ||
Long-term borrowings | 29,784 | 29,813 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2025 with a weighted-average rate of 4.05% | ||
Long-term Borrowing | ||
Long-term borrowings | 35,653 | 23,231 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2026 with a weighted-average rate of 4.30% | ||
Long-term Borrowing | ||
Long-term borrowings | 31,518 | 0 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2027 with a weighted-average rate of 4.00% | ||
Long-term Borrowing | ||
Long-term borrowings | 24,031 | 0 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2028 with a rate of 3.72% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 2,000 | $ 0 |
BORROWED FUNDS - Senior Notes (
BORROWED FUNDS - Senior Notes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Senior notes, net | $ 14,814,000 | $ 14,814,000 | $ 14,765,000 | |||
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 | $ 15,000,000 | $ 15,000,000 | ||
Stated interest rate | 2.75% | 2.75% | 2.75% | 2.75% | ||
Debt issuance costs | $ 337,000 | |||||
Senior notes, net | $ 14,814,000 | $ 14,814,000 | $ 14,663,000 | $ 14,765,000 | ||
Amortization of debt issuance costs | $ 16,000 | $ 16,000 | $ 49,000 | $ 48,000 | ||
Effective interest rate | 3.23% | 3.23% | 3.23% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Subordinated debt, net | $ 24,689,000 | $ 24,607,000 | ||||
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 | $ 24,689,000 | $ 24,437,000 | $ 24,607,000 | |||
Amortization of debt issuance costs | $ 28,000 | $ 27,000 | $ 82,000 | $ 79,000 | ||
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, End Date | Jun. 01, 2026 | |||||
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. 01, 2026 | |||||
Debt Instrument, Redemption Period, End Date | Jun. 01, 2031 | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.59% |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | |
Forecast | |||||
Stock-based compensation expense | $ 1,340,000 | ||||
Restricted Stock | |||||
Stock-based compensation expense | $ 320,000 | $ 388,000 | $ 1,015,000 | $ 1,169,000 | |
Stock Incentive Plan | Restricted Stock | |||||
Vesting period | 3 years | ||||
Independent Directors Stock Incentive Plan | Restricted Stock | |||||
Vesting period | 1 year |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Restricted Stock Awards Granted (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Stock Incentive Plan | Restricted Stock | |
STOCK-BASED COMPENSATION PLANS | |
Number of Shares | shares | 53,788 |
Aggregate Grant Date Fair Value | $ | $ 1,256 |
Stock Incentive Plan | Restricted Stock | Employees | |
STOCK-BASED COMPENSATION PLANS | |
Number of Shares | shares | 31,684 |
Aggregate Grant Date Fair Value | $ | $ 740 |
Stock Incentive Plan | Performance Shares | Employees | |
STOCK-BASED COMPENSATION PLANS | |
Number of Shares | shares | 11,104 |
Aggregate Grant Date Fair Value | $ | $ 259 |
Independent Directors Stock Incentive Plan | Restricted Stock | Director [Member] | |
STOCK-BASED COMPENSATION PLANS | |
Number of Shares | shares | 11,000 |
Aggregate Grant Date Fair Value | $ | $ 257 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) item | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) item | Dec. 31, 2022 USD ($) | |
Derivative Financial Instruments | |||||
Net impact | $ 1,000 | $ 0 | $ 19,000 | $ 0 | |
Asset pledged | |||||
Derivative Financial Instruments | |||||
Available-for-sale securities pledged as collateral | 2,251,000 | 2,251,000 | |||
Interest rate swap agreements | |||||
Derivative Financial Instruments | |||||
Aggregate notional amount | 152,536,000 | 152,536,000 | $ 155,214,000 | ||
Asset Derivatives, Notional Amount | 76,268,000 | 76,268,000 | 77,607,000 | ||
Asset Derivatives, Fair Value | 4,545,000 | 4,545,000 | 3,638,000 | ||
Liability Derivatives, Notional Amount | 76,268,000 | 76,268,000 | 77,607,000 | ||
Liability Derivatives, Fair Value | $ 4,545,000 | $ 4,545,000 | 3,638,000 | ||
Number of derivative instruments originated | item | 0 | 0 | 0 | 0 | |
RPA Out | |||||
Derivative Financial Instruments | |||||
Asset Derivatives, Notional Amount | $ 7,111,000 | $ 7,111,000 | 7,200,000 | ||
Asset Derivatives, Fair Value | 6,000 | 6,000 | 0 | ||
Liability Derivatives, Notional Amount | 0 | 0 | 0 | ||
Liability Derivatives, Fair Value | 0 | 0 | 0 | ||
RPA In | |||||
Derivative Financial Instruments | |||||
Asset Derivatives, Notional Amount | 0 | 0 | 0 | ||
Asset Derivatives, Fair Value | 0 | 0 | 0 | ||
Liability Derivatives, Notional Amount | 10,000,000 | 10,000,000 | 10,000,000 | ||
Liability Derivatives, Fair Value | 6,000 | 6,000 | $ 19,000 | ||
Derivatives not designated as hedging instruments | Interest rate swap agreements | |||||
Derivative Financial Instruments | |||||
Interest rate swap | 0 | 0 | |||
Increase (decrease) in interest income | $ 502,000 | $ 4,000 | $ 1,286,000 | $ 541,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets Measured at Fair Value | ||
Total, fair value | $ 429,138 | $ 498,033 |
Impaired loans with a valuation allowance | 3,460 | |
Valuation allowance | (453) | |
Impaired loans, net | 3,460 | |
Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 4,545 | 3,638 |
Fair value of the derivative liability | 4,545 | 3,638 |
Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 30,557 | 31,836 |
Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 18,796 | 23,430 |
Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 22,311 | 25,386 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 104,453 | 132,623 |
Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 53,457 | 56,812 |
Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 94,469 | 99,941 |
Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 33,397 | 40,296 |
Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 63,672 | 79,686 |
Private label commercial mortgage-backed securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,026 | 8,023 |
Recurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total, fair value | 429,138 | 498,033 |
Marketable equity security | 832 | 859 |
Servicing rights | 2,630 | 2,653 |
Total asset fair value measurements | 437,151 | 505,183 |
Recurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 30,557 | 31,836 |
Marketable equity security | 832 | 859 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 31,389 | 32,695 |
Recurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 398,581 | 466,197 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 403,132 | 469,835 |
Recurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 2,630 | 2,653 |
Total asset fair value measurements | 2,630 | 2,653 |
Recurring fair value measurements | RPA Out | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 6 | |
Recurring fair value measurements | RPA Out | Level 1 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | |
Recurring fair value measurements | RPA Out | Level 2 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 6 | |
Recurring fair value measurements | RPA Out | Level 3 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | |
Recurring fair value measurements | Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 4,545 | 3,638 |
Fair value of the derivative liability | 4,545 | 3,638 |
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 | 4,545 | 3,638 |
Fair value of the derivative liability | 4,545 | 3,638 |
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 | 30,557 | 31,836 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 30,557 | 31,836 |
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 | 18,796 | 23,430 |
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 | 18,796 | 23,430 |
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 | 22,311 | 25,386 |
Recurring fair value measurements | Bank holding company debt securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Bank holding company debt securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 22,311 | 25,386 |
Recurring fair value measurements | Bank holding company debt securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 104,453 | 132,623 |
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 | 104,453 | 132,623 |
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 | 53,457 | 56,812 |
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 | 53,457 | 56,812 |
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 | 94,469 | 99,941 |
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 | 94,469 | 99,941 |
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 | 33,397 | 40,296 |
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 | 33,397 | 40,296 |
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 | 63,672 | 79,686 |
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 | 63,672 | 79,686 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Private label commercial mortgage-backed securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,026 | 8,023 |
Recurring fair value measurements | Private label commercial mortgage-backed securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Private label commercial mortgage-backed securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,026 | 8,023 |
Recurring fair value measurements | Private label 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 | 7,674 | 3,282 |
Impaired loans, net | 3,007 | |
Loans individually evaluated for credit loss, net | 7,041 | |
Foreclosed assets held for sale | 633 | 275 |
Nonrecurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans, net | 0 | |
Loans individually evaluated for credit loss, net | 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 | |
Loans individually evaluated for credit loss, net | 0 | |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 7,674 | 3,282 |
Impaired loans, net | 3,007 | |
Loans individually evaluated for credit loss, net | 7,041 | |
Foreclosed assets held for sale | $ 633 | $ 275 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Recurring (Details) - Recurring fair value measurements - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,630,000 | $ 2,653,000 |
Valuation Technique, Discounted cash flow | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,630,000 | $ 2,653,000 |
Valuation Technique, Discounted cash flow | Servicing rights. | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 13% | 13% |
Weighted-average PSA | 129% | 133% |
Servicing fees of loan balances | 0.25% | 0.25% |
Servicing fees of payments are late | 4% | 4% |
Late fees assessed | 5% | 5% |
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% | 3% |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis | ||||
Servicing rights balance, beginning of period | $ 2,607 | $ 2,640 | $ 2,653 | $ 2,329 |
Originations of servicing rights | 64 | 33 | 113 | 192 |
Unrealized (loss) gain included in earnings | (41) | (24) | (136) | 128 |
Servicing rights balance, end of period | $ 2,630 | $ 2,649 | $ 2,630 | $ 2,649 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | $ 3,460 | |
Valuation allowance | 453 | |
Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 3,007 | |
Foreclosed assets held for sale | $ 633 | 275 |
Residential mortgage | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 202 | 0 |
Commercial | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 3,400 | |
Valuation allowance | 427 | |
Commercial | Commercial and industrial | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 60 | |
Valuation allowance | 26 | |
Impaired Loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 7,861 | 3,460 |
Valuation allowance | 820 | 453 |
Fair value | 7,041 | 3,007 |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - non-owner occupied | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 7,362 | |
Valuation allowance | 664 | |
Fair value | 6,698 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 303 | |
Valuation allowance | 61 | |
Fair value | $ 242 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 57% | |
Impaired Loans | Valuation, Market Approach | Commercial | Other commercial loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | $ 196 | |
Valuation allowance | 95 | |
Fair value | $ 101 | |
Impaired Loans | Valuation, Market Approach | Commercial | Other commercial loans | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 18% | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 3,400 | |
Valuation allowance | 427 | |
Fair value | $ 2,973 | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 25% | 25% |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 60 | |
Valuation allowance | 26 | |
Fair value | $ 34 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 33% | |
Foreclosed Assets Held For Sale | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 633 | $ 275 |
Valuation allowance | 0 | 0 |
Fair value | 633 | 275 |
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 | 202 | 275 |
Valuation allowance | 0 | 0 |
Fair value | $ 202 | $ 275 |
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 | 38% | 50% |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Commercial Real Estate Receivables | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 431 | |
Valuation allowance | 0 | |
Fair value | $ 431 | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Commercial Real Estate Receivables | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 45% |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Reported value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | $ 48,308 | $ 47,698 |
Reported value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 4,350 | 7,350 |
Restricted equity securities (included in Other Assets) | 21,062 | 14,418 |
Accrued interest receivable | 9,311 | 8,653 |
Short-term borrowings | 23,253 | 80,062 |
Long-term borrowings | 125,276 | 62,347 |
Senior debt | 14,814 | 14,765 |
Subordinated debt | 24,689 | 24,607 |
Accrued interest payable | 1,464 | 461 |
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 | 1,603,033 | 1,702,404 |
Reported value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 421,964 | 295,189 |
Reported value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | 1,812,585 | 1,723,425 |
Estimate of fair value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 48,308 | 47,698 |
Estimate of fair value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 4,033 | 6,956 |
Restricted equity securities (included in Other Assets) | 21,062 | 14,418 |
Accrued interest receivable | 9,311 | 8,653 |
Short-term borrowings | 23,253 | 80,062 |
Long-term borrowings | 123,056 | 60,944 |
Senior debt | 12,870 | 9,712 |
Subordinated debt | 20,184 | 16,186 |
Accrued interest payable | 1,464 | 461 |
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 | 1,603,033 | 1,702,404 |
Estimate of fair value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 419,686 | 293,814 |
Estimate of fair value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | $ 1,732,232 | $ 1,674,002 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 7,591 | $ 4,455 | $ 19,887 | $ 18,839 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |