Michigan | 38-3391345 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | |||
Common stock | MCBC | NASDAQ |
Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ | Smaller reporting company ☒ | Emerging Growth Company ☐ |
Part I | Financial Information |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 38,376 | $ | 23,669 | $ | 29,402 | $ | 51,215 | ||||||||
Federal funds sold and other short-term investments | 721,826 | 1,128,119 | 391,336 | 703,955 | ||||||||||||
Cash and cash equivalents | 760,202 | 1,151,788 | 420,738 | 755,170 | ||||||||||||
Debt securities available for sale, at fair value | 435,628 | 416,063 | 525,959 | 499,257 | ||||||||||||
Debt securities held to maturity (fair value 2022 - $341,274 and 2021 - $139,272) | 352,721 | 137,003 | ||||||||||||||
Debt securities held to maturity (fair value 2023 - $335,559 and 2022 - $332,650) | 348,387 | 348,765 | ||||||||||||||
Federal Home Loan Bank (FHLB) stock | 10,211 | 11,558 | 10,211 | 10,211 | ||||||||||||
Loans held for sale, at fair value | 1,163 | 1,407 | 87 | 215 | ||||||||||||
Total loans | 1,111,915 | 1,108,993 | 1,220,939 | 1,177,748 | ||||||||||||
Allowance for loan losses | (14,631 | ) | (15,889 | ) | ||||||||||||
Allowance for credit losses | (16,794 | ) | (15,285 | ) | ||||||||||||
Net loans | 1,097,284 | 1,093,104 | 1,204,145 | 1,162,463 | ||||||||||||
Premises and equipment – net | 41,088 | 41,773 | 40,249 | 40,306 | ||||||||||||
Accrued interest receivable | 5,108 | 4,088 | 8,782 | 7,606 | ||||||||||||
Bank-owned life insurance | 52,963 | 52,468 | 53,557 | 53,345 | ||||||||||||
Other real estate owned - net | 2,343 | 2,343 | — | 2,343 | ||||||||||||
Net deferred tax asset | 6,516 | 2,163 | 8,471 | 9,712 | ||||||||||||
Other assets | 15,981 | 14,993 | 16,567 | 17,526 | ||||||||||||
Total assets | $ | 2,781,208 | $ | 2,928,751 | $ | 2,637,153 | $ | 2,906,919 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deposits | ||||||||||||||||
Noninterest-bearing | $ | 903,334 | $ | 886,115 | $ | 690,444 | $ | 834,879 | ||||||||
Interest-bearing | 1,591,249 | 1,691,843 | 1,640,451 | 1,780,263 | ||||||||||||
Total deposits | 2,494,583 | 2,577,958 | 2,330,895 | 2,615,142 | ||||||||||||
Other borrowed funds | 30,000 | 85,000 | 30,000 | 30,000 | ||||||||||||
Accrued expenses and other liabilities | 13,516 | 11,788 | 15,690 | 14,739 | ||||||||||||
Total liabilities | 2,538,099 | 2,674,746 | 2,376,585 | 2,659,881 | ||||||||||||
Commitments and contingent liabilities | — | — | ||||||||||||||
Shareholders’ equity | ||||||||||||||||
Common stock, 0 par value, 200,000,000 shares authorized; 34,253,147 and 34,259,945 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 219,456 | 219,082 | ||||||||||||||
Common stock, no par value, 200,000,000 shares authorized; 34,292,294 and 34,298,640 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 219,733 | 219,578 | ||||||||||||||
Retained earnings | 42,332 | 35,220 | 67,092 | 59,036 | ||||||||||||
Accumulated other comprehensive loss | (18,679 | ) | (297 | ) | (26,257 | ) | (31,576 | ) | ||||||||
Total shareholders’ equity | 243,109 | 254,005 | 260,568 | 247,038 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,781,208 | $ | 2,928,751 | $ | 2,637,153 | $ | 2,906,919 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Loans, including fees | $ | 10,344 | $ | 13,303 | $ | 20,741 | $ | 26,770 | $ | 15,660 | $ | 10,397 | ||||||||||||
Securities | ||||||||||||||||||||||||
Taxable | 2,618 | 792 | 4,052 | 1,579 | 4,481 | 1,434 | ||||||||||||||||||
Tax-exempt | 702 | 760 | 1,434 | 1,518 | 698 | 732 | ||||||||||||||||||
FHLB Stock | 51 | 56 | 102 | 117 | 65 | 51 | ||||||||||||||||||
Federal funds sold and other short-term investments | 1,720 | 273 | 2,249 | 474 | 6,362 | 529 | ||||||||||||||||||
Total interest income | 15,435 | 15,184 | 28,578 | 30,458 | 27,266 | 13,143 | ||||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Deposits | 245 | 244 | 403 | 523 | 4,494 | 158 | ||||||||||||||||||
Other borrowings | 347 | 328 | 667 | 681 | 156 | 320 | ||||||||||||||||||
Long-term debt | 0 | 155 | 0 | 307 | ||||||||||||||||||||
Total interest expense | 592 | 727 | 1,070 | 1,511 | 4,650 | 478 | ||||||||||||||||||
Net interest income | 14,843 | 14,457 | 27,508 | 28,947 | 22,616 | 12,665 | ||||||||||||||||||
Provision for loan losses | 0 | (750 | ) | (1,500 | ) | (750 | ) | |||||||||||||||||
Net interest income after provision for loan losses | 14,843 | 15,207 | 29,008 | 29,697 | ||||||||||||||||||||
Provision for credit losses | — | (1,500 | ) | |||||||||||||||||||||
Net interest income after provision for credit losses | 22,616 | 14,165 | ||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Service charges and fees | 1,218 | 1,065 | 2,430 | 2,057 | 994 | 1,211 | ||||||||||||||||||
Net gains on mortgage loans | 199 | 1,311 | 508 | 3,326 | 11 | 308 | ||||||||||||||||||
Trust fees | 1,096 | 1,133 | 2,184 | 2,138 | 1,033 | 1,088 | ||||||||||||||||||
ATM and debit card fees | 1,762 | 1,683 | 3,360 | 3,168 | 1,662 | 1,599 | ||||||||||||||||||
Bank owned life insurance (“BOLI”) income | 230 | 250 | 470 | 526 | 199 | 240 | ||||||||||||||||||
Other | 626 | 727 | 1,144 | 1,492 | 629 | 519 | ||||||||||||||||||
Total noninterest income | 5,131 | 6,169 | 10,096 | 12,707 | 4,528 | 4,965 | ||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||
Salaries and benefits | 6,402 | 6,502 | 12,691 | 12,914 | 6,698 | 6,289 | ||||||||||||||||||
Occupancy of premises | 1,071 | 994 | 2,243 | 2,031 | 1,137 | 1,172 | ||||||||||||||||||
Furniture and equipment | 988 | 978 | 2,004 | 1,915 | 1,031 | 1,016 | ||||||||||||||||||
Legal and professional | 271 | 274 | 465 | 496 | 348 | 194 | ||||||||||||||||||
Marketing and promotion | 195 | 175 | 390 | 350 | 219 | 195 | ||||||||||||||||||
Data processing | 924 | 855 | 1,808 | 1,762 | 955 | 884 | ||||||||||||||||||
FDIC assessment | 197 | 159 | 377 | 329 | 330 | 180 | ||||||||||||||||||
Interchange and other card expense | 406 | 388 | 779 | 746 | 384 | 373 | ||||||||||||||||||
Bond and D&O Insurance | 129 | 111 | 259 | 222 | 122 | 130 | ||||||||||||||||||
Other | 1,330 | 1,282 | 2,636 | 2,438 | 941 | 1,306 | ||||||||||||||||||
Total noninterest expenses | 11,913 | 11,718 | 23,652 | 23,203 | 12,165 | 11,739 | ||||||||||||||||||
Income before income tax | 8,061 | 9,658 | 15,452 | 19,201 | 14,979 | 7,391 | ||||||||||||||||||
Income tax expense | 1,493 | 1,840 | 2,884 | 3,605 | 2,975 | 1,391 | ||||||||||||||||||
Net income | $ | 6,568 | $ | 7,818 | $ | 12,568 | $ | 15,596 | $ | 12,004 | $ | 6,000 | ||||||||||||
Basic earnings per common share | $ | 0.19 | $ | 0.23 | $ | 0.37 | $ | 0.46 | $ | 0.35 | $ | 0.18 | ||||||||||||
Diluted earnings per common share | $ | 0.19 | $ | 0.23 | $ | 0.37 | $ | 0.46 | $ | 0.35 | $ | 0.18 | ||||||||||||
Cash dividends per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | $ | 0.08 | $ | 0.08 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||
Net income | $ | 6,568 | $ | 7,818 | $ | 12,568 | $ | 15,596 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains (losses): | ||||||||||||||||
Net change in unrealized gains (losses) on debt securities available for sale | (8,251 | ) | 739 | (23,371 | ) | (2,651 | ) | |||||||||
Net unrealized gain at time of transfer on securities transferred to held-to-maturity | 0 | 0 | 113 | 0 | ||||||||||||
Amortization of net unrealized gains on securities transferred to held-to-maturity | (6 | ) | 0 | (10 | ) | 0 | ||||||||||
Tax effect | 1,734 | (155 | ) | 4,886 | 557 | |||||||||||
Net change in unrealized gains (losses) on debt securities available for sale, net of tax | (6,523 | ) | 584 | (18,382 | ) | (2,094 | ) | |||||||||
Less: reclassification adjustments: | ||||||||||||||||
Reclassification for gains included in net income | 0 | 0 | 0 | 0 | ||||||||||||
Tax effect | 0 | 0 | 0 | 0 | ||||||||||||
Reclassification for gains included in net income, net of tax | 0 | 0 | 0 | 0 | ||||||||||||
Other comprehensive income (loss), net of tax | (6,523 | ) | 584 | (18,382 | ) | (2,094 | ) | |||||||||
Comprehensive income (loss) | $ | 45 | $ | 8,402 | $ | (5,814 | ) | $ | 13,502 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
Net income | $ | 12,004 | $ | 6,000 | ||||
Other comprehensive income (loss): | ||||||||
Unrealized gains (losses): | ||||||||
Net change in unrealized gains (losses) on debt securities available for sale | 6,738 | (15,119 | ) | |||||
Net unrealized gain at time of transfer on securities transferred to held-to-maturity | — | 113 | ||||||
Amortization of net unrealized gains on securities transferred to held-to-maturity | (5 | ) | (6 | ) | ||||
Tax effect | (1,414 | ) | 3,153 | |||||
Net change in unrealized gains (losses) on debt securities available for sale, net of tax | 5,319 | (11,859 | ) | |||||
Less: reclassification adjustments: | ||||||||
Reclassification for gains included in net income | — | — | ||||||
Tax effect | — | — | ||||||
Reclassification for gains included in net income, net of tax | — | — | ||||||
Other comprehensive income (loss), net of tax | 5,319 | (11,859 | ) | |||||
Comprehensive income (loss) | $ | 17,323 | $ | (5,859 | ) |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||
Balance, April 1, 2021 | $ | 218,687 | $ | 22,156 | $ | 1,536 | $ | 242,379 | ||||||||
Net income for the three months ended June 30, 2021 | 0 | 7,818 | 0 | 7,818 | ||||||||||||
Cash dividends at $0.08 per share | 0 | (2,723 | ) | 0 | (2,723 | ) | ||||||||||
Repurchase of 815 shares for taxes withheld on vested restricted stock | (7 | ) | 0 | 0 | (7 | ) | ||||||||||
Other comprehensive income, net of tax | 0 | 0 | 584 | 584 | ||||||||||||
Stock compensation expense | 166 | 0 | 0 | 166 | ||||||||||||
Balance, June 30, 2021 | $ | 218,846 | $ | 27,251 | $ | 2,120 | $ | 248,217 | ||||||||
Balance, April 1, 2022 | $ | 219,266 | $ | 38,492 | $ | (12,156 | ) | $ | 245,602 | |||||||
Net income for the three months ended June 30, 2022 | 0 | 6,568 | 0 | 6,568 | ||||||||||||
Cash dividends at $0.08 per share | 0 | (2,728 | ) | 0 | (2,728 | ) | ||||||||||
Repurchase of 815 shares for taxes withheld on vested restricted stock | (7 | ) | 0 | 0 | (7 | ) | ||||||||||
Other comprehensive income, net of tax | 0 | 0 | (6,523 | ) | (6,523 | ) | ||||||||||
Stock compensation expense | 197 | 0 | 0 | 197 | ||||||||||||
Balance, June 30, 2022 | $ | 219,456 | $ | 42,332 | $ | (18,679 | ) | $ | 243,109 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||
Balance, January 1, 2022 | $ | 219,082 | $ | 35,220 | $ | (297 | ) | $ | 254,005 | |||||||
Net income for the three months ended March 31, 2022 | — | 6,000 | — | 6,000 | ||||||||||||
Cash dividends at $0.08 per share | — | (2,728 | ) | — | (2,728 | ) | ||||||||||
Repurchase of 1,338 shares for taxes withheld on vested restricted stock | (13 | ) | — | — | (13 | ) | ||||||||||
Other comprehensive loss, net of tax | — | — | (11,859 | ) | (11,859 | ) | ||||||||||
Stock compensation expense | 197 | — | — | 197 | ||||||||||||
Balance, March 31, 2022 | $ | 219,266 | $ | 38,492 | $ | (12,156 | ) | $ | 245,602 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||
Balance, January 1, 2021 | $ | 218,528 | $ | 17,101 | $ | 4,214 | $ | 239,843 | ||||||||
Net income for the six months ended June 30, 2021 | 0 | 15,596 | 0 | 15,596 | ||||||||||||
Cash dividends at $0.16 per share | 0 | (5,446 | ) | 0 | (5,446 | ) | ||||||||||
Repurchase of 1,341 shares for taxes withheld on vested restricted stock | (12 | ) | 0 | 0 | (12 | ) | ||||||||||
Other comprehensive income, net of tax | 0 | 0 | (2,094 | ) | (2,094 | ) | ||||||||||
Stock compensation expense | 330 | 0 | 0 | 330 | ||||||||||||
Balance, June 30, 2021 | $ | 218,846 | $ | 27,251 | $ | 2,120 | $ | 248,217 | ||||||||
Balance, January 1, 2022 | $ | 219,082 | $ | 35,220 | $ | (297 | ) | $ | 254,005 | |||||||
Net income for the six months ended June 30, 2022 | 0 | 12,568 | 0 | 12,568 | ||||||||||||
Cash dividends at $0.16 per share | 0 | (5,456 | ) | 0 | (5,456 | ) | ||||||||||
Repurchase of 2,153 shares for taxes withheld on vested restricted stock | (20 | ) | 0 | 0 | (20 | ) | ||||||||||
Other comprehensive income, net of tax | 0 | 0 | (18,382 | ) | (18,382 | ) | ||||||||||
Stock compensation expense | 394 | 0 | 0 | 394 | ||||||||||||
Balance, June 30, 2022 | $ | 219,456 | $ | 42,332 | $ | (18,679 | ) | $ | 243,109 |
Balance, January 1, 2023 | $ | 219,578 | $ | 59,036 | $ | (31,576 | ) | $ | 247,038 | |||||||
Adoption of ASU 2016-13, net of tax | — | (1,215 | ) | — | (1,215 | ) | ||||||||||
Net income for the three months ended March 31, 2023 | — | 12,004 | — | 12,004 | ||||||||||||
Cash dividends at $0.08 per share | — | (2,733 | ) | — | (2,733 | ) | ||||||||||
Repurchase of 1,338 shares for taxes withheld on vested restricted stock | (15 | ) | — | — | (15 | ) | ||||||||||
Other comprehensive income, net of tax | — | — | 5,319 | 5,319 | ||||||||||||
Stock compensation expense | 170 | — | — | 170 | ||||||||||||
Balance, March 31, 2023 | $ | 219,733 | $ | 67,092 | $ | (26,257 | ) | $ | 260,568 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income | $ | 12,568 | $ | 15,596 | $ | 12,004 | $ | 6,000 | ||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||||
Depreciation and amortization | 1,204 | 1,143 | 160 | 737 | ||||||||||||
Stock compensation expense | 394 | 330 | 170 | 197 | ||||||||||||
Provision for loan losses | (1,500 | ) | (750 | ) | ||||||||||||
Provision for credit losses | — | (1,500 | ) | |||||||||||||
Origination of loans for sale | (18,548 | ) | (86,498 | ) | (179 | ) | (10,148 | ) | ||||||||
Proceeds from sales of loans originated for sale | 19,300 | 90,494 | 318 | 11,008 | ||||||||||||
Net gains on mortgage loans | (508 | ) | (3,326 | ) | (11 | ) | (308 | ) | ||||||||
Write-down of other real estate | 0 | 4 | ||||||||||||||
Net loss on sales of other real estate | 0 | 20 | ||||||||||||||
Deferred income tax expense (benefit) | 533 | (144 | ) | |||||||||||||
Net gain on sales of other real estate | (356 | ) | — | |||||||||||||
Deferred income tax expense | 150 | 456 | ||||||||||||||
Earnings in bank-owned life insurance | (470 | ) | (526 | ) | (199 | ) | (240 | ) | ||||||||
Change in accrued interest receivable and other assets | (2,008 | ) | 1,384 | (217 | ) | 504 | ||||||||||
Change in accrued expenses and other liabilities | 66 | (803 | ) | 889 | (551 | ) | ||||||||||
Net cash from operating activities | 11,031 | 16,924 | 12,729 | 6,155 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Loan originations and payments, net | (2,680 | ) | 191,152 | (43,158 | ) | 7,318 | ||||||||||
Purchases of securities available for sale | (186,326 | ) | (50,605 | ) | (24,072 | ) | (72,557 | ) | ||||||||
Purchases of securities held to maturity | (137,355 | ) | (51,232 | ) | (3,966 | ) | (28,120 | ) | ||||||||
Purchase of bank-owned life insurance | 0 | (10,000 | ) | |||||||||||||
Proceeds from: | ||||||||||||||||
Maturities and calls of securities | 22,746 | 31,013 | ||||||||||||||
Principal paydowns on securities | 43,968 | 23,429 | ||||||||||||||
Maturities and calls of securities available for sale | 1,626 | 5,187 | ||||||||||||||
Maturities and calls of securities held to maturity | 1,126 | 31,238 | ||||||||||||||
Principal paydowns on securities available for sale | 2,878 | 4,554 | ||||||||||||||
Principal paydowns on securities held to maturity | 3,197 | 2,667 | ||||||||||||||
Sales of other real estate | 0 | 170 | 2,699 | — | ||||||||||||
Proceeds from redemption of FHLB stock | 1,347 | 0 | ||||||||||||||
Proceeds from payout of bank-owned insurance claim | 0 | 560 | ||||||||||||||
Redemption of FHLB stock | — | 1,347 | ||||||||||||||
Additions to premises and equipment | (466 | ) | (861 | ) | (496 | ) | (235 | ) | ||||||||
Net cash from investing activities | (258,766 | ) | 133,626 | (60,166 | ) | (48,601 | ) | |||||||||
Cash flows from financing activities | ||||||||||||||||
Change in deposits | (83,375 | ) | 301,489 | (284,247 | ) | 4,339 | ||||||||||
Repayments and maturities of other borrowed funds | (80,000 | ) | (10,000 | ) | — | (25,000 | ) | |||||||||
Proceeds from other borrowed funds | 25,000 | 0 | — | 25,000 | ||||||||||||
Repurchase of shares for taxes withheld on vested restricted stock | (20 | ) | (12 | ) | (15 | ) | (13 | ) | ||||||||
Cash dividends paid | (5,456 | ) | (5,446 | ) | (2,733 | ) | (2,728 | ) | ||||||||
Net cash from financing activities | (143,851 | ) | 286,031 | (286,995 | ) | 1,598 | ||||||||||
Net change in cash and cash equivalents | (391,586 | ) | 436,581 | (334,432 | ) | (40,848 | ) | |||||||||
Cash and cash equivalents at beginning of period | 1,151,788 | 783,736 | 755,170 | 1,151,788 | ||||||||||||
Cash and cash equivalents at end of period | $ | 760,202 | $ | 1,220,317 | $ | 420,738 | $ | 1,110,940 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||
Supplemental cash flow information | ||||||||||||||||
Interest paid | $ | 1,106 | $ | 1,535 | $ | 4,307 | $ | 481 | ||||||||
Income taxes paid | 3,000 | 4,000 | ||||||||||||||
Supplemental noncash disclosures: | ||||||||||||||||
Security settlement | 1,662 | 736 | — | 5,747 | ||||||||||||
Transfer of securities from available for sale to held to maturity | 123,469 | 0 | — | 123,469 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 209,323 | $ | 29 | $ | (9,396 | ) | $ | 199,956 | $ | 255,211 | $ | 175 | $ | (13,528 | ) | $ | 241,858 | ||||||||||||||
U.S. Agency MBS and CMOs | 102,755 | 73 | (8,699 | ) | 94,129 | 134,956 | 81 | (12,793 | ) | 122,244 | ||||||||||||||||||||||
Tax-exempt state and municipal bonds | 39,567 | 97 | (267 | ) | 39,397 | 37,142 | 77 | (270 | ) | 36,949 | ||||||||||||||||||||||
Taxable state and municipal bonds | 99,040 | 13 | (5,389 | ) | 93,664 | 119,862 | 149 | (6,874 | ) | 113,137 | ||||||||||||||||||||||
Corporate bonds and other debt securities | 8,690 | 9 | (217 | ) | 8,482 | 12,112 | 4 | (345 | ) | 11,771 | ||||||||||||||||||||||
$ | 459,375 | $ | 221 | $ | (23,968 | ) | $ | 435,628 | $ | 559,283 | $ | 486 | $ | (33,810 | ) | $ | 525,959 | |||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 231,935 | $ | 71 | $ | (8,291 | ) | $ | 223,715 | $ | 251,286 | $ | — | $ | (11,274 | ) | $ | 240,012 | ||||||||||||||
Tax-exempt state and municipal bonds | 120,786 | 139 | (3,366 | ) | 117,559 | 97,101 | 552 | (2,106 | ) | 95,547 | ||||||||||||||||||||||
$ | 352,721 | $ | 210 | $ | (11,657 | ) | $ | 341,274 | $ | 348,387 | $ | 552 | $ | (13,380 | ) | $ | 335,559 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Available for Sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 208,153 | $ | 215 | $ | (1,523 | ) | $ | 206,845 | $ | 240,921 | $ | 23 | $ | (16,310 | ) | $ | 224,634 | ||||||||||||||
U.S. Agency MBS and CMOs | 87,343 | 416 | (962 | ) | 86,797 | 128,165 | — | (14,347 | ) | 113,818 | ||||||||||||||||||||||
Tax-exempt state and municipal bonds | 36,298 | 1,258 | 0 | 37,556 | 37,198 | 10 | (498 | ) | 36,710 | |||||||||||||||||||||||
Taxable state and municipal bonds | 79,394 | 812 | (645 | ) | 79,561 | 120,647 | 49 | (8,525 | ) | 112,171 | ||||||||||||||||||||||
Corporate bonds and other debt securities | 5,251 | 63 | (10 | ) | 5,304 | 12,387 | — | (463 | ) | 11,924 | ||||||||||||||||||||||
$ | 416,439 | $ | 2,764 | $ | (3,140 | ) | $ | 416,063 | $ | 539,318 | $ | 82 | $ | (40,143 | ) | $ | 499,257 | |||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 251,307 | $ | — | $ | (13,677 | ) | $ | 237,630 | |||||||||||||||||||||||
Tax-exempt state and municipal bonds | $ | 137,003 | $ | 2,484 | $ | (215 | ) | $ | 139,272 | 97,458 | 415 | (2,853 | ) | 95,020 | ||||||||||||||||||
$ | 348,765 | $ | 415 | $ | (16,530 | ) | $ | 332,650 |
Held–to-Maturity Securities | Available-for-Sale Securities | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Due in one year or less | $ | 20,307 | $ | 20,126 | $ | 15,795 | $ | 15,795 | ||||||||
Due from one to five years | 310,172 | 299,759 | 267,490 | 258,879 | ||||||||||||
Due from five to ten years | 22,242 | 21,389 | 74,995 | 68,458 | ||||||||||||
Due after ten years | 0 | 0 | 101,095 | 92,496 | ||||||||||||
$ | 352,721 | $ | 341,274 | $ | 459,375 | $ | 435,628 |
Held–to-Maturity Securities | Available-for-Sale Securities | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Due in one year or less | $ | 58,157 | $ | 57,487 | $ | 22,431 | $ | 22,106 | ||||||||
Due from one to five years | 272,386 | 260,375 | 369,226 | 352,338 | ||||||||||||
Due from five to ten years | 17,844 | 17,697 | 34,295 | 30,814 | ||||||||||||
Due after ten years | — | — | 133,331 | 120,701 | ||||||||||||
$ | 348,387 | $ | 335,559 | $ | 559,283 | $ | 525,959 |
Less than 12 Months | 12 Months or More | Total | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 156,760 | $ | (5,059 | ) | $ | 34,712 | $ | (4,337 | ) | $ | 191,472 | $ | (9,396 | ) | $ | 90,278 | $ | (2,249 | ) | $ | 125,775 | $ | (11,279 | ) | $ | 216,053 | $ | (13,528 | ) | ||||||||||||||||||
U.S. Agency MBS and CMOs | 71,643 | (6,522 | ) | 12,257 | (2,177 | ) | 83,900 | (8,699 | ) | 31,574 | (1,021 | ) | 64,296 | (11,772 | ) | 95,870 | (12,793 | ) | ||||||||||||||||||||||||||||||
Tax-exempt state and municipal bonds | 14,305 | (267 | ) | 0 | 0 | 14,305 | (267 | ) | 17,744 | (103 | ) | 5,541 | (167 | ) | 23,285 | (270 | ) | |||||||||||||||||||||||||||||||
Taxable state and municipal bonds | 79,673 | (4,298 | ) | 8,070 | (1,091 | ) | 87,743 | (5,389 | ) | 41,608 | (989 | ) | 58,236 | (5,885 | ) | 99,844 | (6,874 | ) | ||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | 6,748 | (217 | ) | 0 | 0 | 6,748 | (217 | ) | 7,462 | (148 | ) | 3,839 | (197 | ) | 11,301 | (345 | ) | |||||||||||||||||||||||||||||||
Total | $ | 329,129 | $ | (16,363 | ) | $ | 55,039 | $ | (7,605 | ) | $ | 384,168 | $ | (23,968 | ) | $ | 188,666 | $ | (4,510 | ) | $ | 257,687 | $ | (29,300 | ) | $ | 446,353 | $ | (33,810 | ) | ||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 213,866 | $ | (8,291 | ) | $ | 0 | $ | 0 | $ | 213,866 | $ | (8,291 | ) | $ | 114,386 | $ | (5,063 | ) | $ | 125,626 | $ | (6,211 | ) | $ | 240,012 | $ | (11,274 | ) | |||||||||||||||||||
Tax-exempt state and municipal bonds | 94,354 | (3,366 | ) | 0 | 0 | 94,354 | (3,366 | ) | 26,395 | (384 | ) | 49,855 | (1,722 | ) | 76,250 | (2,106 | ) | |||||||||||||||||||||||||||||||
$ | 308,220 | $ | (11,657 | ) | $ | 0 | $ | 0 | $ | 308,220 | $ | (11,657 | ) | $ | 140,781 | $ | (5,447 | ) | $ | 175,481 | $ | (7,933 | ) | $ | 316,262 | $ | (13,380 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2021 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 77,066 | $ | (955 | ) | $ | 18,432 | $ | (568 | ) | $ | 95,498 | $ | (1,523 | ) | |||||||||
U.S. Agency MBS and CMOs | 52,254 | (830 | ) | 4,190 | (132 | ) | 56,444 | (962 | ) | |||||||||||||||
Tax-exempt state and municipal bonds | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Taxable state and municipal bonds | 37,648 | (638 | ) | 498 | (7 | ) | 38,146 | (645 | ) | |||||||||||||||
Corporate bonds and other debt securities | 1,352 | (10 | ) | 0 | 0 | 1,352 | (10 | ) | ||||||||||||||||
Total | $ | 168,320 | $ | (2,433 | ) | $ | 23,120 | $ | (707 | ) | $ | 191,440 | $ | (3,140 | ) | |||||||||
Held to Maturity | ||||||||||||||||||||||||
Tax-exempt state and municipal bonds | $ | 61,166 | $ | (215 | ) | $ | 0 | $ | 0 | $ | 61,166 | $ | (215 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2022 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Available for Sale: | ||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 144,796 | $ | (6,230 | ) | $ | 66,008 | $ | (10,080 | ) | $ | 210,804 | $ | (16,310 | ) | |||||||||
U.S. Agency MBS and CMOs | 64,427 | (4,789 | ) | 41,340 | (9,558 | ) | 105,767 | (14,347 | ) | |||||||||||||||
Tax-exempt state and municipal bonds | 31,337 | (498 | ) | — | — | 31,337 | (498 | ) | ||||||||||||||||
Taxable state and municipal bonds | 71,165 | (3,337 | ) | 33,452 | (5,188 | ) | 104,617 | (8,525 | ) | |||||||||||||||
Corporate bonds and other debt securities | 10,668 | (357 | ) | 1,256 | (106 | ) | 11,924 | (463 | ) | |||||||||||||||
$ | 322,393 | $ | (15,211 | ) | $ | 142,056 | $ | (24,932 | ) | $ | 464,449 | $ | (40,143 | ) | ||||||||||
Held to Maturity: | ||||||||||||||||||||||||
U.S. Treasury | $ | 237,630 | $ | (13,677 | ) | $ | — | $ | — | $ | 237,630 | $ | (13,677 | ) | ||||||||||
Tax-exempt state and municipal bonds | 57,671 | (2,314 | ) | 21,721 | (539 | ) | 79,392 | (2,853 | ) | |||||||||||||||
$ | 295,301 | $ | (15,991 | ) | $ | 21,721 | $ | (539 | ) | $ | 317,022 | $ | (16,530 | ) |
March 31, 2023 | December 31, 2022 | |||||||
Commercial and industrial | $ | 473,354 | $ | 441,716 | ||||
Commercial real estate: | ||||||||
Residential developed | 7,001 | 7,234 | ||||||
Unsecured to residential developers | — | — | ||||||
Vacant and unimproved | 38,700 | 36,270 | ||||||
Commercial development | 99 | 103 | ||||||
Residential improved | 116,177 | 112,791 | ||||||
Commercial improved | 255,894 | 259,281 | ||||||
Manufacturing and industrial | 125,477 | 121,924 | ||||||
Total commercial real estate | 543,348 | 537,603 | ||||||
Consumer: | ||||||||
Residential mortgage | 148,676 | 139,148 | ||||||
Unsecured | 106 | 121 | ||||||
Home equity | 52,647 | 56,321 | ||||||
Other secured | 2,808 | 2,839 | ||||||
Total consumer | 204,237 | 198,429 | ||||||
Total loans | 1,220,939 | 1,177,748 | ||||||
Allowance for credit losses | (16,794 | ) | (15,285 | ) | ||||
$ | 1,204,145 | $ | 1,162,463 |
June 30, 2022 | December 31, 2021 | |||||||
Commercial and industrial: | ||||||||
Commercial and industrial, excluding PPP | $ | 407,788 | $ | 378,318 | ||||
PPP | 2,791 | 41,939 | ||||||
Total commercial and industrial | 410,579 | 420,257 | ||||||
Commercial real estate: | ||||||||
Residential developed | 4,094 | 4,862 | ||||||
Unsecured to residential developers | 0 | 5,000 | ||||||
Vacant and unimproved | 35,912 | 36,240 | ||||||
Commercial development | 112 | 171 | ||||||
Residential improved | 102,885 | 100,077 | ||||||
Commercial improved | 258,676 | 259,039 | ||||||
Manufacturing and industrial | 117,424 | 110,712 | ||||||
Total commercial real estate | 519,103 | 516,101 | ||||||
Consumer: | ||||||||
Residential mortgage | 125,771 | 117,800 | ||||||
Unsecured | 168 | 210 | ||||||
Home equity | 52,671 | 51,269 | ||||||
Other secured | 3,623 | 3,356 | ||||||
Total consumer | 182,233 | 172,635 | ||||||
Total loans | 1,111,915 | 1,108,993 | ||||||
Allowance for loan losses | (14,631 | ) | (15,889 | ) | ||||
$ | 1,097,284 | $ | 1,093,104 |
Three months ended March 31, 2023 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance, prior to adoption of ASU 2016-03 | $ | 5,596 | $ | 7,180 | $ | 2,458 | $ | 51 | $ | 15,285 | ||||||||||
Impact of adoption of ASU 2016-03 | 1,299 | (212 | ) | 389 | — | 1,476 | ||||||||||||||
Charge-offs | — | — | (21 | ) | — | (21 | ) | |||||||||||||
Recoveries | 9 | 3 | 42 | — | 54 | |||||||||||||||
Provision for credit losses (1) | 220 | (201 | ) | (50 | ) | 31 | — | |||||||||||||
Ending Balance | $ | 7,124 | $ | 6,770 | $ | 2,818 | $ | 82 | $ | 16,794 |
Three months ended March 31, 2022 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 5,176 | $ | 8,051 | $ | 2,633 | $ | 29 | $ | 15,889 | ||||||||||
Charge-offs | — | — | (35 | ) | — | (35 | ) | |||||||||||||
Recoveries | 5 | 233 | 24 | — | 262 | |||||||||||||||
Provision for credit losses (1) | 148 | (1,213 | ) | (469 | ) | 34 | (1,500 | ) | ||||||||||||
Ending Balance | $ | 5,329 | $ | 7,071 | $ | 2,153 | $ | 63 | $ | 14,616 |
Three months ended June 30, 2022 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 5,329 | $ | 7,071 | $ | 2,153 | $ | 63 | $ | 14,616 | ||||||||||
Charge-offs | (38 | ) | 0 | (22 | ) | 0 | (60 | ) | ||||||||||||
Recoveries | 5 | 38 | 32 | 0 | 75 | |||||||||||||||
Provision for loan losses | (40 | ) | (87 | ) | 153 | (26 | ) | 0 | ||||||||||||
Ending Balance | $ | 5,256 | $ | 7,022 | $ | 2,316 | $ | 37 | $ | 14,631 |
Three months ended June 30, 2021 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 5,801 | $ | 8,898 | $ | 2,718 | $ | 35 | $ | 17,452 | ||||||||||
Charge-offs | 0 | 0 | (30 | ) | 0 | (30 | ) | |||||||||||||
Recoveries | 35 | 72 | 27 | 0 | 134 | |||||||||||||||
Provision for loan losses | (630 | ) | (230 | ) | 141 | (31 | ) | (750 | ) | |||||||||||
Ending Balance | $ | 5,206 | $ | 8,740 | $ | 2,856 | $ | 4 | $ | 16,806 |
Six months ended June 30, 2022 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 5,176 | $ | 8,051 | $ | 2,633 | $ | 29 | $ | 15,889 | ||||||||||
Charge-offs | (38 | ) | 0 | (57 | ) | 0 | (95 | ) | ||||||||||||
Recoveries | 10 | 271 | 56 | 0 | 337 | |||||||||||||||
Provision for loan losses | 108 | (1,300 | ) | (316 | ) | 8 | (1,500 | ) | ||||||||||||
Ending Balance | $ | 5,256 | $ | 7,022 | $ | 2,316 | $ | 37 | $ | 14,631 |
Six months ended June 30, 2021 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 6,632 | $ | 7,999 | $ | 2,758 | $ | 19 | $ | 17,408 | ||||||||||
Charge-offs | 0 | 0 | (80 | ) | 0 | (80 | ) | |||||||||||||
Recoveries | 55 | 111 | 62 | 0 | 228 | |||||||||||||||
Provision for loan losses | (1,481 | ) | 630 | 116 | (15 | ) | (750 | ) | ||||||||||||
Ending Balance | $ | 5,206 | $ | 8,740 | $ | 2,856 | $ | 4 | $ | 16,806 |
(1) | Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology. |
Term Loans By Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial development | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial improved | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Manufacturing and industrial | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential development | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential improved | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Vacant and unimproved | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential mortgage | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer unsecured | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | 21 | 21 | ||||||||||||||||||||||||
Total consumer | — | — | — | — | — | — | 21 | 21 | ||||||||||||||||||||||||
Total loans | — | — | — | — | — | — | 21 | 21 |
Collateral Type | ||||||||||||
March 31, 2023 | Real Estate | Other | Allowance Allocated | |||||||||
Commercial and industrial | $ | — | $ | — | $ | — | ||||||
Commercial real estate: | ||||||||||||
Residential developed | — | — | — | |||||||||
Unsecured to residential developers | — | — | — | |||||||||
Vacant and unimproved | — | — | — | |||||||||
Commercial development | — | — | — | |||||||||
Residential improved | 30 | — | — | |||||||||
Commercial improved | 303 | — | 6 | |||||||||
Manufacturing and industrial | — | — | — | |||||||||
333 | — | 6 | ||||||||||
Consumer | ||||||||||||
Residential mortgage | — | — | — | |||||||||
Unsecured | — | — | — | |||||||||
Home equity | — | — | — | |||||||||
Other secured | — | — | — | |||||||||
Consumer | — | — | — | |||||||||
Total | $ | 333 | $ | — | $ | 6 |
December 31, 2022 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||
Ending allowance attributable to loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 55 | $ | 20 | $ | 220 | $ | — | $ | 295 | ||||||||||
Collectively evaluated for impairment | 5,541 | 7,160 | 2,238 | 51 | 14,990 | |||||||||||||||
Total ending allowance balance | $ | 5,596 | $ | 7,180 | $ | 2,458 | $ | 51 | $ | 15,285 | ||||||||||
Loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 3,603 | $ | 518 | $ | 2,886 | $ | — | $ | 7,007 | ||||||||||
Collectively evaluated for impairment | 438,113 | 537,085 | 195,543 | — | 1,170,741 | |||||||||||||||
Total ending loans balance | $ | 441,716 | $ | 537,603 | $ | 198,429 | $ | — | $ | 1,177,748 |
June 30, 2022 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance attributable to loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 59 | $ | 21 | $ | 216 | $ | 0 | $ | 296 | ||||||||||
Collectively evaluated for impairment | 5,197 | 7,001 | 2,100 | 37 | 14,335 | |||||||||||||||
Total ending allowance balance | $ | 5,256 | $ | 7,022 | $ | 2,316 | $ | 37 | $ | 14,631 | ||||||||||
Loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 829 | $ | 584 | $ | 2,840 | $ | 0 | $ | 4,253 | ||||||||||
Collectively evaluated for impairment | 409,750 | 518,519 | 179,393 | 0 | 1,107,662 | |||||||||||||||
Total ending loans balance | $ | 410,579 | $ | 519,103 | $ | 182,233 | $ | 0 | $ | 1,111,915 |
December 31, 2021 | Commercial and Industrial | Commercial Real Estate | Consumer | Unallocated | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance attributable to loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 303 | $ | 24 | $ | 238 | $ | 0 | $ | 565 | ||||||||||
Collectively evaluated for impairment | 4,873 | 8,027 | 2,395 | 29 | 15,324 | |||||||||||||||
Total ending allowance balance | $ | 5,176 | $ | 8,051 | $ | 2,633 | $ | 29 | $ | 15,889 | ||||||||||
Loans: | ||||||||||||||||||||
Individually reviewed for impairment | $ | 3,375 | $ | 1,127 | $ | 3,024 | $ | 0 | $ | 7,526 | ||||||||||
Collectively evaluated for impairment | 416,882 | 514,974 | 169,611 | 0 | 1,101,467 | |||||||||||||||
Total ending loans balance | $ | 420,257 | $ | 516,101 | $ | 172,635 | $ | 0 | $ | 1,108,993 |
June 30, 2022 | Unpaid Principal Balance | Recorded Investment | Allowance Allocated | |||||||||
With no related allowance recorded: | ||||||||||||
Commercial and industrial | $ | 460 | $ | 460 | $ | — | ||||||
Commercial real estate: | ||||||||||||
Residential improved | 38 | 38 | — | |||||||||
Commercial improved | 46 | 46 | — | |||||||||
84 | 84 | — | ||||||||||
Consumer | 0 | 0 | — | |||||||||
Total with no related allowance recorded | $ | 544 | $ | 544 | $ | — | ||||||
With an allowance recorded: | ||||||||||||
Commercial and industrial | $ | 369 | $ | 369 | $ | 59 | ||||||
Commercial real estate: | ||||||||||||
Commercial improved | 314 | 314 | 10 | |||||||||
Manufacturing and industrial | 186 | 186 | 11 | |||||||||
500 | 500 | 21 | ||||||||||
Consumer: | ||||||||||||
Residential mortgage | 2,519 | 2,519 | 192 | |||||||||
Unsecured | 32 | 32 | 2 | |||||||||
Home equity | 289 | 289 | 22 | |||||||||
2,840 | 2,840 | 216 | ||||||||||
Total with an allowance recorded | $ | 3,709 | $ | 3,709 | $ | 296 | ||||||
Total | $ | 4,253 | $ | 4,253 | $ | 296 |
December 31, 2022 | Unpaid Principal Balance | Recorded Investment | Allowance Allocated | Year-To-Date Average Recorded Investment | ||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial and industrial | $ | 3,278 | $ | 3,278 | $ | — | $ | 2,338 | ||||||||
Commercial real estate: | ||||||||||||||||
Residential improved | 31 | 31 | — | 33 | ||||||||||||
31 | 31 | — | 33 | |||||||||||||
Consumer | — | — | — | — | ||||||||||||
Total with no related allowance recorded | $ | 3,309 | $ | 3,309 | $ | — | $ | 2,371 | ||||||||
With an allowance recorded: | ||||||||||||||||
Commercial and industrial | $ | 325 | $ | 325 | $ | 55 | $ | 365 | ||||||||
Commercial real estate: | ||||||||||||||||
Commercial improved | 307 | 307 | 9 | 313 | ||||||||||||
Manufacturing and industrial | 180 | 180 | 11 | 185 | ||||||||||||
487 | 487 | 20 | 498 | |||||||||||||
Consumer: | ||||||||||||||||
Residential mortgage | 2,653 | 2,653 | 202 | 2,619 | ||||||||||||
Unsecured | 29 | 29 | 2 | 29 | ||||||||||||
Home equity | 204 | 204 | 16 | 234 | ||||||||||||
2,886 | 2,886 | 220 | 2,882 | |||||||||||||
Total with an allowance recorded | $ | 3,698 | $ | 3,698 | $ | 295 | $ | 3,745 | ||||||||
Total | $ | 7,007 | $ | 7,007 | $ | 295 | $ | 6,116 |
December 31, 2021 | Unpaid Principal Balance | Recorded Investment | Allowance Allocated | |||||||||
With no related allowance recorded: | ||||||||||||
Commercial and industrial | $ | 669 | $ | 669 | $ | — | ||||||
Commercial real estate: | ||||||||||||
Residential improved | 41 | 41 | — | |||||||||
Commercial improved | 577 | 577 | — | |||||||||
618 | 618 | — | ||||||||||
Consumer | 0 | 0 | — | |||||||||
Total with no related allowance recorded | $ | 1,287 | $ | 1,287 | $ | — | ||||||
With an allowance recorded: | ||||||||||||
Commercial and industrial | $ | 2,706 | $ | 2,706 | $ | 303 | ||||||
Commercial real estate: | ||||||||||||
Commercial improved | 318 | 318 | 14 | |||||||||
Manufacturing and industrial | 191 | 191 | 10 | |||||||||
509 | 509 | 24 | ||||||||||
Consumer: | ||||||||||||
Residential mortgage | 2,726 | 2,726 | 214 | |||||||||
Unsecured | 64 | 64 | 5 | |||||||||
Home equity | 234 | 234 | 19 | |||||||||
3,024 | 3,024 | 238 | ||||||||||
Total with an allowance recorded | $ | 6,239 | $ | 6,239 | $ | 565 | ||||||
Total | $ | 7,526 | $ | 7,526 | $ | 565 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||
Average of impaired loans during the period: | ||||||||||||||||
Commercial and industrial | $ | 2,284 | $ | 1,916 | $ | 3,232 | $ | 3,251 | ||||||||
Commercial real estate: | ||||||||||||||||
Residential developed | 0 | 0 | 0 | 22 | ||||||||||||
Residential improved | 39 | 33 | 39 | 60 | ||||||||||||
Commercial improved | 362 | 2,170 | 453 | 2,190 | ||||||||||||
Manufacturing and industrial | 187 | 197 | 188 | 198 | ||||||||||||
Consumer | 2,793 | 3,619 | 2,824 | 3,780 | ||||||||||||
Interest income recognized during impairment: | ||||||||||||||||
Commercial and industrial | 26 | 9 | 165 | 143 | ||||||||||||
Commercial real estate | 18 | 35 | 28 | 66 | ||||||||||||
Consumer | 55 | 31 | 81 | 69 | ||||||||||||
Cash-basis interest income recognized | ||||||||||||||||
Commercial and industrial | 27 | 8 | 158 | 134 | ||||||||||||
Commercial real estate | 21 | 35 | 34 | 66 | ||||||||||||
Consumer | 56 | 32 | 82 | 68 |
March 31, 2023 | Nonaccrual with No Allowance | Nonaccrual with Allowance | Total Nonaccrual | Over 90 days Accruing | Total Nonperforming Loans | |||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential developed | — | — | — | — | — | |||||||||||||||
Unsecured to residential developers | — | — | — | — | — | |||||||||||||||
Vacant and unimproved | — | — | — | — | — | |||||||||||||||
Commercial development | — | — | — | — | — | |||||||||||||||
Residential Improved | — | — | — | — | — | |||||||||||||||
Commercial improved | — | — | — | — | — | |||||||||||||||
Manufacturing and industrial | — | — | — | — | — | |||||||||||||||
— | — | — | — | — | ||||||||||||||||
Consumer: | ||||||||||||||||||||
Residential mortgage | — | 75 | 75 | — | 75 | |||||||||||||||
Unsecured | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
Other secured | — | — | — | — | — | |||||||||||||||
— | 75 | 75 | — | 75 | ||||||||||||||||
Total | $ | — | $ | 75 | $ | 75 | $ | — | $ | 75 |
December 31, 2022 | Nonaccrual with No Allowance | Nonaccrual with Allowance | Total Nonaccrual | Over 90 days Accruing | Total Nonperforming Loans | |||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential developed | — | — | — | — | — | |||||||||||||||
Unsecured to residential developers | — | — | — | — | — | |||||||||||||||
Vacant and unimproved | — | — | — | — | — | |||||||||||||||
Commercial development | — | — | — | — | — | |||||||||||||||
Residential improved | — | — | — | — | — | |||||||||||||||
Commercial improved | — | — | — | — | — | |||||||||||||||
Manufacturing and industrial | — | — | — | — | — | |||||||||||||||
— | — | — | — | — | ||||||||||||||||
Consumer: | ||||||||||||||||||||
Residential mortgage | — | 78 | 78 | — | 78 | |||||||||||||||
Unsecured | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
Other secured | — | — | — | — | — | |||||||||||||||
— | 78 | 78 | — | 78 | ||||||||||||||||
Total | $ | — | $ | 78 | $ | 78 | $ | — | $ | 78 |
June 30, 2022 | Nonaccrual | Over 90 days Accruing | ||||||
Commercial and industrial | $ | 0 | $ | 0 | ||||
Commercial real estate: | ||||||||
Residential improved | 5 | 0 | ||||||
5 | 0 | |||||||
Consumer: | ||||||||
Residential mortgage | 85 | 0 | ||||||
85 | 0 | |||||||
Total | $ | 90 | $ | 0 |
December 31, 2021 | Nonaccrual | Over 90 days Accruing | ||||||
Commercial and industrial | $ | 0 | $ | 0 | ||||
Commercial real estate: | ||||||||
Residential improved | 5 | 0 | ||||||
5 | 0 | |||||||
Consumer: | ||||||||
Residential mortgage | 86 | 0 | ||||||
86 | 0 | |||||||
Total | $ | 91 | $ | 0 |
June 30, 2022 | 30-90 Days | Greater Than 90 Days | Total Past Due | Loans Not Past Due | Total | |||||||||||||||||||||||||||||||||||
March 31, 2023 | 30-90 Days | Greater Than 90 Days | Total Past Due | Loans Not Past Due | Total | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 0 | $ | 0 | $ | 0 | $ | 410,579 | $ | 410,579 | $ | — | $ | — | $ | — | $ | 473,354 | $ | 473,354 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential developed | 0 | 0 | 0 | 4,094 | 4,094 | — | — | — | 7,001 | 7,001 | ||||||||||||||||||||||||||||||
Unsecured to residential developers | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Vacant and unimproved | 0 | 0 | 0 | 35,912 | 35,912 | — | — | — | 38,700 | 38,700 | ||||||||||||||||||||||||||||||
Commercial development | 0 | 0 | 0 | 112 | 112 | — | — | — | 99 | 99 | ||||||||||||||||||||||||||||||
Residential improved | 0 | 5 | 5 | 102,880 | 102,885 | — | — | — | 116,177 | 116,177 | ||||||||||||||||||||||||||||||
Commercial improved | 0 | 0 | 0 | 258,676 | 258,676 | 83 | — | 83 | 255,811 | 255,894 | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 0 | 0 | 0 | 117,424 | 117,424 | — | — | — | 125,477 | 125,477 | ||||||||||||||||||||||||||||||
0 | 5 | 5 | 519,098 | 519,103 | 83 | — | 83 | 543,265 | 543,348 | |||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 75 | 84 | 159 | 125,612 | 125,771 | 120 | 74 | 194 | 148,482 | 148,676 | ||||||||||||||||||||||||||||||
Unsecured | 0 | 0 | 0 | 168 | 168 | — | — | — | 106 | 106 | ||||||||||||||||||||||||||||||
Home equity | 33 | 0 | 33 | 52,638 | 52,671 | — | — | — | 52,647 | 52,647 | ||||||||||||||||||||||||||||||
Other secured | 0 | 0 | 0 | 3,623 | 3,623 | — | — | — | 2,808 | 2,808 | ||||||||||||||||||||||||||||||
108 | 84 | 192 | 182,041 | 182,233 | 120 | 74 | 194 | 204,043 | 204,237 | |||||||||||||||||||||||||||||||
Total | $ | 108 | $ | 89 | $ | 197 | $ | 1,111,718 | $ | 1,111,915 | $ | 203 | $ | 74 | $ | 277 | $ | 1,220,662 | $ | 1,220,939 |
December 31, 2022 | 30-90 Days | Greater Than 90 Days | Total Past Due | Loans Not Past Due | Total | |||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | 441,716 | $ | 441,716 | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential developed | — | — | — | 7,234 | 7,234 | |||||||||||||||
Unsecured to residential developers | — | — | — | — | — | |||||||||||||||
Vacant and unimproved | — | — | — | 36,270 | 36,270 | |||||||||||||||
Commercial development | — | — | — | 103 | 103 | |||||||||||||||
Residential improved | — | — | — | 112,791 | 112,791 | |||||||||||||||
Commercial improved | 71 | — | 71 | 259,210 | 259,281 | |||||||||||||||
Manufacturing and industrial | — | — | — | 121,924 | 121,924 | |||||||||||||||
71 | — | 71 | 537,532 | 537,603 | ||||||||||||||||
Consumer: | ||||||||||||||||||||
Residential mortgage | — | 77 | 77 | 139,071 | 139,148 | |||||||||||||||
Unsecured | — | — | — | 121 | 121 | |||||||||||||||
Home equity | 24 | — | 24 | 56,297 | 56,321 | |||||||||||||||
Other secured | — | — | — | 2,839 | 2,839 | |||||||||||||||
24 | 77 | 101 | 198,328 | 198,429 | ||||||||||||||||
Total | $ | 95 | $ | 77 | $ | 172 | $ | 1,177,576 | $ | 1,177,748 |
December 31, 2021 | 30-90 Days | Greater Than 90 Days | Total Past Due | Loans Not Past Due | Total | |||||||||||||||
Commercial and industrial | $ | 39 | $ | 1 | $ | 40 | $ | 420,217 | $ | 420,257 | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential developed | 0 | 0 | 0 | 4,862 | 4,862 | |||||||||||||||
Unsecured to residential developers | 0 | 0 | 0 | 5,000 | 5,000 | |||||||||||||||
Vacant and unimproved | 0 | 0 | 0 | 36,240 | 36,240 | |||||||||||||||
Commercial development | 0 | 0 | 0 | 171 | 171 | |||||||||||||||
Residential improved | 0 | 5 | 5 | 100,072 | 100,077 | |||||||||||||||
Commercial improved | 0 | 0 | 0 | 259,039 | 259,039 | |||||||||||||||
Manufacturing and industrial | 0 | 0 | 0 | 110,712 | 110,712 | |||||||||||||||
0 | 5 | 5 | 516,096 | 516,101 | ||||||||||||||||
Consumer: | ||||||||||||||||||||
Residential mortgage | 0 | 84 | 84 | 117,716 | 117,800 | |||||||||||||||
Unsecured | 0 | 0 | 0 | 210 | 210 | |||||||||||||||
Home equity | 0 | 0 | 0 | 51,269 | 51,269 | |||||||||||||||
Other secured | 0 | 0 | 0 | 3,356 | 3,356 | |||||||||||||||
0 | 84 | 84 | 172,551 | 172,635 | ||||||||||||||||
Total | $ | 39 | $ | 90 | $ | 129 | $ | 1,108,864 | $ | 1,108,993 |
March 31, 2023 | ||||||||||||
Number of Loans | Outstanding Recorded Balance | Percentage to Total Loans | ||||||||||
Commercial and industrial | 3 | $ | 309 | 0.07 | % | |||||||
Commercial real estate | 3 | 509 | 0.09 | % | ||||||||
Consumer | 32 | 2,847 | 1.39 | % | ||||||||
38 | $ | 3,665 | 0.30 | % |
June 30, 2022 | December 31, 2021 | |||||||||||||||
Number of Loans | Outstanding Recorded Balance | Number of Loans | Outstanding Recorded Balance | |||||||||||||
Commercial and industrial | 3 | $ | 830 | 4 | $ | 3,375 | ||||||||||
Commercial real estate | 5 | 584 | 6 | 1,127 | ||||||||||||
Consumer | 37 | 2,840 | 44 | 3,024 | ||||||||||||
45 | $ | 4,254 | 54 | $ | 7,526 |
June 30, 2022 | December 31, 2021 | |||||||
Accruing TDR - nonaccrual at restructuring | $ | 0 | $ | 0 | ||||
Accruing TDR - accruing at restructuring | 3,789 | 4,552 | ||||||
Accruing TDR - upgraded to accruing after six consecutive payments | 460 | 2,968 | ||||||
$ | 4,249 | $ | 7,520 |
March 31, 2023 | ||||
Accruing - nonaccrual at modification | $ | — | ||
Accruing - accruing at modification | 3,665 | |||
Accruing - upgraded to accruing after six consecutive payments | — | |||
$ | 3,665 |
December 31, 2022 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | |||||||||||||||||||||||||||
Commercial and industrial | $ | 15,040 | $ | 21,451 | $ | 175,762 | $ | 220,987 | $ | 8,309 | $ | 167 | $ | — | $ | — | $ | 441,716 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||
Residential developed | — | — | — | 7,234 | — | — | — | — | 7,234 | |||||||||||||||||||||||||||
Unsecured to residential developers | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Vacant and unimproved | — | 1,231 | 18,406 | 16,633 | — | — | — | — | 36,270 | |||||||||||||||||||||||||||
Commercial development | — | — | 103 | — | — | — | — | — | 103 | |||||||||||||||||||||||||||
Residential improved | — | — | 25,585 | 87,176 | 30 | — | — | — | 112,791 | |||||||||||||||||||||||||||
Commercial improved | — | 17,802 | 83,769 | 151,641 | 5,762 | 307 | — | — | 259,281 | |||||||||||||||||||||||||||
Manufacturing & industrial | — | 11,422 | 32,977 | 73,566 | 1,646 | 2,313 | — | — | 121,924 | |||||||||||||||||||||||||||
$ | 15,040 | $ | 51,906 | $ | 336,602 | $ | 557,237 | $ | 15,747 | $ | 2,787 | $ | — | $ | — | $ | 979,319 |
June 30, 2022 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | |||||||||||||||||||||||||||
Commercial and industrial | $ | 17,825 | $ | 11,677 | $ | 145,802 | $ | 230,669 | $ | 4,412 | $ | 194 | $ | 0 | $ | 0 | $ | 410,579 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||
Residential developed | 0 | 0 | 0 | 4,094 | 0 | 0 | 0 | 0 | 4,094 | |||||||||||||||||||||||||||
Unsecured to residential developers | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Vacant and unimproved | 0 | 1,708 | 15,804 | 18,400 | 0 | 0 | 0 | 0 | 35,912 | |||||||||||||||||||||||||||
Commercial development | 0 | 0 | 112 | 0 | 0 | 0 | 0 | 0 | 112 | |||||||||||||||||||||||||||
Residential improved | 0 | 0 | 22,706 | 80,141 | 33 | 0 | 5 | 0 | 102,885 | |||||||||||||||||||||||||||
Commercial improved | 0 | 18,166 | 68,671 | 164,785 | 6,740 | 314 | 0 | 0 | 258,676 | |||||||||||||||||||||||||||
Manufacturing & industrial | 0 | 3,361 | 36,259 | 74,523 | 3,281 | 0 | 0 | 0 | 117,424 | |||||||||||||||||||||||||||
$ | 17,825 | $ | 34,912 | $ | 289,354 | $ | 572,612 | $ | 14,466 | $ | 508 | $ | 5 | $ | 0 | $ | 929,682 |
December 31, 2021 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | |||||||||||||||||||||||||||
Commercial and industrial | $ | 56,979 | $ | 19,300 | $ | 110,877 | $ | 227,087 | $ | 2,700 | $ | 3,314 | $ | 0 | $ | 0 | $ | 420,257 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||
Residential developed | 0 | 0 | 0 | 4,862 | 0 | 0 | 0 | 0 | 4,862 | |||||||||||||||||||||||||||
Unsecured to residential developers | 0 | 0 | 0 | 5,000 | 0 | 0 | 0 | 0 | 5,000 | |||||||||||||||||||||||||||
Vacant and unimproved | 0 | 1,763 | 13,492 | 20,985 | 0 | 0 | 0 | 0 | 36,240 | |||||||||||||||||||||||||||
Commercial development | 0 | 0 | 171 | 0 | 0 | 0 | 0 | 0 | 171 | |||||||||||||||||||||||||||
Residential improved | 0 | 0 | 24,450 | 75,503 | 119 | 0 | 5 | 0 | 100,077 | |||||||||||||||||||||||||||
Commercial improved | 0 | 15,115 | 71,211 | 165,268 | 7,127 | 318 | 0 | 0 | 259,039 | |||||||||||||||||||||||||||
Manufacturing & industrial | 0 | 0 | 41,757 | 65,601 | 3,354 | 0 | 0 | 0 | 110,712 | |||||||||||||||||||||||||||
$ | 56,979 | $ | 36,178 | $ | 261,958 | $ | 564,306 | $ | 13,300 | $ | 3,632 | $ | 5 | $ | 0 | $ | 936,358 |
Term Loans Amortized Cost Basis By Origination Year and Risk Grades | ||||||||||||||||||||||||||||||||
March 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | 14,305 | $ | 60,752 | $ | 18,955 | $ | 7,346 | $ | 14,878 | $ | 47,073 | $ | 70,542 | $ | 233,851 | ||||||||||||||||
Grade 4 | 12,017 | 46,095 | 24,990 | 26,313 | 10,486 | 30,408 | 77,814 | 228,123 | ||||||||||||||||||||||||
Grade 5 | — | 342 | 43 | 407 | 99 | 115 | 10,246 | 11,252 | ||||||||||||||||||||||||
Grade 6 | — | 41 | 49 | — | — | 38 | — | 128 | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 26,322 | $ | 107,230 | $ | 44,037 | $ | 34,066 | $ | 25,463 | $ | 77,634 | $ | 158,602 | $ | 473,354 | |||||||||||||||||
Commercial development | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | — | $ | 99 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 99 | ||||||||||||||||
Grade 4 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 5 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | — | $ | 99 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 99 | |||||||||||||||||
Commercial improved | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | 6,992 | $ | 18,654 | $ | 33,327 | $ | 10,894 | $ | 14,484 | $ | 17,925 | $ | 2,915 | $ | 105,191 | ||||||||||||||||
Grade 4 | 1,778 | 37,516 | 37,376 | 43,647 | 17,937 | 3,321 | 3,200 | 144,775 | ||||||||||||||||||||||||
Grade 5 | — | 148 | — | 29 | 2,227 | 3,171 | 50 | 5,625 | ||||||||||||||||||||||||
Grade 6 | — | — | 303 | — | — | — | — | 303 | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 8,770 | $ | 56,318 | $ | 71,006 | $ | 54,570 | $ | 34,648 | $ | 24,417 | $ | 6,165 | $ | 255,894 | |||||||||||||||||
Manufacturing and industrial | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | 786 | $ | 17,839 | $ | 4,829 | $ | 8,562 | $ | 4,370 | $ | 7,459 | $ | 430 | $ | 44,275 | ||||||||||||||||
Grade 4 | 6,709 | 27,464 | 15,090 | 7,933 | 5,805 | 14,188 | 145 | 77,334 | ||||||||||||||||||||||||
Grade 5 | — | 177 | 94 | — | — | 810 | 495 | 1,576 | ||||||||||||||||||||||||
Grade 6 | — | — | — | — | — | 2,292 | — | 2,292 | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 7,495 | $ | 45,480 | $ | 20,013 | $ | 16,495 | $ | 10,175 | $ | 24,749 | $ | 1,070 | $ | 125,477 | |||||||||||||||||
Residential development | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Grade 4 | 322 | 3,837 | 1,455 | — | — | — | 1,387 | 7,001 | ||||||||||||||||||||||||
Grade 5 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 322 | $ | 3,837 | $ | 1,455 | $ | — | $ | — | $ | — | $ | 1,387 | $ | 7,001 | |||||||||||||||||
Residential improved | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | 4,587 | $ | 7,574 | $ | 1,442 | $ | 9,544 | $ | 258 | $ | 5,442 | $ | 401 | $ | 29,248 | ||||||||||||||||
Grade 4 | 4,037 | 568 | 30,241 | 1,988 | 7,233 | 15,710 | 27,122 | 86,899 | ||||||||||||||||||||||||
Grade 5 | — | — | 30 | — | — | — | — | 30 | ||||||||||||||||||||||||
Grade 6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 8,624 | $ | 8,142 | $ | 31,713 | $ | 11,532 | $ | 7,491 | $ | 21,152 | $ | 27,523 | $ | 116,177 | |||||||||||||||||
Vacant and unimproved | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | — | $ | 4,503 | $ | 7,725 | $ | 7,210 | $ | — | $ | 110 | $ | 646 | $ | 20,194 | ||||||||||||||||
Grade 4 | 952 | 2,897 | 3,721 | 8,332 | 163 | 117 | 982 | 17,164 | ||||||||||||||||||||||||
Grade 5 | 1,342 | — | — | — | — | — | — | 1,342 | ||||||||||||||||||||||||
Grade 6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 2,294 | $ | 7,400 | $ | 11,446 | $ | 15,542 | $ | 163 | $ | 227 | $ | 1,628 | $ | 38,700 | |||||||||||||||||
Total Commercial | ||||||||||||||||||||||||||||||||
Grades 1-3 | $ | 26,670 | $ | 109,421 | $ | 66,278 | $ | 43,556 | $ | 33,990 | $ | 78,009 | $ | 74,934 | $ | 432,858 | ||||||||||||||||
Grade 4 | 25,815 | 118,377 | 112,873 | 88,213 | 41,624 | 63,744 | 110,650 | 561,296 | ||||||||||||||||||||||||
Grade 5 | 1,342 | 667 | 167 | 436 | 2,326 | 4,096 | 10,791 | 19,825 | ||||||||||||||||||||||||
Grade 6 | — | 41 | 352 | — | — | 2,330 | — | 2,723 | ||||||||||||||||||||||||
Grade 7-8 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 53,827 | $ | 228,506 | $ | 179,670 | $ | 132,205 | $ | 77,940 | $ | 148,179 | $ | 196,375 | $ | 1,016,702 |
June 30, 2022 | December 31, 2021 | |||||||
Not classified as impaired | $ | 108 | $ | 233 | ||||
Classified as impaired | 405 | 3,404 | ||||||
Total commercial loans classified substandard or worse | $ | 513 | $ | 3,637 |
Term Loans Amortized Cost Basis By Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | 17,336 | $ | 42,826 | $ | 27,298 | $ | 10,419 | $ | 5,322 | $ | 33,520 | $ | 11,880 | $ | 148,601 | ||||||||||||||||
Nonperforming | — | — | — | — | — | 75 | — | 75 | ||||||||||||||||||||||||
$ | 17,336 | $ | 42,826 | $ | 27,298 | $ | 10,419 | $ | 5,322 | $ | 33,595 | $ | 11,880 | $ | 148,676 | |||||||||||||||||
Consumer unsecured | ||||||||||||||||||||||||||||||||
Performing | $ | — | $ | — | $ | — | $ | 13 | $ | 15 | $ | 26 | $ | 52 | $ | 106 | ||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 13 | $ | 15 | $ | 26 | $ | 52 | $ | 106 | |||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Performing | $ | 71 | $ | 901 | $ | 233 | $ | 489 | $ | 249 | $ | 2,324 | $ | 48,380 | $ | 52,647 | ||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 71 | $ | 901 | $ | 233 | $ | 489 | $ | 249 | $ | 2,324 | $ | 48,380 | $ | 52,647 | |||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Performing | $ | 304 | $ | 1,133 | $ | 687 | $ | 360 | $ | 100 | $ | 224 | $ | — | $ | 2,808 | ||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 304 | $ | 1,133 | $ | 687 | $ | 360 | $ | 100 | $ | 224 | $ | — | $ | 2,808 | |||||||||||||||||
Total Retail | $ | 17,711 | $ | 44,860 | $ | 28,218 | $ | 11,281 | $ | 5,686 | $ | 36,169 | $ | 60,312 | $ | 204,237 |
June 30, 2022 | Residential Mortgage | Consumer Unsecured | Home Equity | Consumer Other | ||||||||||||
Performing | $ | 125,686 | $ | 168 | $ | 52,671 | $ | 3,623 | ||||||||
Nonperforming | 85 | 0 | 0 | 0 | ||||||||||||
Total | $ | 125,771 | $ | 168 | $ | 52,671 | $ | 3,623 |
December 31, 2022 | Residential Mortgage | Consumer Unsecured | Home Equity | Consumer Other | ||||||||||||
Performing | $ | 139,071 | $ | 121 | $ | 56,321 | $ | 2,839 | ||||||||
Nonperforming | 77 | — | — | — | ||||||||||||
Total | $ | 139,148 | $ | 121 | $ | 56,321 | $ | 2,839 |
December 31, 2021 | Residential Mortgage | Consumer Unsecured | Home Equity | Consumer Other | ||||||||||||
Performing | $ | 117,716 | $ | 210 | $ | 51,269 | $ | 3,356 | ||||||||
Nonperforming | 84 | 0 | 0 | 0 | ||||||||||||
Total | $ | 117,800 | $ | 210 | $ | 51,269 | $ | 3,356 |
Level 1: | Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
Level 2: | Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
Level 3: | Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 199,956 | $ | 0 | $ | 199,956 | $ | 0 | $ | 241,858 | $ | — | $ | 241,858 | $ | — | ||||||||||||||||
U.S. Agency MBS and CMOs | 94,129 | 0 | 94,129 | 0 | 122,244 | — | 122,244 | — | ||||||||||||||||||||||||
Tax-exempt state and municipal bonds | 39,397 | 0 | 39,397 | 0 | 36,949 | — | 36,949 | — | ||||||||||||||||||||||||
Taxable state and municipal bonds | 93,664 | 0 | 93,664 | 0 | 113,137 | — | 113,137 | — | ||||||||||||||||||||||||
Corporate bonds and other debt securities | 8,482 | 0 | 8,482 | 0 | 11,771 | — | 11,771 | — | ||||||||||||||||||||||||
Other equity securities | 1,354 | 0 | 1,354 | 0 | 1,321 | — | 1,321 | — | ||||||||||||||||||||||||
Loans held for sale | 1,163 | 0 | 1,163 | 0 | 87 | — | 87 | — | ||||||||||||||||||||||||
Interest rate swaps | 4,556 | 0 | 0 | 4,556 | 5,294 | — | 5,294 | — | ||||||||||||||||||||||||
Total assets measured at fair value on recurring basis | $ | 532,661 | $ | — | $ | 532,661 | $ | — | ||||||||||||||||||||||||
Interest rate swaps | (4,556 | ) | 0 | 0 | (4,556 | ) | (5,294 | ) | — | (5,294 | ) | — | ||||||||||||||||||||
Total liabilities measured at fair value on recurring basis | $ | (5,294 | ) | $ | — | $ | (5,294 | ) | $ | — | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 206,845 | $ | 0 | $ | 206,845 | $ | 0 | $ | 224,634 | $ | — | $ | 224,634 | $ | — | ||||||||||||||||
U.S. Agency MBS and CMOs | 86,797 | 0 | 86,797 | 0 | 113,818 | — | 113,818 | — | ||||||||||||||||||||||||
Tax-exempt state and municipal bonds | 37,556 | 0 | 37,556 | 0 | 36,710 | — | 36,710 | — | ||||||||||||||||||||||||
Taxable state and municipal bonds | 79,561 | 0 | 79,561 | 0 | 112,171 | — | 112,171 | — | ||||||||||||||||||||||||
Corporate bonds and other debt securities | 5,304 | 0 | 5,304 | 0 | 11,924 | — | 11,924 | — | ||||||||||||||||||||||||
Other equity securities | 1,470 | 0 | 1,470 | 0 | 1,304 | — | 1,304 | — | ||||||||||||||||||||||||
Loans held for sale | 1,407 | 0 | 1,407 | 0 | 215 | — | 215 | — | ||||||||||||||||||||||||
Interest rate swaps | 3,277 | 0 | 0 | 3,277 | 6,463 | — | 6,463 | — | ||||||||||||||||||||||||
Total assets measured at fair value on recurring basis | $ | 507,239 | $ | — | $ | 507,239 | $ | — | ||||||||||||||||||||||||
Interest rate swaps | (3,277 | ) | 0 | 0 | (3,277 | ) | (6,463 | ) | — | (6,463 | ) | — | ||||||||||||||||||||
Total liabilities measured at fair value on recurring basis | $ | (6,463 | ) | $ | — | $ | (6,463 | ) | $ | — |
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Collateral dependent loans | $ | 327 | $ | — | $ | — | $ | 327 | ||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 337 | $ | 0 | $ | 0 | $ | 337 | $ | 328 | $ | — | $ | — | $ | 328 | ||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 2,903 | $ | 0 | $ | 0 | $ | 2,903 |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range (%) | ||||||
June 30, 2022 | |||||||||
Impaired Loans | $ | 337 | Sales comparison approach | Adjustment for differences between comparable sales | 1.5 to 20.0 | ||||
Income approach | Capitalization rate | 9.5 to 11.0 |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range (%) | ||||||
March 31, 2023 | |||||||||
Collateral dependent loans | $ | 327 | Sales comparison approach | Adjustment for differences between comparable sales | 1.5 to 20.0 | ||||
Income approach | Capitalization rate | 9.5 to 11.0 |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range (%) | Asset Fair Value | Valuation Technique | Unobservable Inputs | Range (%) | |||||||||||
December 31, 2021 | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||
Impaired Loans | $ | 2,903 | Sales comparison approach | Adjustment for differences between comparable sales | 1.5 to 20.0 | $ | 328 | Sales comparison approach | Adjustment for differences between comparable sales | 1.5 to 20.0 | ||||||||
Income approach | Capitalization rate | 9.5 to 11.0 | Income approach | Capitalization rate | 9.5 to 11.0 |
June 30, 2022 | December 31, 2021 | Level in | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||
Level in Fair Value Hierarchy | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Fair Value Hierarchy | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||
Cash and due from banks | Level 1 | $ | 38,376 | $ | 38,376 | $ | 23,669 | $ | 23,669 | Level 1 | $ | 29,402 | $ | 29,402 | $ | 51,215 | $ | 51,215 | ||||||||||||||||
Federal funds sold and other short-term investments | Level 1 | 721,826 | 721,826 | 1,128,119 | 1,128,119 | Level 1 | 391,336 | 391,336 | 703,955 | 703,955 | ||||||||||||||||||||||||
Securities held to maturity | Level 3 | 352,721 | 341,274 | 137,003 | 139,272 | |||||||||||||||||||||||||||||
Securities held to maturity - U.S. Treasury | Level 2 | 251,286 | 240,012 | 251,307 | 237,630 | |||||||||||||||||||||||||||||
Securities held to maturity - tax-exempt and muni | Level 3 | 97,101 | 95,547 | 97,458 | 95,020 | |||||||||||||||||||||||||||||
FHLB stock | Level 3 | 10,211 | 10,211 | 11,558 | 11,558 | Level 3 | 10,211 | 10,211 | 10,211 | 10,211 | ||||||||||||||||||||||||
Loans, net | Level 2 | 1,096,946 | 1,082,028 | 1,090,201 | 1,106,324 | Level 2 | 1,203,818 | 1,185,925 | 1,162,135 | 1,131,387 | ||||||||||||||||||||||||
Bank owned life insurance | Level 3 | 52,963 | 52,963 | 52,468 | 52,468 | Level 3 | 53,557 | 53,557 | 53,345 | 53,345 | ||||||||||||||||||||||||
Accrued interest receivable | Level 2 | 5,108 | 5,108 | 4,088 | 4,088 | Level 2 | 8,782 | 8,782 | 7,606 | 7,606 | ||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||
Deposits | Level 2 | (2,494,583 | ) | (2,494,501 | ) | (2,577,958 | ) | (2,577,885 | ) | Level 2 | (2,330,895 | ) | (2,331,330 | ) | (2,615,142 | ) | (2,615,860 | ) | ||||||||||||||||
Other borrowed funds | Level 2 | (30,000 | ) | (29,117 | ) | (85,000 | ) | (86,322 | ) | Level 2 | (30,000 | ) | (28,824 | ) | (30,000 | ) | (28,666 | ) | ||||||||||||||||
Accrued interest payable | Level 2 | (35 | ) | (35 | ) | (72 | ) | (72 | ) | Level 2 | (228 | ) | (228 | ) | (114 | ) | (114 | ) | ||||||||||||||||
Off-balance sheet credit-related items | ||||||||||||||||||||||||||||||||||
Loan commitments | 0 | 0 | 0 | 0 | — | — | — | — |
Notional Amount | Balance Sheet Location | Fair Value | Notional Amount | Balance Sheet Location | Fair Value | |||||||||||||
June 30, 2022 | ||||||||||||||||||
March 31, 2023 | ||||||||||||||||||
Derivative assets | ||||||||||||||||||
Interest rate swaps | $ | 64,898 | Other Assets | $ | 4,556 | $ | 57,560 | Other Assets | $ | 5,294 | ||||||||
Derivative liabilities | ||||||||||||||||||
Interest rate swaps | 64,898 | Other Liabilities | 4,556 | 57,560 | Other Liabilities | 5,294 |
Notional Amount | Balance Sheet Location | Fair Value | Notional Amount | Balance Sheet Location | Fair Value | |||||||||||||
December 31, 2021 | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||
Derivative assets | ||||||||||||||||||
Interest rate swaps | $ | 70,356 | Other Assets | $ | 3,277 | $ | 62,661 | Other Assets | $ | 6,463 | ||||||||
Derivative liabilities | ||||||||||||||||||
Interest rate swaps | 70,356 | Other Liabilities | 3,277 | 62,661 | Other Liabilities | 6,463 |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Noninterest-bearing demand | $ | 903,334 | $ | 886,115 | $ | 690,444 | $ | 834,879 | ||||||||
Interest bearing demand | 640,277 | 736,573 | 608,967 | 760,889 | ||||||||||||
Savings and money market accounts | 868,222 | 865,528 | 858,895 | 922,418 | ||||||||||||
Certificates of deposit | 82,750 | 89,742 | 172,589 | 96,956 | ||||||||||||
$ | 2,494,583 | $ | 2,577,958 | $ | 2,330,895 | $ | 2,615,142 |
Principal Terms | Advance Amount | Range of Maturities | Weighted Average Interest Rate | Advance Amount | Range of Maturities | Weighted Average Interest Rate | ||||||||||||
June 30, 2022 | ||||||||||||||||||
March 31, 2023 | ||||||||||||||||||
Single maturity fixed rate advances | $ | 10,000 | July 2024 | 2.63 | % | $ | 10,000 | February 2024 | 2.63 | % | ||||||||
Putable advances | 20,000 | November 2024 | 1.81 | % | 20,000 | November 2024 | 1.81 | % | ||||||||||
$ | 30,000 | $ | 30,000 |
Principal Terms | Advance Amount | Range of Maturities | Weighted Average Interest Rate | Advance Amount | Range of Maturities | Weighted Average Interest Rate | ||||||||||||
December 31, 2021 | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||
Single maturity fixed rate advances | $ | 30,000 | May 2023 to July 2024 | 2.87 | % | $ | 10,000 | February 2024 | 2.63 | % | ||||||||
Putable advances | 55,000 | November 2024 to July 2031 | 0.74 | % | 20,000 | November 2024 | 1.81 | % | ||||||||||
$ | 85,000 | $ | 30,000 |
2022 | $ | 0 | ||||||
2023 | 0 | $ | — | |||||
2024 | 30,000 | 30,000 | ||||||
2025 | 0 | — | ||||||
2026 | 0 | — | ||||||
2027 | — | |||||||
Thereafter | 0 | — | ||||||
$ | 30,000 | $ | 30,000 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||
Net income available to common shares | $ | 6,568 | $ | 7,818 | $ | 12,568 | $ | 15,596 | ||||||||
Weighted average shares outstanding, including participating stock awards - Basic | 34,253,846 | 34,193,016 | 34,254,306 | 34,194,264 | ||||||||||||
Dilutive potential common shares: | ||||||||||||||||
Stock options | 0 | 0 | 0 | 0 | ||||||||||||
Weighted average shares outstanding - Diluted | 34,253,846 | 34,193,016 | 34,254,306 | 34,194,264 | ||||||||||||
Basic earnings per common share | $ | 0.19 | $ | 0.23 | $ | 0.37 | $ | 0.46 | ||||||||
Diluted earnings per common share | $ | 0.19 | $ | 0.23 | $ | 0.37 | $ | 0.46 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
Net income available to common shares | $ | 12,004 | $ | 6,000 | ||||
Weighted average shares outstanding, including participating stock awards - Basic | 34,297,221 | 34,254,772 | ||||||
Dilutive potential common shares: | ||||||||
Stock options | — | — | ||||||
Weighted average shares outstanding - Diluted | 34,297,221 | 34,254,772 | ||||||
Basic earnings per common share | $ | 0.35 | $ | 0.18 | ||||
Diluted earnings per common share | $ | 0.35 | $ | 0.18 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||
Current | $ | 1,416 | $ | 1,456 | $ | 2,351 | $ | 3,749 | ||||||||
Deferred | 77 | 384 | 533 | (144 | ) | |||||||||||
$ | 1,493 | $ | 1,840 | $ | 2,884 | $ | 3,605 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
Current | $ | 2,825 | $ | 935 | ||||
Deferred | 150 | 456 | ||||||
$ | 2,975 | $ | 1,391 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||
Statutory rate | 21 | % | 21 | % | 21 | % | 21 | % | 21 | % | 21 | % | ||||||||||||
Statutory rate applied to income before taxes | $ | 1,693 | $ | 2,028 | $ | 3,245 | $ | 4,032 | $ | 3,146 | $ | 1,552 | ||||||||||||
Deduct | ||||||||||||||||||||||||
Tax-exempt interest income | (143 | ) | (156 | ) | (297 | ) | (315 | ) | (147 | ) | (154 | ) | ||||||||||||
Bank-owned life insurance | (49 | ) | (53 | ) | (99 | ) | (111 | ) | (42 | ) | (50 | ) | ||||||||||||
Other, net | (8 | ) | 21 | 35 | (1 | ) | 18 | 43 | ||||||||||||||||
$ | 1,493 | $ | 1,840 | $ | 2,884 | $ | 3,605 | $ | 2,975 | $ | 1,391 |
June 30, 2022 | December 31, 2021 | |||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 3,072 | $ | 3,337 | ||||
Net deferred loan fees | 10 | 275 | ||||||
Nonaccrual loan interest | 30 | 57 | ||||||
Valuation allowance on other real estate owned | 6 | 6 | ||||||
Unrealized loss on securities available for sale and transferred to held to maturity | 4,965 | 79 | ||||||
Other | 340 | 311 | ||||||
Gross deferred tax assets | 8,423 | 4,065 | ||||||
Valuation allowance | 0 | 0 | ||||||
Total net deferred tax assets | 8,423 | 4,065 | ||||||
Deferred tax liabilities | ||||||||
Depreciation | (1,163 | ) | (1,199 | ) | ||||
Prepaid expenses | (288 | ) | (288 | ) | ||||
Other | (456 | ) | (415 | ) | ||||
Gross deferred tax liabilities | (1,907 | ) | (1,902 | ) | ||||
Net deferred tax asset | $ | 6,516 | $ | 2,163 |
March 31, 2023 | December 31, 2022 | |||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 3,527 | $ | 3,210 | ||||
Net deferred loan fees | — | — | ||||||
Nonaccrual loan interest | 12 | 12 | ||||||
Valuation allowance on other real estate owned | — | — | ||||||
Unrealized loss on securities available for sale and transferred to held to maturity | 6,980 | 8,394 | ||||||
Other | 297 | 257 | ||||||
Gross deferred tax assets | 10,816 | 11,873 | ||||||
Valuation allowance | — | — | ||||||
Total net deferred tax assets | 10,816 | 11,873 | ||||||
Deferred tax liabilities | ||||||||
Depreciation | (1,104 | ) | (1,098 | ) | ||||
Net deferred loan fees | (20 | ) | (309 | ) | ||||
Prepaid expenses | (309 | ) | (21 | ) | ||||
Other | (912 | ) | (733 | ) | ||||
Gross deferred tax liabilities | (2,345 | ) | (2,161 | ) | ||||
Net deferred tax asset | $ | 8,471 | $ | 9,712 |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Commitments to make loans | $ | 101,807 | $ | 128,648 | ||||||||||||
Commitments to extend credit | $ | 115,100 | $ | 77,384 | ||||||||||||
Letters of credit | 14,404 | 10,141 | 11,937 | 13,455 | ||||||||||||
Unused lines of credit | 769,114 | 677,902 | 719,013 | 745,674 |
Minimum Capital | Minimum Capital Adequacy With | To Be Well Capitalized Under Prompt Corrective | Minimum Capital | Minimum Capital Adequacy With | To Be Well Capitalized Under Prompt Corrective | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual | Adequacy | Capital Buffer | Action Regulations | Actual | Adequacy | Capital Buffer | Action Regulations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 261,788 | 16.5 | % | $ | 71,209 | 4.5 | % | $ | 110,769 | 7.0 | % | N/A | N/A | $ | 286,826 | 17.1 | % | $ | 75,561 | 4.5 | % | $ | 117,539 | 7.0 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 253,830 | 16.0 | 71,196 | 4.5 | 110,750 | 7.0 | $ | 102,839 | 6.5 | % | 278,347 | 16.6 | 75,558 | 4.5 | 117,535 | 7.0 | $ | 109,139 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 261,788 | 16.5 | 94,945 | 6.0 | 134,505 | 8.5 | N/A | N/A | 286,826 | 17.1 | 100,748 | 6.0 | 142,726 | 8.5 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 253,830 | 16.0 | 94,928 | 6.0 | 134,482 | 8.5 | 126,571 | 8.0 | 278,347 | 16.6 | 100,744 | 6.0 | 142,720 | 8.5 | 134,325 | 8.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 276,419 | 17.5 | 126,593 | 8.0 | 166,154 | 10.5 | N/A | N/A | 303,620 | 18.1 | 134,331 | 8.0 | 176,309 | 10.5 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 268,461 | 17.0 | 126,571 | 8.0 | 166,124 | 10.5 | 158,214 | 10.0 | 295,141 | 17.6 | 134,325 | 8.0 | 176,302 | 10.5 | 167,906 | 10.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 261,788 | 9.1 | 114,682 | 4.0 | N/A | N/A | N/A | N/A | 286,826 | 10.3 | 111,845 | 4.0 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 253,830 | 8.9 | 114,675 | 4.0 | N/A | N/A | 143,344 | 5.0 | 278,347 | 10.0 | 111,839 | 4.0 | N/A | N/A | 139,799 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 254,302 | 17.2 | % | $ | 66,381 | 4.5 | % | $ | 103,259 | 7.0 | % | N/A | N/A | $ | 278,615 | 16.9 | % | $ | 74,003 | 4.5 | % | $ | 115,116 | 7.0 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 246,239 | 16.7 | 66,370 | 4.5 | 103,242 | 7.0 | $ | 95,867 | 6.5 | % | 270,274 | 16.4 | 73,992 | 4.5 | 115,098 | 7.0 | $ | 106,877 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 254,302 | 17.2 | 88,508 | 6.0 | 125,386 | 8.5 | N/A | N/A | 278,615 | 16.9 | 98,670 | 6.0 | 139,783 | 8.5 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 246,239 | 16.7 | 88,493 | 6.0 | 125,365 | 8.5 | 117,991 | 8.0 | 270,274 | 16.4 | 98,655 | 6.0 | 139,762 | 8.5 | 131,540 | 8.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 270,191 | 18.3 | 118,011 | 8.0 | 154,889 | 10.5 | N/A | N/A | 293,900 | 17.9 | 131,561 | 8.0 | 172,673 | 10.5 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 262,128 | 17.8 | 117,991 | 8.0 | 154,863 | 10.5 | 147,488 | 10.0 | 285,559 | 17.4 | 131,540 | 8.0 | 172,647 | 10.5 | 164,426 | 10.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 254,302 | 8.7 | 116,664 | 4.0 | N/A | N/A | N/A | N/A | 278,615 | 9.7 | 114,589 | 4.0 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Bank | 246,239 | 8.4 | 116,654 | 4.0 | N/A | N/A | 145,818 | 5.0 | 270,274 | 9.4 | 114,582 | 4.0 | N/A | N/A | 143,227 | 5.0 |
Item 2. |
For the three months ended June 30, | For the three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable securities | $ | 587,263 | $ | 2,618 | 1.78 | % | $ | 196,479 | $ | 792 | 1.61 | % | $ | 765,999 | $ | 4,481 | 2.35 | % | $ | 402,863 | $ | 1,434 | 1.43 | % | ||||||||||||||||||||||||
Tax-exempt securities (1) | 164,148 | 702 | 2.20 | 139,771 | 760 | 2.80 | 132,692 | 698 | 2.71 | 169,845 | 731 | 2.22 | ||||||||||||||||||||||||||||||||||||
Commercial loans (2) | 922,796 | 8,587 | 3.72 | 890,750 | 8,541 | 3.79 | 985,258 | 13,300 | 5.40 | 902,347 | 7,888 | 3.50 | ||||||||||||||||||||||||||||||||||||
PPP loans (3) | 5,037 | 199 | 15.80 | 248,042 | 3,034 | 4.84 | — | — | — | 20,364 | 1,052 | 20.66 | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 120,838 | 988 | 3.27 | 135,329 | 1,164 | 3.43 | 143,839 | 1,343 | 3.73 | 116,504 | 939 | 3.22 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 55,876 | 570 | 4.09 | 55,449 | 564 | 4.08 | 57,303 | 1,017 | 7.20 | 54,096 | 519 | 3.89 | ||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 10,211 | 51 | 1.97 | 11,558 | 56 | 1.93 | 10,211 | 65 | 2.55 | 11,019 | 51 | 1.84 | ||||||||||||||||||||||||||||||||||||
Federal funds sold and other short-term investments | 858,545 | 1,720 | 0.79 | 992,484 | 273 | 0.11 | 555,670 | 6,362 | 4.58 | 1,111,216 | 529 | 0.19 | ||||||||||||||||||||||||||||||||||||
Total interest earning assets (1) | 2,724,714 | 15,435 | 2.28 | 2,669,862 | 15,184 | 2.29 | 2,650,972 | 27,266 | 4.15 | 2,788,254 | 13,143 | 1.92 | ||||||||||||||||||||||||||||||||||||
Noninterest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 35,869 | 34,276 | 34,615 | 32,505 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 86,798 | 105,349 | 72,007 | 96,703 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,847,381 | $ | 2,809,487 | $ | 2,757,594 | $ | 2,917,462 | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 679,168 | $ | 54 | 0.03 | % | $ | 658,842 | $ | 39 | 0.02 | % | $ | 690,246 | $ | 742 | 0.43 | % | $ | 706,872 | $ | 40 | 0.02 | % | ||||||||||||||||||||||||
Savings and money market accounts | 871,875 | 146 | 0.07 | 819,030 | 62 | 0.03 | 903,236 | 3,017 | 1.35 | 894,976 | 65 | 0.03 | ||||||||||||||||||||||||||||||||||||
Time deposits | 88,341 | 45 | 0.20 | 102,967 | 143 | 0.56 | 134,401 | 735 | 2.22 | 92,244 | 53 | 0.23 | ||||||||||||||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowed funds | 54,305 | 347 | 2.53 | 62,198 | 328 | 2.09 | 30,000 | 156 | 2.08 | 85,002 | 320 | 1.51 | ||||||||||||||||||||||||||||||||||||
Long-term debt | — | — | — | 20,619 | 155 | 2.97 | ||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 1,693,689 | 592 | 0.14 | 1,663,656 | 727 | 0.17 | 1,757,883 | 4,650 | 1.07 | 1,779,094 | 478 | 0.11 | ||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing demand accounts | 897,727 | 887,559 | 732,434 | 875,223 | ||||||||||||||||||||||||||||||||||||||||||||
Other noninterest bearing liabilities | 12,613 | 13,756 | 17,117 | 11,545 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 243,352 | 244,516 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,847,381 | $ | 2,809,487 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 250,160 | 251,600 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,757,594 | $ | 2,917,462 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 14,843 | $ | 14,457 | $ | 22,616 | $ | 12,665 | ||||||||||||||||||||||||||||||||||||||||
Net interest spread (1) | 2.14 | % | 2.12 | % | 3.08 | % | 1.81 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest margin (1) | 2.19 | % | 2.19 | % | 3.44 | % | 1.85 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 160.87 | % | 160.48 | % | 150.80 | % | 156.72 | % |
(1) | Yields are presented on a tax equivalent basis using an assumed tax rate of 21% at |
(2) | Includes loan fees of |
(3) | Includes loan fees of |
For the six months ended June 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Taxable securities | $ | 495,627 | $ | 4,053 | 1.64 | % | $ | 193,267 | $ | 1,579 | 1.63 | % | ||||||||||||
Tax-exempt securities (1) | 166,981 | 1,433 | 2.21 | 131,949 | 1,518 | 2.97 | ||||||||||||||||||
Commercial loans (2) | 912,628 | 16,475 | 3.59 | 923,392 | 17,537 | 3.78 | ||||||||||||||||||
PPP loans (3) | 12,658 | 1,251 | 19.66 | 244,314 | 5,586 | 4.55 | ||||||||||||||||||
Residential mortgage loans | 118,682 | 1,926 | 3.24 | 142,972 | 2,486 | 3.48 | ||||||||||||||||||
Consumer loans | 54,991 | 1,089 | 3.99 | 57,279 | 1,161 | 4.09 | ||||||||||||||||||
Federal Home Loan Bank stock | 10,613 | 102 | 1.90 | 11,558 | 117 | 2.01 | ||||||||||||||||||
Federal funds sold and other short-term investments | 984,183 | 2,249 | 0.45 | 899,217 | 474 | 0.11 | ||||||||||||||||||
Total interest earning assets (1) | 2,756,363 | 28,578 | 2.10 | 2,603,948 | 30,458 | �� | 2.37 | |||||||||||||||||
Noninterest earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 34,196 | 32,725 | ||||||||||||||||||||||
Other | 91,669 | 101,866 | ||||||||||||||||||||||
Total assets | $ | 2,882,228 | $ | 2,738,539 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest bearing demand | $ | 692,943 | $ | 94 | 0.03 | % | $ | 642,842 | $ | 73 | 0.02 | % | ||||||||||||
Savings and money market accounts | 883,362 | 211 | 0.05 | 808,370 | 123 | 0.03 | ||||||||||||||||||
Time deposits | 90,281 | 98 | 0.22 | 105,283 | 327 | 0.63 | ||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||
Other borrowed funds | 69,569 | 667 | 1.91 | 66,077 | 681 | 2.05 | ||||||||||||||||||
Long-term debt | — | — | — | 20,619 | 307 | 2.96 | ||||||||||||||||||
Total interest bearing liabilities | 1,736,155 | 1,070 | 0.12 | 1,643,191 | 1,511 | 0.18 | ||||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||
Noninterest bearing demand accounts | 886,537 | 838,618 | ||||||||||||||||||||||
Other noninterest bearing liabilities | 12,083 | 13,951 | ||||||||||||||||||||||
Shareholders' equity | 247,453 | 242,779 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,882,228 | $ | 2,738,539 | ||||||||||||||||||||
Net interest income | $ | 27,508 | $ | 28,947 | ||||||||||||||||||||
Net interest spread (1) | 1.98 | % | 2.19 | % | ||||||||||||||||||||
Net interest margin (1) | 2.02 | % | 2.25 | % | ||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 158.76 | % | 158.47 | % |
For the three months ended June 30, 2022 vs 2021 Increase (Decrease) Due to | For the six months ended June 30, 2022 vs 2021 Increase (Decrease) Due to | For the three months ended March 31, 2023 vs 2022 Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||||
Volume | Rate | Total | �� | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||
Taxable securities | $ | 1,734 | $ | 92 | $ | 1,826 | $ | 2,473 | $ | 1 | $ | 2,474 | $ | 1,778 | $ | 1,269 | $ | 3,047 | ||||||||||||||||||
Tax-exempt securities | 161 | (219 | ) | (58 | ) | 462 | (547 | ) | (85 | ) | (223 | ) | 190 | (33 | ) | |||||||||||||||||||||
Commercial loans, excluding PPP loans | 238 | (192 | ) | 46 | (203 | ) | (859 | ) | (1,062 | ) | 782 | 4,630 | 5,412 | |||||||||||||||||||||||
PPP loans | (2,940 | ) | 105 | (2,835 | ) | (5,267 | ) | 932 | (4,335 | ) | (1,052 | ) | — | (1,052 | ) | |||||||||||||||||||||
Residential mortgage loans | (120 | ) | (56 | ) | (176 | ) | (402 | ) | (158 | ) | (560 | ) | 241 | 163 | 404 | |||||||||||||||||||||
Consumer loans | 4 | 2 | 6 | (46 | ) | (26 | ) | (72 | ) | 32 | 466 | 498 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | (6 | ) | 1 | (5 | ) | (9 | ) | (6 | ) | (15 | ) | (4 | ) | 18 | 14 | |||||||||||||||||||||
Federal funds sold and other short-term investments | (41 | ) | 1,488 | 1,447 | 49 | 1,726 | 1,775 | (394 | ) | 6,227 | 5,833 | |||||||||||||||||||||||||
Total interest income | (970 | ) | 1,221 | 251 | (2,943 | ) | 1,063 | (1,880 | ) | 1,160 | 12,963 | 14,123 | ||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 1 | $ | 14 | $ | 15 | $ | 6 | $ | 15 | 21 | $ | (1 | ) | $ | 703 | $ | 702 | ||||||||||||||||||
Savings and money market accounts | 4 | 80 | 84 | 12 | 76 | 88 | 1 | 2,951 | 2,952 | |||||||||||||||||||||||||||
Time deposits | (18 | ) | (80 | ) | (98 | ) | (41 | ) | (188 | ) | (229 | ) | 35 | 647 | 682 | |||||||||||||||||||||
Other borrowed funds | (44 | ) | 63 | 19 | 35 | (49 | ) | (14 | ) | (257 | ) | 93 | (164 | ) | ||||||||||||||||||||||
Long-term debt | (155 | ) | — | (155 | ) | (307 | ) | — | (307 | ) | — | — | — | |||||||||||||||||||||||
Total interest expense | (212 | ) | 77 | (135 | ) | (295 | ) | (146 | ) | (441 | ) | (222 | ) | 4,394 | 4,172 | |||||||||||||||||||||
Net interest income | $ | (758 | ) | $ | 1,144 | $ | 386 | $ | (2,648 | ) | $ | 1,209 | $ | (1,439 | ) | $ | 1,382 | $ | 8,569 | $ | 9,951 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||
Service charges and fees on deposit accounts | $ | 1,218 | $ | 1,065 | $ | 2,430 | $ | 2,057 | $ | 994 | $ | 1,211 | ||||||||||||
Net gains on mortgage loans | 199 | 1,311 | 508 | 3,326 | 11 | 308 | ||||||||||||||||||
Trust fees | 1,096 | 1,133 | 2,184 | 2,138 | 1,033 | 1,088 | ||||||||||||||||||
ATM and debit card fees | 1,762 | 1,683 | 3,360 | 3,168 | 1,662 | 1,599 | ||||||||||||||||||
Bank owned life insurance (“BOLI”) income | 230 | 250 | 470 | 526 | 199 | 240 | ||||||||||||||||||
Investment services fees | 345 | 339 | 658 | 816 | 411 | 313 | ||||||||||||||||||
Other income | 281 | 388 | 486 | 676 | 218 | 206 | ||||||||||||||||||
Total noninterest income | $ | 5,131 | $ | 6,169 | $ | 10,096 | $ | 12,707 | $ | 4,528 | $ | 4,965 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||
Salaries and benefits | $ | 6,402 | $ | 6,502 | $ | 12,691 | $ | 12,914 | $ | 6,698 | $ | 6,289 | ||||||||||||
Occupancy of premises | 1,071 | 994 | 2,243 | 2,031 | 1,137 | 1,172 | ||||||||||||||||||
Furniture and equipment | 988 | 978 | 2,004 | 1,915 | 1,031 | 1,016 | ||||||||||||||||||
Legal and professional | 271 | 274 | 465 | 496 | 348 | 194 | ||||||||||||||||||
Marketing and promotion | 195 | 175 | 390 | 350 | 219 | 195 | ||||||||||||||||||
Data processing | 924 | 855 | 1,808 | 1,762 | 955 | 884 | ||||||||||||||||||
FDIC assessment | 197 | 159 | 377 | 329 | 330 | 180 | ||||||||||||||||||
Interchange and other card expense | 406 | 388 | 779 | 746 | 384 | 373 | ||||||||||||||||||
Bond and D&O insurance | 129 | 111 | 259 | 222 | 122 | 130 | ||||||||||||||||||
Outside services | 520 | 491 | 1,014 | 925 | 469 | 494 | ||||||||||||||||||
Other noninterest expense | 810 | 791 | 1,622 | 1,513 | 472 | 812 | ||||||||||||||||||
Total noninterest expense | $ | 11,913 | $ | 11,718 | $ | 23,652 | $ | 23,203 | $ | 12,165 | $ | 11,739 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||
Salaries and other compensation | $ | 5,772 | 5,683 | $ | 11,398 | 11,467 | ||||||||||
Salary deferral from commercial loan originations | (219 | ) | (269 | ) | (433 | ) | (621 | ) | ||||||||
Bonus accrual | 220 | 217 | 442 | 399 | ||||||||||||
Mortgage production - variable comp | 141 | 381 | 285 | 715 | ||||||||||||
401k matching contributions | 188 | 127 | 399 | 229 | ||||||||||||
Medical insurance costs | 300 | 363 | 600 | 725 | ||||||||||||
Total salaries and benefits | $ | 6,402 | $ | 6,502 | $ | 12,691 | $ | 12,914 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
Salaries and other compensation | $ | 5,912 | $ | 5,627 | ||||
Salary deferral from commercial loan originations | (145 | ) | (215 | ) | ||||
Bonus accrual | 287 | 221 | ||||||
Mortgage production - variable comp | 58 | 144 | ||||||
401k matching contributions | 211 | 212 | ||||||
Medical insurance costs | 375 | 300 | ||||||
Total salaries and benefits | $ | 6,698 | $ | 6,289 |
Six months ended June 30, 2022 | Six months ended June 30, 2021 | Three months ended March 31, 2023 | Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Portfolio Originations | Percent of Total Originations | Average Loan Size | Portfolio Originations | Percent of Total Originations | Average Loan Size | Portfolio Originations | Percent of Total Originations | Average Loan Size | Portfolio Originations | Percent of Total Originations | Average Loan Size | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential developed | $ | 5,126 | 1.9 | % | $ | 641 | $ | 6,187 | 2.0 | % | 562 | $ | 125 | 0.1 | % | $ | 63 | $ | 4,322 | 2.7 | % | $ | 1,080 | |||||||||||||||||||||||||
Unsecured to residential developers | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Vacant and unimproved | 9,262 | 3.5 | 1,323 | 6,301 | 2.0 | 788 | 2,779 | 3.1 | 463 | 1,570 | 1.0 | 523 | ||||||||||||||||||||||||||||||||||||
Commercial development | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential improved | 39,227 | 14.7 | 665 | 51,854 | 16.6 | 535 | 11,852 | 13.1 | 539 | 23,944 | 15.1 | 684 | ||||||||||||||||||||||||||||||||||||
Commercial improved | 32,168 | 12.0 | 1,340 | 25,792 | 8.3 | 955 | 3,161 | 3.5 | 316 | 22,907 | 14.5 | 1,909 | ||||||||||||||||||||||||||||||||||||
Manufacturing and industrial | 49,246 | 18.5 | 2,736 | 11,565 | 3.7 | 964 | 5,364 | 5.9 | 894 | 44,128 | 27.8 | 4,413 | ||||||||||||||||||||||||||||||||||||
Total commercial real estate | 135,029 | 50.6 | 1,164 | 101,699 | 32.5 | 656 | 23,281 | 25.7 | 506 | 96,871 | 61.1 | 1,514 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial, excluding PPP | 68,250 | 25.6 | 644 | 30,203 | 9.7 | 408 | ||||||||||||||||||||||||||||||||||||||||||
PPP loans | — | — | — | 128,420 | 41.1 | 128 | ||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 47,097 | 52.0 | 1,002 | 32,371 | 20.4 | 549 | ||||||||||||||||||||||||||||||||||||||||||
Total commercial and commercial real estate | 203,279 | 76.2 | 915 | 260,322 | 83.3 | 211 | 70,378 | 77.7 | 757 | 129,242 | 81.5 | 1,051 | ||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 30,690 | 11.5 | 320 | 23,844 | 7.6 | 346 | 13,084 | 14.4 | 262 | 14,829 | 9.4 | 362 | ||||||||||||||||||||||||||||||||||||
Unsecured | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Home equity | 31,428 | 11.8 | 133 | 27,353 | 8.8 | 120 | 6,818 | 7.5 | 114 | 13,372 | 8.4 | 131 | ||||||||||||||||||||||||||||||||||||
Other secured | 1,306 | 0.5 | 57 | 1,024 | 0.3 | 26 | 348 | 0.4 | 29 | 1,080 | 0.7 | 154 | ||||||||||||||||||||||||||||||||||||
Total consumer | 63,424 | 23.8 | 178 | 52,221 | 16.7 | 155 | 20,250 | 22.3 | 166 | 29,281 | 18.5 | 195 | ||||||||||||||||||||||||||||||||||||
Total loans | $ | 266,703 | 100.0 | % | $ | 461 | $ | 312,543 | 100.0 | % | 199 | $ | 90,628 | 100.0 | % | $ | 422 | $ | 158,523 | 100.0 | % | $ | 581 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||
Commercial loans originated | $ | 203,279 | $ | 260,322 | ||||
Repayments of commercial loans | (129,407 | ) | (345,088 | ) | ||||
Change in undistributed - available credit | (80,548 | ) | (73,418 | ) | ||||
Net increase (decrease) in total commercial loans | $ | (6,676 | ) | $ | (158,184 | ) |
March 31, 2023 | December 31, 2022 | |||||||
Commercial - Lines of credit commitments | $ | 1,011,846 | $ | 1,021,795 | ||||
Commercial - Unused portion of lines of credit | 580,120 | 612,317 | ||||||
Commercial - Unused lines of credit to total commitment | 57.33 | % | 60.07 | % |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Balance | Percent of Total Loans | Balance | Percent of Total Loans | Balance | Percent of Total Loans | Balance | Percent of Total Loans | |||||||||||||||||||||||||
Commercial real estate: (1) | ||||||||||||||||||||||||||||||||
Residential developed | $ | 4,094 | 0.4 | % | $ | 4,862 | 0.4 | % | $ | 7,001 | 0.6 | % | $ | 7,234 | 0.6 | % | ||||||||||||||||
Unsecured to residential developers | — | — | 5,000 | — | — | — | — | — | ||||||||||||||||||||||||
Vacant and unimproved | 35,912 | 3.2 | 36,240 | 3.3 | 38,700 | 3.2 | 36,270 | 3.1 | ||||||||||||||||||||||||
Commercial development | 112 | — | 171 | — | 99 | — | 103 | — | ||||||||||||||||||||||||
Residential improved | 102,885 | 9.2 | 100,077 | 9.0 | 116,177 | 9.5 | 112,791 | 9.6 | ||||||||||||||||||||||||
Commercial improved | 258,676 | 23.3 | 259,039 | 23.4 | 255,894 | 20.9 | 259,281 | 22.0 | ||||||||||||||||||||||||
Manufacturing and industrial | 117,424 | 10.6 | 110,712 | 10.0 | 125,477 | 10.3 | 121,924 | 10.4 | ||||||||||||||||||||||||
Total commercial real estate | 519,103 | 46.7 | 516,101 | 46.5 | 543,348 | 44.5 | 537,603 | 45.7 | ||||||||||||||||||||||||
Commercial and industrial, excluding PPP | 407,788 | 36.7 | 378,318 | 34.1 | ||||||||||||||||||||||||||||
PPP loans | 2,791 | 0.2 | 41,939 | 3.8 | ||||||||||||||||||||||||||||
Commercial and industrial | 473,354 | 38.8 | 441,716 | 37.5 | ||||||||||||||||||||||||||||
Total commercial and commercial real estate | 929,682 | 83.6 | 936,358 | 84.4 | 1,016,702 | 83.3 | 979,319 | 83.2 | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential mortgage | 125,771 | 11.3 | 117,800 | 10.7 | 148,676 | 12.2 | 139,148 | 11.8 | ||||||||||||||||||||||||
Unsecured | 168 | — | 210 | — | 106 | — | 121 | — | ||||||||||||||||||||||||
Home equity | 52,671 | 4.7 | 51,269 | 4.6 | 52,647 | 4.3 | 56,321 | 4.8 | ||||||||||||||||||||||||
Other secured | 3,623 | 0.3 | 3,356 | 0.3 | 2,808 | 0.2 | 2,839 | 0.2 | ||||||||||||||||||||||||
Total consumer | 182,233 | 16.3 | 172,635 | 15.6 | 204,237 | 16.7 | 198,429 | 16.8 | ||||||||||||||||||||||||
Total loans | $ | 1,111,915 | 100.0 | % | $ | 1,108,993 | 100.0 | % | $ | 1,220,939 | 100.0 | % | $ | 1,177,748 | 100.0 | % |
(1) | Includes both owner occupied and non-owner occupied commercial real estate. |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Nonaccrual loans | $ | 90 | $ | 91 | $ | 75 | $ | 78 | ||||||||
Loans 90 days or more delinquent and still accruing | — | 1 | — | — | ||||||||||||
Total nonperforming loans (NPLs) | 90 | 92 | 75 | 78 | ||||||||||||
Foreclosed assets | 2,343 | 2,343 | — | 2,343 | ||||||||||||
Repossessed assets | — | — | — | — | ||||||||||||
Total nonperforming assets (NPAs) | $ | 2,433 | $ | 2,435 | $ | 75 | $ | 2,421 | ||||||||
NPLs to total loans | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||
NPAs to total assets | 0.09 | % | 0.08 | % | 0.00 | % | 0.08 | % |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
Commercial | Consumer | Total | Commercial | Consumer | Total | |||||||||||||||||||
Performing TDRs | $ | 1,409 | $ | 2,840 | $ | 4,249 | $ | 4,497 | $ | 3,024 | $ | 7,521 | ||||||||||||
Nonperforming TDRs (1) | 5 | — | 5 | 5 | — | 5 | ||||||||||||||||||
Total TDRs | $ | 1,414 | $ | 2,840 | $ | 4,254 | $ | 4,502 | $ | 3,024 | $ | 7,526 |
March 31, 2023 | ||||||||||||
Number of Loans | Outstanding Recorded Balance | Percentage to Total Loans | ||||||||||
Commercial and industrial | 3 | $ | 309 | 0.07 | % | |||||||
Commercial real estate | 3 | 509 | 0.09 | % | ||||||||
Consumer | 32 | 2,847 | 1.39 | % | ||||||||
38 | $ | 3,665 | 0.30 | % |
Quarter Ended June 30, 2022 | Quarter Ended March 31, 2022 | Quarter Ended December 31, 2021 | Quarter Ended September 30, 2021 | Quarter Ended June 30, 2021 | Quarter Ended March 31, 2023 | Quarter Ended December 31, 2022 | Quarter Ended September 30, 2022 | Quarter Ended June 30, 2022 | Quarter Ended March 31, 2022 | |||||||||||||||||||||||||||||||
Nonperforming loans | $ | 90 | $ | 90 | $ | 92 | $ | 420 | $ | 433 | $ | 75 | $ | 78 | $ | 85 | $ | 90 | $ | 90 | ||||||||||||||||||||
Other real estate owned and repo assets | 2,343 | 2,343 | 2,343 | 2,343 | 2,343 | — | 2,343 | 2,343 | 2,343 | 2,343 | ||||||||||||||||||||||||||||||
Total nonperforming assets | 2,433 | 2,433 | 2,435 | 2,763 | 2,776 | 75 | 2,421 | 2,428 | 2,433 | 2,433 | ||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | (15 | ) | (227 | ) | (107 | ) | (276 | ) | (104 | ) | (33 | ) | (89 | ) | (190 | ) | (15 | ) | (227 | ) | ||||||||||||||||||||
Total delinquencies | 197 | 171 | 129 | 437 | 126 | 277 | 172 | 84 | 197 | 171 |
June 30, 2022 | ||||||||||||||||||||||||
Excluding PPP | PPP Loans | Total | Percent of Total Loans | Percent Grade 4 or Better | Percent Grade 5 or Worse | |||||||||||||||||||
Industry: | ||||||||||||||||||||||||
Agricultural Products | $ | 32,505 | — | $ | 32,505 | 3.50 | % | 98.58 | % | 1.42 | % | |||||||||||||
Mining and Oil Extraction | 1,302 | — | 1,302 | 0.14 | % | 95.31 | % | 4.69 | % | |||||||||||||||
Construction | 81,385 | 49 | 81,434 | 8.76 | % | 97.44 | % | 2.56 | % | |||||||||||||||
Manufacturing | 134,539 | 17 | 134,556 | 14.47 | % | 97.53 | % | 2.47 | % | |||||||||||||||
Wholesale Trade | 77,861 | — | 77,861 | 8.38 | % | 100.00 | % | 0.00 | % | |||||||||||||||
Retail Trade | 89,528 | 15 | 89,543 | 9.63 | % | 99.92 | % | 0.08 | % | |||||||||||||||
Transportation and Warehousing | 48,533 | 15 | 48,548 | 5.22 | % | 98.31 | % | 1.69 | % | |||||||||||||||
Information | 692 | — | 692 | 0.07 | % | 6.07 | % | 93.93 | % | |||||||||||||||
Finance and Insurance | 39,166 | — | 39,166 | 4.21 | % | 100.00 | % | 0.00 | % | |||||||||||||||
Real Estate and Rental and Leasing | 287,149 | 546 | 287,695 | 30.95 | % | 99.92 | % | 0.08 | % | |||||||||||||||
Professional, Scientific and Technical Services | 3,918 | 258 | 4,176 | 0.45 | % | 94.95 | % | 5.05 | % | |||||||||||||||
Management of Companies and Enterprises | 3,400 | — | 3,400 | 0.37 | % | 100.00 | % | 0.00 | % | |||||||||||||||
Administrative and Support Services | 14,981 | 13 | 14,994 | 1.61 | % | 99.35 | % | 0.65 | % | |||||||||||||||
Education Services | 3,849 | — | 3,849 | 0.41 | % | 97.92 | % | 2.08 | % | |||||||||||||||
Health Care and Social Assistance | 32,696 | 39 | 32,735 | 3.52 | % | 100.00 | % | 0.00 | % | |||||||||||||||
Arts, Entertainment and Recreation | 3,988 | 313 | 4,301 | 0.46 | % | 92.70 | % | 7.30 | % | |||||||||||||||
Accommodations and Food Services | 39,078 | 1,114 | 40,192 | 4.32 | % | 83.61 | % | 16.39 | % | |||||||||||||||
Other Services | 32,321 | 412 | 32,733 | 3.52 | % | 100.00 | % | 0.00 | % | |||||||||||||||
Total commercial loans | $ | 926,891 | $ | 2,791 | $ | 929,682 | 100.00 | % | 98.39 | % | 1.61 | % |
Total | Percent of Total Loans | Percent Grade 4 or Better | Percent Grade 5 or Worse | |||||||||||||
Industry: | ||||||||||||||||
Agricultural Products | $ | 47,478 | 4.67 | % | 85.04 | % | 14.96 | % | ||||||||
Mining and Oil Extraction | 397 | 0.04 | % | 89.17 | % | 10.83 | % | |||||||||
Construction | 86,876 | 8.54 | % | 97.56 | % | 2.44 | % | |||||||||
Manufacturing | 134,851 | 13.26 | % | 96.34 | % | 3.66 | % | |||||||||
Wholesale Trade | 68,215 | 6.71 | % | 100.00 | % | 0.00 | % | |||||||||
Retail Trade | 119,262 | 11.73 | % | 99.95 | % | 0.05 | % | |||||||||
Transportation and Warehousing | 68,983 | 6.78 | % | 99.94 | % | 0.06 | % | |||||||||
Information | 567 | 0.06 | % | 5.47 | % | 94.53 | % | |||||||||
Finance and Insurance | 44,467 | 4.37 | % | 100.00 | % | 0.00 | % | |||||||||
Real Estate and Rental and Leasing | 279,131 | 27.45 | % | 99.98 | % | 0.02 | % | |||||||||
Professional, Scientific and Technical Services | 5,807 | 0.57 | % | 96.68 | % | 3.32 | % | |||||||||
Management of Companies and Enterprises | 756 | 0.07 | % | 100.00 | % | 0.00 | % | |||||||||
Administrative and Support Services | 24,246 | 2.38 | % | 98.41 | % | 1.59 | % | |||||||||
Education Services | 4,639 | 0.46 | % | 100.00 | % | 0.00 | % | |||||||||
Health Care and Social Assistance | 37,907 | 3.73 | % | 100.00 | % | 0.00 | % | |||||||||
Arts, Entertainment and Recreation | 3,588 | 0.35 | % | 91.56 | % | 8.44 | % | |||||||||
Accommodations and Food Services | 51,198 | 5.04 | % | 86.78 | % | 13.22 | % | |||||||||
Other Services | 38,334 | 3.77 | % | 100.00 | % | 0.00 | % | |||||||||
Total commercial loans | $ | 1,016,702 | 100.00 | % | 97.78 | % | 2.22 | % |
Macatawa Bank Corporation | June 30, 2022 | March 31, 2022 | Dec 31, 2021 | Sept 30, 2021 | June 30, 2021 | March 31, 2023 | Dec 31, 2022 | Sept 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||
Total capital to risk weighted assets | 17.5 | % | 17.9 | % | 18.3 | % | 18.6 | % | 19.7 | % | 18.1 | % | 17.9 | % | 17.6 | % | 17.5 | % | 17.9 | % | ||||||||||||||||||||
Common Equity Tier 1 to risk weighted assets | 16.5 | 16.9 | 17.2 | 17.4 | 17.1 | 17.1 | 16.9 | 16.7 | 16.5 | 16.9 | ||||||||||||||||||||||||||||||
Tier 1 capital to risk weighted assets | 16.5 | 16.9 | 17.2 | 17.4 | 18.5 | 17.1 | 16.9 | 16.7 | 16.5 | 16.9 | ||||||||||||||||||||||||||||||
Tier 1 capital to average assets | 9.1 | 8.8 | 8.7 | 8.5 | 9.5 | 10.3 | 9.7 | 9.3 | 9.1 | 8.8 |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
Interest Rate Scenario | Economic Value of Equity | Percent Change | Net Interest Income | Percent Change | Economic Value of Equity | Percent Change | Net Interest Income | Percent Change | ||||||||||||||||||||||||
Interest rates up 200 basis points | $ | 386,896 | (1.84 | )% | $ | 80,374 | 5.67 | % | $ | 380,272 | (6.13 | )% | $ | 92,806 | 1.64 | % | ||||||||||||||||
Interest rates up 100 basis points | 389,272 | (1.24 | ) | 77,835 | 2.33 | 392,526 | (3.10 | ) | 92,049 | 0.81 | ||||||||||||||||||||||
No change | 394,164 | — | 76,064 | — | 405,104 | — | 91,313 | — | ||||||||||||||||||||||||
Interest rates down 100 basis points | 374,406 | (5.01 | ) | 69,758 | (8.29 | ) | 412,343 | 1.79 | 90,291 | (1.12 | ) | |||||||||||||||||||||
Interest rates down 200 basis points | 345,688 | (12.30 | ) | 63,861 | (16.04 | ) | 402,802 | (0.57 | ) | 87,957 | (3.68 | ) |
Item 4: | CONTROLS AND PROCEDURES |
(a) | Evaluation of Disclosure Controls and Procedures. Under the supervision and with the participation of our management, including our Chief Executive Officer |
(b) | Changes in Internal Controls. During the period covered by this report, there have been no changes in the Company’s internal control over financial reporting that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased | Average Price Paid Per Share | |||||||||||||
Period | ||||||||||||||||
April 1 - April 30, 2022 | ||||||||||||||||
January 1 - January 31, 2023 | ||||||||||||||||
Employee Transactions | — | $ | — | 1,338 | $ | 10.92 | ||||||||||
May 1 - May 31, 2022 | ||||||||||||||||
February 1 - February 28, 2023 | ||||||||||||||||
Employee Transactions | — | $ | — | — | $ | — | ||||||||||
June 1 - June 30, 2022 | ||||||||||||||||
March 1 - March 31, 2023 | ||||||||||||||||
Employee Transactions | 815 | $ | 8.68 | — | $ | — | ||||||||||
Total for Second Quarter ended June 30, 2022 | ||||||||||||||||
Total for First Quarter ended March 31, 2023 | ||||||||||||||||
Employee Transactions | 815 | $ | 8.68 | 1,338 | $ | 10.92 |
Item 6. | EXHIBITS. |
3.1 | Restated Articles of Incorporation. Previously filed with the Commission on October 27, 2016 in Macatawa Bank Corporation’s Quarterly Report on Form 10-Q, Exhibit 3.1. Here incorporated by reference. |
3.2 | Bylaws. Previously filed with the Commission on February 19, 2015 in Macatawa Bank |
4.1 | |
4.2 | |
4.3 | Long-Term Debt. The registrant has outstanding long-term debt which at the time of this report does not exceed 10% of the |
101.INS | Inline XBRL Instance Document |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MACATAWA BANK CORPORATION | |
/s/ Ronald L. Haan | |
Ronald L. Haan | |
Chief Executive Officer | |
(Principal Executive Officer) | |
/s/ Jon W. Swets | |
Jon W. Swets | |
Senior Vice President and | |
Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
Dated: |