Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-16084 | ||
Entity Registrant Name | CITIZENS & NORTHERN CORPORATION | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2451943 | ||
Entity Address, Address Line One | 90-92 MAIN STREET | ||
Entity Address, City or Town | WELLSBORO | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 16901 | ||
City Area Code | 570 | ||
Local Phone Number | 724-3411 | ||
Title of 12(b) Security | Common Stock Par Value $1.00 | ||
Trading Symbol | CZNC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 285,962,462 | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,378,065 | ||
Entity Central Index Key | 0000810958 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Location | Pittsburgh, Pennsylvania | ||
Auditor Firm ID | 23 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and due from banks: | ||
Noninterest-bearing | $ 24,855,000 | $ 25,811,000 |
Interest-bearing | 32,023,000 | 29,237,000 |
Total cash and due from banks | 56,878,000 | 55,048,000 |
Available-for-sale debt securities, at fair value | 415,755,000 | 498,033,000 |
Loans receivable | 1,848,139,000 | 1,740,040,000 |
Allowance for credit losses | (19,208,000) | (16,615,000) |
Loans, net | 1,828,931,000 | 1,723,425,000 |
Bank-owned life insurance | 63,674,000 | 31,214,000 |
Accrued interest receivable | 9,140,000 | 8,653,000 |
Bank premises and equipment, net | 21,632,000 | 21,574,000 |
Foreclosed assets held for sale | 478,000 | 275,000 |
Deferred tax asset, net | 17,441,000 | 20,884,000 |
Goodwill | 52,505,000 | 52,505,000 |
Core deposit intangibles, net | 2,469,000 | 2,877,000 |
Other assets | 46,681,000 | 39,819,000 |
TOTAL ASSETS | 2,515,584,000 | 2,454,307,000 |
Deposits: | ||
Noninterest-bearing | 490,554,000 | 563,843,000 |
Interest-bearing | 1,524,252,000 | 1,433,750,000 |
Total deposits | 2,014,806,000 | 1,997,593,000 |
Short-term borrowings | 33,874,000 | 80,062,000 |
Long-term borrowings - FHLB advances | 138,337,000 | 62,347,000 |
Senior notes, net | 14,831,000 | 14,765,000 |
Subordinated debt, net | 24,717,000 | 24,607,000 |
Accrued interest and other liabilities | 26,638,000 | 25,608,000 |
TOTAL LIABILITIES | 2,253,203,000 | 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 | ||
Common stock, par value $1.00 per share; authorized 30,000,000 shares; issued 16,030,172 and outstanding 15,295,135 at December 31, 2023; issued 16,030,172 and outstanding 15,518,819 at December 31, 2022 | 16,030,000 | 16,030,000 |
Paid-in capital | 144,388,000 | 143,950,000 |
Retained earnings | 157,028,000 | 151,743,000 |
Treasury stock, at cost; 735,037 shares at December 31, 2023 and 511,353 shares at December 31, 2022 | (16,628,000) | (12,520,000) |
Accumulated other comprehensive loss | (38,437,000) | (49,878,000) |
TOTAL STOCKHOLDERS' EQUITY | 262,381,000 | 249,325,000 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 2,515,584,000 | $ 2,454,307,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized (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) | 15,295,135 | 15,518,819 |
Treasury stock, shares (in shares) | 735,037 | 511,353 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and fees on loans: | |||
Taxable | $ 98,854 | $ 78,599 | $ 74,549 |
Tax-exempt | 2,225 | 1,965 | 1,770 |
Income from available-for-sale debt securities: | |||
Taxable | 8,555 | 8,360 | 5,114 |
Tax-exempt | 2,427 | 3,001 | 2,684 |
Other interest and dividend income | 1,443 | 722 | 384 |
Total interest and dividend income | 113,504 | 92,647 | 84,501 |
INTEREST EXPENSE | |||
Interest on deposits | 24,233 | 6,638 | 4,538 |
Interest on short-term borrowings | 3,240 | 429 | 23 |
Interest on long-term borrowings - FHLB advances | 4,230 | 896 | 399 |
Interest on senior notes, net | 479 | 477 | 293 |
Interest on subordinated debt, net | 922 | 1,079 | 1,309 |
Total interest expense | 33,104 | 9,519 | 6,562 |
Net interest income | 80,400 | 83,128 | 77,939 |
Provision for credit losses | 186 | 7,255 | 3,661 |
Net interest income after provision for credit losses | 80,214 | 75,873 | 74,278 |
NONINTEREST INCOME | |||
Trust revenue | 7,413 | 6,994 | 7,234 |
Brokerage and insurance revenue | 1,675 | 2,291 | 1,860 |
Net gains from sale of loans | 723 | 757 | 3,428 |
Increase in cash surrender value of life insurance | 2,703 | 545 | 573 |
Other noninterest income | 4,610 | 3,698 | 3,580 |
Realized (losses) gains on available-for-sale debt securities, net | (3,036) | 20 | 24 |
Total noninterest income | 24,417 | 24,432 | 25,881 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 44,195 | 41,833 | 37,603 |
Net occupancy and equipment expense | 5,357 | 5,533 | 4,984 |
Data processing and telecommunications expense | 7,582 | 6,806 | 5,903 |
Automated teller machine and interchange expense | 1,682 | 1,601 | 1,433 |
Pennsylvania shares tax | 1,602 | 1,956 | 1,951 |
Professional fees | 2,497 | 2,005 | 2,243 |
Other noninterest expense | 11,233 | 8,221 | 8,355 |
Total noninterest expense | 74,148 | 67,955 | 62,472 |
Income before income tax provision | 30,483 | 32,350 | 37,687 |
Income tax provision | 6,335 | 5,732 | 7,133 |
NET INCOME | $ 24,148 | $ 26,618 | $ 30,554 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 1.57 | $ 1.71 | $ 1.92 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 1.57 | $ 1.71 | $ 1.92 |
Service charges on deposit accounts | |||
NONINTEREST INCOME | |||
Revenue | $ 5,567 | $ 5,019 | $ 4,633 |
Interchange revenue from debit card transactions | |||
NONINTEREST INCOME | |||
Revenue | 4,160 | 4,148 | 3,855 |
Loan servicing fees, net | |||
NONINTEREST INCOME | |||
Revenue | $ 602 | $ 960 | $ 694 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net Income (Loss) | $ 24,148 | $ 26,618 | $ 30,554 |
Available-for-sale debt securities: | |||
Unrealized holding gains (losses) on available-for-sale debt securities | 11,512 | (69,828) | (8,669) |
Reclassification adjustment for losses (gains) realized in income | 3,036 | (20) | (24) |
Other comprehensive income (loss) on available-for-sale debt securities | 14,548 | (69,848) | (8,693) |
Unfunded pension and postretirement obligations: | |||
Changes from plan amendments and actuarial gains and losses | (9) | 389 | 140 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost | (56) | (42) | (17) |
Other comprehensive (loss) income on pension and postretirement obligations | (65) | 347 | 123 |
Other comprehensive income (loss) before income tax | 14,483 | (69,501) | (8,570) |
Income tax related to other comprehensive (income) loss | (3,042) | 14,597 | 1,801 |
Net other comprehensive income (loss) | 11,441 | (54,904) | (6,769) |
Comprehensive income (loss) | $ 35,589 | $ (28,286) | $ 23,785 |
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 Income (Loss) | Adoption of ASU 2016-13 (CECL) | Total |
Balance (in shares) at Dec. 31, 2020 | 15,982,815 | |||||||
Balance (in shares) at Dec. 31, 2020 | 70,831 | |||||||
Balance, beginning of period at Dec. 31, 2020 | $ 15,983 | $ (1,369) | $ 143,644 | $ 129,703 | $ 11,795 | $ 299,756 | ||
Net Income (Loss) | 30,554 | 30,554 | ||||||
Other comprehensive loss, net | (6,769) | (6,769) | ||||||
Cash dividends declared on common stock | (17,645) | (17,645) | ||||||
Shares issued for dividend reinvestment plan (in shares) | 36,368 | (31,877) | ||||||
Shares issued for dividend reinvestment plan | $ 36 | $ 788 | 845 | $ 1,669 | ||||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (13,169) | (22,429) | ||||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 245 | (33) | $ 212 | |||||
Restricted stock granted (in shares) | 10,989 | (67,402) | ||||||
Restricted stock granted | $ 11 | $ 1,308 | (1,319) | 0 | ||||
Forfeiture of restricted stock (in shares) | 5,290 | |||||||
Forfeiture of restricted stock | $ (102) | 102 | 0 | |||||
Stock-based compensation expense | 1,214 | 1,214 | ||||||
Purchase of restricted stock for tax withholding (in shares) | 8,350 | |||||||
Purchase of restricted stock for tax withholding | $ (174) | (174) | ||||||
Treasury stock purchases (in shares) | 299,059 | |||||||
Treasury stock purchases | $ (7,412) | (7,412) | ||||||
Balance (in shares) at Dec. 31, 2021 | 16,030,172 | |||||||
Balance (in shares) at Dec. 31, 2021 | 271,082 | |||||||
Balance, end of period at Dec. 31, 2021 | $ 16,030 | $ (6,716) | 144,453 | 142,612 | 5,026 | 301,405 | ||
Net Income (Loss) | 26,618 | 26,618 | ||||||
Other comprehensive loss, net | (54,904) | (54,904) | ||||||
Cash dividends declared on common stock | (17,487) | (17,487) | ||||||
Shares issued for dividend reinvestment plan (in shares) | (65,470) | |||||||
Shares issued for dividend reinvestment plan | $ 1,614 | 8 | $ 1,622 | |||||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (9,178) | (13,654) | ||||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 227 | (67) | $ 160 | |||||
Restricted stock granted (in shares) | (78,243) | |||||||
Restricted stock granted | $ 1,932 | (1,932) | 0 | |||||
Forfeiture of restricted stock (in shares) | 10,782 | |||||||
Forfeiture of restricted stock | $ (228) | 228 | 0 | |||||
Stock-based compensation expense | 1,260 | 1,260 | ||||||
Purchase of restricted stock for tax withholding (in shares) | 6,964 | |||||||
Purchase of restricted stock for tax withholding | $ (175) | (175) | ||||||
Treasury stock purchases (in shares) | 375,416 | |||||||
Treasury stock purchases | $ (9,174) | $ (9,174) | ||||||
Balance (in shares) at Dec. 31, 2022 | 16,030,172 | |||||||
Balance (in shares) at Dec. 31, 2022 | 511,353 | 511,353 | ||||||
Balance, end of period at Dec. 31, 2022 | $ 16,030 | $ (12,520) | 143,950 | 151,743 | (49,878) | $ 249,325 | ||
Net Income (Loss) | 24,148 | 24,148 | ||||||
Other comprehensive loss, net | 11,441 | 11,441 | ||||||
Cash dividends declared on common stock | (17,211) | (17,211) | ||||||
Shares issued for dividend reinvestment plan (in shares) | (81,930) | |||||||
Shares issued for dividend reinvestment plan | $ 1,888 | (246) | $ 1,642 | |||||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (612) | (8,288) | ||||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 30 | (30) | $ 0 | |||||
Restricted stock granted (in shares) | (53,788) | |||||||
Restricted stock granted | $ 1,314 | (1,314) | 0 | |||||
Forfeiture of restricted stock (in shares) | 25,261 | |||||||
Forfeiture of restricted stock | $ (556) | 556 | 0 | |||||
Stock-based compensation expense | 1,472 | 1,472 | ||||||
Purchase of restricted stock for tax withholding (in shares) | 9,453 | |||||||
Purchase of restricted stock for tax withholding | $ (219) | (219) | ||||||
Treasury stock purchases (in shares) | 325,300 | |||||||
Treasury stock purchases | $ (6,565) | $ (6,565) | ||||||
Balance (in shares) at Dec. 31, 2023 | 16,030,172 | |||||||
Balance (in shares) at Dec. 31, 2023 | 735,037 | 735,037 | ||||||
Balance, end of period at Dec. 31, 2023 | $ 16,030 | $ (16,628) | $ 144,388 | $ (1,652) | $ 157,028 | $ (38,437) | $ (1,652) | $ 262,381 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retained Earnings | |||
Common stock, dividends, per share (in dollars per share) | $ 1.12 | $ 1.12 | $ 1.11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 24,148 | $ 26,618 | $ 30,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 186 | 7,255 | 3,661 |
Realized losses (gains) on available-for-sale debt securities, net | 3,036 | (20) | (24) |
Net amortization of securities | 2,062 | 2,760 | 2,204 |
Increase in cash surrender value of life insurance | (2,703) | (545) | (573) |
Depreciation and amortization of bank premises and equipment | 2,151 | 2,389 | 2,130 |
Net accretion of purchase accounting adjustments | (288) | (1,181) | (2,124) |
Stock-based compensation | 1,472 | 1,260 | 1,214 |
Deferred income taxes | 836 | (400) | (1,381) |
Decrease (increase) in fair value of servicing rights | 200 | (126) | 68 |
Gains on sales of loans, net | (723) | (757) | (3,428) |
Origination of loans held for sale | (24,630) | (26,231) | (105,523) |
Proceeds from sales of loans held for sale | 25,106 | 27,636 | 107,797 |
(Increase) decrease in accrued interest receivable and other assets | (1,400) | (3,532) | 186 |
Increase (decrease) in accrued interest payable and other liabilities | 4,161 | (589) | 210 |
Other | (66) | 62 | (127) |
Net Cash Provided by Operating Activities | 33,548 | 34,599 | 34,844 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of certificates of deposit | 0 | (250) | (4,500) |
Proceeds from maturities of certificates of deposit | 3,250 | 2,000 | 1,240 |
Proceeds from sales of available-for-sale debt securities | 60,819 | 4,100 | 2,027 |
Proceeds from calls and maturities of available-for-sale debt securities | 52,323 | 58,673 | 61,684 |
Purchase of available-for-sale debt securities | (23,414) | (113,715) | (243,925) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 22,634 | 11,604 | 2,517 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (23,680) | (16,459) | (2,110) |
Purchase of Federal Reserve Bank stock | (6,252) | 0 | 0 |
Net (increase) decrease in loans | (107,356) | (178,203) | 78,746 |
Purchase of bank-owned life insurance | (30,000) | 0 | 0 |
Proceeds from bank-owned life insurance | 363 | 0 | 287 |
Proceeds from sales of premises and equipment | 0 | 0 | 627 |
Purchase of premises and equipment | (2,265) | (3,288) | (1,864) |
Proceeds from sale of foreclosed assets | 267 | 647 | 1,148 |
Other | 109 | 203 | 228 |
Net Cash Used in Investing Activities | (53,202) | (234,688) | (103,895) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in deposits | 17,234 | 72,689 | 105,381 |
Net (decrease) increase in short-term borrowings | (46,188) | 78,259 | (18,154) |
Proceeds from long-term borrowings - FHLB advances | 85,436 | 50,000 | 0 |
Repayments of long-term borrowings - FHLB advances | (9,395) | (15,455) | (26,095) |
Proceeds from issuance of senior notes, net of issuance costs | 0 | 0 | 14,663 |
Proceeds from issuance of subordinated debt, net of issuance costs | 0 | 0 | 24,437 |
Redemption of subordinated debt | 0 | (8,500) | (8,000) |
Sale of treasury stock | 0 | 160 | 212 |
Purchases of treasury stock | (6,784) | (9,349) | (7,586) |
Common dividends paid | (15,569) | (15,865) | (15,976) |
Net Cash Provided by Financing Activities | 24,734 | 151,939 | 68,882 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,080 | (48,150) | (169) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 47,698 | 95,848 | 96,017 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 52,778 | $ 47,698 | $ 95,848 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
(Decrease) increase in accrued purchase of available-for-sale debt securities | $ (2,000) | $ 2,000 | $ (994) |
Assets acquired through foreclosure of real estate loans | 423 | 51 | 394 |
Leased assets obtained in exchange for new operating lease liabilities | 0 | 904 | 739 |
Interest paid | 31,936 | 9,497 | 8,174 |
Income taxes paid | $ 6,383 | $ 5,561 | $ 10,098 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF CONSOLIDATION – NATURE OF OPERATIONS – The Corporation provides banking and related services to individual and corporate customers. Lending products include commercial, mortgage and consumer loans, as well as specialized instruments such as commercial letters-of-credit. Deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, Individual Retirement Accounts and certificates of deposit. The Corporation provides wealth management services through its trust department, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services. The Corporation offers a variety of personal and commercial insurance products through C&N Financial Services, LLC. C&N Financial Services, LLC also offers mutual funds, annuities, educational savings accounts and other investment products through registered agents. Management has determined that the Corporation has one reportable segment, “Community Banking.” All of the Corporation’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others. The Corporation is subject to competition from other financial institutions. It is also subject to regulation by certain federal and state agencies and undergoes periodic examination by those regulatory authorities. USE OF ESTIMATES – Material estimates that are particularly susceptible to change include: (1) the allowance for credit losses and (2) fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers. INVESTMENT SECURITIES – Available-for-sale debt securities – Allowance for Credit Losses- Available-for-Sale Debt Securities – 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 December 31, 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 $2,018,000 at December 31, 2023 and was excluded from the estimate of credit losses. Marketable equity security Restricted equity securities DERIVATIVES – Interest rate swaps with commercial banking customers were executed to enable the commercial banking customers to effectively exchange 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. Changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Interest differentials paid or received under the swap agreements are reflected as adjustments to interest and fees on loans. The fair value of interest rate derivatives is included in the balance of other assets and other liabilities in the consolidated balance sheets. 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.” The fair value of the RPA In is included in accrued interest and other liabilities in the consolidated balance sheets. 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 fair value of the RPA Out is included in other assets in the consolidated balance sheets. Fees paid and received associated with RPAs, as well as changes in fair value of the related derivatives, are included in other noninterest income in the consolidated statements of income. LOANS HELD FOR SALE – LOANS RECEIVABLE – Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on loans for which the risk of loss is greater than remote are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of loans receivable is determined based on contractual due dates for loan payments. Also, the amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. PURCHASED 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 $7,099,000 at December 31, 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 is 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: Non-owner 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 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 determines the annual net charge-offs as a percentage of average total loan balances (net charge-off percentage). For each loan pool, the average annualized net charge-off percentage is 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 is 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 are generally assumed to be repaid after 1 year. The estimated weighted-average remaining life of the entire portfolio was calculated to be 4.48 years at December 31, 2023 and 4.36 years at January 1, 2023. 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 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 calculates 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 consolidated balance sheets and the related credit expense is recorded in the provision for credit losses in the consolidated statements of income. BANK PREMISES AND EQUIPMENT – IMPAIRMENT OF LONG-LIVED ASSETS – FORECLOSED ASSETS HELD FOR SALE – GOODWILL – Corporation has the option of performing a qualitative assessment to determine whether any further quantitative testing for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually. CORE DEPOSIT INTANGIBLES – SERVICING RIGHTS INCOME TAXES STOCK-BASED COMPENSATION TREASURY STOCK – . OFF-BALANCE SHEET FINANCIAL INSTRUMENTS – CASH FLOWS – REVENUE RECOGNITION – Additional disclosures related to the Corporation’s largest sources of noninterest income within the consolidated statements of income from contracts with customers that are subject to ASC Topic 606 are as follows: Trust and financial management revenue – 2023 and $1,063,615,000 at December 31, 2022. Trust revenue is included within noninterest income in the consolidated statements of income. Trust revenue is recorded on a cash basis, which is not materially different from the accrual basis. The majority (approximately 81%, based on annual 2023 results) of trust revenue is earned and collected monthly, with the amount determined based on a percentage of the fair value of the trust assets under management. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The services provided under such a contract represent a single performance obligation under ASC 606 because it embodies a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. None of the contracts with trust customers provide for incentive-based fees. In addition to wealth management fees, trust revenue includes fees for provision of services, including employee benefit plan administration, tax return preparation and estate planning and settlement. Fees for such services are billed based on contractual arrangements or established fee schedules and are typically billed upon completion of providing such services. The costs of acquiring trust customers are incremental and recognized within noninterest expense in the consolidated statements of income. Service charges on deposit accounts Interchange revenue from debit card transactions – |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standard Updates (ASUs) to communicate changes to the FASB Accounting Standard Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the foreseeable future. Recent Accounting Pronouncements – Adopted As described in Note 1, on January 1, 2023, the Corporation adopted ASC 326. This standard replaced the incurred loss methodology for measuring credit losses on financial instruments with an expected loss methodology that is referred to as the CECL methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset 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 are presented at the net amount expected to be collected by using an allowance for credit losses. 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 December 31, 2022 are presented under CECL while prior period amounts continue to be reported using the Incurred Loss methodology. 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) 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 7. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements. Recent Issued but Not Yet Effective Accounting Pronouncements In , - , improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU No. 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. T he ASU may be adopted on a prospective or retrospective basis and early adoption is permitted. The Corporation is currently evaluating the impact the new guidance will have on disclosures related to income taxes. |
PER SHARE DATA
PER SHARE DATA | 12 Months Ended |
Dec. 31, 2023 | |
PER SHARE DATA | |
PER SHARE DATA | 3. PER SHARE DATA Basic earnings per common share are calculated using the two-class method to determine income attributable to common shareholders. Unvested restricted stock awards that contain nonforfeitable rights to dividends are considered participating securities under the two-class method. Distributed dividends and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. Income attributable to common shareholders is then divided by weighted-average common shares outstanding for the period to determine basic earnings per common share. Diluted earnings per common share are calculated under the more dilutive of either the treasury method or the two-class method. Diluted earnings per common share is computed using weighted-average common shares outstanding, plus weighted-average common shares available from the exercise of all dilutive stock options, less the number of shares that could be repurchased with the proceeds of stock option exercises based on the average share price of the Corporation’s common stock during the period. (In Thousands, Except Share and Per Share Data) Years Ended December 31, December 31, December 31, 2023 2022 2021 Basic Net income $ 24,148 $ 26,618 $ 30,554 Less: Dividends and undistributed earnings allocated to participating securities (186) (237) (241) Net income attributable to common shares $ 23,962 $ 26,381 $ 30,313 Basic weighted-average common shares outstanding 15,241,859 15,455,432 15,765,639 Basic earnings per common share (a) $ 1.57 $ 1.71 $ 1.92 Diluted Net income attributable to common shares $ 23,962 $ 26,381 $ 30,313 Basic weighted-average common shares outstanding 15,241,859 15,455,432 15,765,639 Dilutive effect of potential common stock arising from stock options 0 3,099 6,316 Diluted weighted-average common shares outstanding 15,241,859 15,458,531 15,771,955 Diluted earnings per common share (a) $ 1.57 $ 1.71 $ 1.92 Weighted-average nonvested restricted shares outstanding 118,122 138,617 125,539 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares with nonforfeitable dividends (participating securities). Anti-dilutive stock options are excluded from net income per share calculations. There were no anti-dilutive instruments in 2022 or 2021. Weighted-average common shares available from anti-dilutive instruments totaled 8,963 shares in 2023. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
COMPREHENSIVE INCOME (LOSS) | |
COMPREHENSIVE INCOME (LOSS) | 4. 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 2023 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 11,512 $ (2,418) $ 9,094 Reclassification adjustment for losses realized in income 3,036 (638) 2,398 Other comprehensive income from available-for-sale debt securities 14,548 (3,056) 11,492 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (9) 2 (7) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (56) 12 (44) Other comprehensive loss on unfunded retirement obligations (65) 14 (51) Total other comprehensive income $ 14,483 $ (3,042) $ 11,441 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (69,828) $ 14,665 $ (55,163) Reclassification adjustment for (gains) realized in income (20) 4 (16) Other comprehensive loss from available-for-sale debt securities (69,848) 14,669 (55,179) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 389 (81) 308 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (42) 9 (33) Other comprehensive income on unfunded retirement obligations 347 (72) 275 Total other comprehensive loss $ (69,501) $ 14,597 $ (54,904) 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (8,669) $ 1,821 $ (6,848) Reclassification adjustment for (gains) realized in income (24) 5 (19) Other comprehensive loss from available-for-sale debt securities (8,693) 1,826 (6,867) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 140 (29) 111 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (17) 4 (13) Other comprehensive income on unfunded retirement obligations 123 (25) 98 Total other comprehensive loss $ (8,570) $ 1,801 $ (6,769) Items reclassified out of each component of accumulated other comprehensive (loss) income are as follows: Affected Line Item in the Description Consolidated Statements of Income Reclassification adjustment for losses (gains) realized in income (before-tax) Realized (losses) 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, included in stockholders’ equity, are as follows: (In Thousands) Accumulated Unrealized Unfunded Other (Losses) Gains Retirement Comprehensive on Securities Obligations (Loss) Income 2023 Balance, beginning of period $ (50,370) $ 492 $ (49,878) Other comprehensive income (loss) during year ended December 31, 2023 11,492 (51) 11,441 Balance, end of period $ (38,878) $ 441 $ (38,437) 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive (loss) income during year ended December 31, 2022 (55,179) 275 (54,904) Balance, end of period $ (50,370) $ 492 $ (49,878) 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive (loss) income during year ended December 31, 2021 (6,867) 98 (6,769) Balance, end of period $ 4,809 $ 217 $ 5,026 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 5. CASH AND DUE FROM BANKS Cash and due from banks at December 31, 2023 and 2022 include the following: (In Thousands) December 31, December 31, 2023 2022 Cash and cash equivalents $ 52,778 $ 47,698 Certificates of deposit 4,100 7,350 Total cash and due from banks $ 56,878 $ 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. The Corporation has not experienced any losses in such accounts. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES | |
SECURITIES | 6. SECURITIES Amortized cost and fair value of available-for-sale debt securities at December 31, 2023 and 2022 are summarized as follows: (In Thousands) December 31, 2023 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,325 $ 0 $ (1,035) $ 11,290 Obligations of U.S. Government agencies 11,119 0 (1,173) 9,946 Bank holding company debt securities 28,952 0 (5,452) 23,500 Obligations of states and political subdivisions: Tax-exempt 113,464 311 (9,576) 104,199 Taxable 58,720 0 (8,609) 50,111 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 105,549 40 (10,184) 95,405 Residential collateralized mortgage obligations 50,212 0 (3,750) 46,462 Commercial mortgage-backed securities 76,412 0 (9,730) 66,682 Private label commercial mortgage-backed securities 8,215 0 (55) 8,160 Total available-for-sale debt securities $ 464,968 $ 351 $ (49,564) $ 415,755 (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 aggregated by length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022: December 31, 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 $ 11,290 $ (1,035) $ 11,290 $ (1,035) Obligations of U.S. Government agencies 1,595 (9) 8,351 (1,164) 9,946 (1,173) Bank holding company debt securities 0 0 23,500 (5,452) 23,500 (5,452) Obligations of states and political subdivisions: Tax-exempt 3,257 (24) 96,758 (9,552) 100,015 (9,576) Taxable 0 0 49,961 (8,609) 49,961 (8,609) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 3,334 (27) 84,297 (10,157) 87,631 (10,184) Residential collateralized mortgage obligations 3,588 (2) 32,808 (3,748) 36,396 (3,750) Commercial mortgage-backed securities 2,327 (16) 64,355 (9,714) 66,682 (9,730) Private label commercial mortgage-backed securities 8,160 (55) 0 0 8,160 (55) Total $ 22,261 $ (133) $ 371,320 $ (49,431) $ 393,581 $ (49,564) 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 $ 297,304 $ (28,730) $ 184,052 $ (35,352) $ 481,356 $ (64,082) Gross realized gains and losses from available-for-sale securities and the related income tax provision were as follows: (In Thousands) 2023 2022 2021 Gross realized gains from sales $ 89 $ 48 $ 27 Gross realized losses from sales (3,125) (28) (3) Net realized (losses) gains $ (3,036) $ 20 $ 24 Income tax provision related to net realized (losses) gains $ (638) $ 4 $ 5 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of December 31, 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) December 31, 2023 Amortized Fair Cost Value Due in one year or less $ 13,200 $ 12,937 Due from one year through five years 27,951 26,299 Due from five years through ten years 77,246 67,709 Due after ten years 106,183 92,101 Sub-total 224,580 199,046 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 105,549 95,405 Residential collateralized mortgage obligations 50,212 46,462 Commercial mortgage-backed securities 76,412 66,682 Private label commercial mortgage-backed securities 8,215 8,160 Total $ 464,968 $ 415,755 The Corporation’s mortgage-backed securities 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 $232,437,000 at December 31, 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, totaling $136,494,000 at December 31, 2023 and $196,760,000 at December 31, 2022. See Note 11 for information concerning securities pledged to secure borrowing arrangements. A summary of information management considered in evaluating debt and equity securities for credit losses at December 31, 2023 and 2022 is provided below. Debt Securities As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $49,564,000 at December 31, 2023 and $64,082,000 at December 31, 2022. At December 31, 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 December 31, 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 December 31, 2023 and 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 December 31, 2023 and 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 $15,214,000 at December 31, 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 December 31, 2023 and 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 $6,252,000 at December 31, 2023. The Corporation’s marketable equity security, with a carrying value of $871,000 at December 31, 2023 and $859,000 at December 31, 2022 consisted exclusively of one mutual fund. There was an unrealized loss of $129,000 on the mutual fund at December 31, 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 gain of $12,000 in 2023, a loss of $112,000 in 2022 and a loss of $29,000 in 2021. There were no sales of equity securities in 2023, 2022 and 2021. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 7. LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans receivable at December 31, 2023 and 2022 are summarized as follows: Summary of Loans by Type (In Thousands) December 31, December 31, 2023 2022 Commercial real estate - non-owner occupied $ 737,342 $ 675,597 Commercial real estate - owner occupied 237,246 205,910 All other commercial loans 399,693 410,077 Residential mortgage loans 413,714 393,582 Consumer loans 60,144 54,874 Total 1,848,139 1,740,040 Less: allowance for credit losses on loans (19,208) (16,615) Loans, net $ 1,828,931 $ 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 of $4,459,000 at December 31, 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 year ended December 31, 2023 and 2022, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows: (In Thousands) Year Ended December 31, December 31, 2023 2022 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (916) $ (637) Amortization recognized in interest income (54) (279) Adjustments to gross amortized cost of loans at end of period $ (970) $ (916) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,840) $ (3,335) Accretion recognized in interest income 677 1,495 Adjustments to gross amortized cost of loans at end of period $ (1,163) $ (1,840) The following table presents an analysis of past due loans as of December 31, 2023: (In Thousands) As of December 31, 2023 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 2,215 $ 126 $ 8,412 $ 726,589 $ 737,342 Commercial real estate - owner occupied 849 0 1,575 234,822 237,246 All other commercial loans 229 2,593 1,323 395,548 399,693 Residential mortgage loans 5,365 326 3,627 404,396 413,714 Consumer loans 617 145 240 59,142 60,144 Total $ 9,275 $ 3,190 $ 15,177 $ 1,820,497 $ 1,848,139 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 The Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” column in the table that follows. The following table presents the recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023: (In Thousands) Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total Commercial real estate - non-owner occupied Pass $ 96,615 $ 167,484 $ 89,582 $ 55,390 $ 80,020 $ 207,017 $ 0 $ 696,108 Special Mention 0 20,072 2,446 0 116 6,188 0 28,822 Substandard 0 0 0 18 566 11,828 0 12,412 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - non-owner occupied $ 96,615 $ 187,556 $ 92,028 $ 55,408 $ 80,702 $ 225,033 $ 0 $ 737,342 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Commercial real estate - owner occupied Pass $ 33,761 $ 37,429 $ 52,090 $ 12,858 $ 17,505 $ 71,775 $ 0 $ 225,418 Special Mention 104 746 0 0 0 166 0 1,016 Substandard 5,200 0 2,567 0 0 3,045 0 10,812 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - owner occupied $ 39,065 $ 38,175 $ 54,657 $ 12,858 $ 17,505 $ 74,986 $ 0 $ 237,246 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 All other commercial loans Pass $ 58,393 $ 90,560 $ 51,813 $ 27,718 $ 16,421 $ 24,326 $ 107,234 $ 376,465 Special Mention 0 2,690 5,043 8 0 794 301 8,836 Substandard 0 1,267 1,250 453 679 1,085 9,658 14,392 Doubtful 0 0 0 0 0 0 0 0 Total all other commercial loans $ 58,393 $ 94,517 $ 58,106 $ 28,179 $ 17,100 $ 26,205 $ 117,193 $ 399,693 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 12 $ 12 Residential mortgage loans Pass $ 57,300 $ 87,519 $ 56,183 $ 39,411 $ 32,401 $ 135,546 $ 0 $ 408,360 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 0 285 369 4,700 0 5,354 Doubtful 0 0 0 0 0 0 0 0 Total residential mortgage loans $ 57,300 $ 87,519 $ 56,183 $ 39,696 $ 32,770 $ 140,246 $ 0 $ 413,714 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 33 $ 0 $ 33 Consumer loans Pass $ 6,020 $ 4,664 $ 1,944 $ 1,205 $ 175 $ 913 $ 44,312 $ 59,233 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 5 11 1 58 836 911 Doubtful 0 0 0 0 0 0 0 0 Total consumer loans $ 6,020 $ 4,664 $ 1,949 $ 1,216 $ 176 $ 971 $ 45,148 $ 60,144 Year-to-date gross charge-offs $ 0 $ 149 $ 0 $ 18 $ 3 $ 3 $ 138 $ 311 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. December 31, 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 $ 1,111 $ 7,301 $ 8,412 $ 6,350 Commercial real estate - owner occupied 1,281 294 1,575 19 All other commercial loans 1,132 191 1,323 11,528 Residential mortgage loans 3,627 0 3,627 3,974 Consumer loans 240 0 240 187 Purchased credit impaired 0 0 0 1,027 Total $ 7,391 $ 7,786 $ 15,177 $ 23,085 The Corporation recognized $932,000 of interest income on nonaccrual loans during the year ended December 31, 2023. The following table presents the accrued interest receivable written off by reversing interest income during the year ended December 31, 2023: Year Ended (In Thousands) December 31, 2023 Commercial real estate - non-owner occupied $ 48 Residential mortgage loans 28 Consumer loans 3 Total $ 79 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: December 31, 2023 Amortized (In Thousands) Cost Allowance Commercial real estate - non-owner occupied $ 8,412 $ 648 Commercial real estate - owner occupied 1,575 5 All other commercial loans 1,277 90 Total $ 11,264 $ 743 The following table summarizes the activity related to the ACL for the year ended December 31, 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, 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) (311) 0 (356) Recoveries 0 0 44 11 37 0 92 (Credit) provision for credit losses on loans 1,942 167 (1,168) (621) 433 0 753 Balance, December 31, 2023 $ 12,010 $ 2,116 $ 2,918 $ 1,764 $ 400 $ 0 $ 19,208 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 period. 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 Multi-family (5 or more) residential 0 0 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) Average Investment in Interest Income Recognized on Impaired Loans Impaired Loans on a Cash Basis Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Commercial: Commercial loans secured by real estate $ 9,757 $ 11,617 $ 657 $ 557 Commercial and industrial 2,078 2,636 210 34 Commercial construction and land 72 48 3 3 Loans secured by farmland 80 84 0 1 Multi-family (5 or more) residential 197 1,583 1,156 133 Agricultural loans 60 67 4 4 Other commercial loans 0 0 0 0 Total commercial 12,244 16,035 2,030 732 Residential mortgage: Residential mortgage loans - first lien 575 1,647 24 78 Residential mortgage loans - junior lien 33 361 7 11 Home equity lines of credit 43 0 4 0 Total residential mortgage 651 2,008 35 89 Total $ 12,895 $ 18,043 $ 2,065 $ 821 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. Modifications Made to Borrowers Experiencing Financial Difficulty In 2023, there were two loan modifications made to borrowers experiencing financial difficulty at the time of modification, described in the following table: (Dollars in Thousands) Term Extension Amortized Cost % of Total Basis Loan Type Financial Effect Commercial Real Estate - Non-owner Occupied: Non-owner occupied $ 3,907 0.53 % Extended the maturity of one loan for 6 months and another loan for 12 months. The Corporation closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Because the effect of most modifications made to borrowers experiencing financial difficulty 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. At December 31, 2023, the amortized cost basis of the loan included in the table above where the maturity was extended for 6 months was $1,381,000, with a specific allowance of $38,000 and the contractual payments on the loan were 117 days past due. At December 31, 2023, the amortized cost basis of the loan where the maturity was extended for 12 months was $2,526,000 with a specific allowance of $486,000 and the contractual payments were current. There were no commitments to lend additional funds to these two borrowers. 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 consolidated balance sheets) is as follows: (In Thousands) December 31, December 31, 2023 2022 Foreclosed residential real estate $ 47 $ 256 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) December 31, December 31, 2023 2022 Residential real estate in process of foreclosure $ 1,227 $ 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). Additional information related to commitments to extend credit and standby letter of credits is provided in Note 15. 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 $690,000 at December 31, 2023 and $425,000 at December 31, 2022, is included in accrued interest and other liabilities on the consolidated balance sheets. The following table presents the balance and activity in the allowance for credit losses for off-balance sheet exposures for the year ended December 31, 2023. Year Ended (In Thousands) December 31, 2023 Beginning Balance $ 425 Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13 793 Recoveries 39 Credit for unfunded commitments (567) Balance, December 31, 2023 $ 690 |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
BANK PREMISES AND EQUIPMENT | |
BANK PREMISES AND EQUIPMENT | 8. BANK PREMISES AND EQUIPMENT (In Thousands) December 31, 2023 2022 Land $ 3,573 $ 3,623 Buildings and improvements 32,582 32,332 Furniture and equipment 14,618 14,886 Construction in progress 614 1,532 Total 51,387 52,373 Less: accumulated depreciation (29,755) (30,799) Net $ 21,632 $ 21,574 Depreciation and amortization expense is included in the following line items of the consolidated statements of income: (In Thousands) 2023 2022 2021 Net occupancy and equipment expense $ 1,915 $ 2,049 $ 1,723 Data processing and telecommunications expense 236 340 407 Total $ 2,151 $ 2,389 $ 2,130 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 9. GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. There were no changes in the carrying amount of goodwill in 2023 and 2022. The balance in goodwill was $52,505,000 at December 31, 2023 and 2022. The Corporation did not complete any acquisitions in 2023 or 2022. In testing goodwill for impairment at December 31, 2023, the Corporation by-passed performing a qualitative assessment and performed a quantitative assessment based on comparison of the Corporation’s market capitalization to its stockholders’ equity, resulting in the determination that the fair value of its reporting unit, its community banking operation, exceeded it’s carrying amount. Accordingly, there was no goodwill impairment at December 31, 2023. There were no goodwill impairment charges recorded in the years ended December 31, 2023, 2022 and 2021. Information related to the core deposit intangibles is as follows: (In Thousands) December 31, 2023 2022 Gross amount $ 6,639 $ 6,639 Accumulated amortization (4,170) (3,762) Net $ 2,469 $ 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) Year Ended December 31, 2023 2022 2021 Amortization expense $ 408 $ 439 $ 535 The amount of amortization expense to be recognized in each of the ensuing five years is as follows: (In Thousands) 2024 $ 390 2025 424 2026 396 2027 361 2028 304 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
DEPOSITS | 10. DEPOSITS At December 31, 2023 the scheduled maturities of time deposits are as follows: (In Thousands) 2024 $ 290,068 2025 84,413 2026 36,610 2027 6,817 2028 6,541 Total $ 424,449 Time deposits of more than $250,000 totaled $134,085,000 at December 31, 2023 and $85,640,000 at December 31, 2022. As of December 31, 2023, the remaining maturities or time to next re-pricing of time deposits more than $250,000 was as follows: (In Thousands) Three months or less $ 47,773 Over 3 months through 12 months 45,663 Over 1 year through 3 years 40,104 Over 3 years 545 Total $ 134,085 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2023 | |
BORROWED FUNDS | |
BORROWED FUNDS | 11. BORROWED FUNDS SHORT-TERM BORROWINGS Short-term borrowings (initial maturity within one year) include the following: (In Thousands) December 31, December 31, 2023 2022 FHLB-Pittsburgh borrowings $ 31,500 $ 77,000 Customer repurchase agreements 2,374 3,062 Total short-term borrowings $ 33,874 $ 80,062 The weighted average interest rate on total short-term borrowings outstanding was 5.23% at December 31, 2023 and 4.28% at December 31, 2022. The maximum amount of total short-term borrowings outstanding at any month-end was $120,290,000 in 2023, $90,042,000 in 2022 and $17,353,000 in 2021. The Corporation had available credit with other correspondent banks totaling $75,000,000 at December 31, 2023 and $95,000,000 at December 31, 2022. These lines of credit are primarily unsecured. No amounts were outstanding at December 31, 2023 or 2022. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At December 31, 2023, the Corporation had available credit in the amount of $19,982,000 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 $20,829,000 at December 31, 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 December 31, 2023 and 2022. The carrying value of the underlying securities was $2,400,000 at December 31, 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 $1,323,008,000 at December 31, 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) were $15,214,000 at December 31, 2023 and $14,168,000 at December 31, 2022. The Corporation’s total credit facility with FHLB-Pittsburgh was $926,845,000 at December 31, 2023, including an unused (available) amount of $737,824,000. 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 December 31, 2023, the short-term borrowings included an overnight borrowing from FHLB-Pittsburgh of $6,500,000 at an interest rate of 5.68% and short-term advances maturing in the first quarter 2024 totaling $25,000,000 with a weighted average interest rate of 5.60%. 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) December 31, December 31, 2023 2022 Loans matured in 2023 $ 0 $ 9,303 Loans maturing in 2024 with a weighted-average rate of 3.09% 32,161 29,813 Loans maturing in 2025 with a weighted-average rate of 4.30% 44,627 23,231 Loans maturing in 2026 with a weighted-average rate of 4.51% 35,518 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 $ 138,337 $ 62,347 Note: Weighted-average rates are presented as of December 31, 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 $66,000 in 2023, $64,000 in 2022 and $38,000 in 2021 was included in interest expense in the consolidated statements of income. At December 31, 2023 and December 31, 2022, outstanding Senior Notes are as follows: (In Thousands) December 31, 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 $ 14,831 $ 14,765 Total carrying value $ 14,831 $ 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 $110,000 in 2023, $106,000 in 2022, and $63,000 in 2021 was included in interest expense in the consolidated statements of income. At December 31, 2023 and 2022, outstanding subordinated debt agreements are as follows: (In Thousands) December 31, 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 $ 24,717 $ 24,607 Total carrying value $ 24,717 $ 24,607 |
EMPLOYEE AND POSTRETIREMENT BEN
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | 12. EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS DEFINED BENEFIT PLANS The Corporation sponsors a defined benefit health care plan that provides postretirement medical benefits and life insurance to employees who meet certain age and length of service requirements. Full-time employees no longer accrue service time toward the Corporation-subsidized portion of the medical benefits. The plan contains a cost-sharing feature which causes participants to pay for all future increases in costs related to benefit coverage. Accordingly, actuarial assumptions related to health care cost trend rates do not significantly affect the liability balance at December 31, 2023 and 2022 and are not expected to significantly affect the Corporation’s future expenses. The Corporation uses a December 31 measurement date for the postretirement plan. In an acquisition in 2007, the Corporation assumed the Citizens Trust Company Retirement Plan, a defined benefit pension plan. This plan covers certain employees who were employed by Citizens Trust Company on December 31, 2002, when the plan was amended to discontinue admittance of any future participant and to freeze benefit accruals. Information related to the Citizens Trust Company Retirement Plan has been included in the tables that follow. The Corporation uses a December 31 measurement date for this plan. The following table shows the funded status of the defined benefit plans: Pension Postretirement (In Thousands) 2023 2022 2023 2022 CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 946 $ 1,128 $ 935 $ 1,297 Service cost 0 0 54 63 Interest cost 31 22 48 34 Plan participants' contributions 0 0 129 137 Actuarial loss (gain) 63 (199) 37 (394) Benefits paid (5) (5) (190) (202) Settlement of plan obligation (139) 0 0 0 Benefit obligation at end of year $ 896 $ 946 $ 1,013 $ 935 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 1,001 $ 1,175 $ 0 $ 0 Actual return on plan assets 89 (169) 0 0 Employer contribution 0 0 61 65 Plan participants' contributions 0 0 129 137 Benefits paid (5) (5) (190) (202) Settlement of plan obligation (139) 0 0 0 Fair value of plan assets at end of year $ 946 $ 1,001 $ 0 $ 0 Funded status at end of year $ 50 $ 55 $ (1,013) $ (935) At December 31, 2023 and 2022, the following pension plan and postretirement plan asset and liability amounts were recognized in the consolidated balance sheets: Pension Postretirement (In Thousands) 2023 2022 2023 2022 Other assets $ 50 $ 55 $ 0 $ 0 Accrued interest and other liabilities 0 0 1,013 935 At December 31, 2023 and 2022, the following items included in accumulated other comprehensive loss had not been recognized as components of expense: Pension Postretirement (In Thousands) 2023 2022 2023 2022 Prior service cost $ 0 $ 0 $ (124) $ (155) Net actuarial loss (gain) 139 179 (573) (646) Total $ 139 $ 179 $ (697) $ (801) For the defined benefit pension plan, amortization of the net actuarial loss is expected to be $6,000 in 2024. For the postretirement plan, effective in January 2024, adjustments to the plan resulted in an increase of $413,000 in unrecognized prior service cost. In 2024, the estimated reduction in expense related to prior service cost is $481,000, including a curtailment of $469,000 related to the plan adjustments. Also in 2024 for the postretirement plan, the net actuarial gain to be amortized as a reduction in expense is $77,000. The accumulated benefit obligation for the defined benefit pension plan was $896,000 at December 31, 2023 and $946,000 at December 31, 2022. The components of net periodic benefit costs from defined benefit plans are as follows: Pension Postretirement (In Thousands) 2023 2022 2021 2023 2022 2021 Service cost $ 0 $ 0 $ 0 $ 54 $ 63 $ 63 Interest cost 31 22 20 48 34 33 Expected return on plan assets (18) (35) (30) 0 0 0 Amortization of prior service cost 0 0 0 (31) (31) (31) Recognized net actuarial loss (gain) 11 8 19 (36) (19) (5) Settlement of plan obligation 21 0 0 0 0 0 Total net periodic benefit cost $ 45 $ (5) $ 9 $ 35 $ 47 $ 60 The weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Postretirement 2023 2022 2021 2023 2022 2021 Discount rate 5.05 % 2.60 % 2.30 % 3.00 % 3.00 % 2.50 % Expected return on plan assets 4.22 % 5.00 % 4.81 % N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A The weighted-average assumptions used to determine benefit obligations as of December 31, 2023 and 2022 are as follows: Pension Postretirement 2023 2022 2023 2022 Discount rate 4.80 % 5.05 % 5.00 % 5.25 % Rate of compensation increase N/A N/A N/A N/A Estimated future benefit payments, including only estimated employer contributions for the postretirement plan, which reflect expected future service, are as follows: (In Thousands) Pension Postretirement 2024 $ 570 $ 74 2025 8 85 2026 14 98 2027 8 88 2028 260 97 2029-2033 36 493 No estimated minimum contribution to the defined benefit pension plan is required in 2024, though the Corporation may make discretionary contributions. The expected return on pension plan assets is a significant assumption used in the calculation of net periodic benefit cost. This assumption reflects the average long-term rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The fair values of pension plan assets at December 31, 2023 and 2022 are as follows: 2023 2022 Mutual funds invested principally in: Cash and cash equivalents 54 % 3 % Debt securities 18 % 39 % Equity securities 24 % 50 % Alternative funds 4 % 8 % Total 100 % 100 % C&N Bank’s Wealth Management Department manages the investment of the pension plan assets. The Plan’s securities include mutual funds invested principally in cash and cash equivalents, debt securities, a diversified mix of large, mid- and small-capitalization U.S. stocks, foreign stocks and alternative asset classes such as real estate, commodities, and inflation-protected securities. The fair values of plan assets are determined based on Level 1 inputs (as described in Note 20). The Plan’s assets do not include any shares of the Corporation’s common stock. PROFIT SHARING AND DEFERRED COMPENSATION PLANS The Corporation has a profit sharing plan that incorporates the deferred salary savings provisions of Section 401(k) of the Internal Revenue Code. The Corporation’s matching contributions to the Plan depend upon the tax deferred contributions of employees. The Corporation’s total basic and matching contributions were $1,419,000 in 2023, $1,415,000 in 2022 and $1,299,000 in 2021. The Corporation has an Employee Stock Ownership Plan (ESOP). Contributions to the ESOP are discretionary, and the ESOP uses funds contributed to purchase Corporation stock for the accounts of ESOP participants. These purchases are made in the market (not directly from the Corporation), and employees are not permitted to purchase Corporation stock under the ESOP. The ESOP includes a diversification feature, which allows participants, upon reaching age 55 and 10 years of service (as defined), to sell up to 50% of their Corporation shares over a period of 6 years. As of December 31, 2023 and 2022, there were no shares allocated for repurchase by the ESOP. Dividends paid on shares held by the ESOP are charged to retained earnings. All Corporation shares owned through the ESOP are included in the calculation of weighted-average shares outstanding for purposes of calculating earnings per share – basic and diluted. The ESOP held 579,567 shares of Corporation stock at December 31, 2023, 564,353 shares at December 31, 2022 and 513,494 shares at December 31, 2021, all of which had been allocated to Plan participants. The Corporation’s contributions to the ESOP totaled $1,244,000 in 2023, $1,170,000 in 2022 and $1,040,000 in 2021. The Corporation has a nonqualified supplemental deferred compensation arrangement with its key officers. Charges to operating expense for officers’ supplemental deferred compensation were $489,000 in 2023, $391,000 in 2022 and $301,000 in 2021. In connection with an acquisition, the Corporation assumed an obligation to provide a supplemental retirement benefit to a former executive. Under the terms of the agreement, the executive or his heirs will receive monthly payments totaling $1 million over a 10-year The Corporation also has a nonqualified deferred compensation plan that allows selected officers the option to defer receipt of cash compensation, including base salary and any cash bonuses or other cash incentives. This nonqualified deferred compensation plan does not provide for Corporation contributions. STOCK-BASED COMPENSATION PLANS At the Annual Meeting of Shareholders on April 20, 2023, the Citizens & Northern Corporation 2023 Equity Incentive Plan (“2023 Equity Incentive Plan”) was approved. A total of 500,000 shares of common stock may be issued under the 2023 Equity Incentive Plan. Awards may be made to participating employees and independent directors under the 2023 Equity Incentive Plan in the form of qualified options (“Incentive Stock Options,” as defined in the Internal Revenue Code), nonqualified options, restricted stock units or restricted stock, any or all of which can be granted with performance-based vesting conditions. As of December 31, 2023, no awards had been granted under this plan. Outstanding restricted stock awards granted prior to adoption of the 2023 Equity Incentive Plan, including awards made in 2023, are governed under the 1995 Stock Incentive Plan and the Independent Directors Stock Incentive Plan. The restricted stock awards in 2023 under the 1995 Stock Incentive Plan and the Independent Directors Stock Incentive Plan are the final awards under these plans. Total stock-based compensation expense is as follows: (In Thousands) 2023 2022 2021 Restricted stock $ 1,472 $ 1,260 $ 1,214 Stock options 0 0 0 Total $ 1,472 $ 1,260 $ 1,214 The following summarizes non-vested restricted stock activity for the year ended December 31, 2023: Weighted Average Number Grant Date of Shares Fair Value Outstanding, December 31, 2022 135,220 $ 23.23 Granted 53,788 $ 23.35 Vested (53,738) $ 23.46 Forfeited (25,261) $ 22.11 Outstanding, December 31, 2023 110,009 $ 23.44 Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. As of December 31, 2023, there was $1,262,000 total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.3 years. In 2023 and 2022, the Corporation awarded shares of restricted stock under the Stock Incentive Plan, as follows: 2023 2022 Time-based awards to independent directors 11,000 9,588 Time-based awards to employees 31,684 51,638 Performance-based awards to employees 11,104 17,017 Total 53,788 78,243 Time-based restricted stock awards granted to independent (non-employee) directors in 2023 and 2022 vest over one-year terms. Time-based restricted stock awards granted to employees in 2023 and 2022 vest ratably over three-year terms, subject to continued employment and satisfactory job performance. Performance-based restricted stock awards granted in 2023 and 2022 vest ratably over three-year terms, with vesting contingent upon meeting conditions based on the Corporation’s earnings as specified in the agreements. There were no stock options granted in 2023, 2022, or 2021. A summary of stock option activity is presented below. 2023 2022 2021 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning of year 10,564 $ 20.45 24,218 $ 20.01 57,111 $ 18.92 Granted 0 0 0 Exercised (8,288) $ 20.45 (13,654) $ 19.67 (22,429) $ 18.96 Forfeited (1,630) $ 20.45 0 (3,156) $ 19.20 Expired 0 0 (7,308) $ 15.06 Outstanding, end of year 646 $ 20.45 10,564 $ 20.45 24,218 $ 20.01 Options exercisable at year-end 646 $ 20.45 10,564 $ 20.45 24,218 $ 20.01 Weighted-average fair value of options forfeited $ 5.50 N/A $ 4.59 The 646 shares of outstanding stock options at December 31, 2023 expired on January 3, 2024. The aggregate intrinsic value of stock options outstanding was $1,000 at December 31, 2023. The total intrinsic value of options exercised was $14,000 in 2023, $76,000 in 2022 and $97,000 in 2021. In January 2024, the Corporation granted 53,514 shares of time-based restricted stock awards under the 2023 Equity Incentive Plan. Of the 53,514 restricted shares, 43,514 vest ratably over three years while 10,000 issued to independent directors’ vest over one year. In February 2024, the Corporation granted 19,346 shares of performance-based restricted stock awards. These performance-based restricted stock awards vest ratably over three years, with vesting contingent upon meeting earnings-related conditions specified in agreements. Total estimated stock-based compensation expense for 2024 is $1,500,000. The restricted stock awards made in January and February 2024 are not included in the tables above. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
INCOME TAXES | 13. INCOME TAXES The net deferred tax asset at December 31, 2023 and 2022 represents the following temporary difference components: December 31, December 31, (In Thousands) 2023 2022 Deferred tax assets: Unrealized holding losses on securities $ 10,335 $ 13,391 Allowance for credit losses on loans 4,230 3,648 Purchase accounting adjustments on loans 470 938 Deferred compensation 1,352 1,149 Operating leases liability 787 907 Deferred loan origination fees 731 779 Net operating loss carryforward 541 659 Accrued incentive compensation 463 354 Other deferred tax assets 1,316 1,115 Total deferred tax assets 20,225 22,940 Deferred tax liabilities: BOLI surrender 950 0 Defined benefit plans - ASC 835 119 129 Bank premises and equipment 291 298 Core deposit intangibles 544 633 Right-of-use assets from operating leases 787 907 Other deferred tax liabilities 93 89 Total deferred tax liabilities 2,784 2,056 Deferred tax asset, net $ 17,441 $ 20,884 The provision for income taxes includes the following: (In Thousands) 2023 2022 2021 Currently payable $ 5,499 $ 5,998 $ 8,386 Tax expense resulting from allocations of certain tax benefits 0 134 128 Deferred 836 (400) (1,381) Total provision $ 6,335 $ 5,732 $ 7,133 A reconciliation of income tax at the statutory rate to the Corporation’s effective rate is as follows: 2023 2022 2021 (Dollars In Thousands) Amount % Amount % Amount % Expected provision $ 6,401 21.0 $ 6,794 21.0 $ 7,914 21.0 Tax-exempt interest income (964) (3.2) (1,029) (3.2) (921) (2.4) Increase in cash surrender value and other income from life insurance, net (586) (1.9) (103) (0.3) (118) (0.3) ESOP dividends (143) (0.5) (130) (0.4) (120) (0.3) Initiated surrender of bank-owned life insurance 950 3.1 0 0.0 0 0.0 State income tax, net of Federal benefit 329 1.1 296 0.9 375 1.0 Nondeductible interest expense 283 0.9 87 0.3 52 0.1 Other, net 65 0.3 (183) (0.6) (49) (0.1) Effective income tax provision $ 6,335 20.8 $ 5,732 17.7 $ 7,133 18.9 The Corporation has a net operating loss (“NOL”) available to be carried forward against future federal taxable income. Availability of the NOL does not expire; however, the amount that may be offset against taxable income is limited to approximately $563,000 per year and further limited annually to no more than 80% of taxable income without regard to the NOL. At December 31, 2023, the unused amount of the NOL is $2.6 million. The Corporation has no unrecognized tax benefits, nor pending examination issues related to tax positions taken in preparation of its income tax returns. With limited exceptions, the Corporation is no longer subject to examination by the Internal Revenue Service for years prior to 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS Loans to executive officers, directors of the Corporation and its subsidiaries and any associates of the foregoing persons are as follows: Beginning New Other Ending (In Thousands) Balance Loans Repayments Changes Balance 11 directors, 11 executive officers 2023 $ 14,504 $ 549 $ (823) $ (255) $ 13,975 13 directors, 9 executive officers 2022 $ 13,911 $ 1,949 $ (1,886) $ 530 $ 14,504 13 directors, 9 executive officers 2021 $ 18,445 $ 1,249 $ (6,034) $ 251 $ 13,911 In the table above, other changes represent net changes in the balance of existing lines of credit and transfers in and out of the related party category. Deposits from related parties held by the Corporation amounted to $9,014,000 at December 31, 2023 and $10,882,000 at December 31, 2022. |
OFF-BALANCE SHEET RISK
OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2023 | |
OFF-BALANCE SHEET RISK | |
OFF-BALANCE SHEET RISK | 15. OFF-BALANCE SHEET RISK The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit, interest rate or liquidity risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of these instruments express the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments whose contract amounts represent credit risk at December 31, 2023 and 2022 are as follows: (In Thousands) 2023 2022 Commitments to extend credit $ 395,997 $ 433,725 Standby letters of credit 19,158 15,822 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation, for extensions of credit is based on management’s credit assessment of the counterparty. Standby letters of credit are conditional commitments issued by the Corporation guaranteeing performance by a customer to a third party. Those guarantees are issued primarily to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Some of the standby letters of credit are collateralized by real estate or other assets, and others are unsecured. The extent to which proceeds from liquidation of collateral would be expected to cover the maximum potential amount of future payments related to standby letters of credit is not estimable. Standby letters of credit as of December 31, 2023 expire as follows: Year of Expiration (In Thousands) 2024 $ 18,694 2025 411 2026 25 2027 0 2028 28 Total $ 19,158 Information related to the allowance for credit losses on off-balance sheet exposures is provided in Note 7. |
OPERATING LEASE COMMITMENTS AND
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | |
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | 16. OPERATING LEASE COMMITMENTS AND CONTINGENCIES Operating Lease Commitments Operating leases in which the Corporation is the lessee are recorded as operating lease Right of Use ("ROU") assets and operating lease liabilities, included in other assets and other liabilities, respectively, on the consolidated balance sheets. The Corporation does not currently have any finance leases. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. The Corporation leases certain branch locations, office space and equipment. All leases are classified as operating leases. Operating lease expense, which is comprised of amortization of the ROU assets and the implicit interest accreted on the operating lease liability, is recognized on a straight line basis over the remaining lease term of the operating lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term from one At December 31, 2023, right-of-use assets of $3,570,000 were included in other assets In 2023, 2022 and 2021, operating lease expenses are included in the following line item of the consolidated statements of income: (In Thousands) 2023 2022 2021 Net occupancy and equipment expense $ 644 $ 599 $ 492 Total $ 644 $ 599 $ 492 A maturity analysis of the Corporation’s lease liabilities at December 31, 2023 is as follows: (In Thousands) Lease Payments Due 2024 $ 623 2025 593 2026 533 2027 509 2028 419 Thereafter 1,147 Total lease payments 3,824 Discount on cash flows (254) Total lease liabilities $ 3,570 Litigation Matters In the normal course of business, the Corporation is subject to pending and threatened litigation in which claims for monetary damages are asserted. In management’s opinion, the Corporation’s financial position and results of operations would not be materially affected by the outcome of these legal proceedings. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | 17. REGULATORY MATTERS In August 2018, the Federal Reserve Board issued an interim final rule that expanded applicability of the Board’s small bank holding company policy statement. The interim final rule raised the policy statement’s asset threshold from $1 billion to $3 billion in total consolidated assets for a bank holding company or savings and loan holding company that: (1) is not engaged in significant nonbanking activities; (2) does not conduct significant off-balance sheet activities; and (3) does not have a material amount of debt or equity securities, other than trust-preferred securities, outstanding. The interim final rule provides that, if warranted for supervisory purposes, the Federal Reserve may exclude a company from the threshold increase. Management believes the Corporation meets the conditions of the Federal Reserve’s small bank holding company policy statement and is therefore excluded from consolidated capital requirements at December 31, 2023; however, C&N Bank remains subject to regulatory capital requirements administered by the federal banking agencies. Details concerning capital ratios at December 31, 2023 and 2022 are presented below. Management believes, as of December 31, 2023, that C&N Bank meets all capital adequacy requirements to which it is subject and maintains a capital conservation buffer (described in more detail below) that allows the Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. Further, as reflected in the table below, the Corporation’s and C&N Bank’s capital ratios at December 31, 2023 and 2022 exceed the Corporation’s Board policy threshold levels. Minimum To Be Well Minimum Minimum To Maintain Capitalized Under Minimum To Meet Capital Capital Conservation Prompt Corrective the Corporation's Actual Requirement Buffer at Reporting Date Action Provisions Policy Thresholds (Dollars In Thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023: Total capital to risk-weighted assets: Consolidated $ 290,425 15.67 % N/A N/A N/A N/A N/A N/A $ 203,809 ³11 % C&N Bank 275,307 14.89 % 147,925 ³8 % 194,151 ³10.5 % 184,906 ³10 % 203,396 ³11 % Tier 1 capital to risk-weighted assets: Consolidated 245,810 13.27 % N/A N/A N/A N/A N/A N/A 166,753 ³9 % C&N Bank 255,409 13.81 % 110,943 ³6 % 157,170 ³8.5 % 147,925 ³8 % 166,415 ³9 % Common equity tier 1 capital to risk-weighted assets: Consolidated 245,810 13.27 % N/A N/A N/A N/A N/A N/A 138,961 ³7.5 % C&N Bank 255,409 13.81 % 83,208 ³4.5 % 129,434 ³7.0 % 120,189 ³6.5 % 138,679 ³7.5 % Tier 1 capital to average assets: Consolidated 245,810 9.87 % N/A N/A N/A N/A N/A N/A 199,151 ³8 % C&N Bank 255,409 10.32 % 99,010 ³4 % N/A N/A 123,762 ³5 % 198,020 ³8 % December 31, 2022: Total capital to risk-weighted assets: Consolidated $ 285,397 15.72 % N/A N/A N/A N/A N/A N/A $ 190,590 ³10.5 % C&N Bank 265,784 14.68 % 144,873 ³8 % 190,145 ³10.5 % 181,091 ³10 % 190,145 ³10.5 % Tier 1 capital to risk-weighted assets: Consolidated 243,750 13.43 % N/A N/A N/A N/A N/A N/A 154,287 ³8.5 % C&N Bank 248,744 13.74 % 108,654 ³6 % 153,927 ³8.5 % 144,873 ³8 % 153,927 ³8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 243,750 13.43 % N/A N/A N/A N/A N/A N/A 127,060 ³7 % C&N Bank 248,744 13.74 % 81,491 ³4.5 % 126,764 ³7.0 % 117,709 ³6.5 % 126,764 ³7 % Tier 1 capital to average assets: Consolidated 243,750 10.11 % N/A N/A N/A N/A N/A N/A 192,941 ³8 % C&N Bank 248,744 10.38 % 95,826 ³4 % N/A N/A 119,783 ³5 % 191,652 ³8 % Federal regulatory authorities impose a capital rule providing that, to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization subject to the rule must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. At December 31, 2023, the minimum risk-based capital ratios, and the capital ratios including the capital conservation buffer, are as follows: Minimum common equity tier 1 capital ratio 4.5 % Minimum common equity tier 1 capital ratio plus capital conservation buffer 7.0 % Minimum tier 1 capital ratio 6.0 % Minimum tier 1 capital ratio plus capital conservation buffer 8.5 % Minimum total capital ratio 8.0 % Minimum total capital ratio plus capital conservation buffer 10.5 % A banking organization with a buffer greater than 2.5% over the minimum risk-based capital ratios would not be subject to additional limits on dividend payments or discretionary bonus payments; however, a banking organization with a buffer less than 2.5% would be subject to increasingly stringent limitations as the buffer approaches zero. Also, a banking organization is prohibited from making dividend payments or discretionary bonus payments if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% as of the beginning of that quarter. Eligible net income is defined as net income for the four calendar quarters preceding the current calendar quarter, net of any distributions and associated tax effects not already reflected in net income. A summary of payout restrictions based on the capital conservation buffer is as follows: Capital Conservation Buffer Maximum Payout (as a % of risk-weighted assets) (as a % of eligible retained income) Greater than 2.5% No payout limitation applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % At December 31, 2023, C&N Bank’s Capital Conservation Buffer, determined based on the minimum total capital ratio, was 6.89%. Banking regulators limit the amount of dividends that may be paid by C&N Bank to the Corporation. Retained earnings against which dividends may be paid without prior approval of the banking regulators amounted to approximately $101,550,000 at December 31, 2023, subject to the minimum capital ratio requirements noted above. Restrictions imposed by federal law prohibit the Corporation from borrowing from C&N Bank unless the loans are secured in specific amounts. Such secured loans to the Corporation are generally limited to 10% of C&N Bank’s tangible stockholder’s equity (excluding accumulated other comprehensive loss) or $25,277,000 at December 31, 2023. |
PARENT COMPANY ONLY
PARENT COMPANY ONLY | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY | |
PARENT COMPANY ONLY | 18. PARENT COMPANY ONLY The following is condensed financial information for Citizens & Northern Corporation: CONDENSED BALANCE SHEET Dec. 31, Dec. 31, (In Thousands) 2023 2022 ASSETS Cash $ 14,822 $ 17,867 Investment in subsidiaries: Citizens & Northern Bank 272,286 254,809 Citizens & Northern Investment Corporation 11,087 12,453 Bucktail Life Insurance Company 3,733 3,637 Other assets 200 33 TOTAL ASSETS $ 302,128 $ 288,799 LIABILITIES AND STOCKHOLDERS' EQUITY Senior notes, net $ 14,831 $ 14,765 Subordinated debt, net 24,717 24,607 Other liabilities 199 102 Stockholders' equity 262,381 249,325 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 302,128 $ 288,799 CONDENSED INCOME STATEMENT (In Thousands) 2023 2022 2021 Dividends from Citizens & Northern Bank $ 19,405 $ 19,483 $ 20,200 Dividends from Citizens & Northern Investment Corporation 1,800 0 0 Expenses (2,003) (1,695) (1,691) Income before equity in undistributed income of subsidiaries 19,202 17,788 18,509 Equity in undistributed income of subsidiaries 4,946 8,830 12,045 NET INCOME $ 24,148 $ 26,618 $ 30,554 CONDENSED STATEMENT OF CASH FLOWS (In Thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 24,148 $ 26,618 $ 30,554 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of purchase accounting adjustment 0 (14) (43) Amortization of debt issuance costs 176 170 101 Equity in undistributed income of subsidiaries (4,946) (8,830) (12,045) Increase in other assets (167) 0 (29) Increase (decrease) in other liabilities 97 (41) (16) Net Cash Provided by Operating Activities 19,308 17,903 18,522 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of senior notes and subordinated debt 0 0 39,100 Repayment of subordinated debt 0 (8,500) (8,000) Proceeds from sale of treasury stock 0 160 212 Purchase of treasury stock (6,784) (9,349) (7,586) Dividends paid (15,569) (15,865) (15,976) Net Cash (Used in) Provided by Financing Activities (22,353) (33,554) 7,750 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,045) (15,651) 26,272 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 17,867 33,518 7,246 CASH AND CASH EQUIVALENTS, END OF YEAR $ 14,822 $ 17,867 $ 33,518 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION, Interest paid $ 1,234 $ 1,433 $ 1,567 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 19. 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 $150,028,000 at December 31, 2023 and $155,214,000 at December 31, 2022. There were no interest rate swaps originated in 2023 and one interest rate swap originated with a notional amount of $24,000,000 in 2022. There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at December 31, 2023. The net impact of interest rate swaps on interest income on loans was an increase of $1,796,000 in 2023, compared to reductions of $342,000 in 2022 and $1,347,000 in 2021. In 2022, there was fee income on the interest swap originated of $290,000 included in other noninterest income in the consolidated statements of income. 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 $18,000 in 2023 and a decrease in other noninterest income of $14,000 in 2022. The Corporation did not enter into any RPAs prior to 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 December 31, 2023 and 2022: (In Thousands) At December 31, 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 $ 75,014 $ 2,783 $ 75,014 $ 2,783 $ 77,607 $ 3,638 $ 77,607 $ 3,638 RPA Out 7,082 11 0 0 7,200 0 0 0 RPA In 0 0 10,000 13 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. There was $1,360,000 in interest-bearing cash pledged as collateral against the Corporation’s liability related to the interest rate swaps at December 31, 2023. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 20. FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS The Corporation measures certain assets at fair value. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820, “Fair Value Measurements and Disclosures” establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Corporation for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available. Level 2 – Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets and other observable inputs. Level 3 – Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows and other similar techniques. The Corporation monitors and evaluates available data relating to fair value measurements on an ongoing basis and recognizes transfers among the levels of the fair value hierarchy as of the date of an event or change in circumstances that affects the valuation method chosen. Examples of such changes may include the market for a particular asset becoming active or inactive, changes in the availability of quoted prices, or changes in the availability of other market data. At December 31, 2023 and 2022, assets measured at fair value and the valuation methods used are as follows: December 31, 2023 Quoted Prices Other Observable Unobservable in Active Markets Inputs Inputs Total (In Thousands) (Level 1) (Level 2) (Level 3) Fair Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 11,290 $ 0 $ 0 $ 11,290 Obligations of U.S. Government agencies 0 9,946 0 9,946 Bank holding company debt securities 0 23,500 0 23,500 Obligations of states and political subdivisions: Tax-exempt 0 104,199 0 104,199 Taxable 0 50,111 0 50,111 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 95,405 0 95,405 Residential collateralized mortgage obligations 0 46,462 0 46,462 Commercial mortgage-backed securities 0 66,682 0 66,682 Private label commercial mortgage-backed securities 0 8,160 0 8,160 Total available-for-sale debt securities 11,290 404,465 0 415,755 Marketable equity security 871 0 0 871 Servicing rights 0 0 2,659 2,659 RPA Out 0 11 0 11 Interest rate swap agreements, assets 0 2,783 0 2,783 Total recurring fair value measurements, assets $ 12,161 $ 407,259 $ 2,659 $ 422,079 Recurring fair value measurements, liabilities, RPA In $ 0 $ 13 $ 0 $ 13 Interest rate swap agreements, liabilities 0 2,783 0 2,783 Total recurring fair value measurements, liabilities $ 0 $ 2,796 $ 0 $ 2,796 Nonrecurring fair value measurements, assets: Loans individually evaluated for credit loss, net $ 0 $ 0 $ 7,786 $ 7,786 Foreclosed assets held for sale 0 0 478 478 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,264 $ 8,264 December 31, 2022 Quoted Prices Other Observable Unobservable in Active Markets Inputs Inputs Total (In Thousands) (Level 1) (Level 2) (Level 3) Fair 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, RPA In $ 0 $ 19 $ 0 $ 19 Interest rate swap agreements, liabilities 0 3,638 0 3,638 Total recurring fair value measurements, liabilities $ 0 $ 3,657 $ 0 $ 3,657 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. The following table shows quantitative information regarding significant techniques and inputs used at December 31, 2023 and 2022 for servicing rights assets measured using unobservable inputs (Level 3 methodologies) on a recurring basis: Fair Value at 12/31/2023 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2023 Servicing rights $ 2,659 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 131.00 % 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. Following is a reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis: (In Thousands) Years Ended December 31, 2023 2022 2021 Servicing rights balance, beginning of period $ 2,653 $ 2,329 $ 1,689 Originations of servicing rights 206 198 708 Unrealized (loss) gain included in earnings (200) 126 (68) Servicing rights balance, end of period $ 2,659 $ 2,653 $ 2,329 Loans are individually evaluated for credit loss when they do not share similar risk characteristics as similar loans within its loan pool. Foreclosed assets held for sale consist of real estate acquired by foreclosure. For individually evaluated loans secured by real estate and foreclosed assets held for sale, estimated fair values are determined primarily using values from third-party appraisals. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. At December 31, 2023 and 2022, quantitative information regarding significant techniques and inputs used for nonrecurring fair value measurements using unobservable inputs (Level 3 methodologies) are as follows: (Dollars In Thousands) Range (Weighted Valuation Average) Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2023 12/31/2023 12/31/2023 Technique Inputs 12/31/2023 Loans individually evaluated for credit loss: Commercial real estate - nonowner occupied $ 7,301 $ 648 $ 6,653 Sales comparison Discount to appraised value 22%-30% % Commercial real estate - owner occupied 294 5 289 Sales comparison & SBA guaranty Discount to appraised value % All other commercial loans 191 90 101 Liquidation & SBA guaranty Discount to appraised value % Total loans individually evaluated for credit loss $ 7,786 $ 743 $ 7,043 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 47 $ 0 $ 47 Sales comparison Discount to appraised value 20%-62% % Commercial real estate 431 0 431 Sales comparison Discount to appraised value 18%-50% % Total foreclosed assets held for sale $ 478 $ 0 $ 478 (Dollars In Thousands) Range (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 December 31, 2023 December 31, 2022 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 52,778 $ 52,778 $ 47,698 $ 47,698 Certificates of deposit Level 2 4,100 3,859 7,350 6,956 Restricted equity securities (included in other assets) Level 2 21,716 21,716 14,418 14,418 Loans, net Level 3 1,828,931 1,750,336 1,723,425 1,674,002 Accrued interest receivable Level 2 9,140 9,140 8,653 8,653 Financial liabilities: Deposits with no stated maturity Level 2 1,590,357 1,590,357 1,702,404 1,702,404 Time deposits Level 2 424,449 423,643 295,189 293,814 Short-term borrowings Level 2 33,874 33,874 80,062 80,062 Long-term borrowings Level 2 138,337 137,775 62,347 60,944 Senior debt Level 2 14,831 12,706 14,765 9,712 Subordinated debt Level 2 24,717 22,750 24,607 16,186 Accrued interest payable Level 2 1,525 1,525 461 461 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF CONSOLIDATION | BASIS OF CONSOLIDATION – |
NATURE OF OPERATIONS | NATURE OF OPERATIONS – The Corporation provides banking and related services to individual and corporate customers. Lending products include commercial, mortgage and consumer loans, as well as specialized instruments such as commercial letters-of-credit. Deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, Individual Retirement Accounts and certificates of deposit. The Corporation provides wealth management services through its trust department, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services. The Corporation offers a variety of personal and commercial insurance products through C&N Financial Services, LLC. C&N Financial Services, LLC also offers mutual funds, annuities, educational savings accounts and other investment products through registered agents. Management has determined that the Corporation has one reportable segment, “Community Banking.” All of the Corporation’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others. The Corporation is subject to competition from other financial institutions. It is also subject to regulation by certain federal and state agencies and undergoes periodic examination by those regulatory authorities. |
USE OF ESTIMATES | USE OF ESTIMATES – Material estimates that are particularly susceptible to change include: (1) the allowance for credit losses and (2) fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers. |
INVESTMENT SECURITIES | INVESTMENT SECURITIES – Available-for-sale debt securities – Allowance for Credit Losses- Available-for-Sale Debt Securities – 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 December 31, 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 $2,018,000 at December 31, 2023 and was excluded from the estimate of credit losses. Marketable equity security Restricted equity securities |
DERIVATIVES | DERIVATIVES – Interest rate swaps with commercial banking customers were executed to enable the commercial banking customers to effectively exchange 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. Changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Interest differentials paid or received under the swap agreements are reflected as adjustments to interest and fees on loans. The fair value of interest rate derivatives is included in the balance of other assets and other liabilities in the consolidated balance sheets. 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.” The fair value of the RPA In is included in accrued interest and other liabilities in the consolidated balance sheets. 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 fair value of the RPA Out is included in other assets in the consolidated balance sheets. Fees paid and received associated with RPAs, as well as changes in fair value of the related derivatives, are included in other noninterest income in the consolidated statements of income. |
LOANS HELD FOR SALE | LOANS HELD FOR SALE – |
LOANS RECEIVABLE | LOANS RECEIVABLE – Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on loans for which the risk of loss is greater than remote are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of loans receivable is determined based on contractual due dates for loan payments. Also, the amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. |
PURCHASED LOANS | PURCHASED LOANS – |
ALLOWANCE FOR LOAN 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 $7,099,000 at December 31, 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 is 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: Non-owner 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 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 determines the annual net charge-offs as a percentage of average total loan balances (net charge-off percentage). For each loan pool, the average annualized net charge-off percentage is 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 is 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 are generally assumed to be repaid after 1 year. The estimated weighted-average remaining life of the entire portfolio was calculated to be 4.48 years at December 31, 2023 and 4.36 years at January 1, 2023. 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 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 calculates 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 consolidated balance sheets and the related credit expense is recorded in the provision for credit losses in the consolidated statements of income. |
BANK PREMISES AND EQUIPMENT | BANK PREMISES AND EQUIPMENT – |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS – |
FORECLOSED ASSETS HELD FOR SALE | FORECLOSED ASSETS HELD FOR SALE – |
GOODWILL | GOODWILL – Corporation has the option of performing a qualitative assessment to determine whether any further quantitative testing for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually. |
CORE DEPOSIT INTANGIBLES | CORE DEPOSIT INTANGIBLES – |
SERVICING RIGHTS | SERVICING RIGHTS |
INCOME TAXES | INCOME TAXES |
STOCK COMPENSATION PLANS | STOCK-BASED COMPENSATION |
TREASURY STOCK | TREASURY STOCK – . |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | OFF-BALANCE SHEET FINANCIAL INSTRUMENTS – |
CASH FLOWS | CASH FLOWS – |
REVENUE RECOGNITION | REVENUE RECOGNITION – Additional disclosures related to the Corporation’s largest sources of noninterest income within the consolidated statements of income from contracts with customers that are subject to ASC Topic 606 are as follows: Trust and financial management revenue – 2023 and $1,063,615,000 at December 31, 2022. Trust revenue is included within noninterest income in the consolidated statements of income. Trust revenue is recorded on a cash basis, which is not materially different from the accrual basis. The majority (approximately 81%, based on annual 2023 results) of trust revenue is earned and collected monthly, with the amount determined based on a percentage of the fair value of the trust assets under management. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The services provided under such a contract represent a single performance obligation under ASC 606 because it embodies a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. None of the contracts with trust customers provide for incentive-based fees. In addition to wealth management fees, trust revenue includes fees for provision of services, including employee benefit plan administration, tax return preparation and estate planning and settlement. Fees for such services are billed based on contractual arrangements or established fee schedules and are typically billed upon completion of providing such services. The costs of acquiring trust customers are incremental and recognized within noninterest expense in the consolidated statements of income. Service charges on deposit accounts Interchange revenue from debit card transactions – |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | The Financial Accounting Standards Board (FASB) issues Accounting Standard Updates (ASUs) to communicate changes to the FASB Accounting Standard Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the foreseeable future. Recent Accounting Pronouncements – Adopted As described in Note 1, on January 1, 2023, the Corporation adopted ASC 326. This standard replaced the incurred loss methodology for measuring credit losses on financial instruments with an expected loss methodology that is referred to as the CECL methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset 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 are presented at the net amount expected to be collected by using an allowance for credit losses. 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 December 31, 2022 are presented under CECL while prior period amounts continue to be reported using the Incurred Loss methodology. 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) 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 7. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements. Recent Issued but Not Yet Effective Accounting Pronouncements In , - , improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU No. 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. T he ASU may be adopted on a prospective or retrospective basis and early adoption is permitted. The Corporation is currently evaluating the impact the new guidance will have on disclosures related to income taxes. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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) | 12 Months Ended |
Dec. 31, 2023 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) Years Ended December 31, December 31, December 31, 2023 2022 2021 Basic Net income $ 24,148 $ 26,618 $ 30,554 Less: Dividends and undistributed earnings allocated to participating securities (186) (237) (241) Net income attributable to common shares $ 23,962 $ 26,381 $ 30,313 Basic weighted-average common shares outstanding 15,241,859 15,455,432 15,765,639 Basic earnings per common share (a) $ 1.57 $ 1.71 $ 1.92 Diluted Net income attributable to common shares $ 23,962 $ 26,381 $ 30,313 Basic weighted-average common shares outstanding 15,241,859 15,455,432 15,765,639 Dilutive effect of potential common stock arising from stock options 0 3,099 6,316 Diluted weighted-average common shares outstanding 15,241,859 15,458,531 15,771,955 Diluted earnings per common share (a) $ 1.57 $ 1.71 $ 1.92 Weighted-average nonvested restricted shares outstanding 118,122 138,617 125,539 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares with nonforfeitable dividends (participating securities). |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 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 2023 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 11,512 $ (2,418) $ 9,094 Reclassification adjustment for losses realized in income 3,036 (638) 2,398 Other comprehensive income from available-for-sale debt securities 14,548 (3,056) 11,492 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (9) 2 (7) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (56) 12 (44) Other comprehensive loss on unfunded retirement obligations (65) 14 (51) Total other comprehensive income $ 14,483 $ (3,042) $ 11,441 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (69,828) $ 14,665 $ (55,163) Reclassification adjustment for (gains) realized in income (20) 4 (16) Other comprehensive loss from available-for-sale debt securities (69,848) 14,669 (55,179) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 389 (81) 308 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (42) 9 (33) Other comprehensive income on unfunded retirement obligations 347 (72) 275 Total other comprehensive loss $ (69,501) $ 14,597 $ (54,904) 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (8,669) $ 1,821 $ (6,848) Reclassification adjustment for (gains) realized in income (24) 5 (19) Other comprehensive loss from available-for-sale debt securities (8,693) 1,826 (6,867) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 140 (29) 111 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (17) 4 (13) Other comprehensive income on unfunded retirement obligations 123 (25) 98 Total other comprehensive loss $ (8,570) $ 1,801 $ (6,769) |
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 losses (gains) realized in income (before-tax) Realized (losses) gains on available-for-sale debt securities, net Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax) Other noninterest expense Income tax effect Income tax provision |
Schedule of changes in the components of accumulated other comprehensive income (loss) | (In Thousands) Accumulated Unrealized Unfunded Other (Losses) Gains Retirement Comprehensive on Securities Obligations (Loss) Income 2023 Balance, beginning of period $ (50,370) $ 492 $ (49,878) Other comprehensive income (loss) during year ended December 31, 2023 11,492 (51) 11,441 Balance, end of period $ (38,878) $ 441 $ (38,437) 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive (loss) income during year ended December 31, 2022 (55,179) 275 (54,904) Balance, end of period $ (50,370) $ 492 $ (49,878) 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive (loss) income during year ended December 31, 2021 (6,867) 98 (6,769) Balance, end of period $ 4,809 $ 217 $ 5,026 |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In Thousands) December 31, December 31, 2023 2022 Cash and cash equivalents $ 52,778 $ 47,698 Certificates of deposit 4,100 7,350 Total cash and due from banks $ 56,878 $ 55,048 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale debt securities | (In Thousands) December 31, 2023 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,325 $ 0 $ (1,035) $ 11,290 Obligations of U.S. Government agencies 11,119 0 (1,173) 9,946 Bank holding company debt securities 28,952 0 (5,452) 23,500 Obligations of states and political subdivisions: Tax-exempt 113,464 311 (9,576) 104,199 Taxable 58,720 0 (8,609) 50,111 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 105,549 40 (10,184) 95,405 Residential collateralized mortgage obligations 50,212 0 (3,750) 46,462 Commercial mortgage-backed securities 76,412 0 (9,730) 66,682 Private label commercial mortgage-backed securities 8,215 0 (55) 8,160 Total available-for-sale debt securities $ 464,968 $ 351 $ (49,564) $ 415,755 (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 | December 31, 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 $ 11,290 $ (1,035) $ 11,290 $ (1,035) Obligations of U.S. Government agencies 1,595 (9) 8,351 (1,164) 9,946 (1,173) Bank holding company debt securities 0 0 23,500 (5,452) 23,500 (5,452) Obligations of states and political subdivisions: Tax-exempt 3,257 (24) 96,758 (9,552) 100,015 (9,576) Taxable 0 0 49,961 (8,609) 49,961 (8,609) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 3,334 (27) 84,297 (10,157) 87,631 (10,184) Residential collateralized mortgage obligations 3,588 (2) 32,808 (3,748) 36,396 (3,750) Commercial mortgage-backed securities 2,327 (16) 64,355 (9,714) 66,682 (9,730) Private label commercial mortgage-backed securities 8,160 (55) 0 0 8,160 (55) Total $ 22,261 $ (133) $ 371,320 $ (49,431) $ 393,581 $ (49,564) 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 $ 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) 2023 2022 2021 Gross realized gains from sales $ 89 $ 48 $ 27 Gross realized losses from sales (3,125) (28) (3) Net realized (losses) gains $ (3,036) $ 20 $ 24 Income tax provision related to net realized (losses) gains $ (638) $ 4 $ 5 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) December 31, 2023 Amortized Fair Cost Value Due in one year or less $ 13,200 $ 12,937 Due from one year through five years 27,951 26,299 Due from five years through ten years 77,246 67,709 Due after ten years 106,183 92,101 Sub-total 224,580 199,046 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 105,549 95,405 Residential collateralized mortgage obligations 50,212 46,462 Commercial mortgage-backed securities 76,412 66,682 Private label commercial mortgage-backed securities 8,215 8,160 Total $ 464,968 $ 415,755 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Summary of loans outstanding | Summary of Loans by Type (In Thousands) December 31, December 31, 2023 2022 Commercial real estate - non-owner occupied $ 737,342 $ 675,597 Commercial real estate - owner occupied 237,246 205,910 All other commercial loans 399,693 410,077 Residential mortgage loans 413,714 393,582 Consumer loans 60,144 54,874 Total 1,848,139 1,740,040 Less: allowance for credit losses on loans (19,208) (16,615) Loans, net $ 1,828,931 $ 1,723,425 |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) Year Ended December 31, December 31, 2023 2022 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (916) $ (637) Amortization recognized in interest income (54) (279) Adjustments to gross amortized cost of loans at end of period $ (970) $ (916) Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (1,840) $ (3,335) Accretion recognized in interest income 677 1,495 Adjustments to gross amortized cost of loans at end of period $ (1,163) $ (1,840) |
Summary of the past due loans | (In Thousands) As of December 31, 2023 Past Due Past Due 30-89 90+ Nonaccrual Current Total Days Days Loans Loans Loans Commercial real estate - non-owner occupied $ 2,215 $ 126 $ 8,412 $ 726,589 $ 737,342 Commercial real estate - owner occupied 849 0 1,575 234,822 237,246 All other commercial loans 229 2,593 1,323 395,548 399,693 Residential mortgage loans 5,365 326 3,627 404,396 413,714 Consumer loans 617 145 240 59,142 60,144 Total $ 9,275 $ 3,190 $ 15,177 $ 1,820,497 $ 1,848,139 (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 $ 96,615 $ 167,484 $ 89,582 $ 55,390 $ 80,020 $ 207,017 $ 0 $ 696,108 Special Mention 0 20,072 2,446 0 116 6,188 0 28,822 Substandard 0 0 0 18 566 11,828 0 12,412 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - non-owner occupied $ 96,615 $ 187,556 $ 92,028 $ 55,408 $ 80,702 $ 225,033 $ 0 $ 737,342 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Commercial real estate - owner occupied Pass $ 33,761 $ 37,429 $ 52,090 $ 12,858 $ 17,505 $ 71,775 $ 0 $ 225,418 Special Mention 104 746 0 0 0 166 0 1,016 Substandard 5,200 0 2,567 0 0 3,045 0 10,812 Doubtful 0 0 0 0 0 0 0 0 Total commercial real estate - owner occupied $ 39,065 $ 38,175 $ 54,657 $ 12,858 $ 17,505 $ 74,986 $ 0 $ 237,246 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 All other commercial loans Pass $ 58,393 $ 90,560 $ 51,813 $ 27,718 $ 16,421 $ 24,326 $ 107,234 $ 376,465 Special Mention 0 2,690 5,043 8 0 794 301 8,836 Substandard 0 1,267 1,250 453 679 1,085 9,658 14,392 Doubtful 0 0 0 0 0 0 0 0 Total all other commercial loans $ 58,393 $ 94,517 $ 58,106 $ 28,179 $ 17,100 $ 26,205 $ 117,193 $ 399,693 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 12 $ 12 Residential mortgage loans Pass $ 57,300 $ 87,519 $ 56,183 $ 39,411 $ 32,401 $ 135,546 $ 0 $ 408,360 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 0 285 369 4,700 0 5,354 Doubtful 0 0 0 0 0 0 0 0 Total residential mortgage loans $ 57,300 $ 87,519 $ 56,183 $ 39,696 $ 32,770 $ 140,246 $ 0 $ 413,714 Year-to-date gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 33 $ 0 $ 33 Consumer loans Pass $ 6,020 $ 4,664 $ 1,944 $ 1,205 $ 175 $ 913 $ 44,312 $ 59,233 Special Mention 0 0 0 0 0 0 0 0 Substandard 0 0 5 11 1 58 836 911 Doubtful 0 0 0 0 0 0 0 0 Total consumer loans $ 6,020 $ 4,664 $ 1,949 $ 1,216 $ 176 $ 971 $ 45,148 $ 60,144 Year-to-date gross charge-offs $ 0 $ 149 $ 0 $ 18 $ 3 $ 3 $ 138 $ 311 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 | December 31, 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 $ 1,111 $ 7,301 $ 8,412 $ 6,350 Commercial real estate - owner occupied 1,281 294 1,575 19 All other commercial loans 1,132 191 1,323 11,528 Residential mortgage loans 3,627 0 3,627 3,974 Consumer loans 240 0 240 187 Purchased credit impaired 0 0 0 1,027 Total $ 7,391 $ 7,786 $ 15,177 $ 23,085 |
Schedule of accrued Interest receivables written off | Year Ended (In Thousands) December 31, 2023 Commercial real estate - non-owner occupied $ 48 Residential mortgage loans 28 Consumer loans 3 Total $ 79 |
Schedule of collateral dependent loans | December 31, 2023 Amortized (In Thousands) Cost Allowance Commercial real estate - non-owner occupied $ 8,412 $ 648 Commercial real estate - owner occupied 1,575 5 All other commercial loans 1,277 90 Total $ 11,264 $ 743 |
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, 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) (311) 0 (356) Recoveries 0 0 44 11 37 0 92 (Credit) provision for credit losses on loans 1,942 167 (1,168) (621) 433 0 753 Balance, December 31, 2023 $ 12,010 $ 2,116 $ 2,918 $ 1,764 $ 400 $ 0 $ 19,208 |
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 Multi-family (5 or more) residential 0 0 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) Average Investment in Interest Income Recognized on Impaired Loans Impaired Loans on a Cash Basis Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Commercial: Commercial loans secured by real estate $ 9,757 $ 11,617 $ 657 $ 557 Commercial and industrial 2,078 2,636 210 34 Commercial construction and land 72 48 3 3 Loans secured by farmland 80 84 0 1 Multi-family (5 or more) residential 197 1,583 1,156 133 Agricultural loans 60 67 4 4 Other commercial loans 0 0 0 0 Total commercial 12,244 16,035 2,030 732 Residential mortgage: Residential mortgage loans - first lien 575 1,647 24 78 Residential mortgage loans - junior lien 33 361 7 11 Home equity lines of credit 43 0 4 0 Total residential mortgage 651 2,008 35 89 Total $ 12,895 $ 18,043 $ 2,065 $ 821 |
Summary of modified loan | In 2023, there were two loan modifications made to borrowers experiencing financial difficulty at the time of modification, described in the following table: (Dollars in Thousands) Term Extension Amortized Cost % of Total Basis Loan Type Financial Effect Commercial Real Estate - Non-owner Occupied: Non-owner occupied $ 3,907 0.53 % Extended the maturity of one loan for 6 months and another loan for 12 months. |
Schedule of carrying amount of foreclosed residential real estate properties | (In Thousands) December 31, December 31, 2023 2022 Foreclosed residential real estate $ 47 $ 256 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) December 31, December 31, 2023 2022 Residential real estate in process of foreclosure $ 1,227 $ 1,229 |
Schedule of Off-Balance-Sheet | Year Ended (In Thousands) December 31, 2023 Beginning Balance $ 425 Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13 793 Recoveries 39 Credit for unfunded commitments (567) Balance, December 31, 2023 $ 690 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of bank premises and equipment | (In Thousands) December 31, 2023 2022 Land $ 3,573 $ 3,623 Buildings and improvements 32,582 32,332 Furniture and equipment 14,618 14,886 Construction in progress 614 1,532 Total 51,387 52,373 Less: accumulated depreciation (29,755) (30,799) Net $ 21,632 $ 21,574 |
Schedule of depreciation expense in consolidated statements of income | (In Thousands) 2023 2022 2021 Net occupancy and equipment expense $ 1,915 $ 2,049 $ 1,723 Data processing and telecommunications expense 236 340 407 Total $ 2,151 $ 2,389 $ 2,130 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | |
Schedule of core deposit intangibles | (In Thousands) December 31, 2023 2022 Gross amount $ 6,639 $ 6,639 Accumulated amortization (4,170) (3,762) Net $ 2,469 $ 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) Year Ended December 31, 2023 2022 2021 Amortization expense $ 408 $ 439 $ 535 |
Schedule of amortization expense to be recognized in each of the ensuing five years | (In Thousands) 2024 $ 390 2025 424 2026 396 2027 361 2028 304 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Scheduled maturities of time deposits | (In Thousands) 2024 $ 290,068 2025 84,413 2026 36,610 2027 6,817 2028 6,541 Total $ 424,449 |
Schedule of remaining maturities of time deposits in excess of $250,000 | (In Thousands) Three months or less $ 47,773 Over 3 months through 12 months 45,663 Over 1 year through 3 years 40,104 Over 3 years 545 Total $ 134,085 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BORROWED FUNDS | |
Schedule of short term borrowings | (In Thousands) December 31, December 31, 2023 2022 FHLB-Pittsburgh borrowings $ 31,500 $ 77,000 Customer repurchase agreements 2,374 3,062 Total short-term borrowings $ 33,874 $ 80,062 |
Schedule of long term borrowings | (In Thousands) December 31, December 31, 2023 2022 Loans matured in 2023 $ 0 $ 9,303 Loans maturing in 2024 with a weighted-average rate of 3.09% 32,161 29,813 Loans maturing in 2025 with a weighted-average rate of 4.30% 44,627 23,231 Loans maturing in 2026 with a weighted-average rate of 4.51% 35,518 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 $ 138,337 $ 62,347 |
Schedule of outstanding senior notes | (In Thousands) December 31, 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 $ 14,831 $ 14,765 Total carrying value $ 14,831 $ 14,765 |
Schedule of outstanding subordinated debt | (In Thousands) December 31, 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 $ 24,717 $ 24,607 Total carrying value $ 24,717 $ 24,607 |
EMPLOYEE AND POSTRETIREMENT B_2
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of funded status of the defined benefit plans | Pension Postretirement (In Thousands) 2023 2022 2023 2022 CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 946 $ 1,128 $ 935 $ 1,297 Service cost 0 0 54 63 Interest cost 31 22 48 34 Plan participants' contributions 0 0 129 137 Actuarial loss (gain) 63 (199) 37 (394) Benefits paid (5) (5) (190) (202) Settlement of plan obligation (139) 0 0 0 Benefit obligation at end of year $ 896 $ 946 $ 1,013 $ 935 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 1,001 $ 1,175 $ 0 $ 0 Actual return on plan assets 89 (169) 0 0 Employer contribution 0 0 61 65 Plan participants' contributions 0 0 129 137 Benefits paid (5) (5) (190) (202) Settlement of plan obligation (139) 0 0 0 Fair value of plan assets at end of year $ 946 $ 1,001 $ 0 $ 0 Funded status at end of year $ 50 $ 55 $ (1,013) $ (935) |
Schedule of pension plan and postretirement plan liability amounts were recognized in the consolidated balance sheets | Pension Postretirement (In Thousands) 2023 2022 2023 2022 Other assets $ 50 $ 55 $ 0 $ 0 Accrued interest and other liabilities 0 0 1,013 935 |
Summary of items not yet recognized as a component of net periodic benefit cost | Pension Postretirement (In Thousands) 2023 2022 2023 2022 Prior service cost $ 0 $ 0 $ (124) $ (155) Net actuarial loss (gain) 139 179 (573) (646) Total $ 139 $ 179 $ (697) $ (801) |
Summary of components of net periodic benefit costs from defined benefit plans | Pension Postretirement (In Thousands) 2023 2022 2021 2023 2022 2021 Service cost $ 0 $ 0 $ 0 $ 54 $ 63 $ 63 Interest cost 31 22 20 48 34 33 Expected return on plan assets (18) (35) (30) 0 0 0 Amortization of prior service cost 0 0 0 (31) (31) (31) Recognized net actuarial loss (gain) 11 8 19 (36) (19) (5) Settlement of plan obligation 21 0 0 0 0 0 Total net periodic benefit cost $ 45 $ (5) $ 9 $ 35 $ 47 $ 60 |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | Pension Postretirement 2023 2022 2021 2023 2022 2021 Discount rate 5.05 % 2.60 % 2.30 % 3.00 % 3.00 % 2.50 % Expected return on plan assets 4.22 % 5.00 % 4.81 % N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A Pension Postretirement 2023 2022 2023 2022 Discount rate 4.80 % 5.05 % 5.00 % 5.25 % Rate of compensation increase N/A N/A N/A N/A |
Schedule of Estimated future benefit payments | (In Thousands) Pension Postretirement 2024 $ 570 $ 74 2025 8 85 2026 14 98 2027 8 88 2028 260 97 2029-2033 36 493 |
Schedule of fair values of pension plan assets | 2023 2022 Mutual funds invested principally in: Cash and cash equivalents 54 % 3 % Debt securities 18 % 39 % Equity securities 24 % 50 % Alternative funds 4 % 8 % Total 100 % 100 % |
Schedule of stock-based compensation expense | (In Thousands) 2023 2022 2021 Restricted stock $ 1,472 $ 1,260 $ 1,214 Stock options 0 0 0 Total $ 1,472 $ 1,260 $ 1,214 |
Summary of non-vested restricted stock activity | Weighted Average Number Grant Date of Shares Fair Value Outstanding, December 31, 2022 135,220 $ 23.23 Granted 53,788 $ 23.35 Vested (53,738) $ 23.46 Forfeited (25,261) $ 22.11 Outstanding, December 31, 2023 110,009 $ 23.44 |
Summary of stock option activity | 2023 2022 2021 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning of year 10,564 $ 20.45 24,218 $ 20.01 57,111 $ 18.92 Granted 0 0 0 Exercised (8,288) $ 20.45 (13,654) $ 19.67 (22,429) $ 18.96 Forfeited (1,630) $ 20.45 0 (3,156) $ 19.20 Expired 0 0 (7,308) $ 15.06 Outstanding, end of year 646 $ 20.45 10,564 $ 20.45 24,218 $ 20.01 Options exercisable at year-end 646 $ 20.45 10,564 $ 20.45 24,218 $ 20.01 Weighted-average fair value of options forfeited $ 5.50 N/A $ 4.59 |
Restricted Stock | |
Notes Tables | |
Summary of awarded shares of restricted stock under the Stock Incentive Plan, | 2023 2022 Time-based awards to independent directors 11,000 9,588 Time-based awards to employees 31,684 51,638 Performance-based awards to employees 11,104 17,017 Total 53,788 78,243 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of deferred tax assets and deferred tax liabilities | December 31, December 31, (In Thousands) 2023 2022 Deferred tax assets: Unrealized holding losses on securities $ 10,335 $ 13,391 Allowance for credit losses on loans 4,230 3,648 Purchase accounting adjustments on loans 470 938 Deferred compensation 1,352 1,149 Operating leases liability 787 907 Deferred loan origination fees 731 779 Net operating loss carryforward 541 659 Accrued incentive compensation 463 354 Other deferred tax assets 1,316 1,115 Total deferred tax assets 20,225 22,940 Deferred tax liabilities: BOLI surrender 950 0 Defined benefit plans - ASC 835 119 129 Bank premises and equipment 291 298 Core deposit intangibles 544 633 Right-of-use assets from operating leases 787 907 Other deferred tax liabilities 93 89 Total deferred tax liabilities 2,784 2,056 Deferred tax asset, net $ 17,441 $ 20,884 |
Schedule of components of income tax expense | (In Thousands) 2023 2022 2021 Currently payable $ 5,499 $ 5,998 $ 8,386 Tax expense resulting from allocations of certain tax benefits 0 134 128 Deferred 836 (400) (1,381) Total provision $ 6,335 $ 5,732 $ 7,133 |
Schedule of reconciliation of income tax | 2023 2022 2021 (Dollars In Thousands) Amount % Amount % Amount % Expected provision $ 6,401 21.0 $ 6,794 21.0 $ 7,914 21.0 Tax-exempt interest income (964) (3.2) (1,029) (3.2) (921) (2.4) Increase in cash surrender value and other income from life insurance, net (586) (1.9) (103) (0.3) (118) (0.3) ESOP dividends (143) (0.5) (130) (0.4) (120) (0.3) Initiated surrender of bank-owned life insurance 950 3.1 0 0.0 0 0.0 State income tax, net of Federal benefit 329 1.1 296 0.9 375 1.0 Nondeductible interest expense 283 0.9 87 0.3 52 0.1 Other, net 65 0.3 (183) (0.6) (49) (0.1) Effective income tax provision $ 6,335 20.8 $ 5,732 17.7 $ 7,133 18.9 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of loans to executive officers and directors and associates | Beginning New Other Ending (In Thousands) Balance Loans Repayments Changes Balance 11 directors, 11 executive officers 2023 $ 14,504 $ 549 $ (823) $ (255) $ 13,975 13 directors, 9 executive officers 2022 $ 13,911 $ 1,949 $ (1,886) $ 530 $ 14,504 13 directors, 9 executive officers 2021 $ 18,445 $ 1,249 $ (6,034) $ 251 $ 13,911 |
OFF-BALANCE SHEET RISK (Tables)
OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of financial instruments whose contract amounts represent credit risk | (In Thousands) 2023 2022 Commitments to extend credit $ 395,997 $ 433,725 Standby letters of credit 19,158 15,822 |
Schedule of expirations of standby letters of credit | Year of Expiration (In Thousands) 2024 $ 18,694 2025 411 2026 25 2027 0 2028 28 Total $ 19,158 |
OPERATING LEASE COMMITMENTS A_2
OPERATING LEASE COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | |
Schedule of balance sheet information relating to operating leases | |
Schedule of operating lease expenses | (In Thousands) 2023 2022 2021 Net occupancy and equipment expense $ 644 $ 599 $ 492 Total $ 644 $ 599 $ 492 |
Schedule of operating lease maturities | Lease Payments Due 2024 $ 623 2025 593 2026 533 2027 509 2028 419 Thereafter 1,147 Total lease payments 3,824 Discount on cash flows (254) Total lease liabilities $ 3,570 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY MATTERS | |
Schedule of capital ratios | Minimum To Be Well Minimum Minimum To Maintain Capitalized Under Minimum To Meet Capital Capital Conservation Prompt Corrective the Corporation's Actual Requirement Buffer at Reporting Date Action Provisions Policy Thresholds (Dollars In Thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023: Total capital to risk-weighted assets: Consolidated $ 290,425 15.67 % N/A N/A N/A N/A N/A N/A $ 203,809 ³11 % C&N Bank 275,307 14.89 % 147,925 ³8 % 194,151 ³10.5 % 184,906 ³10 % 203,396 ³11 % Tier 1 capital to risk-weighted assets: Consolidated 245,810 13.27 % N/A N/A N/A N/A N/A N/A 166,753 ³9 % C&N Bank 255,409 13.81 % 110,943 ³6 % 157,170 ³8.5 % 147,925 ³8 % 166,415 ³9 % Common equity tier 1 capital to risk-weighted assets: Consolidated 245,810 13.27 % N/A N/A N/A N/A N/A N/A 138,961 ³7.5 % C&N Bank 255,409 13.81 % 83,208 ³4.5 % 129,434 ³7.0 % 120,189 ³6.5 % 138,679 ³7.5 % Tier 1 capital to average assets: Consolidated 245,810 9.87 % N/A N/A N/A N/A N/A N/A 199,151 ³8 % C&N Bank 255,409 10.32 % 99,010 ³4 % N/A N/A 123,762 ³5 % 198,020 ³8 % December 31, 2022: Total capital to risk-weighted assets: Consolidated $ 285,397 15.72 % N/A N/A N/A N/A N/A N/A $ 190,590 ³10.5 % C&N Bank 265,784 14.68 % 144,873 ³8 % 190,145 ³10.5 % 181,091 ³10 % 190,145 ³10.5 % Tier 1 capital to risk-weighted assets: Consolidated 243,750 13.43 % N/A N/A N/A N/A N/A N/A 154,287 ³8.5 % C&N Bank 248,744 13.74 % 108,654 ³6 % 153,927 ³8.5 % 144,873 ³8 % 153,927 ³8.5 % Common equity tier 1 capital to risk-weighted assets: Consolidated 243,750 13.43 % N/A N/A N/A N/A N/A N/A 127,060 ³7 % C&N Bank 248,744 13.74 % 81,491 ³4.5 % 126,764 ³7.0 % 117,709 ³6.5 % 126,764 ³7 % Tier 1 capital to average assets: Consolidated 243,750 10.11 % N/A N/A N/A N/A N/A N/A 192,941 ³8 % C&N Bank 248,744 10.38 % 95,826 ³4 % N/A N/A 119,783 ³5 % 191,652 ³8 % |
Schedule of minimum risk-based capital ratios, and the capital ratios including the capital conservation buffer | Minimum common equity tier 1 capital ratio 4.5 % Minimum common equity tier 1 capital ratio plus capital conservation buffer 7.0 % Minimum tier 1 capital ratio 6.0 % Minimum tier 1 capital ratio plus capital conservation buffer 8.5 % Minimum total capital ratio 8.0 % Minimum total capital ratio plus capital conservation buffer 10.5 % |
Schedule of summary of payout restrictions based on the capital conservation buffer | Capital Conservation Buffer Maximum Payout (as a % of risk-weighted assets) (as a % of eligible retained income) Greater than 2.5% No payout limitation applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % |
PARENT COMPANY ONLY (Tables)
PARENT COMPANY ONLY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY | |
Schedule of parent company condensed balance sheet | CONDENSED BALANCE SHEET Dec. 31, Dec. 31, (In Thousands) 2023 2022 ASSETS Cash $ 14,822 $ 17,867 Investment in subsidiaries: Citizens & Northern Bank 272,286 254,809 Citizens & Northern Investment Corporation 11,087 12,453 Bucktail Life Insurance Company 3,733 3,637 Other assets 200 33 TOTAL ASSETS $ 302,128 $ 288,799 LIABILITIES AND STOCKHOLDERS' EQUITY Senior notes, net $ 14,831 $ 14,765 Subordinated debt, net 24,717 24,607 Other liabilities 199 102 Stockholders' equity 262,381 249,325 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 302,128 $ 288,799 |
Schedule of parent company condensed income statement | CONDENSED INCOME STATEMENT (In Thousands) 2023 2022 2021 Dividends from Citizens & Northern Bank $ 19,405 $ 19,483 $ 20,200 Dividends from Citizens & Northern Investment Corporation 1,800 0 0 Expenses (2,003) (1,695) (1,691) Income before equity in undistributed income of subsidiaries 19,202 17,788 18,509 Equity in undistributed income of subsidiaries 4,946 8,830 12,045 NET INCOME $ 24,148 $ 26,618 $ 30,554 |
Schedule of parent company condensed statement of cash flows | CONDENSED STATEMENT OF CASH FLOWS (In Thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 24,148 $ 26,618 $ 30,554 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of purchase accounting adjustment 0 (14) (43) Amortization of debt issuance costs 176 170 101 Equity in undistributed income of subsidiaries (4,946) (8,830) (12,045) Increase in other assets (167) 0 (29) Increase (decrease) in other liabilities 97 (41) (16) Net Cash Provided by Operating Activities 19,308 17,903 18,522 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of senior notes and subordinated debt 0 0 39,100 Repayment of subordinated debt 0 (8,500) (8,000) Proceeds from sale of treasury stock 0 160 212 Purchase of treasury stock (6,784) (9,349) (7,586) Dividends paid (15,569) (15,865) (15,976) Net Cash (Used in) Provided by Financing Activities (22,353) (33,554) 7,750 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,045) (15,651) 26,272 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 17,867 33,518 7,246 CASH AND CASH EQUIVALENTS, END OF YEAR $ 14,822 $ 17,867 $ 33,518 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION, Interest paid $ 1,234 $ 1,433 $ 1,567 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 75,014 $ 2,783 $ 75,014 $ 2,783 $ 77,607 $ 3,638 $ 77,607 $ 3,638 RPA Out 7,082 11 0 0 7,200 0 0 0 RPA In 0 0 10,000 13 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) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets measured at fair value and the valuation methods used | December 31, 2023 Quoted Prices Other Observable Unobservable in Active Markets Inputs Inputs Total (In Thousands) (Level 1) (Level 2) (Level 3) Fair Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 11,290 $ 0 $ 0 $ 11,290 Obligations of U.S. Government agencies 0 9,946 0 9,946 Bank holding company debt securities 0 23,500 0 23,500 Obligations of states and political subdivisions: Tax-exempt 0 104,199 0 104,199 Taxable 0 50,111 0 50,111 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 95,405 0 95,405 Residential collateralized mortgage obligations 0 46,462 0 46,462 Commercial mortgage-backed securities 0 66,682 0 66,682 Private label commercial mortgage-backed securities 0 8,160 0 8,160 Total available-for-sale debt securities 11,290 404,465 0 415,755 Marketable equity security 871 0 0 871 Servicing rights 0 0 2,659 2,659 RPA Out 0 11 0 11 Interest rate swap agreements, assets 0 2,783 0 2,783 Total recurring fair value measurements, assets $ 12,161 $ 407,259 $ 2,659 $ 422,079 Recurring fair value measurements, liabilities, RPA In $ 0 $ 13 $ 0 $ 13 Interest rate swap agreements, liabilities 0 2,783 0 2,783 Total recurring fair value measurements, liabilities $ 0 $ 2,796 $ 0 $ 2,796 Nonrecurring fair value measurements, assets: Loans individually evaluated for credit loss, net $ 0 $ 0 $ 7,786 $ 7,786 Foreclosed assets held for sale 0 0 478 478 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,264 $ 8,264 December 31, 2022 Quoted Prices Other Observable Unobservable in Active Markets Inputs Inputs Total (In Thousands) (Level 1) (Level 2) (Level 3) Fair 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, RPA In $ 0 $ 19 $ 0 $ 19 Interest rate swap agreements, liabilities 0 3,638 0 3,638 Total recurring fair value measurements, liabilities $ 0 $ 3,657 $ 0 $ 3,657 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) Years Ended December 31, 2023 2022 2021 Servicing rights balance, beginning of period $ 2,653 $ 2,329 $ 1,689 Originations of servicing rights 206 198 708 Unrealized (loss) gain included in earnings (200) 126 (68) Servicing rights balance, end of period $ 2,659 $ 2,653 $ 2,329 |
Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value | (In Thousands) Fair Value December 31, 2023 December 31, 2022 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 52,778 $ 52,778 $ 47,698 $ 47,698 Certificates of deposit Level 2 4,100 3,859 7,350 6,956 Restricted equity securities (included in other assets) Level 2 21,716 21,716 14,418 14,418 Loans, net Level 3 1,828,931 1,750,336 1,723,425 1,674,002 Accrued interest receivable Level 2 9,140 9,140 8,653 8,653 Financial liabilities: Deposits with no stated maturity Level 2 1,590,357 1,590,357 1,702,404 1,702,404 Time deposits Level 2 424,449 423,643 295,189 293,814 Short-term borrowings Level 2 33,874 33,874 80,062 80,062 Long-term borrowings Level 2 138,337 137,775 62,347 60,944 Senior debt Level 2 14,831 12,706 14,765 9,712 Subordinated debt Level 2 24,717 22,750 24,607 16,186 Accrued interest payable Level 2 1,525 1,525 461 461 |
Recurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | Fair Value at 12/31/2023 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2023 Servicing rights $ 2,659 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 131.00 % 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) Range (Weighted Valuation Average) Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2023 12/31/2023 12/31/2023 Technique Inputs 12/31/2023 Loans individually evaluated for credit loss: Commercial real estate - nonowner occupied $ 7,301 $ 648 $ 6,653 Sales comparison Discount to appraised value 22%-30% % Commercial real estate - owner occupied 294 5 289 Sales comparison & SBA guaranty Discount to appraised value % All other commercial loans 191 90 101 Liquidation & SBA guaranty Discount to appraised value % Total loans individually evaluated for credit loss $ 7,786 $ 743 $ 7,043 Foreclosed assets held for sale - real estate: Residential (1-4 family) $ 47 $ 0 $ 47 Sales comparison Discount to appraised value 20%-62% % Commercial real estate 431 0 431 Sales comparison Discount to appraised value 18%-50% % Total foreclosed assets held for sale $ 478 $ 0 $ 478 (Dollars In Thousands) Range (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 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Jan. 31, 2023 | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Number of reportable segments | segment | 1 | |||
Contractual performance period of nonaccrual loans to be restored to accrual status | 6 months | |||
Credit losses related to unfunded loan commitments | $ 19,208,000 | $ 19,208,000 | $ 16,615,000 | |
Interest receivable | $ 2,018,000 | 2,018,000 | ||
Interest receivable excluded from the estimate of credit losses | $ 7,099,000 | |||
Weighted-average remaining life of the entire portfolio | 4 years 5 months 23 days | 4 years 4 months 9 days | ||
Forecast relevant to collectability of cash flows | 2 years | |||
Accrued interest related to unrecognized tax benefits | $ 0 | $ 0 | ||
Fair value of trust assets under management | 1,188,082,000 | $ 1,188,082,000 | 1,063,615,000 | |
Trust revenue is earned and collected monthly | 81% | |||
Commercial | ||||
Credit losses related to unfunded loan commitments | 11,298,000 | |||
Threshold amount of financing receivables for credit losses | 200,000 | $ 200,000 | ||
Residential mortgage | ||||
Credit losses related to unfunded loan commitments | 4,073,000 | |||
Threshold amount of financing receivables for credit losses | 400,000 | 400,000 | ||
Consumer | ||||
Credit losses related to unfunded loan commitments | $ 244,000 | |||
Threshold amount of financing receivables for credit losses | $ 400,000 | $ 400,000 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Loans receivable | $ 1,848,139,000 | $ 1,740,040,000 |
Allowance for credit losses on loans | 19,208,000 | 16,615,000 |
Allowance for credit losses on off-balance sheet exposures | 690,000 | 425,000 |
Deferred tax asset, net | 17,441,000 | 20,884,000 |
Retained earnings | $ 157,028,000 | 151,743,000 |
Accounting Standards Update 2016-13 [Member] | ||
Loans receivable | 1,740,040,000 | |
Allowance for credit losses on loans | 16,615,000 | |
Allowance for credit losses on off-balance sheet exposures | 425,000 | |
Deferred tax asset, net | 20,884,000 | |
Retained earnings | 151,743,000 | |
Adoption under ASC 326 | Accounting Standards Update 2016-13 [Member] | ||
Loans receivable | 1,740,846,000 | |
Allowance for credit losses on loans | 18,719,000 | |
Allowance for credit losses on off-balance sheet exposures | 1,218,000 | |
Deferred tax asset, net | 21,323,000 | |
Retained earnings | 150,091,000 | |
Adoption of ASU 2016-13 (CECL) | Accounting Standards Update 2016-13 [Member] | ||
Loans receivable | 806,000 | |
Allowance for credit losses on loans | 2,104,000 | |
Allowance for credit losses on off-balance sheet exposures | 793,000 | |
Deferred tax asset, net | 439,000 | |
Retained earnings | $ (1,652,000) |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net Income (Loss) | $ 24,148 | $ 26,618 | $ 30,554 |
Less: Dividends and undistributed earnings allocated to participating securities | (186) | (237) | (241) |
Net income attributable to common shares | $ 23,962 | $ 26,381 | $ 30,313 |
Basic weighted-average common shares outstanding (in shares) | 15,241,859 | 15,455,432 | 15,765,639 |
Basic earnings per common share (in dollars per share) | $ 1.57 | $ 1.71 | $ 1.92 |
Diluted | |||
Net income attributable to common shares | $ 23,962 | $ 26,381 | $ 30,313 |
Basic weighted-average common shares outstanding (in shares) | 15,241,859 | 15,455,432 | 15,765,639 |
Dilutive effect of potential common stock arising from stock options (in shares) | 0 | 3,099 | 6,316 |
Diluted weighted-average common shares outstanding (in shares) | 15,241,859 | 15,458,531 | 15,771,955 |
Diluted earnings per common share (in dollars per share) | $ 1.57 | $ 1.71 | $ 1.92 |
Weighted-average nonvested restricted shares outstanding (in shares) | 118,122 | 138,617 | 125,539 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 8,963 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) - C
COMPREHENSIVE INCOME (LOSS) - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
COMPREHENSIVE INCOME (LOSS) | |||
Unrealized holding gains (losses) on available-for-sale debt securities | $ 11,512 | $ (69,828) | $ (8,669) |
Unrealized holding losses on available-for-sale debt securities, Income Tax Effect | (2,418) | 14,665 | 1,821 |
Unrealized holding gains (losses) on available-for-sale debt securities, Net of Tax Amount | 9,094 | (55,163) | (6,848) |
Reclassification adjustment for gains realized in income | 3,036 | (20) | (24) |
Reclassification adjustment for gains realized in income, Income Tax Effect | (638) | 4 | 5 |
Reclassification adjustment for gains realized in income. Net of Tax Amount | 2,398 | (16) | (19) |
Other comprehensive loss from available-for-sale debt securities, Before-Tax Amount | 14,548 | (69,848) | (8,693) |
Other comprehensive loss on available-for-sale debt securities, Income tax effect | (3,056) | 14,669 | 1,826 |
Other comprehensive loss from available-for-sale debt securities, Net-of-Tax Amount | 11,492 | (55,179) | (6,867) |
Changes from plan amendments and actuarial gains and losses, Before-Tax Amount | (9) | 389 | 140 |
Changes from plan amendments and actuarial gains and losses, Income Tax Effect | 2 | (81) | (29) |
Changes from plan amendments and actuarial gains and losses, Net-of-Tax Amount | (7) | 308 | 111 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Before-Tax Amount | (56) | (42) | (17) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Income Tax Effect | 12 | 9 | 4 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Net-of-Tax Amount | (44) | (33) | (13) |
Other comprehensive (loss) income on pension and postretirement obligations | (65) | 347 | 123 |
Other comprehensive income (loss) on unfunded retirement obligations, Income Tax Effect | 14 | (72) | (25) |
Other comprehensive income (loss) on unfunded retirement obligations, Net-of-Tax Amount | (51) | 275 | 98 |
Other comprehensive income (loss) before income tax | 14,483 | (69,501) | (8,570) |
Total other comprehensive loss, Income Tax Effect | (3,042) | 14,597 | 1,801 |
Total other comprehensive loss, Net-of-Tax Amount | $ 11,441 | $ (54,904) | $ (6,769) |
COMPREHENSIVE INCOME (LOSS) -_2
COMPREHENSIVE INCOME (LOSS) - Changes of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning of period | $ 249,325 | $ 301,405 | $ 299,756 |
Other comprehensive loss | 11,441 | (54,904) | (6,769) |
Balance, end of period | 262,381 | 249,325 | 301,405 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | |||
Balance, beginning of period | (50,370) | 4,809 | 11,676 |
Other comprehensive loss | 11,492 | (55,179) | (6,867) |
Balance, end of period | (38,878) | (50,370) | 4,809 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Balance, beginning of period | 492 | 217 | 119 |
Other comprehensive loss | (51) | 275 | 98 |
Balance, end of period | 441 | 492 | 217 |
Accumulated Other Comprehensive (Loss) Income | |||
Balance, beginning of period | (49,878) | 5,026 | 11,795 |
Other comprehensive loss | 11,441 | (54,904) | (6,769) |
Balance, end of period | $ (38,437) | $ (49,878) | $ 5,026 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 52,778 | $ 47,698 |
Certificates of deposit | 4,100 | 7,350 |
Total cash and due from banks | $ 56,878 | $ 55,048 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | $ 464,968 | $ 561,794 |
Available-for-sale securities, gross unrealized holding gains | 351 | 321 |
Available-for-sale securities, gross unrealized holding losses | (49,564) | (64,082) |
Available-for-sale debt securities, at fair value | 415,755 | 498,033 |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 12,325 | 35,166 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (1,035) | (3,330) |
Available-for-sale debt securities, at fair value | 11,290 | 31,836 |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 11,119 | 25,938 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (1,173) | (2,508) |
Available-for-sale debt securities, at fair value | 9,946 | 23,430 |
Bank holding company debt securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 28,952 | 28,945 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (5,452) | (3,559) |
Available-for-sale debt securities, at fair value | 23,500 | 25,386 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 113,464 | 146,149 |
Available-for-sale securities, gross unrealized holding gains | 311 | 319 |
Available-for-sale securities, gross unrealized holding losses | (9,576) | (13,845) |
Available-for-sale debt securities, at fair value | 104,199 | 132,623 |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 58,720 | 68,488 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (8,609) | (11,676) |
Available-for-sale debt securities, at fair value | 50,111 | 56,812 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 105,549 | 112,782 |
Available-for-sale securities, gross unrealized holding gains | 40 | 0 |
Available-for-sale securities, gross unrealized holding losses | (10,184) | (12,841) |
Available-for-sale debt securities, at fair value | 95,405 | 99,941 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 50,212 | 44,868 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (3,750) | (4,572) |
Available-for-sale debt securities, at fair value | 46,462 | 40,296 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 76,412 | 91,388 |
Available-for-sale securities, gross unrealized holding gains | 0 | 0 |
Available-for-sale securities, gross unrealized holding losses | (9,730) | (11,702) |
Available-for-sale debt securities, at fair value | 66,682 | 79,686 |
Private label commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 8,215 | 8,070 |
Available-for-sale securities, gross unrealized holding gains | 0 | 2 |
Available-for-sale securities, gross unrealized holding losses | (55) | (49) |
Available-for-sale debt securities, at fair value | $ 8,160 | $ 8,023 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) | Dec. 31, 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 | $ 22,261,000 | $ 297,304,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (133,000) | (28,730,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 371,320,000 | 184,052,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (49,431,000) | (35,352,000) |
Available-for-sale securities with unrealized loss positions, fair value | 393,581,000 | 481,356,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (49,564,000) | (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 | 11,290,000 | 11,644,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (1,035,000) | (1,391,000) |
Available-for-sale securities with unrealized loss positions, fair value | 11,290,000 | 31,836,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (1,035,000) | (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 | 1,595,000 | 8,509,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (9,000) | (430,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 8,351,000 | 12,921,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (1,164,000) | (2,078,000) |
Available-for-sale securities with unrealized loss positions, fair value | 9,946,000 | 21,430,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (1,173,000) | (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 | 23,500,000 | 11,138,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (5,452,000) | (1,862,000) |
Available-for-sale securities with unrealized loss positions, fair value | 23,500,000 | 25,386,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (5,452,000) | (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 | 3,257,000 | 106,204,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (24,000) | (11,023,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 96,758,000 | 15,153,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (9,552,000) | (2,822,000) |
Available-for-sale securities with unrealized loss positions, fair value | 100,015,000 | 121,357,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (9,576,000) | (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 | 49,961,000 | 27,761,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (8,609,000) | (6,937,000) |
Available-for-sale securities with unrealized loss positions, fair value | 49,961,000 | 56,662,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (8,609,000) | (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 | 3,334,000 | 45,410,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (27,000) | (4,226,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 84,297,000 | 54,531,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (10,157,000) | (8,615,000) |
Available-for-sale securities with unrealized loss positions, fair value | 87,631,000 | 99,941,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (10,184,000) | (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 | 3,588,000 | 28,670,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (2,000) | (2,042,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 32,808,000 | 11,626,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (3,748,000) | (2,530,000) |
Available-for-sale securities with unrealized loss positions, fair value | 36,396,000 | 40,296,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (3,750,000) | (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 | 2,327,000 | 40,408,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (16,000) | (2,585,000) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 64,355,000 | 39,278,000 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (9,714,000) | (9,117,000) |
Available-for-sale securities with unrealized loss positions, fair value | 66,682,000 | 79,686,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (9,730,000) | (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 | 8,160,000 | 4,762,000 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (55,000) | (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 | 8,160,000 | 4,762,000 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (55,000) | $ (49,000) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SECURITIES | |||
Gross realized gains from sales | $ 89 | $ 48 | $ 27 |
Gross realized losses from sales | (3,125) | (28) | (3) |
Net realized gains | (3,036) | 20 | 24 |
Income tax provision related to net realized gains | $ (638) | $ 4 | $ 5 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale Securities | ||
Due in one year or less, amortized cost | $ 13,200,000 | |
Due in one year or less, fair value | 12,937,000 | |
Due from one year through five years. amortized cost | 27,951,000 | |
Due from one year through five years, fair value | 26,299,000 | |
Due from five years through ten years, amortized cost | 77,246,000 | |
Due from five years through ten years, fair value | 67,709,000 | |
Due after ten years, amortized cost | 106,183,000 | |
Due after ten years, fair value | 92,101,000 | |
Sub-total, amortized cost | 224,580,000 | |
Sub-total, fair value | 199,046,000 | |
Total, amortized cost | 464,968,000 | $ 561,794,000 |
Total, fair value | 415,755,000 | 498,033,000 |
Secured public deposits, trusts and certain other deposits | 136,494,000 | 196,760,000 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 105,549,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 95,405,000 | |
Total, amortized cost | 105,549,000 | 112,782,000 |
Total, fair value | 95,405,000 | 99,941,000 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 50,212,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 46,462,000 | |
Total, amortized cost | 50,212,000 | 44,868,000 |
Total, fair value | 46,462,000 | 40,296,000 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 76,412,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 66,682,000 | |
Total, amortized cost | 76,412,000 | 91,388,000 |
Total, fair value | 66,682,000 | 79,686,000 |
Private label commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 8,215,000 | 8,070,000 |
Total, fair value | $ 8,160,000 | $ 8,023,000 |
SECURITIES - Collateral (Detail
SECURITIES - Collateral (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investment Securities [Member] | ||
SECURITIES | ||
Investment pledged as collateral | $ 232,437,000 | $ 277,302,000 |
SECURITIES - Debt Securities (D
SECURITIES - Debt Securities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
SECURITIES | ||
Gross unrealized holding losses on available-for-sale debt securities | $ 49,564,000 | $ 64,082,000 |
Allowance for credit loss | $ 0 | $ 0 |
SECURITIES - Equity Securities
SECURITIES - Equity Securities (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | |
Equity Securities | |||
Marketable equity security | $ 871,000 | $ 859,000 | |
Number of equity securities sold | security | 0 | 0 | 0 |
Mutual Fund | |||
Equity Securities | |||
Number of mutual funds | 1 | ||
Unrealized gain/loss on the mutual fund | $ 141,000 | ||
Net gains recognized during the period on equity securities | $ 129,000 | 141,000 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 12,000 | 112,000 | $ 29,000 |
Other Assets | |||
Equity Securities | |||
Federal Home Loan Bank Stock | 6,252,000 | ||
Other Assets | Federal Home Loan Bank of Pittsburgh | |||
Equity Securities | |||
Federal Home Loan Bank Stock | $ 15,214,000 | $ 14,168,000 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loans by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | $ 1,848,139 | $ 1,740,040 |
Allowance for credit losses on loans | (19,208) | (16,615) |
Purchased credit impaired loans | 1,027,000 | |
Loans, net | 1,828,931 | 1,723,425 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,111,498 | |
Allowance for credit losses on loans | (11,298) | |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 737,342 | 675,597 |
Allowance for credit losses on loans | (12,010) | (6,305) |
Commercial | Commercial real estate - owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 237,246 | 205,910 |
Allowance for credit losses on loans | (2,116) | (1,942) |
Commercial | All other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 399,693 | 410,077 |
Allowance for credit losses on loans | (2,918) | (4,142) |
Residential mortgage loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 413,714 | 393,582 |
Allowance for credit losses on loans | (1,764) | (2,751) |
Consumer loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 60,144 | 54,874 |
Allowance for credit losses on loans | $ (400) | $ (475) |
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Market Rate Adjustment | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Adjustments to gross amortized cost of loans at beginning of period | $ (916) | $ (637) |
Amortization recognized in interest income | (54) | (279) |
Adjustments to gross amortized cost of loans at end of period | (970) | (916) |
Credit Adjustment on Non-impaired Loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Adjustments to gross amortized cost of loans at beginning of period | (1,840) | (3,335) |
Amortization recognized in interest income | 677 | 1,495 |
Adjustments to gross amortized cost of loans at end of period | $ (1,163) | $ (1,840) |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Analysis of past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | $ 15,177 | $ 23,085 |
Loans receivable | 1,848,139 | 1,740,040 |
Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 9,275 | 7,079 |
Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 3,190 | 2,237 |
Financial asset, not past due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,820,497 | 1,707,639 |
Purchased Credit Impaired | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,027 | |
Loans receivable | 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 | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 0 | |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,111,498 | |
Commercial | Commercial real estate - non-owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 8,412 | 6,350 |
Loans receivable | 737,342 | 675,597 |
Commercial | Commercial real estate - non-owner occupied | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 2,215 | 644 |
Commercial | Commercial real estate - non-owner occupied | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 126 | 947 |
Commercial | Commercial real estate - non-owner occupied | Financial asset, not past due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 726,589 | 667,656 |
Commercial | Commercial real estate - owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,575 | 19 |
Loans receivable | 237,246 | 204,982 |
Commercial | Commercial real estate - owner occupied | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 849 | 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 | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 234,822 | 204,099 |
Commercial | All other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 1,323 | 11,528 |
Loans receivable | 399,693 | 409,978 |
Commercial | All other commercial loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 229 | 537 |
Commercial | All other commercial loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 2,593 | 151 |
Commercial | All other commercial loans | Financial asset, not past due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 395,548 | 397,762 |
Residential mortgage loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 3,627 | 3,974 |
Loans receivable | 413,714 | 393,582 |
Residential mortgage loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 5,365 | 4,540 |
Residential mortgage loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 326 | 866 |
Residential mortgage loans | Financial asset, not past due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 404,396 | 384,202 |
Consumer loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 240 | 187 |
Loans receivable | 60,144 | 54,874 |
Consumer loans | Past Due 30-89 Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 617 | 635 |
Consumer loans | Past Due 90+ Days | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans | 145 | 132 |
Consumer loans | Financial asset, not past due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | $ 59,142 | $ 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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LOANS | ||
Loans receivable | $ 1,848,139 | $ 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 | 96,615 | |
2022 | 187,556 | |
2021 | 92,028 | |
2020 | 55,408 | |
2019 | 80,702 | |
Prior | 225,033 | |
Revolving | 0 | |
Loans receivable | 737,342 | 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 | 96,615 | |
2022 | 167,484 | |
2021 | 89,582 | |
2020 | 55,390 | |
2019 | 80,020 | |
Prior | 207,017 | |
Revolving | 0 | |
Loans receivable | 696,108 | 654,430 |
Commercial | Commercial real estate - non-owner occupied | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 20,072 | |
2021 | 2,446 | |
2020 | 0 | |
2019 | 116 | |
Prior | 6,188 | |
Revolving | 0 | |
Loans receivable | 28,822 | 9,486 |
Commercial | Commercial real estate - non-owner occupied | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 18 | |
2019 | 566 | |
Prior | 11,828 | |
Revolving | 0 | |
Loans receivable | 12,412 | 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 | 237,246 | 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 | 39,065 | |
2022 | 38,175 | |
2021 | 54,657 | |
2020 | 12,858 | |
2019 | 17,505 | |
Prior | 74,986 | |
Revolving | 0 | |
Loans receivable | 237,246 | 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 | 33,761 | |
2022 | 37,429 | |
2021 | 52,090 | |
2020 | 12,858 | |
2019 | 17,505 | |
Prior | 71,775 | |
Revolving | 0 | |
Loans receivable | 225,418 | |
Commercial | Commercial real estate - owner occupied | Special Mention | ||
LOANS | ||
2023 | 104 | |
2022 | 746 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 166 | |
Revolving | 0 | |
Loans receivable | 1,016 | |
Commercial | Commercial real estate - owner occupied | Substandard | ||
LOANS | ||
2023 | 5,200 | |
2022 | 0 | |
2021 | 2,567 | |
2020 | 0 | |
2019 | 0 | |
Prior | 3,045 | |
Revolving | 0 | |
Loans receivable | 10,812 | |
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 | 399,693 | 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 | ||
2023 | 58,393 | |
2022 | 94,517 | |
2021 | 58,106 | |
2020 | 28,179 | |
2019 | 17,100 | |
Prior | 26,205 | |
Revolving | 117,193 | |
Loans receivable | 399,693 | 410,077 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 12 | |
Total | 12 | |
Commercial | All other commercial loans | Pass | ||
LOANS | ||
2023 | 58,393 | |
2022 | 90,560 | |
2021 | 51,813 | |
2020 | 27,718 | |
2019 | 16,421 | |
Prior | 24,326 | |
Revolving | 107,234 | |
Loans receivable | 376,465 | |
Commercial | All other commercial loans | Special Mention | ||
LOANS | ||
2023 | 0 | |
2022 | 2,690 | |
2021 | 5,043 | |
2020 | 8 | |
2019 | 0 | |
Prior | 794 | |
Revolving | 301 | |
Loans receivable | 8,836 | |
Commercial | All other commercial loans | Substandard | ||
LOANS | ||
2023 | 0 | |
2022 | 1,267 | |
2021 | 1,250 | |
2020 | 453 | |
2019 | 679 | |
Prior | 1,085 | |
Revolving | 9,658 | |
Loans receivable | 14,392 | |
Commercial | All other commercial loans | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 14,857 | |
Residential mortgage | ||
LOANS | ||
2023 | 57,300 | |
2022 | 87,519 | |
2021 | 56,183 | |
2020 | 39,696 | |
2019 | 32,770 | |
Prior | 140,246 | |
Revolving | 0 | |
Loans receivable | 413,714 | 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 | 57,300 | |
2022 | 87,519 | |
2021 | 56,183 | |
2020 | 39,411 | |
2019 | 32,401 | |
Prior | 135,546 | |
Revolving | 0 | |
Loans receivable | 408,360 | |
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 | 285 | |
2019 | 369 | |
Prior | 4,700 | |
Revolving | 0 | |
Loans receivable | 5,354 | |
Residential mortgage | Doubtful | ||
LOANS | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable | 0 | |
Consumer | ||
LOANS | ||
2023 | 6,020 | |
2022 | 4,664 | |
2021 | 1,949 | |
2020 | 1,216 | |
2019 | 176 | |
Prior | 971 | |
Revolving | 45,148 | |
Loans receivable | 60,144 | $ 19,436 |
Current period gross charge-offs | ||
2023 | 0 | |
2022 | 149 | |
2021 | 0 | |
2020 | 18 | |
2019 | 3 | |
Prior | 3 | |
Revolving | 138 | |
Total | 311 | |
Consumer | Pass | ||
LOANS | ||
2023 | 6,020 | |
2022 | 4,664 | |
2021 | 1,944 | |
2020 | 1,205 | |
2019 | 175 | |
Prior | 913 | |
Revolving | 44,312 | |
Loans receivable | 59,233 | |
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 | 5 | |
2020 | 11 | |
2019 | 1 | |
Prior | 58 | |
Revolving | 836 | |
Loans receivable | 911 | |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 1,848,139 | $ 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 | 737,342 | 675,597 |
Commercial | Commercial real estate - non-owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 696,108 | 654,430 |
Commercial | Commercial real estate - non-owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 28,822 | 9,486 |
Commercial | Commercial real estate - non-owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 12,412 | 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 | 237,246 | 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 | 237,246 | 205,910 |
Commercial | Commercial real estate - owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 225,418 | |
Commercial | Commercial real estate - owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,016 | |
Commercial | Commercial real estate - owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 10,812 | |
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 | 399,693 | 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 | 399,693 | 410,077 |
Commercial | All other commercial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 376,465 | |
Commercial | All other commercial loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 8,836 | |
Commercial | All other commercial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 14,392 | |
Commercial | All other commercial loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | |
Commercial | Other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 14,857 | |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 413,714 | 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 | $ 60,144 | 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 | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | $ 7,391 | |
Nonaccrual loans with an allowance | 7,786 | |
Total nonaccrual loans | 15,177 | $ 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 | 1,111 | |
Nonaccrual loans with an allowance | 7,301 | |
Total nonaccrual loans | 8,412 | 6,350 |
Commercial | Commercial real estate - owner occupied | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 1,281 | |
Nonaccrual loans with an allowance | 294 | |
Total nonaccrual loans | 1,575 | 19 |
Commercial | All other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 1,132 | |
Nonaccrual loans with an allowance | 191 | |
Total nonaccrual loans | 1,323 | 11,528 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 3,627 | |
Nonaccrual loans with an allowance | 0 | |
Total nonaccrual loans | 3,627 | 3,974 |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Nonaccrual loans with no allowance | 240 | |
Nonaccrual loans with an allowance | 0 | |
Total nonaccrual loans | $ 240 | $ 187 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Accrued Interest Receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Accrued Interest, written off | $ 79 |
Commercial | Commercial real estate - non-owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Accrued Interest, written off | 48 |
Residential mortgage | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Accrued Interest, written off | 28 |
Consumer | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Accrued Interest, written off | $ 3 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Of Collateral Dependent Loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | $ 11,264 |
Allowance | 743 |
Commercial | Commercial real estate - non-owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 8,412 |
Allowance | 648 |
Commercial | Commercial real estate - owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 1,575 |
Allowance | 5 |
Commercial | All other commercial loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Amortized Cost | 1,277 |
Allowance | $ 90 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - CECL Adoption On Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | $ 19,208 | $ 16,615 |
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | $ 16,615 |
Allowance for Loan losses, Charge-offs | (356) |
Allowance for Loan losses, Recoveries | 92 |
(Credit) provision for credit losses on loans | 753 |
Allowance for Loan losses | 19,208 |
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 | 11,298 |
Commercial | Commercial real estate - non-owner occupied | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 6,305 |
Allowance for Loan losses, Charge-offs | 0 |
Allowance for Loan losses, Recoveries | 0 |
(Credit) provision for credit losses on loans | 1,942 |
Allowance for Loan losses | 12,010 |
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 | 1,942 |
Allowance for Loan losses, Charge-offs | 0 |
Allowance for Loan losses, Recoveries | 0 |
(Credit) provision for credit losses on loans | 167 |
Allowance for Loan losses | 2,116 |
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 | 4,142 |
Allowance for Loan losses, Charge-offs | (12) |
Allowance for Loan losses, Recoveries | 44 |
(Credit) provision for credit losses on loans | (1,168) |
Allowance for Loan losses | 2,918 |
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 | 124 |
Commercial | Commercial and industrial | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 2,909 |
Commercial | Real estate loan | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 7,074 |
Commercial | Commercial Construction And Land | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 647 |
Commercial | Loans secured by farm land | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 112 |
Commercial | Multi-family (5 or more) residential | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 411 |
Commercial | Agricultural loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 21 |
Residential mortgage loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 2,751 |
Allowance for Loan losses, Charge-offs | (33) |
Allowance for Loan losses, Recoveries | 11 |
(Credit) provision for credit losses on loans | (621) |
Allowance for Loan losses | 1,764 |
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 | 4,073 |
Residential mortgage | Real estate loan | first liens | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 3,413 |
Residential mortgage | Real estate loan | junior liens | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 167 |
Residential mortgage | 1-4 Family residential construction | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 211 |
Residential mortgage | Home equity lines of credit | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 282 |
Consumer loans | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 475 |
Allowance for Loan losses, Charge-offs | (311) |
Allowance for Loan losses, Recoveries | 37 |
(Credit) provision for credit losses on loans | 433 |
Allowance for Loan losses | 400 |
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 | 244 |
Unallocated | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Allowance for Loan losses | 1,000 |
Allowance for Loan losses, Charge-offs | 0 |
Allowance for Loan losses, Recoveries | 0 |
(Credit) provision for credit losses on loans | 0 |
Allowance for Loan losses | 0 |
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 - 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 |
Recorded Investment - with allowance | 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 |
Recorded Investment - with allowance | 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 |
Recorded Investment - with allowance | 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 | Multi-family (5 or more) residential | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Unpaid Principal Balance - with no allowance | 0 |
Recorded Investment - with no allowance | 0 |
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_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | $ 12,895 | $ 18,043 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 2,065 | 821 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 12,244 | 16,035 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 2,030 | 732 |
Commercial | Real estate loan | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 9,757 | 11,617 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 657 | 557 |
Commercial | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 2,078 | 2,636 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 210 | 34 |
Commercial | Commercial Construction And Land | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 72 | 48 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 3 | 3 |
Commercial | Loans secured by farm land | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 80 | 84 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 1 |
Commercial | Multi-family (5 or more) residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 197 | 1,583 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1,156 | 133 |
Commercial | Agricultural loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 60 | 67 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 4 | 4 |
Commercial | Other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 0 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 0 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 651 | 2,008 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 35 | 89 |
Residential mortgage | Real estate loan | first liens | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 575 | 1,647 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 24 | 78 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 33 | 361 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 7 | 11 |
Residential mortgage | Home Equity Line of Credit [Member] | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Average Investment in Impaired Loans | 43 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 4 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Modifications (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) borrower | Dec. 31, 2022 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of borrower | borrower | 2 | |
Allowance for credit losses | $ 19,208,000 | $ 16,615,000 |
Commercial | Commercial real estate - non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost | $ 3,907,000 | |
% of Total Loan Type | 0.53% | |
Commercial | Commercial real estate - non-owner occupied | One loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost | $ 1,381,000,000 | |
Allowance for credit losses | $ 38,000,000 | |
Days delinquent | 117 days | |
Added a weighted-average to the life of the loan | 6 months | |
Commercial | Commercial real estate - non-owner occupied | Another loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost | $ 2,526,000,000 | |
Allowance for credit losses | $ 486,000,000 | |
Added a weighted-average to the life of the loan | 12 months |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Foreclosed residential real estate | $ 47 | $ 256 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Balances and Allowance for Loan Losses for Each Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable: Individually Evaluated | $ 19,358 | |
Loans receivable: Collectively Evaluated | 1,720,682 | |
Loans receivable | $ 1,848,139 | 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 | 19,208 | 16,615 |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
Commercial | Other commercial loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable: Individually Evaluated | 0 | |
Loans receivable: Collectively Evaluated | 14,857 | |
Loans receivable | 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 | |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable: Individually Evaluated | 604 | |
Loans receivable: Collectively Evaluated | 608,502 | |
Loans receivable | 413,714 | 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 | |
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 | |
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 | |
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 | |
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 | |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable: Individually Evaluated | 0 | |
Loans receivable: Collectively Evaluated | 19,436 | |
Loans receivable | 60,144 | 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 | |
Unallocated | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Allowance for loan losses | $ 0 | $ 1,000 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Residential real estate in process of foreclosure | $ 1,227 | $ 1,229 |
LOANS AND ALLOWANCE FOR CRED_19
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 4,459,000 | $ 4,725,000 |
Interest income on nonaccrual loans | $ 932,000 | |
Financing Receivable, Individually Evaluated for Impairment, Number of Extension for Credit Graded | item | 1 | |
Estimated loss amount of financing receivables | $ 100,000 | |
Allowance for credit losses on off-balance sheet exposures | 690,000 | $ 425,000 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Threshold amount of financing receivables for credit losses | $ 200,000 | |
Threshold amount of financing receivables of TDR | 200,000 | |
Residential mortgage | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Threshold amount of financing receivables for credit losses | $ 400,000 | |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Threshold amount of financing receivables for credit losses | $ 400,000 | |
Other Loans | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Threshold amount of financing receivables of TDR | 400,000 |
LOANS AND ALLOWANCE FOR CRED_20
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Losses For Off- Balance Sheet (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Balance | $ 425,000 |
Recoveries | 39,000 |
Credit for unfunded commitments | (567,000) |
Balance | 690,000 |
Accounting Standards Update 2022-02 | Adoption of ASU 2016-13 (CECL) | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Balance | $ 793,000 |
BANK PREMISES AND EQUIPMENT - S
BANK PREMISES AND EQUIPMENT - Summary of Bank Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | $ 51,387 | $ 52,373 |
Less: accumulated depreciation | (29,755) | (30,799) |
Net | 21,632 | 21,574 |
Land | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 3,573 | 3,623 |
Buildings and improvements | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 32,582 | 32,332 |
Furniture and equipment | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | 14,618 | 14,886 |
Construction in Progress | ||
BANK PREMISES AND EQUIPMENT | ||
Property, plant and equipment | $ 614 | $ 1,532 |
BANK PREMISES AND EQUIPMENT - D
BANK PREMISES AND EQUIPMENT - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation expense | $ 2,151 | $ 2,389 | $ 2,130 |
Occupancy Expense [Member] | |||
Depreciation expense | 1,915 | 2,049 | 1,723 |
Data processing and telecommunications expense | |||
Depreciation expense | $ 236 | $ 340 | $ 407 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | |||
Change in the carrying amount of goodwill | $ 0 | $ 0 | |
Goodwill | 52,505,000 | 52,505,000 | |
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ||
Gross amount | $ 6,639 | $ 6,639 |
Accumulated amortization | (4,170) | (3,762) |
Net | $ 2,469 | $ 2,877 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | |||
Amortization expense | $ 408 | $ 439 | $ 535 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | |
2024 | $ 390 |
2025 | 424 |
2026 | 396 |
2027 | 361 |
2028 | $ 304 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
DEPOSITS | |
2024 | $ 290,068 |
2025 | 84,413 |
2026 | 36,610 |
2027 | 6,817 |
2028 | 6,541 |
Total | $ 424,449 |
DEPOSITS - Remaining Maturities
DEPOSITS - Remaining Maturities of Time Deposits In Excess of 250,000 (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 134,085,000 | $ 85,640,000 |
Three months or less | 47,773,000 | |
Over 3 months through 12 months | 45,663,000 | |
Over 1 year through 3 years | 40,104,000 | |
Over 3 years | 545,000 | |
Total | $ 134,085,000 | $ 85,640,000 |
BORROWED FUNDS - Short-term bor
BORROWED FUNDS - Short-term borrowings (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 33,874,000 | $ 80,062,000 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 31,500,000 | 77,000,000 |
FHLB-Pittsburgh borrowings | Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 25,000,000 | |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 2,374,000 | $ 3,062,000 |
BORROWED FUNDS - Short-term b_2
BORROWED FUNDS - Short-term borrowings - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
BORROWED FUNDS | |||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 5.23% | 4.28% | |
Short-term borrowings | $ 33,874,000 | $ 80,062,000 | |
Line of Credit Facility, Maximum Month-end Outstanding Amount | 120,290,000 | 90,042,000 | $ 17,353,000 |
Other Assets [Member] | |||
BORROWED FUNDS | |||
Federal Home Loan Bank Stock | 6,252,000 | ||
Other Correspondent Banks | |||
BORROWED FUNDS | |||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | 95,000,000 | |
Long-term Line of Credit, Total | 0 | 0 | |
Federal Reserve Bank of Philadelphia | Collateral Pledged | |||
BORROWED FUNDS | |||
Investment pledged as collateral | $ 20,829,000 | 24,113,000 | |
Other short-term advances | |||
BORROWED FUNDS | |||
Short-term borrowings | $ 0 | ||
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 | $ 2,400,000 | $ 3,080,000 | |
Short-term borrowings | 2,374,000 | 3,062,000 | |
FHLB-Pittsburgh borrowings | |||
BORROWED FUNDS | |||
Short-term borrowings | 31,500,000 | 77,000,000 | |
Federal Home Loan Bank of Pittsburgh | |||
BORROWED FUNDS | |||
Line of Credit Facility, Maximum Borrowing Capacity | 926,845,000 | 839,378,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,323,008,000 | 1,209,179,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 737,824,000 | 689,279,000 | |
Federal Home Loan Bank of Pittsburgh | Other Assets [Member] | |||
BORROWED FUNDS | |||
Federal Home Loan Bank Stock | 15,214,000 | 14,168,000 | |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | |||
BORROWED FUNDS | |||
Line of Credit Facility, Maximum Borrowing Capacity | 19,982,000 | 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 | Federal Home Loan Bank Advances 1 | |||
BORROWED FUNDS | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 5.60% | ||
Federal Home Loan Bank of Pittsburgh | FHLB-Pittsburgh borrowings | |||
BORROWED FUNDS | |||
Short-term borrowings | $ 25,000,000 |
BORROWED FUNDS - Long-term Borr
BORROWED FUNDS - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Borrowing | ||
Long-term borrowings | $ 138,337 | $ 62,347 |
Loans maturing in 2024 with a weighted-average rate of 2.89% | ||
Long-term Borrowing | ||
Rate | 3.09% | 3.09% |
Loans maturing in 2025 with a weighted-average rate of 4.12% | ||
Long-term Borrowing | ||
Rate | 4.30% | 4.30% |
Loans maturing in 2026 with a weighted-average rate of 4.44% | ||
Long-term Borrowing | ||
Rate | 4.51% | 4.51% |
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 | $ 138,337 | $ 62,347 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2023 with a rate of 0.00% | ||
Long-term Borrowing | ||
Long-term borrowings | 0 | 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 | 32,161 | 29,813 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2025 with a weighted-average rate of 4.12% | ||
Long-term Borrowing | ||
Long-term borrowings | 44,627 | 23,231 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2026 with a weighted-average rate of 4.44% | ||
Long-term Borrowing | ||
Long-term borrowings | 35,518 | 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 ($) | 12 Months Ended | |||
May 19, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Senior notes, net | $ 14,831,000 | $ 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 | |
Stated interest rate | 2.75% | 2.75% | 2.75% | |
Debt issuance costs | $ 337,000 | |||
Senior notes, net | $ 14,663,000 | $ 14,831,000 | $ 14,765,000 | |
Amortization of debt issuance costs | $ 66,000 | $ 64,000 | $ 38,000 | |
Effective interest rate | 3.23% | 3.23% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt (Details) - USD ($) | 12 Months Ended | |||
May 19, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Subordinated debt, net | $ 24,717,000 | $ 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 | $ 24,437,000 | $ 24,717,000 | $ 24,607,000 | |
Amortization of debt issuance costs | $ 110,000 | $ 106,000 | $ 63,000 | |
Effective interest rate | 3.74% | 3.74% | ||
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.25% | |||
Debt Instrument, Redemption Period, End Date | Jun. 01, 2031 | |||
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Period, Start Date | Jun. 01, 2026 | |||
Debt Instrument, Redemption Period, End Date | Jun. 01, 2026 | |||
Debt Instrument, Basis Spread on Variable Rate | 2.59% |
EMPLOYEE AND POSTRETIREMENT B_3
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Funded Status of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Benefit obligation at beginning of year | $ 946 | $ 1,128 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 31 | 22 | 20 |
Plan participants' contributions | 0 | 0 | |
Actuarial loss (gain) | 63 | (199) | |
Benefits paid | (5) | (5) | |
Settlement of plan obligation | (139) | 0 | |
Benefit obligation at end of year | 896 | 946 | 1,128 |
Fair value of plan assets at beginning of year | 1,001 | 1,175 | |
Actual return on plan assets | 89 | (169) | |
Employer contribution | 0 | 0 | |
Plan participants' contributions | 0 | 0 | |
Benefits paid | (5) | (5) | |
Settlement of plan obligation | (139) | 0 | |
Fair value of plan assets at end of year | 946 | 1,001 | 1,175 |
Funded status at end of year | 50 | 55 | |
Other Postretirement Benefits Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Benefit obligation at beginning of year | 935 | 1,297 | |
Service cost | 54 | 63 | 63 |
Interest cost | 48 | 34 | 33 |
Plan participants' contributions | 129 | 137 | |
Actuarial loss (gain) | 37 | (394) | |
Benefits paid | (190) | (202) | |
Settlement of plan obligation | 0 | 0 | |
Benefit obligation at end of year | 1,013 | 935 | 1,297 |
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | 61 | 65 | |
Plan participants' contributions | 129 | 137 | |
Benefits paid | (190) | (202) | |
Settlement of plan obligation | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (1,013) | $ (935) |
EMPLOYEE AND POSTRETIREMENT B_4
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plan | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Other assets | $ 50 | $ 55 |
Accrued interest and other liabilities | 0 | 0 |
Other Postretirement Benefits Plan | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Other assets | 0 | 0 |
Accrued interest and other liabilities | $ 1,013 | $ 935 |
EMPLOYEE AND POSTRETIREMENT B_5
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Items Included in Accumulated Other Comprehensive Income (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pension Plan | ||||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||||
Prior service cost | $ 0 | $ 0 | ||
Net actuarial loss (gain) | 139,000 | 179,000 | ||
Total | 139,000 | 179,000 | ||
Amortization of net actuarial loss in 2024 | 6,000 | |||
Accumulated benefit obligation | 896,000 | 946,000 | ||
Other Postretirement Benefits Plan | ||||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||||
Prior service cost | (124,000) | (155,000) | ||
Net actuarial loss (gain) | (573,000) | (646,000) | ||
Total | (697,000) | $ (801,000) | ||
Amortization of net actuarial loss in 2024 | $ 77,000 | |||
Adjustment in urecognized prior service cost | $ 413,000 | |||
Other Postretirement Benefits Plan | Forecast | ||||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||||
Prior service cost | $ 481,000 | |||
Curtailment adjustment | $ 469,000 |
EMPLOYEE AND POSTRETIREMENT B_6
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 31 | 22 | 20 |
Expected return on plan assets | (18) | (35) | (30) |
Amortization of prior service cost | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | 11 | 8 | 19 |
Settlement of plan obligation | 21 | 0 | 0 |
Total net periodic benefit cost | 45 | (5) | 9 |
Other Postretirement Benefits Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Service cost | 54 | 63 | 63 |
Interest cost | 48 | 34 | 33 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | (31) | (31) | (31) |
Recognized net actuarial loss (gain) | (36) | (19) | (5) |
Settlement of plan obligation | 0 | 0 | 0 |
Total net periodic benefit cost | $ 35 | $ 47 | $ 60 |
EMPLOYEE AND POSTRETIREMENT B_7
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Discount rate | 5.05% | 2.60% | 2.30% |
Expected return on plan assets | 4.22% | 5% | 4.81% |
Discount rate | 4.80% | 5.05% | |
Other Postretirement Benefits Plan | |||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |||
Discount rate | 3% | 3% | 2.50% |
Discount rate | 5% | 5.25% |
EMPLOYEE AND POSTRETIREMENT B_8
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Future Benefit Payments (Details) | Dec. 31, 2023 USD ($) |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
Estimated Minimum Contribution to Defined Benefit Pension Plan | $ 0 |
Pension Plan | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
2024 | 570,000 |
2025 | 8,000 |
2026 | 14,000 |
2027 | 8,000 |
2028 | 260,000 |
2029-2033 | 36,000 |
Other Postretirement Benefits Plan | |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | |
2024 | 74,000 |
2025 | 85,000 |
2026 | 98,000 |
2027 | 88,000 |
2028 | 97,000 |
2029-2033 | $ 493,000 |
EMPLOYEE AND POSTRETIREMENT B_9
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Plan Assets Allocation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 100% | 100% |
Cash and Cash Equivalents | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 54% | 3% |
Debt Securities | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 18% | 39% |
Equity Securities | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 24% | 50% |
Alternative Funds | ||
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS | ||
Percentage of plan assets | 4% | 8% |
EMPLOYEE AND POSTRETIREMENT _10
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Profit Sharing and Deferred Compensation Plans (Details) | 12 Months Ended | ||||
Dec. 31, 2020 | Jul. 01, 2020 USD ($) | Dec. 31, 2023 USD ($) age shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Matching contributions | $ 1,419,000 | $ 1,415,000 | $ 1,299,000 | ||
Employee Stock Ownership Plan (ESOP), Diversification Feature, Age Requirement | age | 55 | ||||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | ||||
Employee Stock Ownership Plan (ESOP), Diversification Feature Percentage | 50% | ||||
Employee Stock Ownership Plan (ESOP), Policy Diversification Feature Term | 6 years | ||||
Employee Stock Ownership Plan (ESOP), Shares Repurchased | shares | 0 | 0 | |||
Employee Stock Ownership Plan (ESOP), Shares in ESOP, Total | shares | 579,567 | 564,353 | 513,494 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 1,244,000 | $ 1,170,000 | $ 1,040,000 | ||
Deferred Compensation, Monthly Payments To Be Made To Executives Or His Heirs | $ 1,000,000 | ||||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 10 years | ||||
Deferred Compensation Liability Discount Rate | 1.50% | 1.50% | |||
Deferred Compensation Liability, Current and Noncurrent | 905,000 | 892,000 | |||
Pension And Other Employee Benefits Expenses | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 13,000 | 14,000 | 13,000 | ||
Officers Nonqualified Deferred Compensation Arrangement [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 489,000 | $ 391,000 | $ 301,000 |
EMPLOYEE AND POSTRETIREMENT _11
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock Based Compensation Paragraphs (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2024 | Jan. 31, 2024 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 20, 2023 | Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 14,000 | $ 76,000 | $ 97,000 | |||||
Share-based Payment Arrangement, Expense | $ 1,472,000 | $ 1,260,000 | $ 1,214,000 | |||||
Outstanding stock options | 646 | 10,564 | 24,218 | 57,111 | ||||
Forecast | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Payment Arrangement, Expense | $ 1,500,000 | |||||||
Employee Stock Option | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | $ 0 | |||||
Restricted Stock | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,262,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | |||||||
Granted (in shares) | 53,788 | |||||||
Share-based Payment Arrangement, Expense | $ 1,472,000 | $ 1,260,000 | $ 1,214,000 | |||||
Stock Incentive Plan | Restricted Stock | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Shares awarded (in shares) | 53,788 | 78,243 | ||||||
Stock Incentive Plan | Restricted Stock | Employees | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | ||||||
Shares awarded (in shares) | 31,684 | 51,638 | ||||||
Stock Incentive Plan | Performance Shares | Employees | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | ||||||
Shares awarded (in shares) | 11,104 | 17,017 | ||||||
Independent Directors Stock Incentive Plan | Restricted Stock | Director | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | 1 year | ||||||
Shares awarded (in shares) | 11,000 | 9,588 | ||||||
2023 Equity Incentive Plan | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |||||||
Shares awarded (in shares) | 0 | |||||||
2023 Equity Incentive Plan | Restricted Stock | Subsequent event | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Granted (in shares) | 53,514 | |||||||
2023 Equity Incentive Plan | Restricted Stock | Subsequent event | Vest over 3 years | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Granted (in shares) | 43,514 | |||||||
2023 Equity Incentive Plan | Restricted Stock | Director | Subsequent event | Vest over one year | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |||||||
Granted (in shares) | 10,000 | |||||||
2023 Equity Incentive Plan | Performance Based Restricted Stock Award | Subsequent event | ||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Granted (in shares) | 19,346 |
EMPLOYEE AND POSTRETIREMENT _12
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | |||
Stock-based compensation expense | $ 1,472 | $ 1,260 | $ 1,214 |
Restricted Stock | |||
STOCK-BASED COMPENSATION PLANS | |||
Stock-based compensation expense | 1,472 | 1,260 | 1,214 |
Employee Stock Option [Member] | |||
STOCK-BASED COMPENSATION PLANS | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 |
EMPLOYEE AND POSTRETIREMENT _13
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Non-vested Stock Options and Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Shares | |
Outstanding, beginning of period (in shares) | shares | 135,220 |
Granted (in shares) | shares | 53,788 |
Vested (in shares) | shares | (53,738) |
Forfeited (in shares) | shares | (25,261) |
Outstanding, end of period (in shares) | shares | 110,009 |
Weighted Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 23.23 |
Granted, (in dollars per share) | $ / shares | 23.35 |
Vested, (in dollars per share) | $ / shares | 23.46 |
Forfeited, (in dollars per share) | $ / shares | 22.11 |
Outstanding, at end period, (in dollars per share) | $ / shares | $ 23.44 |
EMPLOYEE AND POSTRETIREMENT _14
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Awarded Shares of Restricted Stock Under Stock Incentive Plan (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock | Independent Directors Stock Incentive Plan | Director [Member] | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 11,000 | 9,588 |
Restricted Stock | Stock Incentive Plan | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 53,788 | 78,243 |
Restricted Stock | Stock Incentive Plan | Employees | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 31,684 | 51,638 |
Performance Shares | Stock Incentive Plan | Employees | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares awarded (in shares) | 11,104 | 17,017 |
EMPLOYEE AND POSTRETIREMENT _15
EMPLOYEE AND POSTRETIREMENT BENEFIT PLANS - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year (in shares) | 10,564 | 24,218 | 57,111 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (8,288) | (13,654) | (22,429) |
Forfeited (in shares) | (1,630) | 0 | (3,156) |
Expired (in shares) | 0 | 0 | (7,308) |
Outstanding, end of year (in shares) | 646 | 10,564 | 24,218 |
Options exercisable at year-end (in shares) | 646 | 10,564 | 24,218 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of year (in dollars per share) | $ 20.45 | $ 20.01 | $ 18.92 |
Exercised (in dollars per share) | 20.45 | 19.67 | 18.96 |
Forfeited (in dollars per share) | 20.45 | 19.20 | |
Expired (in dollars per share) | 15.06 | ||
Outstanding, end of year (in dollars per share) | 20.45 | 20.45 | 20.01 |
Options exercisable at year-end (in dollars per share) | 20.45 | $ 20.45 | 20.01 |
Weighted-average fair value of options forfeited (in dollars per share) | $ 5.50 | $ 4.59 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Unrealized holding losses on securities | $ 10,335 | $ 13,391 |
Allowance for credit losses on loans | 4,230 | 3,648 |
Purchase accounting adjustments on loans | 470 | 938 |
Deferred compensation | 1,352 | 1,149 |
Operating leases liability | 787 | 907 |
Deferred loan origination fees | 731 | 779 |
Net operating loss carryforward | 541 | 659 |
Accrued incentive compensation | 463 | 354 |
Other deferred tax assets | 1,316 | 1,115 |
Total deferred tax assets | 20,225 | 22,940 |
Deferred tax liabilities: | ||
BOLI surrender | 950 | 0 |
Defined benefit plans - ASC 835 | 119 | 129 |
Bank premises and equipment | 291 | 298 |
Core deposit intangibles | 544 | 633 |
Right-of-use assets from operating leases | 787 | 907 |
Other deferred tax liabilities | 93 | 89 |
Total deferred tax liabilities | 2,784 | 2,056 |
Deferred tax asset, net | $ 17,441 | $ 20,884 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for income taxes | |||
Currently payable | $ 5,499 | $ 5,998 | $ 8,386 |
Tax expense resulting from allocations of certain tax benefits to equity or as a reduction in other assets | 0 | 134 | 128 |
Deferred | 836 | (400) | (1,381) |
Total provision | $ 6,335 | $ 5,732 | $ 7,133 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Expected provision | $ 6,401 | $ 6,794 | $ 7,914 |
Tax-exempt interest income | (964) | (1,029) | (921) |
Increase in cash surrender value and other income from life insurance, net | (586) | (103) | (118) |
ESOP Dividends | (143) | (130) | (120) |
Initiated surrender of bank-owned life insurance | 950 | 0 | 0 |
State income tax, net of Federal benefit | 329 | 296 | 375 |
Nondeductible interest expense | 283 | 87 | 52 |
Other, net | 65 | (183) | (49) |
Effective income tax provision, Total | $ 6,335 | $ 5,732 | $ 7,133 |
Expected provision | 21% | 21% | 21% |
Tax-exempt interest income, percentage | 3.20% | 3.20% | 2.40% |
Increase in cash surrender value and other income from life insurance, net, percentage | (1.90%) | (0.30%) | (0.30%) |
ESOP Dividends, percentage | (0.50%) | (0.40%) | (0.30%) |
Initiated surrender of bank-owned life insurance percentage | 3.10% | 0% | 0% |
State income tax, net of federal benefit, percentage | 1.10% | 0.90% | 1% |
Nondeductible interest expense, percentage | 0.90% | 0.30% | 0.10% |
Other, net, percentage | 0.30% | (0.60%) | (0.10%) |
Effective income tax provision, percentage | 20.80% | 17.70% | 18.90% |
INCOME TAXES - Paragraphs (Deta
INCOME TAXES - Paragraphs (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
INCOME TAXES | |
Net operating loss | $ 2,600,000 |
Annual offset of net operating loss | $ 563,000 |
Threshold percentage of taxable income to use net operating loss | 80% |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
RELATED PARTY TRANSACTIONS - (D
RELATED PARTY TRANSACTIONS - (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) person director | Dec. 31, 2022 USD ($) director person | Dec. 31, 2021 USD ($) person director | |
Related Party Transactions | |||
Number of directors | director | 11 | 13 | 13 |
Number of executive directors | person | 11 | 9 | 9 |
Related Party Deposit Liabilities | $ 9,014,000 | $ 10,882,000 | |
Management | |||
Related Party Transactions | |||
Beginning Balance | 14,504,000 | 13,911,000 | $ 18,445,000 |
New Loans | 549,000 | 1,949,000 | 1,249,000 |
Repayments | (823,000) | (1,886,000) | (6,034,000) |
Other Changes | (255,000) | 530,000 | 251,000 |
Ending Balance | $ 13,975,000 | $ 14,504,000 | $ 13,911,000 |
OFF-BALANCE SHEET RISK - Financ
OFF-BALANCE SHEET RISK - Financial Instruments Whose Contract Amounts Represent Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Off-Balance Sheet Risk | ||
Credit risk financial instrument | $ 395,997 | $ 433,725 |
Standby letters of credit | ||
Off-Balance Sheet Risk | ||
Credit risk financial instrument | $ 19,158 | $ 15,822 |
OFF-BALANCE SHEET RISK - Standb
OFF-BALANCE SHEET RISK - Standby Letters of Credit Expirations (Details) - Standby letters of credit - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Off-Balance Sheet Risk | ||
2024 | $ 18,694 | |
2025 | 411 | |
2026 | 25 | |
2027 | 0 | |
2028 | 28 | |
Total | $ 19,158 | $ 15,822 |
OPERATING LEASE COMMITMENTS A_3
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases Commitments | ||
Operating Lease, Weighted Average Discount Rate, Percent | 1.96% | |
Operating Lease, Right-of-Use Asset | $ 3,570,000 | $ 4,133,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. | Other assets. |
Operating Lease, Liability | $ 3,570,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Minimum | ||
Operating Leases Commitments | ||
Lessee, Operating Lease, Renewal Term | 1 year | |
Lessee, Operating Lease, Discount Rate | 0.84% | |
Maximum | ||
Operating Leases Commitments | ||
Lessee, Operating Lease, Renewal Term | 8 years | |
Lessee, Operating Lease, Discount Rate | 4.16% | |
Weighted average | ||
Operating Leases Commitments | ||
Remaining lease terms | 4 years 7 months 6 days | 5 years 1 month 6 days |
Lessee, Operating Lease, Discount Rate | 1.98% |
OPERATING LEASE COMMITMENTS A_4
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Leases Commitments | |||
Operating lease expense | $ 644 | $ 599 | $ 492 |
Net occupancy and equipment expense | |||
Operating Leases Commitments | |||
Operating lease expense | $ 644 | $ 599 | $ 492 |
OPERATING LEASE COMMITMENTS A_5
OPERATING LEASE COMMITMENTS AND CONTINGENCIES - Maturity (Details) | Dec. 31, 2023 USD ($) |
OPERATING LEASE COMMITMENTS AND CONTINGENCIES | |
2024 | $ 623,000 |
2025 | 593,000 |
2026 | 533,000 |
2027 | 509,000 |
2028 | 419,000 |
Thereafter | 1,147,000 |
Total lease payments | 3,824,000 |
Discount on cash flows | (254,000) |
Total lease liabilities | $ 3,570,000 |
REGULATORY MATTERS - Capital Am
REGULATORY MATTERS - Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total capital to risk-weighted assets - actual amount | $ 290,425 | $ 285,397 |
Total capital to risk-weighted assets - actual ratio | 0.1567 | 0.1572 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 203,809 | $ 190,590 |
Tier 1 capital to risk-weighted assets - actual amount | $ 245,810 | $ 243,750 |
Tier 1 capital to risk-weighted assets - actual ratio | 0.1327 | 0.1343 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 166,753 | $ 154,287 |
Common equity Tier 1 - amount | $ 245,810 | $ 243,750 |
Common equity Tier 1 - ratio | 0.1327 | 0.1343 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds amount | $ 138,961 | $ 127,060 |
Tier 1 capital average - amount | $ 245,810 | $ 243,750 |
Tier 1 capital average - ratio | 0.0987 | 0.1011 |
Tier 1 capital average - minimum to meet the corporation's policy threshold amount | $ 199,151 | $ 192,941 |
Citizens and Northern Bank [Member] | ||
Total capital to risk-weighted assets - actual amount | $ 275,307 | $ 265,784 |
Total capital to risk-weighted assets - actual ratio | 0.1489 | 0.1468 |
Total capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 203,396 | $ 190,145 |
Total capital to risk-weighted assets - minimum capital requirement amount | 147,925 | 144,873 |
Total capital to risk-weighted assets - minimum capital requirement with conservation buffer amount | 194,151 | 190,145 |
Total capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions amount | 184,906 | 181,091 |
Tier 1 capital to risk-weighted assets - actual amount | $ 255,409 | $ 248,744 |
Tier 1 capital to risk-weighted assets - actual ratio | 0.1381 | 0.1374 |
Tier 1 capital to risk-weighted assets - minimum to meet the corporation's policy thresholds amount | $ 166,415 | $ 153,927 |
Tier 1 capital to risk-weighted assets - minimum capital requirement amount | 110,943 | 108,654 |
Tier 1 capital to risk-weighted assets - minimum capital requirement with conservation buffer amount | 157,170 | 153,927 |
Tier 1 capital to risk-weighted assets - minimum to be well capitalized under prompt corrective action provisions amount | 147,925 | 144,873 |
Common equity Tier 1 - amount | $ 255,409 | $ 248,744 |
Common equity Tier 1 - ratio | 0.1381 | 0.1374 |
Common equity Tier 1 - minimum to meet the corporation's policy thresholds amount | $ 138,679 | $ 126,764 |
Common equity Tier 1 - minimum capital requirement amount | 83,208 | 81,491 |
Common equity Tier 1 - capital conservation buffer amount | 129,434 | 126,764 |
Common equity Tier 1 Capital - minimum to be well capitalized under prompt corrective action provisions amount | 120,189 | 117,709 |
Tier 1 capital average - amount | $ 255,409 | $ 248,744 |
Tier 1 capital average - ratio | 0.1032 | 0.1038 |
Tier 1 capital average - minimum to meet the corporation's policy threshold amount | $ 198,020 | $ 191,652 |
Tier 1 capital average - minimum capital amount | 99,010 | 95,826 |
Tier 1 capital average - minimum to be well capitalized amount | $ 123,762 | $ 119,783 |
REGULATORY MATTERS - Transition
REGULATORY MATTERS - Transition Schedule for New Ratios, Including the Capital Conservation Buffer (Details) - Phased in Beginning 2018 | Dec. 31, 2023 |
Minimum common equity tier 1 capital ratio | 0.045% |
Minimum common equity tier 1 capital ratio plus capital conservation buffer | 0.07% |
Minimum tier 1 capital ratio | 0.060 |
Minimum tier 1 capital ratio plus capital conservation buffer | 0.085% |
Minimum total capital ratio | 0.080 |
Minimum total capital ratio plus capital conservation buffer | 0.105% |
REGULATORY MATTERS - Payout Res
REGULATORY MATTERS - Payout Restrictions Based on the Capital Conservation Buffer (Details) | Dec. 31, 2023 |
Capital Conservation Buffer, Lower Limit | 0.025% |
Range One | |
Maximum Payout | 60% |
Capital Conservation Buffer, Lower Limit | 0.025% |
Capital Conservation Buffer, Upper Limit | 1.875% |
Range Two | |
Maximum Payout | 40% |
Capital Conservation Buffer, Lower Limit | 1.875% |
Capital Conservation Buffer, Upper Limit | 0.0125% |
Range Three | |
Maximum Payout | 20% |
Capital Conservation Buffer, Lower Limit | 1.25% |
Capital Conservation Buffer, Upper Limit | 0.625% |
Range Four | |
Maximum Payout | 0% |
Capital Conservation Buffer, Upper Limit | 0.625% |
REGULATORY MATTERS - Paragraphs
REGULATORY MATTERS - Paragraphs (Details) | Dec. 31, 2023 USD ($) |
REGULATORY MATTERS | |
Capital Conservation Buffer | 0.0689% |
Retained Earnings, Unappropriated | $ 101,550,000 |
Tangible Capital to Tangible Assets | 0.10 |
Tangible Capital | $ 25,277,000 |
PARENT COMPANY ONLY - Condensed
PARENT COMPANY ONLY - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Other assets | $ 46,681 | $ 39,819 | ||
TOTAL ASSETS | 2,515,584 | 2,454,307 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Senior notes, net | 14,831 | 14,765 | ||
Subordinated debt, net | 24,717 | 24,607 | ||
Accrued interest and other liabilities | 26,638 | 25,608 | ||
Stockholders' equity | 262,381 | 249,325 | $ 301,405 | $ 299,756 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,515,584 | 2,454,307 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 14,822 | 17,867 | ||
Other assets | 200 | 33 | ||
TOTAL ASSETS | 302,128 | 288,799 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Senior notes, net | 14,831 | 14,765 | ||
Subordinated debt, net | 24,717 | 24,607 | ||
Accrued interest and other liabilities | 199 | 102 | ||
Stockholders' equity | 262,381 | 249,325 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 302,128 | 288,799 | ||
Subsidiaries [Member] | Citizens and Northern Bank [Member] | ||||
ASSETS | ||||
Investment in subsidiaries | 272,286 | 254,809 | ||
Subsidiaries [Member] | Citizens and Northern Investment Corporation [Member] | ||||
ASSETS | ||||
Investment in subsidiaries | 11,087 | 12,453 | ||
Subsidiaries [Member] | Bucktail Life Insurance Company [Member] | ||||
ASSETS | ||||
Investment in subsidiaries | $ 3,733 | $ 3,637 |
PARENT COMPANY ONLY - Condens_2
PARENT COMPANY ONLY - Condensed Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income before equity in undistributed income (excess distributions) of subsidiaries | $ 30,483 | $ 32,350 | $ 37,687 |
Net income | 24,148 | 26,618 | 30,554 |
Parent Company | |||
Dividends from Citizens & Northern Bank | 19,405 | 19,483 | 20,200 |
Expenses | (2,003) | (1,695) | (1,691) |
Income before equity in undistributed income (excess distributions) of subsidiaries | 19,202 | 17,788 | 18,509 |
Equity in undistributed income (excess distributions) of subsidiaries | 4,946 | 8,830 | 12,045 |
Net income | 24,148 | 26,618 | 30,554 |
Citizens and Northern Investment Corporation [Member] | Citizens and Northern Investment Corporation [Member] | |||
Dividends from Citizens & Northern Bank | $ 1,800 | $ 0 | $ 0 |
PARENT COMPANY ONLY - Condens_3
PARENT COMPANY ONLY - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (Loss) | $ 24,148 | $ 26,618 | $ 30,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Increase) decrease in other assets | (1,400) | (3,532) | 186 |
(Decrease) increase in other liabilities | 4,161 | (589) | 210 |
Net Cash Provided by Operating Activities | 33,548 | 34,599 | 34,844 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of senior notes and subordinated debt | 0 | 0 | 14,663 |
Repayment of subordinated debt | 0 | 8,500 | 8,000 |
Dividends paid | (15,569) | (15,865) | (15,976) |
Net Cash Provided by Financing Activities | 24,734 | 151,939 | 68,882 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 5,080 | (48,150) | (169) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,080 | (48,150) | (169) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 47,698 | 95,848 | 96,017 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 52,778 | 47,698 | 95,848 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid | 31,936 | 9,497 | 8,174 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (Loss) | 24,148 | 26,618 | 30,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of purchase accounting adjustment | 0 | (14) | (43) |
Amortization of debt issuance costs | 176 | 170 | 101 |
Equity in (undistributed income) excess distributions of subsidiaries | (4,946) | (8,830) | (12,045) |
(Increase) decrease in other assets | (167) | 0 | (29) |
(Decrease) increase in other liabilities | 97 | (41) | (16) |
Net Cash Provided by Operating Activities | 19,308 | 17,903 | 18,522 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of senior notes and subordinated debt | 0 | 0 | 39,100 |
Repayment of subordinated debt | 0 | 8,500 | 8,000 |
Proceeds from sale of treasury stock | 0 | 160 | 212 |
Purchases of treasury stock | (6,784) | (9,349) | (7,586) |
Dividends paid | (15,569) | (15,865) | (15,976) |
Net Cash Provided by Financing Activities | (22,353) | (33,554) | 7,750 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (3,045) | (15,651) | 26,272 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,045) | (15,651) | 26,272 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 17,867 | 33,518 | 7,246 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 14,822 | 17,867 | 33,518 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid | $ 1,234 | $ 1,433 | $ 1,567 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Derivative Financial Instruments | |||
Net impact | $ 18,000 | $ 14,000 | |
Asset pledged | |||
Derivative Financial Instruments | |||
Margin Deposit Assets | 1,360,000 | ||
Interest rate swap agreements | |||
Derivative Financial Instruments | |||
Aggregate notional amount | $ 150,028,000 | 155,214,000 | |
One Interest rate Swap Originated | |||
Derivative Financial Instruments | |||
Aggregate notional amount | $ 24,000,000 | ||
Number of derivative instruments originated | item | 0 | 1 | |
One Interest rate Swap Originated | Non interest income | |||
Derivative Financial Instruments | |||
Fee income | $ 290,000 | ||
RPA Out | |||
Derivative Financial Instruments | |||
Asset Derivatives, Notional Amount | $ 7,082,000 | 7,200,000 | |
Asset Derivatives, Fair Value | 11,000 | 0 | |
Liability Derivatives, Notional Amount | 0 | 0 | |
Liability Derivatives, Fair Value | 0 | 0 | |
RPA In | |||
Derivative Financial Instruments | |||
Asset Derivatives, Notional Amount | 0 | 0 | |
Asset Derivatives, Fair Value | 0 | 0 | |
Liability Derivatives, Notional Amount | 10,000,000 | 10,000,000 | |
Liability Derivatives, Fair Value | 13,000 | 19,000 | |
Derivatives not designated as hedging instruments | |||
Derivative Financial Instruments | |||
Asset Derivatives, Notional Amount | 75,014,000 | 77,607,000 | |
Asset Derivatives, Fair Value | 2,783,000 | 3,638,000 | |
Liability Derivatives, Notional Amount | 75,014,000 | 77,607,000 | |
Liability Derivatives, Fair Value | 2,783,000 | 3,638,000 | |
Derivatives not designated as hedging instruments | Interest rate swap agreements | |||
Derivative Financial Instruments | |||
Interest rate swap | 0 | ||
Increase (decrease) in interest income | $ 1,796,000 | $ 342,000 | $ 1,347,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Measured at Fair Value | ||
Total, fair value | $ 415,755,000 | $ 498,033,000 |
Marketable equity security | 871,000 | 859,000 |
Impaired loans with a valuation allowance | 3,460,000 | |
Valuation allowance | (453,000) | |
Impaired loans, net | 3,460,000 | |
RPA In | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 13,000 | 19,000 |
Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 11,290,000 | 31,836,000 |
Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 9,946,000 | 23,430,000 |
Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 23,500,000 | 25,386,000 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 104,199,000 | 132,623,000 |
Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 50,111,000 | 56,812,000 |
Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 95,405,000 | 99,941,000 |
Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 46,462,000 | 40,296,000 |
Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 66,682,000 | 79,686,000 |
Private label commercial mortgage-backed securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,160,000 | 8,023,000 |
Private label commercial mortgage-backed securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Private label commercial mortgage-backed securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,160,000 | |
Private label commercial mortgage-backed securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Recurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total, fair value | 415,755,000 | 498,033,000 |
Marketable equity security | 871,000 | 859,000 |
Servicing rights | 2,659,000 | 2,653,000 |
Total asset fair value measurements | 422,079,000 | 505,183,000 |
Fair value of the derivative liability | 2,796,000 | 3,657,000 |
Recurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 11,290,000 | 31,836,000 |
Marketable equity security | 871,000 | 859,000 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 12,161,000 | 32,695,000 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 404,465,000 | 466,197,000 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 407,259,000 | 469,835,000 |
Fair value of the derivative liability | 2,796,000 | 3,657,000 |
Recurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 2,659,000 | 2,653,000 |
Total asset fair value measurements | 2,659,000 | 2,653,000 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | RPA Out | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 11,000 | |
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 | 11,000 | |
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 | 2,783,000 | 3,638,000 |
Fair value of the derivative liability | 2,783,000 | 3,638,000 |
Recurring fair value measurements | Interest rate swap agreements | Level 1 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Interest rate swap agreements | Level 2 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 2,783,000 | 3,638,000 |
Fair value of the derivative liability | 2,783,000 | 3,638,000 |
Recurring fair value measurements | Interest rate swap agreements | Level 3 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | RPA In | ||
Assets Measured at Fair Value | ||
Fair value of the derivative liability | 13,000 | 19,000 |
Recurring fair value measurements | RPA In | Level 1 | ||
Assets Measured at Fair Value | ||
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | RPA In | Level 2 | ||
Assets Measured at Fair Value | ||
Fair value of the derivative liability | 13,000 | 19,000 |
Recurring fair value measurements | RPA In | Level 3 | ||
Assets Measured at Fair Value | ||
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 | 11,290,000 | 31,836,000 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 11,290,000 | 31,836,000 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 9,946,000 | 23,430,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 9,946,000 | 23,430,000 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 23,500,000 | 25,386,000 |
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 | 23,500,000 | 25,386,000 |
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 | 104,199,000 | 132,623,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 104,199,000 | 132,623,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 50,111,000 | 56,812,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 50,111,000 | 56,812,000 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 95,405,000 | 99,941,000 |
Recurring fair value measurements | Residential Passthrough Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 95,405,000 | 99,941,000 |
Recurring fair value measurements | Residential Passthrough Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 46,462,000 | 40,296,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 46,462,000 | 40,296,000 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 66,682,000 | 79,686,000 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 66,682,000 | 79,686,000 |
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 | 8,023,000 | |
Recurring fair value measurements | Private label commercial mortgage-backed securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Recurring fair value measurements | Private label commercial mortgage-backed securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 8,023,000 | |
Recurring fair value measurements | Private label commercial mortgage-backed securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | |
Nonrecurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 8,264,000 | 3,282,000 |
Impaired loans, net | 7,786,000 | 3,007,000 |
Foreclosed assets held for sale | 478,000 | 275,000 |
Nonrecurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 8,264,000 | 3,282,000 |
Impaired loans, net | 7,786,000 | 3,007,000 |
Foreclosed assets held for sale | $ 478,000 | $ 275,000 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Recurring (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Recurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,659,000 | $ 2,653,000 |
Valuation Technique, Discounted cash flow | Servicing rights. | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 13% | 13% |
Weighted-average PSA | 131% | 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% |
Valuation Technique, Discounted cash flow | Recurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,659,000 | $ 2,653,000 |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |||
Servicing rights balance, beginning of period | $ 2,653 | $ 2,329 | $ 1,689 |
Originations of servicing rights | 206 | 198 | 708 |
Unrealized (loss) gain included in earnings | (200) | 126 | (68) |
Servicing rights balance, end of period | $ 2,659 | $ 2,653 | $ 2,329 |
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 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 7,786 | 3,007 |
Foreclosed assets held for sale | 478 | 275 |
Residential mortgage | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 47 | 256 |
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 | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 7,786 | |
Valuation allowance | 743 | |
Fair value | 7,043 | |
Impaired Loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 3,460 | |
Valuation allowance | 453 | |
Fair value | 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 | 7,301 | |
Valuation allowance | 648 | |
Fair value | $ 6,653 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - non-owner occupied | Minimum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 22% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - non-owner occupied | Maximum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 30% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - non-owner occupied | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 25% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 294 | |
Valuation allowance | 5 | |
Fair value | $ 289 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Minimum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 0% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Maximum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 93% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial real estate - owner occupied | Weighted Average [Member] | 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 | ||
Foreclosed assets held for sale | $ 191 | |
Valuation allowance | 90 | |
Fair value | $ 101 | |
Impaired Loans | Valuation, Market Approach | Commercial | Other commercial loans | Minimum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 0% | |
Impaired Loans | Valuation, Market Approach | Commercial | Other commercial loans | Maximum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 76% | |
Impaired Loans | Valuation, Market Approach | Commercial | Other commercial loans | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 17% | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | 275 | |
Valuation allowance | 0 | |
Fair value | 275 | |
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 | |
Discount rate | 25% | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 25% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Measurement Input Discount To Borrowers Financial Statement Value Member | ||
Valuation Techniques and the Unobservable Inputs | ||
Impaired loans, net | $ 60 | |
Valuation allowance | 26 | |
Fair value | $ 34 | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 33% | |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 33% | |
Foreclosed Assets Held For Sale | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 478 | |
Valuation allowance | 0 | |
Fair value | 478 | |
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 | 47 | $ 275 |
Valuation allowance | 0 | 0 |
Fair value | $ 47 | $ 275 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Real estate loan | Minimum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 20% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Real estate loan | Maximum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 62% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Real estate loan | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 50% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 50% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Real estate loan | Minimum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 18% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Real estate loan | Maximum [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 50% | |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial | Real estate loan | Weighted Average [Member] | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 45% | 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 |
FAIR VALUE MEASUREMENTS AND F_7
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 52,778 | $ 47,698 |
Reported value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 4,100 | 7,350 |
Restricted equity securities (included in Other Assets) | 21,716 | 14,418 |
Accrued interest receivable | 9,140 | 8,653 |
Short-term borrowings | 33,874 | 80,062 |
Long-term borrowings | 138,337 | 62,347 |
Senior debt | 14,831 | 14,765 |
Subordinated debt | 24,717 | 24,607 |
Accrued interest payable | 1,525 | 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 | 1,590,357 | 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 | 424,449 | 295,189 |
Reported value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | 1,828,931 | 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 | 52,778 | 47,698 |
Estimate of fair value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 3,859 | 6,956 |
Restricted equity securities (included in Other Assets) | 21,716 | 14,418 |
Accrued interest receivable | 9,140 | 8,653 |
Short-term borrowings | 33,874 | 80,062 |
Long-term borrowings | 137,775 | 60,944 |
Senior debt | 12,706 | 9,712 |
Subordinated debt | 22,750 | 16,186 |
Accrued interest payable | 1,525 | 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 | 1,590,357 | 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 | 423,643 | 293,814 |
Estimate of fair value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | $ 1,750,336 | $ 1,674,002 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 24,148 | $ 26,618 | $ 30,554 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |