Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-36388 | ||
Entity Registrant Name | Peoples Financial Services Corp. | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 280,041,771 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2391852 | ||
Entity Address, Address Line One | 150 North Washington Avenue | ||
Entity Address, City or Town | Scranton | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18503 | ||
City Area Code | 570 | ||
Local Phone Number | 346-7741 | ||
Title of 12(b) Security | Common stock, $2.00 par value | ||
Trading Symbol | PFIS | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 7,203,101 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001056943 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and due from banks: | ||
Cash and due from banks | $ 29,287 | $ 26,943 |
Interest-bearing deposits in other banks | 15,905 | 4,210 |
Federal funds sold | 183,000 | |
Total cash and due from banks | 228,192 | 31,153 |
Investment securities: | ||
Available-for-sale | 295,911 | 330,478 |
Equity investments carried at fair value | 138 | 423 |
Held-to-maturity: Fair value December 31, 2020, $7,513; December 31, 2019, $7,889 | 7,225 | 7,656 |
Total investment securities | 303,274 | 338,557 |
Loans | 2,177,982 | 1,938,240 |
Less: allowance for loan losses | 27,344 | 22,677 |
Net loans | 2,150,638 | 1,915,563 |
Loans held for sale | 837 | 986 |
Premises and equipment, net | 47,045 | 47,932 |
Accrued interest receivable | 8,255 | 6,981 |
Goodwill | 63,370 | 63,370 |
Intangible assets, net | 960 | 1,565 |
Bank owned life insurance | 42,316 | 35,041 |
Other assets | 38,915 | 34,179 |
Total assets | 2,883,802 | 2,475,327 |
Deposits: | ||
Noninterest-bearing | 622,475 | 463,238 |
Interest-bearing | 1,814,638 | 1,508,251 |
Total deposits | 2,437,113 | 1,971,489 |
Short-term borrowings | 50,000 | 152,150 |
Long-term debt | 14,769 | 32,733 |
Subordinated debentures | 33,000 | |
Accrued interest payable | 736 | 1,277 |
Other liabilities | 31,307 | 18,668 |
Total liabilities | 2,566,925 | 2,176,317 |
Stockholders' equity: | ||
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,215,202 shares at December 31, 2020 and 7,388,480 shares at December 31, 2019 | 14,431 | 14,777 |
Capital surplus | 129,274 | 135,251 |
Retained earnings | 171,023 | 152,187 |
Accumulated other comprehensive income (loss) | 2,149 | (3,205) |
Total stockholders' equity | 316,877 | 299,010 |
Total liabilities and stockholders' equity | $ 2,883,802 | $ 2,475,327 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position | ||
Held-to-maturity, Fair value | $ 7,513 | $ 7,889 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 7,215,202 | 7,388,480 |
Common stock, shares outstanding | 7,215,202 | 7,388,480 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and fees on loans: | |||
Taxable | $ 83,683 | $ 82,488 | $ 74,352 |
Tax-exempt | 3,736 | 4,309 | 3,666 |
Interest and dividends on investment securities: | |||
Taxable | 5,334 | 4,435 | 3,799 |
Tax-exempt | 1,178 | 1,878 | 2,621 |
Dividends | 97 | 84 | 72 |
Interest on interest-bearing deposits in other banks | 31 | 65 | 151 |
Interest on federal funds sold | 66 | 122 | |
Total interest income | 94,125 | 93,381 | 84,661 |
Interest expense: | |||
Interest on deposits | 11,739 | 14,995 | 9,346 |
Interest on short-term borrowings | 848 | 1,642 | 2,738 |
Interest on long-term debt | 702 | 1,231 | 1,238 |
Interest on subordinated debt | 1,035 | ||
Total interest expense | 14,324 | 17,868 | 13,322 |
Net interest income | 79,801 | 75,513 | 71,339 |
Provision for loan losses | 7,400 | 6,100 | 4,200 |
Net interest income after provision for loan losses | 72,401 | 69,413 | 67,139 |
Noninterest income: | |||
Mortgage banking income | 1,595 | 600 | 627 |
Increase in cash surrender value of life insurance | 774 | 755 | 757 |
Interest rate swap revenue | 2,321 | 1,790 | 103 |
Net gains (losses) on equity investment securities | (6) | 132 | 14 |
Net gains on sale of investment securities available-for-sale | 918 | 23 | |
Net gain on sale of credit card loans | 291 | ||
Total noninterest income | 16,642 | 15,120 | 13,659 |
Noninterest expense: | |||
Salaries and employee benefits expense | 30,135 | 31,374 | 28,407 |
Net occupancy and equipment expense | 12,840 | 11,911 | 10,897 |
Amortization of intangible assets | 606 | 730 | 881 |
Professional fees and outside services | 2,091 | 1,758 | 2,414 |
FDIC insurance and assessments | 873 | 651 | 1,093 |
Donations | 1,357 | 1,441 | 1,339 |
Other expenses | 6,966 | 7,777 | 7,456 |
Total noninterest expense | 54,868 | 55,642 | 52,487 |
Income before income taxes | 34,175 | 28,891 | 28,311 |
Income tax expense | 4,821 | 3,155 | 3,391 |
Net income | 29,354 | 25,736 | 24,920 |
Other comprehensive income : | |||
Unrealized gain (loss) on investment securities available-for-sale | 8,779 | 5,109 | (2,014) |
Reclassification adjustment for net gain on sales included in net income | (918) | (23) | |
Change in benefit plan liabilities | (1,398) | 639 | (591) |
Change in derivative fair value | 315 | 441 | 246 |
Other comprehensive income (loss) | 6,778 | 6,166 | (2,359) |
Income tax expense (benefit) | 1,424 | 1,295 | (496) |
Other comprehensive income (loss), net of income taxes | 5,354 | 4,871 | (1,863) |
Comprehensive income | $ 34,708 | $ 30,607 | $ 23,648 |
Net income: | |||
Basic | $ 4.02 | $ 3.48 | $ 3.37 |
Diluted | $ 4 | $ 3.47 | $ 3.37 |
Average common shares outstanding: | |||
Basic | 7,304,956 | 7,395,429 | 7,397,797 |
Diluted | 7,337,843 | 7,412,369 | 7,402,900 |
Dividends declared | $ 1.44 | $ 1.37 | $ 1.31 |
Service charges, fees and commissions | |||
Noninterest income: | |||
Revenue from contracts with customers | $ 6,809 | $ 7,236 | $ 7,575 |
Merchant services income | |||
Noninterest income: | |||
Revenue from contracts with customers | 824 | 973 | 809 |
Commission and fees on fiduciary activities | |||
Noninterest income: | |||
Revenue from contracts with customers | 2,125 | 2,087 | 2,036 |
Wealth management income | |||
Noninterest income: | |||
Revenue from contracts with customers | $ 1,282 | $ 1,524 | $ 1,447 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Capital Surplus | Retained EarningsCumulative Effect, Adjustment Balance | Retained Earnings | Accumulated Other Comprehensive LossCumulative Effect, Adjusted Balance | Accumulated Other Comprehensive LossCumulative Effect, Adjustment Balance | Accumulated Other Comprehensive Loss | Cumulative Effect, Adjusted Balance | Total |
Balance at Dec. 31, 2017 | $ 14,793 | $ 135,043 | $ 2 | $ 121,353 | $ (2) | $ (6,213) | $ 264,976 | ||
Net income | 24,920 | 24,920 | |||||||
Other comprehensive income (loss), net of income taxes | $ (1,861) | $ (1,861) | (1,863) | ||||||
Dividends declared | (9,693) | (9,693) | |||||||
Stock based compensation | 272 | 272 | |||||||
Common stock grants awarded, net of unearned compensation | 5 | (5) | |||||||
Balance at Dec. 31, 2018 | 14,798 | 135,310 | 136,582 | (8,076) | 278,614 | ||||
Net income | 25,736 | 25,736 | |||||||
Other comprehensive income (loss), net of income taxes | 4,871 | 4,871 | |||||||
Dividends declared | (10,131) | (10,131) | |||||||
Stock based compensation | 554 | 554 | |||||||
Common stock grants awarded, net of unearned compensation | 8 | (8) | |||||||
Share retirement | (29) | (605) | (634) | ||||||
Balance at Dec. 31, 2019 | 14,777 | 135,251 | 152,187 | (3,205) | 299,010 | ||||
Net income | 29,354 | 29,354 | |||||||
Other comprehensive income (loss), net of income taxes | 5,354 | 5,354 | |||||||
Dividends declared | (10,518) | (10,518) | |||||||
Stock based compensation | 570 | 570 | |||||||
Common stock grants awarded, net of unearned compensation | 17 | (17) | |||||||
Share retirement | (363) | (6,530) | (6,893) | ||||||
Balance at Dec. 31, 2020 | $ 14,431 | $ 129,274 | $ 171,023 | $ 2,149 | $ 316,877 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity | |||
Dividends declared (in dollars per share) | $ 1.44 | $ 1.37 | $ 1.31 |
Common stock grants awarded, net of unearned compensation | $ 520 | $ 147 | $ 92 |
Common stock grants awarded, net of unearned compensation (in shares) | 8,506 | 3,854 | 2,548 |
Share retired, shares | 181,417 | 14,428 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 29,354 | $ 25,736 | $ 24,920 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of premises and equipment | 2,900 | 3,083 | 2,333 |
Amortization of right-of-use lease asset | 744 | 398 | |
Amortization of deferred loan fees, net | (2,236) | (164) | 525 |
Amortization of intangibles | 606 | 730 | 881 |
Amortization of low income housing partnerships | 569 | 476 | 465 |
Provision for loan losses | 7,400 | 6,100 | 4,200 |
Net unrealized (gain) loss on equity investment securities | 35 | (132) | (14) |
Net (gain) loss on sale of other real estate owned | 39 | 9 | (21) |
Net gain on sale of equity securities | (29) | ||
Gain from bank owned life insurance | (368) | ||
Loans originated for sale | (43,780) | (15,901) | (13,194) |
Proceeds from sale of loans originated for sale | 44,832 | 15,753 | 12,650 |
Net gain on sale of loans originated for sale | (903) | (89) | (99) |
Net amortization of investment securities | 1,084 | 1,668 | 2,206 |
Net gain on sale of investment securities available-for-sale | (918) | (23) | |
Net gain on sale of credit card loans held for sale | (291) | ||
Increase in cash surrender value of life insurance | (774) | (755) | (757) |
Deferred income tax expense (benefit) | (1,779) | 394 | (681) |
Stock based compensation | 570 | 554 | 272 |
Net change in: | |||
Accrued interest receivable | (1,274) | 134 | (179) |
Other assets | (12,268) | (3,363) | 816 |
Accrued interest payable | (541) | 82 | 698 |
Other liabilities | 13,549 | 2,389 | (1,736) |
Net cash provided by operating activities | 37,180 | 37,079 | 32,626 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available-for-sale | 65,120 | 9,677 | |
Proceeds from repayments of investment securities: | |||
Available-for-sale | 84,622 | 57,477 | 31,093 |
Held-to-maturity | 427 | 697 | 898 |
Purchases of investment securities: | |||
Available-for-sale | (107,196) | (124,501) | (32,709) |
Net redemption of restricted equity securities | 4,804 | (2,739) | 1,100 |
Proceeds from sale of student loan portfolio | 5,103 | ||
Proceeds from sale of credit card loan portfolio | 2,698 | ||
Net increase in lending activities | (241,307) | (119,998) | (141,277) |
Purchase of investment in life insurance | (6,500) | ||
Purchases of premises and equipment | (2,292) | (5,603) | (4,069) |
Proceeds from the sale of premises and equipment | 435 | 404 | |
Proceeds from bank owned life insurance | 672 | ||
Proceeds from sale of other real estate owned | 647 | 269 | 1,281 |
Net cash used in investing activities | (201,240) | (184,721) | (134,806) |
Cash flows from financing activities: | |||
Net increase in deposits | 465,624 | 96,467 | 156,004 |
Proceeds from long-term debt | 16,000 | ||
Repayment of long-term debt | (17,964) | (21,173) | (11,828) |
Net increase (decrease) in short-term borrowings | (102,150) | 65,650 | (37,175) |
Retirement of common stock | (6,893) | (634) | |
Cash dividends paid | (10,518) | (10,131) | (9,693) |
Net cash provided by financing activities | 361,099 | 146,179 | 97,308 |
Net increase in cash and cash equivalents | 197,039 | (1,463) | (4,872) |
Cash and cash equivalents at beginning of period | 31,153 | 32,616 | 37,488 |
Cash and cash equivalents at end of period | 228,192 | 31,153 | 32,616 |
Cash paid during the period for: | |||
Interest | 14,865 | 17,786 | 12,624 |
Income taxes | 6,250 | 4,550 | 2,650 |
Noncash items: | |||
Transfers of loans to other real estate | 1,163 | 421 | 1,432 |
Origination of mortgage servicing rights | 318 | 172 | $ 141 |
Initial recognition of right-of-use assets | 899 | 6,523 | |
Initial recognition of lease liability | 899 | $ 6,523 | |
Paycheck Protection Program Liquidity Facility | |||
Cash flows from financing activities: | |||
Proceeds from long-term debt | 103,650 | ||
Repayment of long-term debt | (103,650) | ||
Subordinated Debentures | |||
Cash flows from financing activities: | |||
Proceeds from long-term debt | $ 33,000 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significant accounting policies: Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding Peoples Financial Services Corp. (“Parent Company”). Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2020, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, the valuation of derivative instruments, determination of other-than-temporary impairment losses on securities and impairment of goodwill. Actual results could differ from those estimates. Investment securities: Investment securities are classified and accounted for as either held-to-maturity or available-for-sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings and the non-credit related component included in other comprehensive income or loss. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. Transfers of financial assets, which include loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company; (ii) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans are generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company has generally required that the properties securing these real estate loans have debt service coverage ratios, which is net cash flow before debt service to debt service, of at least Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans. Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days 90 days Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loans is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. Allowance for loan losses: The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and loans deemed impaired at the time of acquisition are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses and charged-off when they are 120 days past due. Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. The allowance for loan losses consists of an allocated element and an unallocated element. The allocated element consists of a specific allowance for impaired loans individually evaluated and a formula portion for loss contingencies on those loans collectively evaluated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. If the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent, is less than the recorded investment in the loan, a specific allowance for the loan will be established. The formula portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus qualitative factors, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by qualitative factors that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition, pandemics and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses inherent in the loan portfolio as of December 31, 2020. Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The following is a discussion of revenues within the scope of the guidance: ● Service charges, fees, commissions and other . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. ● Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided. ● Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided. ● Merchant services income . Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. Premises and equipment, net: Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: Premises and leasehold improvements 7 Furniture, fixtures and equipment 3 Goodwill and other intangible assets, net: The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years. Goodwill and other intangible assets are tested for impairment annually or when circumstances arise indicating impairment may have occurred. In making this assessment that impairment has occurred, management considers a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of impairment. Changes in economic and operating conditions, as well as other factors, could result in impairment in future periods. Any impairment losses arising from such testing would be reported in the consolidated statements of income and comprehensive income as a separate line item within operations. There were no impairment losses recognized as a result of periodic impairment testing in each of the three-years ended December 31, 2020. Mortgage servicing rights: Mortgage servicing rights are recognized as a separate asset when acquired through sales of loan originations. The Company determines a |
Cash and due from banks
Cash and due from banks | 12 Months Ended |
Dec. 31, 2020 | |
Cash and due from banks | |
Cash and due from banks | 2. Cash and due from banks: On March 26, 2020, the Board of Governors of the Federal Reserve System eliminated the reserve requirement for all depository institutions. Prior to this date, the Company was required to maintain average reserve balances as established by the Federal Reserve Bank. The required reserve balance was $2,545 at December 31, 2019. |
Investment securities
Investment securities | 12 Months Ended |
Dec. 31, 2020 | |
Investment securities | |
Investment securities | 3. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2020 and 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,478 $ 427 $ 18,905 U.S. government-sponsored enterprises 63,834 1,354 65,188 State and municipals: Taxable 53,297 2,099 $ 30 55,366 Tax-exempt 53,977 3,054 37 56,994 Residential mortgage-backed securities: U.S. government agencies 3,553 154 3,707 U.S. government-sponsored enterprises 79,457 1,930 136 81,251 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,619 881 13,500 Corporate debt securities 1,000 1,000 Total $ 286,215 $ 9,899 $ 203 $ 295,911 Held-to-maturity: Tax-exempt state and municipals $ 6,849 $ 275 $ $ 7,124 Residential mortgage-backed securities: U.S. government agencies 21 21 U.S. government-sponsored enterprises 355 13 368 Total $ 7,225 $ 288 $ $ 7,513 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 $ 162 $ 24,128 U.S. government-sponsored enterprises 87,156 181 $ 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889 The Company had net unrealized gains on available-for-sale securities of $7,660, net of deferred income taxes of $2,036 at December 31, 2020, and net unrealized gains on available-for-sale securities of $1,450, net of deferred income taxes of $385, at December 31, 2019. During 2020, the Company sold a pool of low-yielding short-term municipal bonds and two mortgage-backed securities and received proceeds totaling $64,841 . Gross gains of were realized on the sale of investment securities in 2020. During 2019, the Company sold a pool of municipal bonds and received proceeds totaling At December 31, 2020, our equity security portfolio consisted of stock of one financial institution. During 2020, the Company sold its entire stock position in one other equity holding and received proceeds of $279 and recognized a gain of $29. At December 31, 2020 and December 31, 2019, we had $138 thousand and $423 thousand, respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of Accumulated Other Comprehensive Income (“AOCI”), net of tax. At December 31, 2018, net unrealized gains of $3 thousand had been recognized in AOCI. On January 1, 2018, these unrealized gains, net of income tax were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. At December 31, 2020, the fair value of our equity portfolio was less than the cost basis by $15 thousand. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2020 and 2019. Year Ended December 31, 2020 2019 Net gain (loss) recognized during the period on equity securities $ (6) $ 132 Less: Net gain (loss) recognized during the period on equity securities sold during the period 29 Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ (35) $ 132 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2020, is summarized as follows: Fair December 31, 2020 Value Within one year $ 37,351 After one but within five years 49,444 After five but within ten years 22,799 After ten years 84,357 193,951 Mortgage-backed and other amortizing securities 101,960 Total $ 295,911 Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2020, is summarized as follows: Amortized Fair December 31, 2020 Cost Value Within one year $ 175 $ 178 After five but within ten years 324 344 After ten years 6,350 6,602 6,849 7,124 Mortgage-backed securities 376 389 Total $ 7,225 $ 7,513 Securities with a carrying value of $165,982 and $157,047 at December 31, 2020 2019 Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At December 31, 2020 and 2019, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises that exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at December 31, 2020 and 2019, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 9,246 $ 30 $ $ $ 9,246 $ 30 Tax-exempt 6,786 37 6,786 37 Residential mortgage-backed securities: U.S. government-sponsored enterprises 11,553 135 284 1 11,837 136 Total $ 27,585 $ 202 $ 284 $ 1 $ 27,869 $ 203 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153 The Company had 26 investment securities, consisting of 12 tax-exempt and 8 taxable state and municipal obligations, and 6 mortgage-backed securities that were in unrealized loss positions at December 31, 2020. Of these securities, two mortgage-backed securities were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at December 31, 2020. There was no OTTI recognized for each of the years in the three-year period ended December 31, 2020. Other assets include the Company’s investment in Visa Class B stock. The Company’s ownership includes shares acquired at no cost related to the Company’s prior ownership in Visa's network while Visa operated as a cooperative. The Company holds shares of Visa Class A stock. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B. Due to the lack of orderly trades and public information of such trades, Visa Class B stock has no readily determinable fair value and is carried at cost. |
Loans, net and allowance for lo
Loans, net and allowance for loan losses | 12 Months Ended |
Dec. 31, 2020 | |
Loans, net and allowance for loan losses | |
Loans, net and allowance for loan losses | 4. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2020 and 2019 are summarized as follows. Included in the commercial balances at December 31, 2020 are $189,699 of Paycheck Protection Program (“PPP”) loans. Net deferred loan fees of $2,058 were included in loan balances at December 31, 2020 and net deferred loan costs of $908 were included in the December 31, 2019 loan balances. The deferred loan fees in 2020 is a result of the origination of PPP loans. December 31, 2020 December 31, 2019 Commercial $ 679,286 $ 522,957 Real estate: Commercial 1,137,990 1,011,423 Residential 277,414 301,378 Consumer 83,292 102,482 Total $ 2,177,982 $ 1,938,240 Loans outstanding to directors, executive officers, principal stockholders or to their affiliates totaled $5,031 and $12,248 at December 31, 2020 and 2019, respectively. The decrease in loans outstanding is due to loan balances related to three former directors who retired in 2020. Advances and repayments during 2020 totaled $3,747 and $5,574, respectively, and during 2019 totaled $7,857 and $9,376, respectively. There were no related party loans that were classified as nonaccrual, past due, or restructured at December 31, 2020 and 2019. Deposits from related parties amounted to $9.0 million at December 31, 2020 and $12.9 million at December 31, 2019. At December 31, 2020, the majority of the Company’s loans were at least partially secured by real estate in our market region. Therefore, a primary concentration of credit risk is directly related to the real estate market in these regions. Changes in the general economy, local economy or in the real estate market could affect the ultimate collectability of this portion of the loan portfolio. Management does not believe there are any other significant concentrations of credit risk that could affect the loan portfolio. The changes in the allowance for loan losses account by major classification of loan for the year ended December 31, 2020, 2019, and 2018 were as follows: Real estate December 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (2,771) (144) (247) (317) (3,479) Recoveries 525 16 57 148 746 Provisions 4,092 3,191 93 24 7,400 Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 111 9,906 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,181 $ 2,168,076 The allowance for loan losses increased $4.6 million to $27.3 million at December 31, 2020, from $22.7 million at the end of 2019. The increase resulted from a provision for loan losses of $7.4 million less net loans charged-off of $2.7 million. Changes made during the first six months of 2020 to the qualitative factors, which related to economic decline resulting from the adverse impact of the COVID-19 crisis, was the primary reason for the higher provision. Commercial loan charge-offs were $2.8 million and included a $1.1 million partial write down of a specific credit relationship, which has been subsequently paid off in January 2021 and $0.9 million related to a group of small business lines of credit in our Greater Delaware Valley market. Commercial loan recoveries increased $0.5 million and included $0.2 million related to the group of small business lines of credit in the Greater Delaware Valley market and $0.2 million on a separate credit. We charged-off $3.3 million of commercial loans in 2019 substantially all of which were in the fourth quarter. Included in this amount was $2.3 million related to certain small business lines of credit in our Greater Delaware Valley market and $1.0 million of other commercial loan relationships. In March 2020, we identified certain issues with a group of small business lines of credit, all of which had been originated by one of our lenders. All of these lines of credit were subject to credit review at origination and were considered satisfactory at such time. As a number of these lines of credit entered our annual renewal process, we identified changes in the credit quality of the borrowers which warranted action. We commenced a full review of this lender’s portfolio, as well as a review of other loans in our portfolio with similar characteristics. As a result of our review, we determined a number of the small business lines of credit originated by the particular lender to be impaired and collection doubtful at December 31, 2019. As such, we charged-off Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (3,314) (817) (477) (459) (5,067) Recoveries 69 1 29 166 265 Provisions 4,617 1,576 (218) 125 6,100 Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120 Real estate December 31, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 5,513 $ 8,944 $ 3,111 $ 1,392 $ 18,960 Charge-offs (154) (1,250) (405) (545) (2,354) Recoveries 137 136 98 202 573 Provisions 20 2,906 1,088 186 4,200 Ending balance $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Ending balance: individually evaluated for impairment 50 403 666 60 1,179 Ending balance: collectively evaluated for impairment $ 5,466 $ 10,333 $ 3,226 $ 1,175 $ 20,200 Loans receivable: Ending balance $ 494,134 $ 907,803 $ 299,876 $ 121,453 $ 1,823,266 Ending balance: individually evaluated for impairment 2,237 3,121 4,071 212 9,641 Ending balance: collectively evaluated for impairment $ 491,897 $ 904,682 $ 295,805 $ 121,241 $ 1,813,625 The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at December 31, 2020 and 2019: Special December 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 660,559 $ 14,305 $ 4,422 $ $ 679,286 Real estate: Commercial 1,107,699 17,517 12,774 1,137,990 Residential 274,327 144 2,943 277,414 Consumer 83,215 77 83,292 Total $ 2,125,800 $ 31,966 $ 20,216 $ $ 2,177,982 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240 The increase in commercial special mention loans from December 31, 2019 to December 31, 2020 is primarily associated with a credit relationship to a public entity totaling $13.0 million which is experiencing short-term cash flow issues. The increase in commercial real estate special mention loans is due to the reclassification of four large credits. Two commercial real estate credits totaling $9.0 million were downgraded to special mention due to the loss of major tenants, while another credit totaling $4.5 million is related to the hospitality industry and is experiencing financial difficulties due to COVID-19. The decrease to commercial real estate substandard loans resulted in part from the payoff of a $5.1 million commercial real estate construction loan that had experienced significant construction delays. Information concerning nonaccrual loans by major loan classification at December 31, 2020 and 2019 is summarized as follows: December 31, 2020 December 31, 2019 Commercial $ 3,822 $ 3,336 Real estate: Commercial 3,262 2,765 Residential 922 1,148 Consumer 111 261 Total $ 8,117 $ 7,510 The major classification of loans by past due status at December 31, 2020 and 2019 are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 73 $ 3,822 $ 3,895 $ 675,391 $ 679,286 Real estate: Commercial 344 $ 134 3,262 3,740 1,134,250 1,137,990 Residential 2,072 480 993 3,545 273,869 277,414 $ 71 Consumer 374 63 111 548 82,744 83,292 Total $ 2,863 $ 677 $ 8,188 $ 11,728 $ 2,166,254 $ 2,177,982 $ 71 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 $ 175 2,765 3,866 1,007,557 1,011,423 Residential 2,164 1,227 1,526 4,917 296,461 301,378 $ 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378 The increase in the greater than 90 day category was due to a net increase in nonaccrual loans which are included in the category. Three large commercial loans added to non-accrual were partially offset by a partial charge-off of a non-accrual commercial relationship. The three loans added all have been individually measured for impairment. Two of the loans have specific reserves allocated, while the other credit was charged down to the SBA guaranteed amount. The following tables summarize information concerning impaired loans as of and for the years ended December 31, 2020, 2019 and 2018 by major loan classification: For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,562 $ 1,900 $ 1,318 $ 67 Real estate: Commercial 1,969 2,299 2,822 28 Residential 1,970 2,658 2,193 22 Consumer 152 160 135 Total 5,653 7,017 6,468 117 With an allowance recorded: Commercial 675 675 $ 50 1,006 30 Real estate: Commercial 1,152 1,323 403 1,676 18 Residential 2,101 2,328 666 1,585 22 Consumer 60 60 60 21 Total 3,988 4,386 1,179 4,288 70 Total impaired loans Commercial 2,237 2,575 50 2,324 97 Real estate: Commercial 3,121 3,622 403 4,498 46 Residential 4,071 4,986 666 3,778 44 Consumer 212 220 60 156 Total $ 9,641 $ 11,403 $ 1,179 $ 10,756 $ 187 There were no Included in the commercial loan, commercial real estate and residential real estate categories are troubled debt restructurings that were classified as impaired. Trouble debt restructurings totaled $2,818 and $2,193 at December 31, 2020 and 2019 respectively. There were four loans modified in 2020, one loan modified in 2019 and one loan modified in 2018 that resulted in troubled debt restructurings. The four loans modified in 2020 were adversely impacted by COVID-19 and the economic slowdown and did not qualify for the CARES Act exclusion due to current and prior delinquencies. Two of the loans were to one restaurant and two of the loans were to retail related small businesses. The following tables summarize the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2020 and 2019 and 2018. Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2020 of Contracts Investment Recorded Investment Investment Commercial 1 $ 12 $ 12 $ 5 Commercial real estate 3 1,073 1,073 1,046 Total 4 $ 1,085 $ 1,085 $ 1,051 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2019 of Contracts Investment Recorded Investment Investment Commercial real estate 1 $ 346 $ 346 $ 241 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2018 of Contracts Investment Recorded Investment Investment Commercial real estate 1 $ 340 $ 340 $ 340 There were no payment defaults within 12 months of its modification on loans considered troubled debt restructurings for the years ended December 31, 2020, December 31, 2019 and December 31, 2018. The amount of residential loans in the formal process of foreclosure totaled $135 at December 31, 2020 and $665 at December 31, 2019. The Company received a significant number of requests to modify loan terms and/or defer principal and/or interest payments from borrowers affected by COVID-19, and has agreed to many such deferrals. The federal banking regulators issued guidance and encouraged banks to work prudently with, and provide short-term payment accommodations to borrowers affected by COVID-19. Section 4013 of the CARES Act includes a provision for the Company to opt out of applying the troubled debt restructuring (“TDR”) guidance for certain loan modifications and specified that such modifications made on loans that were current as of December 31, 2019 do not need to be classified as TDRs. Peoples has applied this guidance. The payment modifications granted included principal only payments and principal and interest deferrals and generally ranged from 90 to 180 days. The modified loans were not considered past due unless the modified payment was delinquent. Similarly, FASB has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Beginning in March 2020, the Company began receiving requests for temporary modifications to the repayment structure for borrower loans. During 2020, the Company made a total of 479 commercial loan and 512 consumer loan temporary modifications with principal balances totaling $330,119. At December 31, 2020, 18 commercial loans and 26 consumer loans remain on deferral with principal balances of $6,084. The following tables provide information as of December 31, 2020 and the total during 2020 with respect to the Company’s payment deferrals granted in accordance with the CARES Act on commercial loans by North American Industry Classification System (“NAICS”) categories: Percentage Percentage Number of Total of Tier 1 of Loan Capital December 31, 2020 NAICS category Loans Balance Portfolio (Bank) Lessors of Residential Buildings and Dwellings 3 $ 143 0.1 % Full-Service Restaurants 3 1,961 0.1 % 0.8 General Automotive Repair 1 1,459 0.1 0.6 School and Employee Bus Transportation 1 725 0.3 All Others 10 1,508 0.1 0.6 18 $ 5,796 0.3 % 2.3 % Percentage Percentage Number of Total of Tier 1 of Loan Capital 2020 NAICS category Loans Balance Portfolio (Bank) Lessors of Nonresidential Buildings 65 $ 71,899 3.3 % 26.9 % Lessors of Residential Buildings and Dwellings 64 53,564 2.5 19.9 Hotels and Motels 27 39,261 1.8 14.5 Full-Service Restaurants 33 27,783 1.3 10.3 Limited-Service Restaurants 8 11,829 0.5 4.4 Gasoline Stations with Convenience Stores 18 12,422 0.6 4.6 Construction and Mining 13 9,718 0.4 3.6 Assisted Living Facilities for the Elderly 2 6,319 0.3 2.3 Colleges, Universities, and Professional Schools 1 6,301 0.3 2.3 All Others 248 67,674 3.1 24.9 479 $ 306,770 14.1 % 113.7 % |
Off-balance sheet financial ins
Off-balance sheet financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Off-balance sheet financial instruments. | |
Off-balance sheet financial instruments | 5. Off-balance sheet financial instruments: The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused portions of lines of credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company records a valuation allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. The allowance is not significant. The contractual amounts of off-balance sheet commitments at December 31, 2020 and 2019 are summarized as follows: December 31 2020 2019 Commitments to extend credit $ 336,667 $ 290,517 Unused portions of lines of credit 55,391 52,168 Standby letters of credit 34,428 45,018 $ 426,486 $ 387,703 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Unused portions of lines of credit, including home equity and overdraft protection agreements, are commitments for possible future extensions of credit to existing customers. Unused portions of home equity lines are collateralized and generally have fixed expiration dates. Overdraft protection agreements are uncollateralized and usually do not carry specific maturity dates. Unused portions of lines of credit ultimately may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit expire within twelve months. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these standby letters of credit as deemed necessary. Collateral supporting standby letters of credit amounted to $4,902 at December 31, 2020 and $31,893 at December 31, 2019. The carrying value of the liability for the Company’s obligations under guarantees for standby letters of credit was not material at December 31, 2020 and 2019. |
Premises and equipment, net
Premises and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Premises and equipment, net | |
Premises and equipment, net | 6. Premises and equipment, net: Premises and equipment at December 31, 2020 and 2019 are summarized as follows: December 31 2020 2019 Land $ 5,217 $ 5,535 Premises and leasehold improvements 48,596 47,705 Right-of-use assets 6,282 6,125 Furniture, fixtures and equipment 18,395 17,422 78,490 76,787 Less: accumulated depreciation 31,445 28,855 $ 47,045 $ 47,932 |
Operating lease commitments and
Operating lease commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Operating lease commitments and contingencies | |
Operating lease commitments and contingencies | 7. Operating lease commitments and contingencies: The Company is obligated under non-cancelable operating leases for certain branch locations. We determine if an arrangement is a lease at inception by assessing whether a contract contains a right to control an identified asset for a period of time in exchange for consideration. For all leases, we recognize a right-of-use asset and lease liability at the effective date of the lease. Operating leases right-of-use assets are included in premises and equipment, and lease liabilities are included in other liabilities in the consolidated balance sheet commencing at January 1, 2019. We have no finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms generally containing one or more five-year renewal options. At December 31, 2020, the Company’s leases have remaining renewal terms that can extend the lease term from three years to twenty-one years that are reasonably certain of being exercised. The weighted average remaining lease term at December 31, 2020 is thirteen years . At December 31, 2019, the weighted average remaining lease term was At December 31, 2020, right-of-use assets of $6,282 were included in premises and equipment, and the related lease liability totaled $6,425 and was included in other liabilities in the consolidated balance sheet. Right-of-use assets and the related lease liability were $6,125 and $6,194, respectively, at December 31, 2019. The lease liability decreased due to payments of $660 offset by $326 of lease expense and the termination of two leases. One additional lease was entered into and added $899 to the liability. Rent expense for the years ended December 31, 2020, 2019 and 2018 amounted to Future minimum lease payments under operating leases are summarized as follows: 2021 $ 611 2022 618 2023 560 2024 488 2025 504 Thereafter 5,500 Total future minimum lease payments 8,281 Less amount representing interest (1,856) Present value of future minimum lease payments $ 6,425 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets, net | |
Intangible assets, net | 8. Intangible assets, net: The gross carrying amount of core deposit intangible assets totaled $8,146 at December 31, 2020 and 2019. The gross carrying amount of trade name intangible assets totaled $203 at December 31, 2020 and 2019. The gross carrying amount of the intangible asset related to the acquisition of an asset management and retirement plan services company acquired in 2015 totaled $1,091 at December 31, 2020 and 2019. The accumulated amortization on core deposit intangible assets was $7,507 and $7,071 at December 31, 2020 and 2019, respectively. The accumulated amortization trade name intangible assets was $182 and $168 at December 31, 2020 and 2019, respectively. The accumulated amortization on the asset management and retirement plan services intangible asset was $792 and $636 at December 31, 2020 and 2019, respectively. The estimated amortization expense on intangible assets in years subsequent to December 31, 2020, is as follows: 2021 $ 491 2022 363 2023 106 Total $ 960 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Other assets | 9. Other assets: The major components of other assets at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 December 31, 2019 Other real estate owned $ 864 $ 450 Investment in low income housing partnership 6,332 6,901 Mortgage servicing rights 838 738 Restricted equity securities (FHLB and other) 5,397 10,201 Net deferred tax asset 3,768 3,362 Interest rate floor 1,678 944 Interest rate swaps 13,693 4,728 Other assets 6,345 6,855 Total $ 38,915 $ 34,179 The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $166,472 at December 31, 2020 and $159,587 at December 31, 2019. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits. | |
Deposits | 10. Deposits: The major components of interest-bearing and noninterest-bearing deposits at December 31, 2020 and 2019 are summarized as follows: At the period end December 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 496,634 $ 365,463 Now accounts 567,087 402,999 Savings accounts 431,224 370,270 Time deposits less than $250 221,446 231,450 Time deposits $250 or more 98,247 138,069 Total interest-bearing deposits 1,814,638 1,508,251 Noninterest-bearing deposits 622,475 463,238 Total deposits $ 2,437,113 $ 1,971,489 The growth in deposits occurred in non-maturity deposits as demand for liquid accounts elevated due to low interest rates and economic uncertainty. Strong organic growth of core deposits from new and existing relationships, inflows of public fund deposits, and proceeds of PPP loans retained on deposit by our commercial borrowers, primarily in the second quarter, contributed to the increase. Time deposits $250 thousand or more decreased due to the maturity of a few large public fund certificates of deposit. The aggregate amounts of maturities for all time deposits at December 31, 2020, are summarized as follows: 2021 $ 223,247 2022 40,093 2023 22,905 2024 15,099 2025 7,316 Thereafter 11,033 $ 319,693 The aggregate amount of deposits reclassified as loans was $245 at December 31, 2020, and $343 at December 31, 2019. Management evaluates transaction accounts that are overdrawn for collectability as part of its evaluation for credit losses. |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Short-term borrowings | |
Short-term borrowings | 11. Short-term borrowings: Short-term borrowings consisted of FHLB advances representing overnight borrowings or borrowings with original terms of less than twelve months at December 31, 2020, 2019 and 2018: At and for the year ended December 31, 2020 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate December 31,2020 FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 % At and for the year ended December 31, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 86,500 $ 133,834 $ 189,275 2.05 % 2.62 % The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At December 31, 2020, the maximum borrowing capacity was $807,042 of which $64,769 was outstanding in borrowings and $218,350 was used to issue standby letters of credit to collateralize public fund deposits. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day. The Company also has unsecured line of credit agreements with two correspondent banks, where the total line amount was $18,000 at December 31, 2020 and 2019. There were amounts outstanding on either line of credit at December 31, 2020 or 2019. Interest on these borrowings accrues daily based on the daily federal funds rate. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debt. | |
Long-term debt | 12. Long-term debt: Long-term debt consisting of advances from the FHLB at December 31, 2020 and 2019 are as follows: Interest Rate Due Fixed December 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 June 2020 2.22 6,000 December 2020 1.84 $ 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 4,769 6,733 $ 14,769 $ 32,733 Maturities of long-term debt, by contractual maturity, in years subsequent to December 31, 2020 are as follows: 2021 $ 12,058 2022 2,156 2023 555 $ 14,769 None of the advances from the FHLB are convertible. At December 31, 2020, long-term debt are all at fixed rates. There were one During 2020, the company participated in the Federal Reserve Banks PPPLF by pledging PPP loans as collateral. Borrowings from this facility are categorized as long-term based on the twenty four |
Subordinated debt
Subordinated debt | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated debt | |
Subordinated debt | 13. Subordinated debt: On June 1, 2020, the Company sold $33,000 aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes qualify as Tier 2 capital for regulatory capital purposes. The 2020 Notes bear interest at a rate of 5.375% per year for the first five years and then float based on a benchmark rate (as defined), provided that the interest rate applicable to the outstanding principal balance during the period the 2020 Notes are floating will at no time be less the 4.75%. Interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes will mature on June 1, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after June 1, 2025 and prior to June 1, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 Capital, the Company may redeem, in whole and not in part, at any time upon giving not less than ten days’ notice, an amount equal to one hundred percent (100%) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar proceeding by or against the Company. |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair value of financial instruments | |
Fair value of financial instruments | 14. Fair value of financial instruments: Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,905 $ 18,905 $ U.S. government-sponsored enterprises 65,188 $ 65,188 State and municipals: Taxable 55,366 55,366 Tax-exempt 56,994 56,994 Mortgage-backed securities: U.S. government agencies 3,707 3,707 U.S. government-sponsored enterprises 94,751 94,751 Corporate debt securities 1,000 1,000 Common equity securities 138 138 Loan held for sale 837 837 Interest rate floor-other assets 1,678 1,678 Interest rate swap-other assets 13,693 13,693 Interest rate swap-other liabilities (14,099) (14,099) Total $ 298,158 $ 19,043 $ 279,115 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $ Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2020 and 2019 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,884 $ 2,884 Other real estate owned $ 527 $ 527 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,884 Appraisal of collateral Appraisal adjustments 9.0% to 97.0% (28.2)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 527 Appraisal of collateral Appraisal adjustments 3.1% to 58.1% (29.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at December 31, 2020 and 2019 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 228,192 $ 228,192 $ 228,192 Investment securities: Available-for-sale 295,911 295,911 18,905 $ 277,006 Common equity securities 138 138 138 Held-to-maturity 7,225 7,513 7,513 Loans held for sale 837 837 837 Net loans 2,150,638 2,145,752 $ 2,145,752 Accrued interest receivable 8,255 8,255 8,255 Mortgage servicing rights 838 1,269 1,269 Restricted equity securities (FHLB and other) 5,397 5,397 5,397 Interest rate floor 1,678 1,678 1,678 Interest rate swaps 13,693 13,693 13,693 Total $ 2,712,802 $ 2,708,635 Financial liabilities: Deposits $ 2,437,113 $ 2,441,014 $ 2,441,014 Long-term debt 14,769 15,073 15,073 Subordinated debentures 33,000 33,096 33,096 Accrued interest payable 736 736 736 Interest rate swaps 14,099 14,099 14,099 Total $ 2,499,717 $ 2,504,018 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116 |
Derivatives and hedging activit
Derivatives and hedging activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives and hedging activities | |
Derivatives and hedging activities | 15. Derivatives and hedging activities: Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income/expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During 2020, such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets and issuances of debt. The Company executed an interest rate swap to reduce its exposure to variability in the interest rate associated with floating-rate borrowings. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt/assets. During 2021 the Company estimates that an additional $50 will be reclassified as a decrease to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2020, the Company had 73 interest rate swaps with an aggregate notional amount of $375,341 related to this program. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of December 31, 2020 As of December 31, 2019 (1) As of December 31, 2020 As of December 31, 2019 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,678 Other Assets $ 944 Cash Flow Swap $ 50,000 Other Liabilities $ 485 Total derivatives designated as hedging instruments $ 1,678 $ 944 $ 485 Derivatives not Interest Rate Swaps (3) $ 375,341 Other Assets $ 13,693 Other Assets $ 4,728 Other Liabilities $ 13,614 Other Liabilities $ 4,680 Total derivatives not $ 13,693 $ 4,728 $ 13,614 $ 4,680 (1) Assets amount does not include accrued interest receivable of $235 (2) Liabilities amount does not include accrued interest payable of $235 (3) Notional amount of interest rate swaps at December 31, 2019 $172,096 Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income (loss) as of December 31, 2020 and December 31, 2019. Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Loss Recognized from Gain (Loss) Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships December 31, 2020 Income December 31, 2020 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ 71 $ 71 Interest Expense $ (40) $ (40) Interest Rate Floor (*) $ (18) $ (17) $ (1) Interest Income $ 134 $ 150 $ (16) Total $ 53 $ 54 $ (1) $ 94 $ 110 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships December 31, 2019 Income December 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 192 $ 196 $ (4) Interest Income $ 26 $ 42 $ (16) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of income and comprehensive income as of December 31, 2020 and December 31, 2019. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2020 2019 2019 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 134 $ (40) $ 26 The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 134 $ (40) $ 26 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component $ 150 $ 42 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (16) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s other derivative financial instruments on the consolidated statements of income and comprehensive income for the years ended December 31, 2020 and 2019. Amount of Gain Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Twelve Months Ended Twelve Months Ended Derivatives Not Designated as Hedging Instruments Derivative December 31, 2020 December 31, 2019 Interest Rate Swaps Interest rate swap revenue $ 31 $ 77 Fee Income Interest rate swap revenue $ 2,290 $ 1,713 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2020 and December 31, 2019. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. Offsetting of Derivative Assets as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 15,371 $ $ 15,371 $ $ 15,371 Offsetting of Derivative Liabilities as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,099 $ $ 14,099 $ $ 14,099 Offsetting of Derivative Assets as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,680 $ $ 4,680 $ $ 4,680 Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of December 31, 2020, the termination value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $79. As of December 31, 2019, the termination value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $48. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $15,360 against its obligations under these agreements as of December 30, 2020, compared to having posted collateral of $4,140 with counterparties at December 31, 2019. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value. |
Stock plans
Stock plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock plans | |
Stock plans | 16. Stock plans: The 2008 long-term incentive plan (“2008 Plan”) allowed for eligible participants to be granted equity awards. No awards may be made under the 2008 Plan after January 15, 2018. In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). The 2017 Plan allows for eligible participants to be granted equity awards. Under the 2017 Plan the Compensation Committee of the Board of Directors has the authority to, among other things: ● Select the persons to be granted awards under the 2017 Plan. ● Determine the type, size and term of awards. ● Determine whether such performance objectives and conditions have been met. ● Accelerate the vesting or excercisability of an award. Persons eligible to receive awards under the 2008 Plan and 2017 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of December 31, 2020, 56,966 shares of the Company’s common stock were available for grant as awards pursuant to the 2017 Plan. The 2008 Plan expired in January 2018 but remained in effect in accordance with its terms to govern outstanding awards under that plan. As of December 31, 2020, no awards are outstanding under the 2008 Plan. If any outstanding awards under the 2017 Plan are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. In 2020, the Company awarded 3,615 shares of non-performance-based restricted stock and 12,654 performance-based restricted stock units under the 2017 Plan. In 2019, the Company awarded 3,855 shares of non-performance-based restricted stock and 13,490 performance-based restricted stock units under the 2017 Plan. In 2020, 1,920 shares of non-performance-based and 6,535 shares of performance based restricted stock granted under the 2017 Plan vested along with 673 shares of non-performance-based restricted stock granted under the 2008 Plan and there were 1,875 shares forfeited under the provisions of the 2017 Plan. In 2019, 1,614 shares of non-performance-based restricted stock and 928 shares of performance-based shares granted under the 2017 Plan vested along with 674 shares of non-performance-based restricted stock and 5,743 of performance-based shares granted under the 2008 Plan. There were 1,711 shares forfeited under the provisions of the 2017 Plan and 1,327 shares forfeited under the provisions of the 2008 plan. The non-performance restricted stock grants made in 2020, 2019, 2018 and 2017 vest equally over three years from the grant date. The performance-based restricted stock units vest three years after the grant date and include conditions based on the Company’s three year cumulative diluted earnings per share and three-year average return on equity or tangible equity that determines the number of restricted stock units that may vest. The activity related to the 2017 Plan for each of the years ended December 31, 2020, 2019 and 2018 was as follows: Year Ended December 31 2020 2019 2018 Nonvested, January 1 25,984 12,892 1,538 Granted shares 16,269 17,345 11,468 Vested shares 8,455 2,542 114 Forfeited shares 1,875 1,711 Nonvested, December 31 31,923 25,984 12,892 The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. Compensation is recognized over the vesting period and adjusted based on the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income. In 2020, the Company recognized $570 for awards granted under the 2017 Plan. In 2019, the Company recognized $432 for awards granted under the 2017 Plan and $122 for awards granted under the 2008 plan. In 2018, the Company recognized $149 for awards granted under the 2017 Plan and $123 for awards granted under the 2008 plan. As of December 31, 2020, the Company had 1.9 |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefit plans | |
Employee benefit plans | 17. Employee benefit plans: The Company sponsors a separate ESOP and Retirement Profit Sharing 401(k) Plan. The Company also maintains SERPs and an employees’ pension plan, which is currently frozen. Under the ESOP, amounts voted by the Company’s board of directors are paid into the ESOP and each eligible participant is credited with an amount in proportion to their annual compensation or a fixed dollar amount. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions. Under the Retirement Profit Sharing Plan, amounts approved by the board of directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law. The Company contributed $371, $357 and $197 to the ESOP in 2020, 2019 and 2018. In addition, the Company contribution of $1,207, $1,139 and $1,047 to the Retirement Profit Sharing Plan in 2020, 2019 and 2018, was comprised of a safe harbor contribution of $655, $627 and $578 and a discretionary match of $552, $512 and $469. The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by federal tax law. The annual benefit is a maximum of 6% of the executive compensation in excess of Federal limits. The total liability associated with this plan was $142 and $133 at December 31, 2020 and 2019, respectively. The expense associated with the plan was $9, $17 and $20 for 2020, 2019 and 2018 respectively. The Company has SERPs for the benefit of certain officers. At December 31, 2020 and 2019, other liabilities include $2,351 and $2,077 accrued under the Plans. Compensation expense includes approximately $461, $360 and $335 relating to these SERPs for the years ended December 31, 2020, 2019 and 2018, respectively. Under the Employees’ Pension Plan, currently under curtailment, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company. Information related to the Employees’ Pension Plan is as follows: Pension Benefits December 31 2020 2019 Change in benefit obligation: Benefit obligation, beginning $ 17,491 $ 16,338 Interest cost 544 639 Change in experience gain (291) 96 Change in actuarial assumptions loss 2,159 1,221 Benefits paid (790) (803) Benefit obligation, ending 19,113 17,491 Change in plan assets: Fair value of plan assets, beginning 16,930 14,919 Actual return on plan assets 1,488 2,814 Employer contributions Benefits paid (790) (803) Fair value of plan assets, ending 17,628 16,930 Funded status at end of year $ (1,485) $ (561) The Society of Actuaries updated the mortality scale within the mortality tables from MP 2019 to MP 2020 which the Company utilized in its pension plan remeasurements at December 31, 2020 and 2019. The change in the discount rate, coupled with changes in the mortality assumption, resulted in an increase to the benefit obligation of $2,159 in 2020 and $1,221 in 2019. Amounts recognized in the consolidated balance sheets are as follows: Pension Benefits December 31 2020 2019 Liabilities $ 1,485 $ 561 Amounts recognized in the accumulated other comprehensive loss consist of: Net actuarial gain (7,977) (6,579) Deferred taxes 1,675 1,382 Net amount recognized $ (6,302) $ (5,197) The accumulated benefit obligation for the defined benefit pension plan was $19,113 and $17,491 at December 31, 2020 and 2019, respectively. Components of net periodic pension income and other amounts recognized in other comprehensive loss are as follows: Pension Benefits Years Ended December 31, 2020 2019 2018 Net periodic pension income: Interest cost $ 544 $ 639 $ 623 Expected return on plan assets (1,236) (1,084) (960) Amortization of unrecognized net loss 218 227 194 Net periodic pension income: (474) (218) (143) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 544 639 (590) Deferred tax (114) (134) 124 Total recognized in other comprehensive income (loss) 430 505 (466) Total recognized in net period pension cost and other comprehensive income (loss) $ (44) $ 287 $ (609) Weighted-average assumptions used to determine benefit obligations and related expenses were as follows: Pension Benefits December 31, 2020 2019 2018 Discount rate: Obligation 2.25 % 3.25 % 4.00 % Expense 3.25 4.00 3.75 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets. The Company’s pension plan weighted-average asset allocations at December 31, 2020 and 2019, by asset category are as follows: December 31, 2020 2019 Asset Category: Cash and cash equivalents 6.8 % 6.2 % Equity securities 63.3 61.9 Corporate bonds 20.7 20.6 U.S. government securities 9.2 11.3 100.0 % 100.0 % Fair value measurement of pension plan assets at December 31, 2020 and 2019 is as follows: Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,203 $ 1,203 $ Equity securities: U.S. large cap 10,266 10,266 International 888 888 Fixed income securities: U.S. Treasuries 216 $ 216 U.S. government agencies 1,400 1,400 Corporate bonds 3,655 3,655 Total $ 17,628 $ 12,357 $ 5,271 $ Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs December 31, 2019 Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,053 $ 1,053 $ Equity securities: U.S. large cap 9,663 9,663 International 817 817 Fixed income securities: U.S. Treasuries 202 $ 202 U.S. government agencies 1,713 1,713 Corporate bonds 3,482 3,482 Total $ 16,930 $ 11,533 $ 5,397 $ The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is large-cap core with a value bias. We invest in individual high-grade common stocks that are selected from our approved list; (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. government agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10%; (ii) fixed income 40% ; and (iii) equities 50%. There is no Company stock included in equity securities at December 31, 2020 or 2019. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2021. The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter: Pension Benefits 2021 $ 840 2022 878 2023 896 2024 948 2025 970 Thereafter 5,019 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Income taxes | 18. Income taxes: The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2020, 2019 and 2018 are summarized as follows: Year Ended December 31 2020 2019 2018 Current $ 6,600 $ 2,761 $ 4,072 Deferred (1,779) 394 (681) Total $ 4,821 $ 3,155 $ 3,391 The components of the net deferred tax asset at December 31, 2020 and 2019 are summarized as follows: December 31 2020 2019 Deferred tax assets: Allowance for loan losses $ 5,742 $ 4,762 Lease liability 1,349 1,301 Defined benefit plan 1,108 815 Deferred compensation 789 682 Deferred loan fees 1,368 525 Other 170 137 Total 10,526 8,222 Deferred tax liabilities: Lease right-of-use assets 1,319 1,286 Premises and equipment, net 1,455 1,350 Merger related accounting 694 850 Deferred loan costs 936 716 Investment securities available-for-sale 2,033 416 Other 321 242 Total 6,758 4,860 Net deferred tax asset $ 3,768 $ 3,362 Management believes that future taxable income will be sufficient to utilize deferred tax assets. Core earnings of the Company have remained strong and will continue to support the recognition of the deferred tax asset based on future growth projections. A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 is summarized as follows: 2020 2019 2018 Year Ended December 31 Amount % Amount % Amount % Federal income tax at statutory rate $ 7,177 21.00 % $ 6,067 21.00 % $ 5,945 21.00 % Effect of federal income tax rate changes (Note 1) Tax exempt interest (1,032) (3.02) (1,299) (4.50) (1,320) (4.66) Bank owned life insurance income (299) (0.87) (159) (0.55) (236) (0.83) Residential housing program tax credits (1,094) (3.20) (1,094) (3.79) (1,094) (3.87) Other, net 69 0.19 (360) (1.25) 96 0.34 Total $ 4,821 14.10 % $ 3,155 10.91 % $ 3,391 11.98 % |
Parent Company financial statem
Parent Company financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company financial statements | |
Parent Company financial statements | 19. Parent Company financial statements: CONDENSED BALANCE SHEETS December 31 2020 2019 Assets: Cash and cash equivalents $ 1,069 $ 5,192 Equity securities 138 423 Investment in bank subsidiary 348,584 293,415 Other assets 273 19 Total assets $ 350,064 $ 299,049 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 Accrued interest payable 148 Other liabilities 39 $ 39 Stockholders’ equity 316,877 299,010 Total liabilities and stockholders’ equity $ 350,064 $ 299,049 CONDENSED STATEMENTS OF INCOME Year Ended December 31 2020 2019 2018 Income: Dividends from subsidiaries $ 10,518 $ 10,131 $ 9,691 Other income 8 8 72 Net gain realized on sale of equity securities 29 Unrealized holding gains (losses) on equity securities (35) 132 13 Total income 10,520 10,271 9,776 Expense: Interest expense on subordinated debt 1,035 Other expenses 200 145 214 Total expenses 1,235 145 214 Income before taxes and undistributed income 9,285 10,126 9,562 Income tax benefit (255) (1) (27) Income before undistributed income of subsidiaries 9,540 10,127 9,589 Equity in undistributed net income of subsidiaries 19,814 15,609 15,331 Net income $ 29,354 $ 25,736 $ 24,920 condensed Statements of Cash Flows Year Ended December 31 2020 2019 2018 Cash flows from operating activities: Net income $ 29,354 $ 25,736 $ 24,920 Adjustments: Net losses (gains) on investment securities 6 (132) (14) Undistributed net income of subsidiaries (19,814) (15,609) (15,331) Decrease in other assets (255) (302) (106) Increase (decrease) in other liabilities 148 (10) Stock based compensation 570 554 272 Increase in due from subsidiaries 1,974 Net cash provided by operating activities 10,009 12,221 9,731 Cash flows from investing activities: Purchase of equity securities (234) Sale of equity securities 279 Net cash provided by (used in) investing activities 279 (234) Cash flows used in financing activities: Proceeds from subordinated debt 33,000 Investment in subsidiary (30,000) Retirement of stock (6,893) (634) Cash dividends paid (10,518) (10,131) (9,693) Net cash used in financing activities (14,411) (10,765) (9,693) Increase (decrease) in cash (4,123) 1,456 (196) Cash at beginning of year 5,192 3,736 3,932 Cash at end of year $ 1,069 $ 5,192 $ 3,736 |
Regulatory matters
Regulatory matters | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory matters | |
Regulatory matters | 20. Regulatory matters: Dividends are paid by the Parent Company from its assets, which are mainly provided by dividends from Peoples Bank. Under the Pennsylvania Business Corporation Law of 1988, as amended, the Company may not pay a dividend if, after payment, either the Company could not pay its debts as they become due in the usual course of business, or the Company’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: (i) financial statements prepared on the basis of GAAP; (ii) financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or (iii) a fair valuation or other method that is reasonable under the circumstances. In addition, the Federal Reserve Board has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a bank holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.” In addition, under the Pennsylvania Banking Code of 1965, as amended, Peoples Bank may only declare and pay dividends out of accumulated net earnings, or accumulated net earnings acquired as a result of a merger within seven years. Further, Peoples Bank may not declare or pay any dividend unless Peoples Bank’s surplus would not be reduced by the payment of the dividend below 100 percent of our capital stock. Pennsylvania law requires that each year Peoples Bank set aside as surplus, a sum equal to not less than 10 percent of its net earnings if surplus does not equal at least 100 percent of our capital stock. Under federal law and FDIC regulations, an insured bank may not pay dividends if doing so would make it undercapitalized within the meaning of the prompt corrective action law or if in default of its deposit insurance fund assessment. Although subject to the aforementioned regulatory restrictions, the Company’s consolidated retained earnings at December 31, 2020 and 2019 were not restricted under any borrowing agreement as to payment of dividends or reacquisition of common stock. The Company has paid cash dividends since its formation as a bank holding company in 1986. It is the present intention of the Board of Directors to continue this dividend payment policy, however, further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors considers payment of dividends. The amount of funds available for transfer from Peoples Bank to the Company in the form of loans and other extensions of credit is also limited. Under Federal regulation, transfers to any one affiliate are limited to 10.0 percent of capital and surplus. At December 31, 2020, the maximum amount available for transfer from Peoples Bank to the Company in the form of loans amounted to $31,002. At December 31, 2020 and 2019, there were no loans outstanding, nor were any advances made during 2020 and 2019. The Company and Peoples Bank are subject to certain regulatory capital requirements administered by the federal banking agencies, which are defined in Section 38 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Peoples Bank’s consolidated financial statements. In the event an institution is deemed to be undercapitalized by such standards, FDICIA prescribes an increasing amount of regulatory intervention, including the required institution of a capital restoration plan and restrictions on the growth of assets, branches or lines of business. Further restrictions are applied to the significantly or critically undercapitalized institutions including restrictions on interest payable on accounts, dismissal of management and appointment of a receiver. For well capitalized institutions, FDICIA provides authority for regulatory intervention when the institution is deemed to be engaging in unsafe and unsound practices or receives a less than satisfactory examination report rating. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Peoples Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Risk-based capital rules require that banks and holding companies maintain a "capital conservation buffer" of 250 Peoples Bank met the capital requirement for the “well capitalized” category under the regulatory framework for prompt corrective action at December 31, 2020. To be categorized as well capitalized, Peoples Bank must maintain certain minimum Tier I risk-based, total risk-based and Tier I Leverage ratios as set forth in the following tables. The Tier I Leverage ratio is defined as Tier I capital to total average assets less intangible assets. Regulators may assign Peoples Bank to a lower capitalization category based on factors other than capital. The Company and Peoples Bank’s actual capital ratios at December 31, 2020 and 2019, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 250,397 12.16 % $ 92,631 4.50 % Peoples Bank 282,104 13.73 92,461 4.50 $ 133,554 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 250,397 12.16 123,508 6.00 Peoples Bank 282,104 13.73 123,281 6.00 164,374 8.00 Total capital to risk-weighted assets: Consolidated 310,741 15.10 164,677 8.00 Peoples Bank 307,807 14.98 164,374 8.00 205,468 10.00 Tier 1 capital to average assets: Consolidated 250,397 9.28 107,878 4.00 Peoples Bank 282,104 10.08 % 111,891 4.00 % 139,864 5.00 % Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 237,280 11.90 % $ 89,717 4.50 % Peoples Bank 231,685 11.64 89,576 4.50 $ 129,387 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 237,280 11.90 119,623 6.00 Peoples Bank 231,685 11.64 119,434 6.00 159,246 8.00 Total capital to risk-weighted assets: Consolidated 259,957 13.04 159,497 8.00 Peoples Bank 254,362 12.78 159,246 8.00 199,057 10.00 Tier 1 capital to average assets: Consolidated 237,280 10.14 93,633 4.00 Peoples Bank 231,685 9.91 % 93,508 4.00 % 116,884 5.00 % |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Contingencies | |
Contingencies | 21. Contingencies: Neither the Company nor any of its property is subject to any material legal proceedings. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising out of pending and threatened lawsuits will have a material effect on the operating results or financial position of the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | 22. Accumulated Other Comprehensive Income (Loss): The components of accumulated other comprehensive income (loss) included in stockholders’ equity at December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,696 $ 1,835 Income tax 2,036 385 Net of income taxes 7,660 1,450 Benefit plan adjustments (7,977) (6,579) Income tax benefit (1,675) (1,382) Net of income taxes (6,302) (5,197) Derivative adjustments 1,002 687 Income tax 211 144 Net of income taxes 791 543 Accumulated other comprehensive income (loss) $ 2,149 $ (3,205) Other comprehensive income (loss) and related tax effects for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 2019 2018 Unrealized gain (loss) on investment securities available-for-sale $ 8,779 $ 5,109 $ (2,014) Net gain on the sale of investment securities available-for-sale (918) (23) Other comprehensive income on available-for-sale debt securities 7,861 5,086 (2,014) Benefit plans: Amortization of actuarial loss (2) 218 227 194 Actuarial gain (loss) (1,616) 412 (785) Net change in benefit plan liabilities (1,398) 639 (591) Net change in derivatives 315 441 246 Other comprehensive loss before taxes 6,778 6,166 (2,359) Income tax (benefit) 1,424 1,295 (496) Other comprehensive income (loss) $ 5,354 $ 4,871 $ (1,863) (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 17 included in these consolidated financial statements. |
Summary of quarterly financial
Summary of quarterly financial information (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of quarterly financial information (unaudited) | |
Summary of quarterly financial information (unaudited) | 23. Summary of quarterly financial information (unaudited): 2020 Quarter Ended March 31 June 30 Sept. 30 Dec. 31 Interest income $ 23,842 $ 23,852 $ 23,346 $ 23,085 Interest expense 4,281 3,345 3,422 3,276 Net interest income 19,561 20,507 19,924 19,809 Provision for loan losses 3,500 1,800 1,050 1,050 Net interest income after provision for loan losses 16,061 18,707 18,874 18,759 Noninterest income 3,550 3,422 4,935 4,735 Noninterest expense 13,651 13,242 13,974 14,001 Income before income taxes 5,960 8,887 9,835 9,493 Income tax expense 679 1,311 1,523 1,308 Net income $ 5,281 $ 7,576 $ 8,312 $ 8,185 Per share data: Net income - basic $ 0.72 $ 1.03 $ 1.14 $ 1.13 Net income - diluted 0.71 1.03 1.13 1.13 Cash dividends declared $ 0.36 $ 0.36 $ 0.36 $ 0.36 Average common shares outstanding - basic 7,379,438 7,341,636 7,277,189 7,222,810 Average common shares outstanding - diluted 7,405,703 7,376,700 7,312,253 7,257,874 2019 Quarter Ended March 31 June 30 Sept. 30 Dec. 31 Interest income $ 22,801 $ 23,332 $ 23,632 $ 23,616 Interest expense 4,504 4,604 4,396 4,364 Net interest income 18,297 18,728 19,236 19,252 Provision for loan losses 1,050 350 700 4,000 Net interest income after provision for loan losses 17,247 18,378 18,536 15,252 Noninterest income 3,416 4,152 3,682 3,870 Noninterest expense 13,490 14,429 14,079 13,644 Income before income taxes 7,173 8,101 8,139 5,478 Income tax expense 761 957 991 446 Net income $ 6,412 $ 7,144 $ 7,148 $ 5,032 Per share data: Net income - basic $ 0.87 $ 0.96 $ 0.97 $ 0.68 Net income - diluted 0.87 0.96 0.96 0.68 Cash dividends declared $ 0.34 $ 0.34 $ 0.34 $ 0.35 Average common shares outstanding - basic 7,379,438 7,399,302 7,394,992 7,388,488 Average common shares outstanding - diluted 7,408,536 7,413,114 7,417,403 7,410,899 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Nature of operations | Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. |
Basis of presentation | Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding Peoples Financial Services Corp. (“Parent Company”). Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2020, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Estimates | Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, the valuation of derivative instruments, determination of other-than-temporary impairment losses on securities and impairment of goodwill. Actual results could differ from those estimates. |
Investment securities | Investment securities: Investment securities are classified and accounted for as either held-to-maturity or available-for-sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings and the non-credit related component included in other comprehensive income or loss. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Loans held for sale | Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. |
Loans, net | Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. Transfers of financial assets, which include loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company; (ii) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans are generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company has generally required that the properties securing these real estate loans have debt service coverage ratios, which is net cash flow before debt service to debt service, of at least Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans. |
Off-balance sheet financial instruments | Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. |
Nonperforming assets | Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days 90 days Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loans is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. |
Allowance for loan losses | Allowance for loan losses: The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and loans deemed impaired at the time of acquisition are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses and charged-off when they are 120 days past due. Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. The allowance for loan losses consists of an allocated element and an unallocated element. The allocated element consists of a specific allowance for impaired loans individually evaluated and a formula portion for loss contingencies on those loans collectively evaluated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. If the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent, is less than the recorded investment in the loan, a specific allowance for the loan will be established. The formula portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus qualitative factors, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by qualitative factors that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition, pandemics and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses inherent in the loan portfolio as of December 31, 2020. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The following is a discussion of revenues within the scope of the guidance: ● Service charges, fees, commissions and other . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. ● Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided. ● Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided. ● Merchant services income . Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. |
Premises and equipment, net | Premises and equipment, net: Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: Premises and leasehold improvements 7 Furniture, fixtures and equipment 3 |
Goodwill and other intangible assets, net | Goodwill and other intangible assets, net: The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years. Goodwill and other intangible assets are tested for impairment annually or when circumstances arise indicating impairment may have occurred. In making this assessment that impairment has occurred, management considers a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of impairment. Changes in economic and operating conditions, as well as other factors, could result in impairment in future periods. Any impairment losses arising from such testing would be reported in the consolidated statements of income and comprehensive income as a separate line item within operations. There were no impairment losses recognized as a result of periodic impairment testing in each of the three-years ended December 31, 2020. |
Mortgage servicing rights | Mortgage servicing rights: Mortgage servicing rights are recognized as a separate asset when acquired through sales of loan originations. The Company determines a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value. |
Restricted equity securities | Restricted equity securities: As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or transferred to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets. |
Bank owned life insurance | Bank owned life insurance: The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance on certain employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from increases in cash surrender value of the policies is included in noninterest income. The policies can be liquidated, if necessary, with associated tax costs. However, the Company intends to hold these policies and, accordingly, the Company has not provided for income taxes on the earnings from the increase in cash surrender value. |
Pension and post-retirement benefit plans | Pension and post-retirement benefit plans: The Company sponsors a separate Employee Stock Ownership Plan (“ESOP”) and Retirement Profit Sharing 401(k) Plan and maintains Supplemental Executive Retirement Plans (“SERPs”) and an employee pension plan, which is currently frozen. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices. |
Statements of Cash Flows | Statements of Cash Flows: Cash and cash equivalents include cash on hand, cash items in the process of collection, noninterest-bearing and interest-bearing deposits in other banks and federal funds sold. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company has elected to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Fair value of financial instruments | Fair value of financial instruments: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: ● Level 1: Unadjusted quoted prices of 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. The following methods and assumptions were used by the Company to construct the summary table in Note 14 containing the fair values and related carrying amounts of financial instruments measured at fair value: |
Investment securities | Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices. |
Impaired loans | Impaired loans: |
Interest rate swaps and floors | Interest rate swaps and floors: |
Advertising | Advertising: The Company follows the policy of charging marketing and advertising costs to expense as incurred. Advertising expense for the years ended December 31, 2020, 2019 and 2018 was $462, $873 and $720, respectively. |
Income taxes | Income taxes: Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2020. As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various state jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2017. |
Other comprehensive income (loss) | Other comprehensive income (loss): The components of other comprehensive income (loss) and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale, the net change in derivative fair value and the unfunded benefit plan amounts which include prior service costs and unrealized net losses. |
Earnings per share | Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to awards of restricted stock units, and are determined using the treasury stock method. 2020 2019 2018 For the Year Ended December 31 Basic Diluted Basic Diluted Basic Diluted Net income $ 29,354 $ 29,354 $ 25,736 $ 25,736 $ 24,920 $ 24,920 Average common shares outstanding 7,304,956 7,337,843 7,395,429 7,412,369 7,397,797 7,402,900 Earnings per share $ 4.02 $ 4.00 $ 3.48 $ 3.47 $ 3.37 $ 3.37 |
Stock-based compensation | Stock-based compensation: The Company recognizes all share-based payments to employees in the consolidated statements of income and comprehensive income based on their fair values. The fair value of such equity instruments is recognized as an expense in the consolidated financial statements as services are performed. The Company has granted restricted stock awards and units to employees at a price equal to the fair value of the shares underlying the awards at the date of grant. The fair value of restricted stock awards and units are equivalent to the fair value on the date of grant and is amortized over the vesting period. |
Recent accounting standards | Recent accounting standards: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU will have a material impact on the Company’s calculation and accounting for its allowance for loan losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: ● The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. ● The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. ● This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignifcant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. ● In November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. The Company qualified as a smaller reporting company at that time and therefore guidance is effective for the Company in 2023. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, which provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on its disclosures to the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for the Company on January 1, 2021. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company adopted the amendments in ASU 2020-04 as of the March 12, 2020 issuance date, on a prospective basis. The adoption did not have an immediate direct impact to the consolidated financial statements. As contracts are modified through December 2022, we will assess the impact based on this guidance. The Company does not expect there will be a material impact to the consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs. ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of the guidance of premium amortization of purchased callable debt securities, at each reporting date. If there is no remaining premium or if there are no further call dates the Company shall reset the effective yield using the payment terms of the debt security. ASU 2020-08 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020 and early application is not permitted. The guidance is not expected to have a material impact on the consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Schedule of estimated useful life of related assets | Premises and leasehold improvements 7 Furniture, fixtures and equipment 3 |
Schedule of earnings per share | 2020 2019 2018 For the Year Ended December 31 Basic Diluted Basic Diluted Basic Diluted Net income $ 29,354 $ 29,354 $ 25,736 $ 25,736 $ 24,920 $ 24,920 Average common shares outstanding 7,304,956 7,337,843 7,395,429 7,412,369 7,397,797 7,402,900 Earnings per share $ 4.02 $ 4.00 $ 3.48 $ 3.47 $ 3.37 $ 3.37 |
Investment securities (Tables)
Investment securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities aggregated by investment category | Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,478 $ 427 $ 18,905 U.S. government-sponsored enterprises 63,834 1,354 65,188 State and municipals: Taxable 53,297 2,099 $ 30 55,366 Tax-exempt 53,977 3,054 37 56,994 Residential mortgage-backed securities: U.S. government agencies 3,553 154 3,707 U.S. government-sponsored enterprises 79,457 1,930 136 81,251 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,619 881 13,500 Corporate debt securities 1,000 1,000 Total $ 286,215 $ 9,899 $ 203 $ 295,911 Held-to-maturity: Tax-exempt state and municipals $ 6,849 $ 275 $ $ 7,124 Residential mortgage-backed securities: U.S. government agencies 21 21 U.S. government-sponsored enterprises 355 13 368 Total $ 7,225 $ 288 $ $ 7,513 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 $ 162 $ 24,128 U.S. government-sponsored enterprises 87,156 181 $ 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889 |
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position | Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 9,246 $ 30 $ $ $ 9,246 $ 30 Tax-exempt 6,786 37 6,786 37 Residential mortgage-backed securities: U.S. government-sponsored enterprises 11,553 135 284 1 11,837 136 Total $ 27,585 $ 202 $ 284 $ 1 $ 27,869 $ 203 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153 |
Summary of unrealized and realized gains and losses | Year Ended December 31, 2020 2019 Net gain (loss) recognized during the period on equity securities $ (6) $ 132 Less: Net gain (loss) recognized during the period on equity securities sold during the period 29 Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ (35) $ 132 |
Available-for-Sale Securities. | |
Investment Securities | |
Schedule of maturity distribution of fair value | Fair December 31, 2020 Value Within one year $ 37,351 After one but within five years 49,444 After five but within ten years 22,799 After ten years 84,357 193,951 Mortgage-backed and other amortizing securities 101,960 Total $ 295,911 |
Held-to-maturity Securities. | |
Investment Securities | |
Schedule of maturity distribution of fair value | Amortized Fair December 31, 2020 Cost Value Within one year $ 175 $ 178 After five but within ten years 324 344 After ten years 6,350 6,602 6,849 7,124 Mortgage-backed securities 376 389 Total $ 7,225 $ 7,513 |
Loans, net and allowance for _2
Loans, net and allowance for loan losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans, net and allowance for loan losses | |
Schedule of major classifications of loans outstanding | December 31, 2020 December 31, 2019 Commercial $ 679,286 $ 522,957 Real estate: Commercial 1,137,990 1,011,423 Residential 277,414 301,378 Consumer 83,292 102,482 Total $ 2,177,982 $ 1,938,240 |
Schedule of changes in allowance for loan losses account by major classification of loans | Real estate December 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (2,771) (144) (247) (317) (3,479) Recoveries 525 16 57 148 746 Provisions 4,092 3,191 93 24 7,400 Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 111 9,906 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,181 $ 2,168,076 Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (3,314) (817) (477) (459) (5,067) Recoveries 69 1 29 166 265 Provisions 4,617 1,576 (218) 125 6,100 Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120 Real estate |
Schedule of major classification of loans portfolio summarized by credit quality | Special December 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 660,559 $ 14,305 $ 4,422 $ $ 679,286 Real estate: Commercial 1,107,699 17,517 12,774 1,137,990 Residential 274,327 144 2,943 277,414 Consumer 83,215 77 83,292 Total $ 2,125,800 $ 31,966 $ 20,216 $ $ 2,177,982 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240 |
Schedule of information concerning nonaccrual loans by major loan classification | December 31, 2020 December 31, 2019 Commercial $ 3,822 $ 3,336 Real estate: Commercial 3,262 2,765 Residential 922 1,148 Consumer 111 261 Total $ 8,117 $ 7,510 |
Schedule of major classifications of loans by past due status | Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 73 $ 3,822 $ 3,895 $ 675,391 $ 679,286 Real estate: Commercial 344 $ 134 3,262 3,740 1,134,250 1,137,990 Residential 2,072 480 993 3,545 273,869 277,414 $ 71 Consumer 374 63 111 548 82,744 83,292 Total $ 2,863 $ 677 $ 8,188 $ 11,728 $ 2,166,254 $ 2,177,982 $ 71 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 $ 175 2,765 3,866 1,007,557 1,011,423 Residential 2,164 1,227 1,526 4,917 296,461 301,378 $ 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378 |
Summarized information concerning impaired loans | For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,562 $ 1,900 $ 1,318 $ 67 Real estate: Commercial 1,969 2,299 2,822 28 Residential 1,970 2,658 2,193 22 Consumer 152 160 135 Total 5,653 7,017 6,468 117 With an allowance recorded: Commercial 675 675 $ 50 1,006 30 Real estate: Commercial 1,152 1,323 403 1,676 18 Residential 2,101 2,328 666 1,585 22 Consumer 60 60 60 21 Total 3,988 4,386 1,179 4,288 70 Total impaired loans Commercial 2,237 2,575 50 2,324 97 Real estate: Commercial 3,121 3,622 403 4,498 46 Residential 4,071 4,986 666 3,778 44 Consumer 212 220 60 156 Total $ 9,641 $ 11,403 $ 1,179 $ 10,756 $ 187 |
Summary loans whose terms have been modified resulting in troubled debt restructurings | Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2020 of Contracts Investment Recorded Investment Investment Commercial 1 $ 12 $ 12 $ 5 Commercial real estate 3 1,073 1,073 1,046 Total 4 $ 1,085 $ 1,085 $ 1,051 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2019 of Contracts Investment Recorded Investment Investment Commercial real estate 1 $ 346 $ 346 $ 241 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded December 31, 2018 of Contracts Investment Recorded Investment Investment Commercial real estate 1 $ 340 $ 340 $ 340 |
Schedule of payment deferrals granted on commercial loans | Percentage Percentage Number of Total of Tier 1 of Loan Capital December 31, 2020 NAICS category Loans Balance Portfolio (Bank) Lessors of Residential Buildings and Dwellings 3 $ 143 0.1 % Full-Service Restaurants 3 1,961 0.1 % 0.8 General Automotive Repair 1 1,459 0.1 0.6 School and Employee Bus Transportation 1 725 0.3 All Others 10 1,508 0.1 0.6 18 $ 5,796 0.3 % 2.3 % Percentage Percentage Number of Total of Tier 1 of Loan Capital 2020 NAICS category Loans Balance Portfolio (Bank) Lessors of Nonresidential Buildings 65 $ 71,899 3.3 % 26.9 % Lessors of Residential Buildings and Dwellings 64 53,564 2.5 19.9 Hotels and Motels 27 39,261 1.8 14.5 Full-Service Restaurants 33 27,783 1.3 10.3 Limited-Service Restaurants 8 11,829 0.5 4.4 Gasoline Stations with Convenience Stores 18 12,422 0.6 4.6 Construction and Mining 13 9,718 0.4 3.6 Assisted Living Facilities for the Elderly 2 6,319 0.3 2.3 Colleges, Universities, and Professional Schools 1 6,301 0.3 2.3 All Others 248 67,674 3.1 24.9 479 $ 306,770 14.1 % 113.7 % |
Off-balance sheet financial i_2
Off-balance sheet financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Off-balance sheet financial instruments. | |
Summary of contractual amounts of off-balance sheet commitments | December 31 2020 2019 Commitments to extend credit $ 336,667 $ 290,517 Unused portions of lines of credit 55,391 52,168 Standby letters of credit 34,428 45,018 $ 426,486 $ 387,703 |
Premises and equipment, net (Ta
Premises and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Premises and equipment, net | |
Summary of premises and equipment | December 31 2020 2019 Land $ 5,217 $ 5,535 Premises and leasehold improvements 48,596 47,705 Right-of-use assets 6,282 6,125 Furniture, fixtures and equipment 18,395 17,422 78,490 76,787 Less: accumulated depreciation 31,445 28,855 $ 47,045 $ 47,932 |
Operating lease commitments a_2
Operating lease commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating lease commitments and contingencies | |
Summary of future minimum annual rent commitments under various operating leases | 2021 $ 611 2022 618 2023 560 2024 488 2025 504 Thereafter 5,500 Total future minimum lease payments 8,281 Less amount representing interest (1,856) Present value of future minimum lease payments $ 6,425 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets, net | |
Summary of estimated amortization expense on intangible assets | 2021 $ 491 2022 363 2023 106 Total $ 960 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Schedule of components of other assets | December 31, 2020 December 31, 2019 Other real estate owned $ 864 $ 450 Investment in low income housing partnership 6,332 6,901 Mortgage servicing rights 838 738 Restricted equity securities (FHLB and other) 5,397 10,201 Net deferred tax asset 3,768 3,362 Interest rate floor 1,678 944 Interest rate swaps 13,693 4,728 Other assets 6,345 6,855 Total $ 38,915 $ 34,179 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits. | |
Summary of major components of interest-bearing and noninterest-bearing deposits | At the period end December 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 496,634 $ 365,463 Now accounts 567,087 402,999 Savings accounts 431,224 370,270 Time deposits less than $250 221,446 231,450 Time deposits $250 or more 98,247 138,069 Total interest-bearing deposits 1,814,638 1,508,251 Noninterest-bearing deposits 622,475 463,238 Total deposits $ 2,437,113 $ 1,971,489 |
Schedule of aggregate amounts of maturities for all time deposits | 2021 $ 223,247 2022 40,093 2023 22,905 2024 15,099 2025 7,316 Thereafter 11,033 $ 319,693 |
Short-term borrowings (Tables)
Short-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term borrowings | |
Summary of short-term borrowings | At and for the year ended December 31, 2020 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate December 31,2020 FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 % At and for the year ended December 31, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 86,500 $ 133,834 $ 189,275 2.05 % 2.62 % |
Schedule of long-term debt consisting of advances | Interest Rate Due Fixed December 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 June 2020 2.22 6,000 December 2020 1.84 $ 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 4,769 6,733 $ 14,769 $ 32,733 |
Schedule of maturities of long-term debt | 2021 $ 12,058 2022 2,156 2023 555 $ 14,769 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debt. | |
Schedule of long-term debt consisting of advances | Interest Rate Due Fixed December 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 June 2020 2.22 6,000 December 2020 1.84 $ 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 4,769 6,733 $ 14,769 $ 32,733 |
Schedule of maturities of long-term debt | 2021 $ 12,058 2022 2,156 2023 555 $ 14,769 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair value of financial instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,905 $ 18,905 $ U.S. government-sponsored enterprises 65,188 $ 65,188 State and municipals: Taxable 55,366 55,366 Tax-exempt 56,994 56,994 Mortgage-backed securities: U.S. government agencies 3,707 3,707 U.S. government-sponsored enterprises 94,751 94,751 Corporate debt securities 1,000 1,000 Common equity securities 138 138 Loan held for sale 837 837 Interest rate floor-other assets 1,678 1,678 Interest rate swap-other assets 13,693 13,693 Interest rate swap-other liabilities (14,099) (14,099) Total $ 298,158 $ 19,043 $ 279,115 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $ |
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,884 $ 2,884 Other real estate owned $ 527 $ 527 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,884 Appraisal of collateral Appraisal adjustments 9.0% to 97.0% (28.2)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 527 Appraisal of collateral Appraisal adjustments 3.1% to 58.1% (29.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% Liquidation expenses 3.0% to 6.0% (5.0)% |
Schedule of carrying and fair values of financial instruments | Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 228,192 $ 228,192 $ 228,192 Investment securities: Available-for-sale 295,911 295,911 18,905 $ 277,006 Common equity securities 138 138 138 Held-to-maturity 7,225 7,513 7,513 Loans held for sale 837 837 837 Net loans 2,150,638 2,145,752 $ 2,145,752 Accrued interest receivable 8,255 8,255 8,255 Mortgage servicing rights 838 1,269 1,269 Restricted equity securities (FHLB and other) 5,397 5,397 5,397 Interest rate floor 1,678 1,678 1,678 Interest rate swaps 13,693 13,693 13,693 Total $ 2,712,802 $ 2,708,635 Financial liabilities: Deposits $ 2,437,113 $ 2,441,014 $ 2,441,014 Long-term debt 14,769 15,073 15,073 Subordinated debentures 33,000 33,096 33,096 Accrued interest payable 736 736 736 Interest rate swaps 14,099 14,099 14,099 Total $ 2,499,717 $ 2,504,018 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116 |
Derivatives and hedging activ_2
Derivatives and hedging activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives and hedging activities | |
Schedule of fair value of derivative financial instruments and balance sheet classification | Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of December 31, 2020 As of December 31, 2019 (1) As of December 31, 2020 As of December 31, 2019 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,678 Other Assets $ 944 Cash Flow Swap $ 50,000 Other Liabilities $ 485 Total derivatives designated as hedging instruments $ 1,678 $ 944 $ 485 Derivatives not Interest Rate Swaps (3) $ 375,341 Other Assets $ 13,693 Other Assets $ 4,728 Other Liabilities $ 13,614 Other Liabilities $ 4,680 Total derivatives not $ 13,693 $ 4,728 $ 13,614 $ 4,680 (1) Assets amount does not include accrued interest receivable of $235 (2) Liabilities amount does not include accrued interest payable of $235 (3) Notional amount of interest rate swaps at December 31, 2019 $172,096 |
Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income | Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Loss Recognized from Gain (Loss) Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships December 31, 2020 Income December 31, 2020 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ 71 $ 71 Interest Expense $ (40) $ (40) Interest Rate Floor (*) $ (18) $ (17) $ (1) Interest Income $ 134 $ 150 $ (16) Total $ 53 $ 54 $ (1) $ 94 $ 110 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships December 31, 2019 Income December 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 192 $ 196 $ (4) Interest Income $ 26 $ 42 $ (16) * Amounts disclosed are gross and not net of taxes. |
Schedule of effect of derivative financial instruments on Income Statement | Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2020 2019 2019 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 134 $ (40) $ 26 The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 134 $ (40) $ 26 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component $ 150 $ 42 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (16) |
Schedule of gain (loss) on derivative instruments not designated as hedging instruments | Amount of Gain Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Twelve Months Ended Twelve Months Ended Derivatives Not Designated as Hedging Instruments Derivative December 31, 2020 December 31, 2019 Interest Rate Swaps Interest rate swap revenue $ 31 $ 77 Fee Income Interest rate swap revenue $ 2,290 $ 1,713 |
Schedule of offsetting derivatives | Offsetting of Derivative Assets as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 15,371 $ $ 15,371 $ $ 15,371 Offsetting of Derivative Liabilities as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,099 $ $ 14,099 $ $ 14,099 Offsetting of Derivative Assets as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,680 $ $ 4,680 $ $ 4,680 |
Stock plans (Tables)
Stock plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock plans | |
Schedule of activity related to restricted stock | Year Ended December 31 2020 2019 2018 Nonvested, January 1 25,984 12,892 1,538 Granted shares 16,269 17,345 11,468 Vested shares 8,455 2,542 114 Forfeited shares 1,875 1,711 Nonvested, December 31 31,923 25,984 12,892 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefit plans | |
Summary of pension and postretirement life insurance plans | Pension Benefits December 31 2020 2019 Change in benefit obligation: Benefit obligation, beginning $ 17,491 $ 16,338 Interest cost 544 639 Change in experience gain (291) 96 Change in actuarial assumptions loss 2,159 1,221 Benefits paid (790) (803) Benefit obligation, ending 19,113 17,491 Change in plan assets: Fair value of plan assets, beginning 16,930 14,919 Actual return on plan assets 1,488 2,814 Employer contributions Benefits paid (790) (803) Fair value of plan assets, ending 17,628 16,930 Funded status at end of year $ (1,485) $ (561) |
Schedule of amounts recognized in balance sheet | Pension Benefits December 31 2020 2019 Liabilities $ 1,485 $ 561 Amounts recognized in the accumulated other comprehensive loss consist of: Net actuarial gain (7,977) (6,579) Deferred taxes 1,675 1,382 Net amount recognized $ (6,302) $ (5,197) |
Schedule of components of net periodic benefit cost | Pension Benefits Years Ended December 31, 2020 2019 2018 Net periodic pension income: Interest cost $ 544 $ 639 $ 623 Expected return on plan assets (1,236) (1,084) (960) Amortization of unrecognized net loss 218 227 194 Net periodic pension income: (474) (218) (143) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 544 639 (590) Deferred tax (114) (134) 124 Total recognized in other comprehensive income (loss) 430 505 (466) Total recognized in net period pension cost and other comprehensive income (loss) $ (44) $ 287 $ (609) |
Schedule of weighted-average assumptions used to determine benefit obligations and related expenses | Pension Benefits December 31, 2020 2019 2018 Discount rate: Obligation 2.25 % 3.25 % 4.00 % Expense 3.25 4.00 3.75 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % |
Schedule of pension plan weighted-average asset allocations | December 31, 2020 2019 Asset Category: Cash and cash equivalents 6.8 % 6.2 % Equity securities 63.3 61.9 Corporate bonds 20.7 20.6 U.S. government securities 9.2 11.3 100.0 % 100.0 % |
Schedule of fair value measurement of pension plan assets | Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs December 31, 2020 Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,203 $ 1,203 $ Equity securities: U.S. large cap 10,266 10,266 International 888 888 Fixed income securities: U.S. Treasuries 216 $ 216 U.S. government agencies 1,400 1,400 Corporate bonds 3,655 3,655 Total $ 17,628 $ 12,357 $ 5,271 $ Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs December 31, 2019 Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,053 $ 1,053 $ Equity securities: U.S. large cap 9,663 9,663 International 817 817 Fixed income securities: U.S. Treasuries 202 $ 202 U.S. government agencies 1,713 1,713 Corporate bonds 3,482 3,482 Total $ 16,930 $ 11,533 $ 5,397 $ |
Schedule of expected benefit payments | Pension Benefits 2021 $ 840 2022 878 2023 896 2024 948 2025 970 Thereafter 5,019 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Schedule of current and deferred amounts of the provision for income taxes expense (benefit0 | Year Ended December 31 2020 2019 2018 Current $ 6,600 $ 2,761 $ 4,072 Deferred (1,779) 394 (681) Total $ 4,821 $ 3,155 $ 3,391 |
Schedule of the components of the net deferred tax asset | December 31 2020 2019 Deferred tax assets: Allowance for loan losses $ 5,742 $ 4,762 Lease liability 1,349 1,301 Defined benefit plan 1,108 815 Deferred compensation 789 682 Deferred loan fees 1,368 525 Other 170 137 Total 10,526 8,222 Deferred tax liabilities: Lease right-of-use assets 1,319 1,286 Premises and equipment, net 1,455 1,350 Merger related accounting 694 850 Deferred loan costs 936 716 Investment securities available-for-sale 2,033 416 Other 321 242 Total 6,758 4,860 Net deferred tax asset $ 3,768 $ 3,362 |
Schedule of the reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate | 2020 2019 2018 Year Ended December 31 Amount % Amount % Amount % Federal income tax at statutory rate $ 7,177 21.00 % $ 6,067 21.00 % $ 5,945 21.00 % Effect of federal income tax rate changes (Note 1) Tax exempt interest (1,032) (3.02) (1,299) (4.50) (1,320) (4.66) Bank owned life insurance income (299) (0.87) (159) (0.55) (236) (0.83) Residential housing program tax credits (1,094) (3.20) (1,094) (3.79) (1,094) (3.87) Other, net 69 0.19 (360) (1.25) 96 0.34 Total $ 4,821 14.10 % $ 3,155 10.91 % $ 3,391 11.98 % |
Parent Company financial stat_2
Parent Company financial statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company financial statements | |
Condensed Balance Sheets | December 31 2020 2019 Assets: Cash and cash equivalents $ 1,069 $ 5,192 Equity securities 138 423 Investment in bank subsidiary 348,584 293,415 Other assets 273 19 Total assets $ 350,064 $ 299,049 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 Accrued interest payable 148 Other liabilities 39 $ 39 Stockholders’ equity 316,877 299,010 Total liabilities and stockholders’ equity $ 350,064 $ 299,049 |
Condensed Statements of Income and Comprehensive Income | Year Ended December 31 2020 2019 2018 Income: Dividends from subsidiaries $ 10,518 $ 10,131 $ 9,691 Other income 8 8 72 Net gain realized on sale of equity securities 29 Unrealized holding gains (losses) on equity securities (35) 132 13 Total income 10,520 10,271 9,776 Expense: Interest expense on subordinated debt 1,035 Other expenses 200 145 214 Total expenses 1,235 145 214 Income before taxes and undistributed income 9,285 10,126 9,562 Income tax benefit (255) (1) (27) Income before undistributed income of subsidiaries 9,540 10,127 9,589 Equity in undistributed net income of subsidiaries 19,814 15,609 15,331 Net income $ 29,354 $ 25,736 $ 24,920 |
Condensed Statements of Cash Flows | Year Ended December 31 2020 2019 2018 Cash flows from operating activities: Net income $ 29,354 $ 25,736 $ 24,920 Adjustments: Net losses (gains) on investment securities 6 (132) (14) Undistributed net income of subsidiaries (19,814) (15,609) (15,331) Decrease in other assets (255) (302) (106) Increase (decrease) in other liabilities 148 (10) Stock based compensation 570 554 272 Increase in due from subsidiaries 1,974 Net cash provided by operating activities 10,009 12,221 9,731 Cash flows from investing activities: Purchase of equity securities (234) Sale of equity securities 279 Net cash provided by (used in) investing activities 279 (234) Cash flows used in financing activities: Proceeds from subordinated debt 33,000 Investment in subsidiary (30,000) Retirement of stock (6,893) (634) Cash dividends paid (10,518) (10,131) (9,693) Net cash used in financing activities (14,411) (10,765) (9,693) Increase (decrease) in cash (4,123) 1,456 (196) Cash at beginning of year 5,192 3,736 3,932 Cash at end of year $ 1,069 $ 5,192 $ 3,736 |
Regulatory matters (Tables)
Regulatory matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory matters | |
Schedule of actual capital ratios and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions | Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 250,397 12.16 % $ 92,631 4.50 % Peoples Bank 282,104 13.73 92,461 4.50 $ 133,554 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 250,397 12.16 123,508 6.00 Peoples Bank 282,104 13.73 123,281 6.00 164,374 8.00 Total capital to risk-weighted assets: Consolidated 310,741 15.10 164,677 8.00 Peoples Bank 307,807 14.98 164,374 8.00 205,468 10.00 Tier 1 capital to average assets: Consolidated 250,397 9.28 107,878 4.00 Peoples Bank 282,104 10.08 % 111,891 4.00 % 139,864 5.00 % Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 237,280 11.90 % $ 89,717 4.50 % Peoples Bank 231,685 11.64 89,576 4.50 $ 129,387 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 237,280 11.90 119,623 6.00 Peoples Bank 231,685 11.64 119,434 6.00 159,246 8.00 Total capital to risk-weighted assets: Consolidated 259,957 13.04 159,497 8.00 Peoples Bank 254,362 12.78 159,246 8.00 199,057 10.00 Tier 1 capital to average assets: Consolidated 237,280 10.14 93,633 4.00 Peoples Bank 231,685 9.91 % 93,508 4.00 % 116,884 5.00 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive loss | December 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,696 $ 1,835 Income tax 2,036 385 Net of income taxes 7,660 1,450 Benefit plan adjustments (7,977) (6,579) Income tax benefit (1,675) (1,382) Net of income taxes (6,302) (5,197) Derivative adjustments 1,002 687 Income tax 211 144 Net of income taxes 791 543 Accumulated other comprehensive income (loss) $ 2,149 $ (3,205) |
Schedule of other comprehensive income (loss) and related tax effects | Other comprehensive income (loss) and related tax effects for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 2019 2018 Unrealized gain (loss) on investment securities available-for-sale $ 8,779 $ 5,109 $ (2,014) Net gain on the sale of investment securities available-for-sale (918) (23) Other comprehensive income on available-for-sale debt securities 7,861 5,086 (2,014) Benefit plans: Amortization of actuarial loss (2) 218 227 194 Actuarial gain (loss) (1,616) 412 (785) Net change in benefit plan liabilities (1,398) 639 (591) Net change in derivatives 315 441 246 Other comprehensive loss before taxes 6,778 6,166 (2,359) Income tax (benefit) 1,424 1,295 (496) Other comprehensive income (loss) $ 5,354 $ 4,871 $ (1,863) (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 17 included in these consolidated financial statements. |
Summary of quarterly financia_2
Summary of quarterly financial information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of quarterly financial information (unaudited) | |
Summary of quarterly financial information | 2020 Quarter Ended March 31 June 30 Sept. 30 Dec. 31 Interest income $ 23,842 $ 23,852 $ 23,346 $ 23,085 Interest expense 4,281 3,345 3,422 3,276 Net interest income 19,561 20,507 19,924 19,809 Provision for loan losses 3,500 1,800 1,050 1,050 Net interest income after provision for loan losses 16,061 18,707 18,874 18,759 Noninterest income 3,550 3,422 4,935 4,735 Noninterest expense 13,651 13,242 13,974 14,001 Income before income taxes 5,960 8,887 9,835 9,493 Income tax expense 679 1,311 1,523 1,308 Net income $ 5,281 $ 7,576 $ 8,312 $ 8,185 Per share data: Net income - basic $ 0.72 $ 1.03 $ 1.14 $ 1.13 Net income - diluted 0.71 1.03 1.13 1.13 Cash dividends declared $ 0.36 $ 0.36 $ 0.36 $ 0.36 Average common shares outstanding - basic 7,379,438 7,341,636 7,277,189 7,222,810 Average common shares outstanding - diluted 7,405,703 7,376,700 7,312,253 7,257,874 2019 Quarter Ended March 31 June 30 Sept. 30 Dec. 31 Interest income $ 22,801 $ 23,332 $ 23,632 $ 23,616 Interest expense 4,504 4,604 4,396 4,364 Net interest income 18,297 18,728 19,236 19,252 Provision for loan losses 1,050 350 700 4,000 Net interest income after provision for loan losses 17,247 18,378 18,536 15,252 Noninterest income 3,416 4,152 3,682 3,870 Noninterest expense 13,490 14,429 14,079 13,644 Income before income taxes 7,173 8,101 8,139 5,478 Income tax expense 761 957 991 446 Net income $ 6,412 $ 7,144 $ 7,148 $ 5,032 Per share data: Net income - basic $ 0.87 $ 0.96 $ 0.97 $ 0.68 Net income - diluted 0.87 0.96 0.96 0.68 Cash dividends declared $ 0.34 $ 0.34 $ 0.34 $ 0.35 Average common shares outstanding - basic 7,379,438 7,399,302 7,394,992 7,388,488 Average common shares outstanding - diluted 7,408,536 7,413,114 7,417,403 7,410,899 |
Summary of significant accoun_4
Summary of significant accounting policies - Nature of operations and Basis of presentation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)Office | |
Summary of significant accounting policies | |
Number of full-service community banking offices | Office | 26 |
Reclassification of prior period items amounts effect on net income | $ | $ 0 |
Summary of significant accoun_5
Summary of significant accounting policies - Loans, net (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable | |
Debt service coverage ratio | 1.2 |
Commercial Real Estate | |
Accounts, Notes, Loans and Financing Receivable | |
Maximum loan to value percentage | 80.00% |
Residential Mortgage | Maximum | |
Accounts, Notes, Loans and Financing Receivable | |
Maximum amortization period | 30 years |
Summary of significant accoun_6
Summary of significant accounting policies - Nonperforming assets and Allowance for loan losses (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Non performing loans past due period for Non-accrual status | 90 days |
Minimum contractual terms of a loan | 6 months |
Maximum days of consumer loans past due | 120 days |
Summary of significant accoun_7
Summary of significant accounting policies - Premises and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Premises and leasehold improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, estimated useful life | 7 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, estimated useful life | 3 years |
Maximum | Premises and leasehold improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, estimated useful life | 40 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, estimated useful life | 10 years |
Summary of significant accoun_8
Summary of significant accounting policies - Goodwill and other intangible assets, net; Advertising (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Impairment losses on intangible assets | $ 0 | $ 0 | $ 0 |
Advertising expense | $ 462 | $ 873 | $ 720 |
Maximum | |||
Goodwill | |||
Finite useful life of intangible assets | 10 years |
Summary of significant accoun_9
Summary of significant accounting policies - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of significant accounting policies | |||
Income tax benefit recognition threshold | 50.00% | ||
Unrecognized tax benefit or accrued interest and penalties | $ 0 | $ 0 | $ 0 |
Summary of significant accou_10
Summary of significant accounting policies - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share | |||||||||||
Net income, Basic | $ 29,354 | $ 25,736 | $ 24,920 | ||||||||
Average common shares outstanding - basic | 7,222,810 | 7,277,189 | 7,341,636 | 7,379,438 | 7,388,488 | 7,394,992 | 7,399,302 | 7,379,438 | 7,304,956 | 7,395,429 | 7,397,797 |
Net income - basic | $ 1.13 | $ 1.14 | $ 1.03 | $ 0.72 | $ 0.68 | $ 0.97 | $ 0.96 | $ 0.87 | $ 4.02 | $ 3.48 | $ 3.37 |
Diluted earnings per share | |||||||||||
Net income, Diluted | $ 29,354 | $ 25,736 | $ 24,920 | ||||||||
Average common shares outstanding - diluted | 7,257,874 | 7,312,253 | 7,376,700 | 7,405,703 | 7,410,899 | 7,417,403 | 7,413,114 | 7,408,536 | 7,337,843 | 7,412,369 | 7,402,900 |
Net income - diluted | $ 1.13 | $ 1.13 | $ 1.03 | $ 0.71 | $ 0.68 | $ 0.96 | $ 0.96 | $ 0.87 | $ 4 | $ 3.47 | $ 3.37 |
Cash and due from banks (Detail
Cash and due from banks (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Cash and due from banks | |
Required reserve balances | $ 2,545 |
Investment securities - Amortiz
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Securities | ||
Available-for-sale, Amortized Cost | $ 286,215 | $ 328,643 |
Available-for-sale, Gross Unrealized Gains | 9,899 | 2,988 |
Available-for-sale, Gross Unrealized Losses | 203 | 1,153 |
Available-for-sale, Fair Value | 295,911 | 330,478 |
Held-to-maturity, Amortized Cost | 7,225 | 7,656 |
Held-to-maturity, Gross Unrealized Gains | 288 | 233 |
Held-to-maturity, Fair value | 7,513 | 7,889 |
U.S. Treasuries | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 18,478 | 23,966 |
Available-for-sale, Gross Unrealized Gains | 427 | 162 |
Available-for-sale, Fair Value | 18,905 | 24,128 |
U.S. government-sponsored enterprises state and municipals | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 63,834 | 87,156 |
Available-for-sale, Gross Unrealized Gains | 1,354 | 181 |
Available-for-sale, Gross Unrealized Losses | 227 | |
Available-for-sale, Fair Value | 65,188 | 87,110 |
Mortgage-backed Securities, U.S. government agencies | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 3,553 | 8,368 |
Available-for-sale, Gross Unrealized Gains | 154 | 112 |
Available-for-sale, Gross Unrealized Losses | 10 | |
Available-for-sale, Fair Value | 3,707 | 8,470 |
Held-to-maturity, Amortized Cost | 21 | 31 |
Held-to-maturity, Fair value | 21 | 31 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 79,457 | 101,914 |
Available-for-sale, Gross Unrealized Gains | 1,930 | 1,011 |
Available-for-sale, Gross Unrealized Losses | 136 | 77 |
Available-for-sale, Fair Value | 81,251 | 102,848 |
Held-to-maturity, Amortized Cost | 355 | 773 |
Held-to-maturity, Gross Unrealized Gains | 13 | 25 |
Held-to-maturity, Fair value | 368 | 798 |
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 12,619 | 12,694 |
Available-for-sale, Gross Unrealized Gains | 881 | 171 |
Available-for-sale, Gross Unrealized Losses | 4 | |
Available-for-sale, Fair Value | 13,500 | 12,861 |
Corporate debt securities | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 1,000 | |
Available-for-sale, Fair Value | 1,000 | |
State and Municipals, Taxable | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 53,297 | 35,418 |
Available-for-sale, Gross Unrealized Gains | 2,099 | 295 |
Available-for-sale, Gross Unrealized Losses | 30 | 815 |
Available-for-sale, Fair Value | 55,366 | 34,898 |
Held-to-maturity, Amortized Cost | 6,849 | |
Held-to-maturity, Gross Unrealized Gains | 275 | |
Held-to-maturity, Fair value | 7,124 | |
State and Municipals, Tax-exempt | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 53,977 | 59,127 |
Available-for-sale, Gross Unrealized Gains | 3,054 | 1,056 |
Available-for-sale, Gross Unrealized Losses | 37 | 20 |
Available-for-sale, Fair Value | $ 56,994 | 60,163 |
Held-to-maturity, Amortized Cost | 6,852 | |
Held-to-maturity, Gross Unrealized Gains | 208 | |
Held-to-maturity, Fair value | $ 7,060 |
Investment securities - Unreali
Investment securities - Unrealized and Realized Gains/(Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment securities | ||
Unrealized gains (loss), net | $ 7,660 | $ 1,450 |
Net of deferred income taxes | 2,036 | 385 |
Proceeds from sale of available-for-sale investment securities | 64,841 | 9,677 |
Gross realized gains | 923 | 66 |
Gross realized losses | $ 5 | $ 43 |
Investment securities - Equity
Investment securities - Equity Securities Portfolio (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)security | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Number of equity securities portfolio consisting of stock of other financial institutions | security | 1 | ||
Proceeds from sale of equity holdings | $ 279 | ||
Gain on sale of equity holdings | 29 | ||
Equity investments carried at fair value | 138 | $ 423 | |
Net unrealized gains recognized in AOCI | $ 3 | ||
Fair value of equity portfolio in excess of cost basis | 15 | ||
Common equity securities. | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Equity investments carried at fair value | $ 138 | $ 423 |
Investment securities - Unrea_2
Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment securities | |||
Net gain (loss) recognized during the period on equity securities | $ (6) | $ 132 | $ 14 |
Less: Net gains (loss) recognized during the period on equity securities sold during the period | 29 | ||
Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date | $ (35) | $ 132 |
Investment securities - Maturit
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment securities | ||
Within one year | $ 37,351 | |
After one but within five years | 49,444 | |
After five but within ten years | 22,799 | |
After ten years | 84,357 | |
Available for sale securities | 193,951 | |
Mortgage-backed and other amortizing securities | 101,960 | |
Total | $ 295,911 | $ 330,478 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost of Held-to-maturity Securities | ||
Amortized Cost, Within one year, Held to Maturity | $ 175 | |
Amortized Cost, After five but within ten years, Held to maturity | 324 | |
Amortized Cost, After ten years, Held to maturity | 6,350 | |
Amortized Cost, Held to maturity | 6,849 | |
Amortized Cost, Mortgage-backed securities, Held to maturity | 376 | |
Held-to-maturity, Amortized Cost | 7,225 | $ 7,656 |
Fair Value of Held-to-maturity Securities | ||
Fair Value, Within one year, Held to Maturity | 178 | |
Fair Value, After five but within ten years, Held to maturity | 344 | |
Fair Value, After ten years, Held to maturity | 6,602 | |
Fair Value, Held to maturity | 7,124 | |
Fair Value, Mortgage-backed securities, Held to maturity | 389 | |
Held to maturity, Fair Value | $ 7,513 | $ 7,889 |
Investment securities - Pledged
Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | us-gaap:AssetPledgedAsCollateralMember | us-gaap:AssetPledgedAsCollateralMember |
Collateral Pledged | ||
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | $ 165,982 | $ 157,047 |
U.S. government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer | 10.00% | 10.00% |
Investment securities - Fair Va
Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | $ 27,585 | $ 78,239 |
12 Months or More, Fair Value | 284 | 43,281 |
Less Than 12 Months, Unrealized Losses | 202 | 1,035 |
12 Months or More, Unrealized Losses | 1 | 118 |
Total, Fair Value | 27,869 | 121,520 |
Total, Unrealized Losses | 203 | 1,153 |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 9,246 | 23,929 |
Less Than 12 Months, Unrealized Losses | 30 | 815 |
Total, Fair Value | 9,246 | 23,929 |
Total, Unrealized Losses | 30 | 815 |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 6,786 | 2,684 |
12 Months or More, Fair Value | 1,098 | |
Less Than 12 Months, Unrealized Losses | 37 | 19 |
12 Months or More, Unrealized Losses | 1 | |
Total, Fair Value | 6,786 | 3,782 |
Total, Unrealized Losses | 37 | 20 |
U.S. government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 13,695 | |
12 Months or More, Fair Value | 36,070 | |
Less Than 12 Months, Unrealized Losses | 149 | |
12 Months or More, Unrealized Losses | 78 | |
Total, Fair Value | 49,765 | |
Total, Unrealized Losses | 227 | |
Mortgage-backed Securities, U.S. government agencies | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 992 | |
12 Months or More, Fair Value | 2,362 | |
Less Than 12 Months, Unrealized Losses | 1 | |
12 Months or More, Unrealized Losses | 9 | |
Total, Fair Value | 3,354 | |
Total, Unrealized Losses | 10 | |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 11,553 | 36,939 |
12 Months or More, Fair Value | 284 | 3,751 |
Less Than 12 Months, Unrealized Losses | 135 | 51 |
12 Months or More, Unrealized Losses | 1 | 30 |
Total, Fair Value | 11,837 | 40,690 |
Total, Unrealized Losses | $ 136 | $ 81 |
Investment securities - Additio
Investment securities - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)securityshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of investment securities held | 26 | ||
Other-than-temporary impairments recognized | $ | $ 0 | $ 0 | $ 0 |
Visa Class A stock | |||
Conversion ratio of common stock | 1.6228 | ||
Shares to be issued following resolution of Visa litigation | shares | 72,997 | ||
Visa Class B stock | |||
Shares held | shares | 44,982 | ||
Mortgage-backed Securities, U.S. government-sponsored enterprises | |||
Number of investment securities held | 6 | ||
Number of securities in continuous unrealized loss positions 12 months or longer | 2 | ||
State and Municipals, Taxable | |||
Number of investment securities held | 8 | ||
State and Municipals, Tax-exempt | |||
Number of investment securities held | 12 |
Loans, net and allowance for _3
Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Net deferred loan costs | $ 2,058,000 | $ 908,000 | $ 908,000 | |
Loans | 2,177,982,000 | 1,938,240,000 | $ 1,823,266,000 | 1,938,240,000 |
Loans outstanding to directors, executive officers, principal stockholders or to their affiliates | 5,031,000 | 12,248,000 | 12,248,000 | |
Advances of loans receivable | 3,747,000 | 7,857,000 | ||
Repayments of loans receivable | 5,574,000 | 9,376,000 | ||
Number of related party loans classified as nonaccrual, past due, or restructured | 0 | 0 | ||
Deposits from related parties | 9,000,000 | 12,900,000 | 12,900,000 | |
Interest income recognized using the cash-basis method on impaired loans | 0 | 0 | 0 | 0 |
Commercial | ||||
Loans | 679,286,000 | 522,957,000 | 494,134,000 | 522,957,000 |
Real estate Commercial | ||||
Loans | 1,137,990,000 | 1,011,423,000 | 907,803,000 | 1,011,423,000 |
Real estate Residential | ||||
Loans | 277,414,000 | 301,378,000 | 299,876,000 | 301,378,000 |
Consumer | ||||
Loans | 83,292,000 | $ 102,482,000 | $ 121,453,000 | $ 102,482,000 |
PPP | ||||
Loans | $ 189,699,000 |
Loans, net and allowance for _4
Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | |||
Loans | $ 2,177,982 | $ 1,938,240 | $ 1,823,266 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 679,286 | 522,957 | 494,134 |
Real estate Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 1,137,990 | 1,011,423 | 907,803 |
Real estate Residential | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 277,414 | 301,378 | 299,876 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | $ 83,292 | $ 102,482 | $ 121,453 |
Loans, net and allowance for _5
Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||||||||
Beginning Balance | $ 22,677 | $ 21,379 | $ 22,677 | $ 21,379 | $ 18,960 | ||||||
Charge-offs | (3,479) | (5,067) | (2,354) | ||||||||
Recoveries | 746 | 265 | 573 | ||||||||
Provisions | $ 1,050 | $ 1,050 | $ 1,800 | 3,500 | $ 4,000 | $ 700 | $ 350 | 1,050 | 7,400 | 6,100 | 4,200 |
Ending balance | 27,344 | 22,677 | 27,344 | 22,677 | 21,379 | ||||||
Allowance for credit losses increase (decrease) | 4,600 | ||||||||||
Write-offs net of recoveries | 2,700 | ||||||||||
Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning Balance | 6,888 | 5,516 | 6,888 | 5,516 | 5,513 | ||||||
Charge-offs | (2,771) | (3,314) | (154) | ||||||||
Recoveries | 525 | 69 | 137 | ||||||||
Provisions | 4,092 | 4,617 | 20 | ||||||||
Ending balance | 8,734 | 6,888 | 8,734 | 6,888 | 5,516 | ||||||
Partial write down | 1,100 | ||||||||||
Charge-offs originated from one employee and deemed impaired | 2,300 | ||||||||||
Loans receivable specific reserve | 300 | 300 | |||||||||
Commercial | Small Business Line of Credit | |||||||||||
Allowance for loan losses: | |||||||||||
Charge-offs | (900) | (2,300) | |||||||||
Recoveries | 200 | ||||||||||
Commercial | Separate Credit | |||||||||||
Allowance for loan losses: | |||||||||||
Recoveries | 200 | ||||||||||
Commercial | Other Commercial Loans | |||||||||||
Allowance for loan losses: | |||||||||||
Charge-offs | (1,000) | ||||||||||
Real estate Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning Balance | 11,496 | 10,736 | 11,496 | 10,736 | 8,944 | ||||||
Charge-offs | (144) | (817) | (1,250) | ||||||||
Recoveries | 16 | 1 | 136 | ||||||||
Provisions | 3,191 | 1,576 | 2,906 | ||||||||
Ending balance | 14,559 | 11,496 | 14,559 | 11,496 | 10,736 | ||||||
Real estate Residential | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning Balance | 3,226 | 3,892 | 3,226 | 3,892 | 3,111 | ||||||
Charge-offs | (247) | (477) | (405) | ||||||||
Recoveries | 57 | 29 | 98 | ||||||||
Provisions | 93 | (218) | 1,088 | ||||||||
Ending balance | 3,129 | 3,226 | 3,129 | 3,226 | 3,892 | ||||||
Consumer | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning Balance | $ 1,067 | $ 1,235 | 1,067 | 1,235 | 1,392 | ||||||
Charge-offs | (317) | (459) | (545) | ||||||||
Recoveries | 148 | 166 | 202 | ||||||||
Provisions | 24 | 125 | 186 | ||||||||
Ending balance | $ 922 | $ 1,067 | $ 922 | $ 1,067 | $ 1,235 |
Loans, net and allowance for _6
Loans, net and allowance for loan losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | ||||
Ending balance | $ 27,344 | $ 22,677 | $ 21,379 | $ 18,960 |
Ending balance: individually evaluated for impairment | 1,202 | 777 | 1,179 | |
Ending balance: collectively evaluated for impairment | 26,142 | 21,900 | 20,200 | |
Loans receivable: | ||||
Ending balance | 2,177,982 | 1,938,240 | 1,823,266 | |
Ending balance: individually evaluated for impairment | 9,906 | 10,120 | 9,641 | |
Ending balance: collectively evaluated for impairment | 2,168,076 | 1,928,120 | 1,813,625 | |
Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 8,734 | 6,888 | 5,516 | 5,513 |
Ending balance: individually evaluated for impairment | 947 | 363 | 50 | |
Ending balance: collectively evaluated for impairment | 7,787 | 6,525 | 5,466 | |
Loans receivable: | ||||
Ending balance | 679,286 | 522,957 | 494,134 | |
Ending balance: individually evaluated for impairment | 4,297 | 4,658 | 2,237 | |
Ending balance: collectively evaluated for impairment | 674,989 | 518,299 | 491,897 | |
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 14,559 | 11,496 | 10,736 | 8,944 |
Ending balance: individually evaluated for impairment | 180 | 279 | 403 | |
Ending balance: collectively evaluated for impairment | 14,379 | 11,217 | 10,333 | |
Loans receivable: | ||||
Ending balance | 1,137,990 | 1,011,423 | 907,803 | |
Ending balance: individually evaluated for impairment | 3,952 | 3,048 | 3,121 | |
Ending balance: collectively evaluated for impairment | 1,134,038 | 1,008,375 | 904,682 | |
Real estate Residential | ||||
Allowance for loan losses: | ||||
Ending balance | 3,129 | 3,226 | 3,892 | 3,111 |
Ending balance: individually evaluated for impairment | 75 | 135 | 666 | |
Ending balance: collectively evaluated for impairment | 3,054 | 3,091 | 3,226 | |
Loans receivable: | ||||
Ending balance | 277,414 | 301,378 | 299,876 | |
Ending balance: individually evaluated for impairment | 1,546 | 2,153 | 4,071 | |
Ending balance: collectively evaluated for impairment | 275,868 | 299,225 | 295,805 | |
Consumer | ||||
Allowance for loan losses: | ||||
Ending balance | 922 | 1,067 | 1,235 | $ 1,392 |
Ending balance: individually evaluated for impairment | 60 | |||
Ending balance: collectively evaluated for impairment | 922 | 1,067 | 1,175 | |
Loans receivable: | ||||
Ending balance | 83,292 | 102,482 | 121,453 | |
Ending balance: individually evaluated for impairment | 111 | 261 | 212 | |
Ending balance: collectively evaluated for impairment | $ 83,181 | $ 102,221 | $ 121,241 |
Loans, net and allowance for _7
Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | |||
Loans | $ 2,177,982 | $ 1,938,240 | $ 1,823,266 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 679,286 | 522,957 | 494,134 |
Real estate Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 1,137,990 | 1,011,423 | 907,803 |
Real estate Residential | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 277,414 | 301,378 | 299,876 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 83,292 | 102,482 | $ 121,453 |
Pass | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 2,125,800 | 1,908,233 | |
Pass | Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 660,559 | 513,994 | |
Pass | Real estate Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 1,107,699 | 993,645 | |
Pass | Real estate Residential | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 274,327 | 298,449 | |
Pass | Consumer | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 83,215 | 102,145 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 31,966 | 6,942 | |
Special Mention | Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 14,305 | 3,837 | |
Special Mention | Real estate Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 17,517 | 2,508 | |
Special Mention | Real estate Residential | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 144 | 597 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 20,216 | 23,065 | |
Substandard | Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 4,422 | 5,126 | |
Substandard | Real estate Commercial | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 12,774 | 15,270 | |
Substandard | Real estate Residential | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | 2,943 | 2,332 | |
Substandard | Consumer | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loans | $ 77 | $ 337 |
Loans, net and allowance for _8
Loans, net and allowance for loan losses - Reclassification of Commercial Credits Category (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)loan | |
Special Mention | Real estate Commercial | |
Accounts, Notes, Loans and Financing Receivable | |
Number of loans reclassified | loan | 4 |
Number of loans reclassified during the period due to the loss of major tenants | loan | 2 |
Change in category | $ 9 |
Increase (decrease) in loans and leases receivable due to hospitality industry and financial difficulties due to COVID-19 | 4.5 |
Special Mention | Commercial | |
Accounts, Notes, Loans and Financing Receivable | |
Increase (decrease) in loans and leases receivable | 13 |
Substandard | Real estate Commercial | |
Accounts, Notes, Loans and Financing Receivable | |
Change in category due to construction delays | $ 5.1 |
Loans, net and allowance for _9
Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 8,117 | $ 7,510 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 3,822 | 3,336 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 3,262 | 2,765 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 922 | 1,148 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 111 | $ 261 |
Loans, net and allowance for_10
Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 11,728 | $ 12,801 | ||
Current | 2,166,254 | 1,925,439 | ||
Total Loans | 2,177,982 | 1,938,240 | $ 1,823,266 | |
Loans > 90 Days and Accruing | 71 | 378 | ||
Loan receivable balances where payment deferrals were granted | $ 330,119 | $ 6,084 | ||
Minimum | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Number of days in which principal only payments and principal and interest deferrals are generally granted | 90 days | |||
Maximum | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Number of days in which principal only payments and principal and interest deferrals are generally granted | 180 days | |||
Commercial loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Number of commercial loans added to non-accrual loans | loan | 3 | |||
Number of commercial loans added to non-accrual loans with specific reserves allocated | loan | 2 | |||
Number of business loans with payment deferrals granted | loan | 479 | |||
30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 2,863 | 3,688 | ||
60-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 677 | 1,525 | ||
Greater than 90 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 8,188 | 7,588 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3,895 | 3,111 | ||
Current | 675,391 | 519,846 | ||
Total Loans | $ 679,286 | 522,957 | 494,134 | |
Number of business loans with payment deferrals granted | loan | 18 | |||
Commercial | 30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 73 | 75 | ||
Commercial | Greater than 90 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3,822 | 3,036 | ||
Real estate Commercial | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3,740 | 3,866 | ||
Current | 1,134,250 | 1,007,557 | ||
Total Loans | 1,137,990 | 1,011,423 | 907,803 | |
Real estate Commercial | 30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 344 | 926 | ||
Real estate Commercial | 60-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 134 | 175 | ||
Real estate Commercial | Greater than 90 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3,262 | 2,765 | ||
Real estate Residential | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3,545 | 4,917 | ||
Current | 273,869 | 296,461 | ||
Total Loans | 277,414 | 301,378 | 299,876 | |
Loans > 90 Days and Accruing | 71 | 378 | ||
Real estate Residential | 30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 2,072 | 2,164 | ||
Real estate Residential | 60-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 480 | 1,227 | ||
Real estate Residential | Greater than 90 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 993 | 1,526 | ||
Consumer | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 548 | 907 | ||
Current | 82,744 | 101,575 | ||
Total Loans | $ 83,292 | 102,482 | $ 121,453 | |
Number of business loans with payment deferrals granted | loan | 512 | 26 | ||
Consumer | 30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 374 | 523 | ||
Consumer | 60-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 63 | 123 | ||
Consumer | Greater than 90 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 111 | $ 261 | ||
PPP | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Loans | $ 189,699 |
Loans, net and allowance for_11
Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | $ 5,820 | $ 7,535 | $ 5,653 |
Unpaid Principal Balance, With no related allowance, Total | 7,769 | 8,714 | 7,017 |
Average Recorded Investment, With no related allowance, Total | 6,453 | 7,887 | 6,468 |
Interest Income Recognized, With no related allowance, Total | 79 | 126 | 117 |
Recorded Investment, With an allowance recorded, Total | 4,086 | 2,585 | 3,988 |
Unpaid Principal Balance, With an allowance recorded, Total | 4,286 | 3,299 | 4,386 |
Related Allowance, With an allowance recorded, Total | 1,202 | 777 | 1,179 |
Average Recorded Investment, With an allowance recorded, Total | 4,349 | 3,490 | 4,288 |
Interest Income Recognized, With an allowance recorded, Total | 66 | 71 | 70 |
Recorded Investment, Total | 9,906 | 10,120 | 9,641 |
Unpaid Principal Balance, Total | 12,055 | 12,013 | 11,403 |
Related Allowance, With an allowance recorded, Total | 1,202 | 777 | 1,179 |
Average Recorded Investment, Total | 10,802 | 11,377 | 10,756 |
Interest Income Recognized, Total | 145 | 197 | 187 |
Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 2,251 | 3,638 | 1,562 |
Unpaid Principal Balance, With no related allowance, Total | 3,421 | 4,175 | 1,900 |
Average Recorded Investment, With no related allowance, Total | 2,915 | 3,907 | 1,318 |
Interest Income Recognized, With no related allowance, Total | 30 | 63 | 67 |
Recorded Investment, With an allowance recorded, Total | 2,046 | 1,020 | 675 |
Unpaid Principal Balance, With an allowance recorded, Total | 2,094 | 1,038 | 675 |
Related Allowance, With an allowance recorded, Total | 947 | 363 | 50 |
Average Recorded Investment, With an allowance recorded, Total | 2,038 | 1,012 | 1,006 |
Interest Income Recognized, With an allowance recorded, Total | 17 | 32 | 30 |
Recorded Investment, Total | 4,297 | 4,658 | 2,237 |
Unpaid Principal Balance, Total | 5,515 | 5,213 | 2,575 |
Related Allowance, With an allowance recorded, Total | 947 | 363 | 50 |
Average Recorded Investment, Total | 4,953 | 4,919 | 2,324 |
Interest Income Recognized, Total | 47 | 95 | 97 |
Real estate Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 2,372 | 1,918 | 1,969 |
Unpaid Principal Balance, With no related allowance, Total | 2,964 | 2,205 | 2,299 |
Average Recorded Investment, With no related allowance, Total | 2,148 | 2,385 | 2,822 |
Interest Income Recognized, With no related allowance, Total | 28 | 38 | 28 |
Recorded Investment, With an allowance recorded, Total | 1,580 | 1,130 | 1,152 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,710 | 1,811 | 1,323 |
Related Allowance, With an allowance recorded, Total | 180 | 279 | 403 |
Average Recorded Investment, With an allowance recorded, Total | 1,687 | 1,050 | 1,676 |
Interest Income Recognized, With an allowance recorded, Total | 36 | 10 | 18 |
Recorded Investment, Total | 3,952 | 3,048 | 3,121 |
Unpaid Principal Balance, Total | 4,674 | 4,016 | 3,622 |
Related Allowance, With an allowance recorded, Total | 180 | 279 | 403 |
Average Recorded Investment, Total | 3,835 | 3,435 | 4,498 |
Interest Income Recognized, Total | 64 | 48 | 46 |
Real estate Residential | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 1,086 | 1,718 | 1,970 |
Unpaid Principal Balance, With no related allowance, Total | 1,263 | 2,060 | 2,658 |
Average Recorded Investment, With no related allowance, Total | 1,223 | 1,362 | 2,193 |
Interest Income Recognized, With no related allowance, Total | 21 | 25 | 22 |
Recorded Investment, With an allowance recorded, Total | 460 | 435 | 2,101 |
Unpaid Principal Balance, With an allowance recorded, Total | 482 | 450 | 2,328 |
Related Allowance, With an allowance recorded, Total | 75 | 135 | 666 |
Average Recorded Investment, With an allowance recorded, Total | 624 | 1,408 | 1,585 |
Interest Income Recognized, With an allowance recorded, Total | 13 | 29 | 22 |
Recorded Investment, Total | 1,546 | 2,153 | 4,071 |
Unpaid Principal Balance, Total | 1,745 | 2,510 | 4,986 |
Related Allowance, With an allowance recorded, Total | 75 | 135 | 666 |
Average Recorded Investment, Total | 1,847 | 2,770 | 3,778 |
Interest Income Recognized, Total | 34 | 54 | 44 |
Consumer | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 111 | 261 | 152 |
Unpaid Principal Balance, With no related allowance, Total | 121 | 274 | 160 |
Average Recorded Investment, With no related allowance, Total | 167 | 233 | 135 |
Recorded Investment, With an allowance recorded, Total | 60 | ||
Unpaid Principal Balance, With an allowance recorded, Total | 60 | ||
Related Allowance, With an allowance recorded, Total | 60 | ||
Average Recorded Investment, With an allowance recorded, Total | 20 | 21 | |
Recorded Investment, Total | 111 | 261 | 212 |
Unpaid Principal Balance, Total | 121 | 274 | 220 |
Related Allowance, With an allowance recorded, Total | 60 | ||
Average Recorded Investment, Total | $ 167 | $ 253 | $ 156 |
Loans, net and allowance for_12
Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)loan | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)loancontract | Dec. 31, 2018USD ($)loancontract | |
Loans in the formal process of foreclosure | $ 135,000 | $ 135,000 | $ 135,000 | $ 665,000 | |
Number of loans modified | 4 | 4 | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | 1,085,000 | ||||
Post-Modification Outstanding Recorded Investment | 1,085,000 | ||||
Recorded Investment | 1,051,000 | $ 1,051,000 | $ 1,051,000 | ||
Number of defaults on loans restructured | 0 | $ 0 | $ 0 | ||
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk | 2,818,000 | $ 2,818,000 | $ 2,818,000 | $ 2,193,000 | |
COVID 19 | |||||
Number of loans modified | loan | 4 | ||||
COVID 19 | Restaurant | |||||
Number of loans modified | loan | 2 | ||||
COVID 19 | Retail, Small Business | |||||
Number of loans modified | loan | 2 | ||||
Commercial | |||||
Number of loans modified | contract | 1 | ||||
Pre-Modification Outstanding Recorded Investment | 12,000 | ||||
Post-Modification Outstanding Recorded Investment | 12,000 | ||||
Recorded Investment | 5,000 | $ 5,000 | $ 5,000 | ||
Real estate Commercial | |||||
Number of loans modified | contract | 3 | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 1,073,000 | $ 346,000 | $ 340,000 | ||
Post-Modification Outstanding Recorded Investment | 1,073,000 | 346,000 | 340,000 | ||
Recorded Investment | $ 1,046,000 | $ 1,046,000 | $ 1,046,000 | $ 241,000 | $ 340,000 |
Loans, net and allowance for_13
Loans, net and allowance for loan losses - Schedule of Payment Deferrals Granted on Commercial Loans (Details) - Commercial - Loan Deferrals $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)loan | |
Number of Loans | loan | 18 |
Balance | $ | $ 5,796 |
Percentage of Total Loan Portfolio | 0.30% |
Percentage of Tier 1 Capital (Bank) | 2.30% |
Maximum | |
Number of Loans | loan | 479 |
Balance | $ | $ 306,770 |
Percentage of Total Loan Portfolio | 14.10% |
Percentage of Tier 1 Capital (Bank) | 113.70% |
Lessors of Nonresidential Buildings | Maximum | |
Number of Loans | loan | 65 |
Balance | $ | $ 71,899 |
Percentage of Total Loan Portfolio | 3.30% |
Percentage of Tier 1 Capital (Bank) | 26.90% |
Lessors of Residential Buildings and Dwellings | |
Number of Loans | loan | 3 |
Balance | $ | $ 143 |
Percentage of Tier 1 Capital (Bank) | 0.10% |
Lessors of Residential Buildings and Dwellings | Maximum | |
Number of Loans | loan | 64 |
Balance | $ | $ 53,564 |
Percentage of Total Loan Portfolio | 2.50% |
Percentage of Tier 1 Capital (Bank) | 19.90% |
Hotels and Motels | Maximum | |
Number of Loans | loan | 27 |
Balance | $ | $ 39,261 |
Percentage of Total Loan Portfolio | 1.80% |
Percentage of Tier 1 Capital (Bank) | 14.50% |
Full-Service Restaurants | |
Number of Loans | loan | 3 |
Balance | $ | $ 1,961 |
Percentage of Total Loan Portfolio | 0.10% |
Percentage of Tier 1 Capital (Bank) | 0.80% |
Full-Service Restaurants | Maximum | |
Number of Loans | loan | 33 |
Balance | $ | $ 27,783 |
Percentage of Total Loan Portfolio | 1.30% |
Percentage of Tier 1 Capital (Bank) | 10.30% |
General Automotive Repair | |
Number of Loans | loan | 1 |
Balance | $ | $ 1,459 |
Percentage of Total Loan Portfolio | 0.10% |
Percentage of Tier 1 Capital (Bank) | 0.60% |
School and Employee Bus Transportation | |
Number of Loans | loan | 1 |
Balance | $ | $ 725 |
Percentage of Tier 1 Capital (Bank) | 0.30% |
Limited-Service Restaurants | Maximum | |
Number of Loans | loan | 8 |
Balance | $ | $ 11,829 |
Percentage of Total Loan Portfolio | 0.50% |
Percentage of Tier 1 Capital (Bank) | 4.40% |
Gasoline Stations with Convenience Stores | Maximum | |
Number of Loans | loan | 18 |
Balance | $ | $ 12,422 |
Percentage of Total Loan Portfolio | 0.60% |
Percentage of Tier 1 Capital (Bank) | 4.60% |
Construction and Mining | Maximum | |
Number of Loans | loan | 13 |
Balance | $ | $ 9,718 |
Percentage of Total Loan Portfolio | 0.40% |
Percentage of Tier 1 Capital (Bank) | 3.60% |
Assisted Living Facilities for the Elderly | Maximum | |
Number of Loans | loan | 2 |
Balance | $ | $ 6,319 |
Percentage of Total Loan Portfolio | 0.30% |
Percentage of Tier 1 Capital (Bank) | 2.30% |
Colleges, Universities, and Professional Schools | Maximum | |
Number of Loans | loan | 1 |
Balance | $ | $ 6,301 |
Percentage of Total Loan Portfolio | 0.30% |
Percentage of Tier 1 Capital (Bank) | 2.30% |
All Others | |
Number of Loans | loan | 10 |
Balance | $ | $ 1,508 |
Percentage of Total Loan Portfolio | 0.10% |
Percentage of Tier 1 Capital (Bank) | 0.60% |
All Others | Maximum | |
Number of Loans | loan | 248 |
Balance | $ | $ 67,674 |
Percentage of Total Loan Portfolio | 3.10% |
Percentage of Tier 1 Capital (Bank) | 24.90% |
Off-balance sheet financial i_3
Off-balance sheet financial instruments - Summary of Contractual Amounts of Off-balance Sheet Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Off-balance sheet financial instruments. | ||
Commitments to extend credit | $ 336,667 | $ 290,517 |
Unused portions of lines of credit | 55,391 | 52,168 |
Standby letters of credit | 34,428 | 45,018 |
Total contractual amounts of off-balance sheet commitments | $ 426,486 | $ 387,703 |
Off-balance sheet financial i_4
Off-balance sheet financial instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Off-balance sheet financial instruments. | ||
Expiration period of standby letters | 12 months | |
Amount of standby letters of credit | $ 4,902 | $ 31,893 |
Premises and equipment, net - S
Premises and equipment, net - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Premises and equipment, gross | $ 78,490 | $ 76,787 |
Less: accumulated depreciation | 31,445 | 28,855 |
Premises and equipment, net | 47,045 | 47,932 |
Land | ||
Property, Plant and Equipment | ||
Premises and equipment, gross | 5,217 | 5,535 |
Premises and leasehold improvements | ||
Property, Plant and Equipment | ||
Premises and equipment, gross | 48,596 | 47,705 |
Right-Of-Use Assets | ||
Property, Plant and Equipment | ||
Premises and equipment, gross | 6,282 | 6,125 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment | ||
Premises and equipment, gross | $ 18,395 | $ 17,422 |
Operating lease commitments a_3
Operating lease commitments and contingencies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Operating leases | |||
Options to renew | true | ||
Renewal term | 5 years | ||
Weighted average remaining lease term | 13 years | 16 years | |
Weighted-average discount rate | 3.19% | 3.46% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |
Lease liabilities for operating leases | $ 6,425 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | |
Lease payments | $ 660 | ||
Lease expense | $ 326 | ||
Number of operating lease terminated | item | 2 | ||
Rent expense | $ 727 | $ 670 | |
Rent expense | $ 492 | ||
Premises and Equipment | |||
Operating leases | |||
Right-of-use assets | 6,282 | 6,125 | |
Other Liabilities. | |||
Operating leases | |||
Lease liabilities for operating leases | 6,425 | $ 6,194 | |
Additional Lease Property | |||
Operating leases | |||
Lease liabilities for operating leases | $ 899 | ||
Number of operating lease added | item | 1 | ||
Minimum | |||
Operating leases | |||
Remaining renewal term | 3 years | ||
Discount rate | 1.95% | 2.89% | |
Maximum | |||
Operating leases | |||
Remaining renewal term | 21 years | ||
Discount rate | 3.85% | 3.85% |
Operating lease commitments a_4
Operating lease commitments and contingencies - Summary of Future Minimum Rental Commitments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating lease commitments and contingencies | |
2021 | $ 611 |
2022 | 618 |
2023 | 560 |
2024 | 488 |
2025 | 504 |
Thereafter | 5,500 |
Total payments | 8,281 |
Less amount representing interest | (1,856) |
Present value of future minimum lease payments | $ 6,425 |
Intangible assets, net - Additi
Intangible assets, net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | |||
Gross carrying amount of intangible assets | $ 1,091 | $ 1,091 | |
Amortization of intangibles | 606 | 730 | $ 881 |
Core Deposit | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount of intangible assets | 8,146 | 8,146 | |
Accumulated amortization on intangible assets | 7,507 | 7,071 | |
Trade Name | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount of intangible assets | 203 | 203 | |
Accumulated amortization on intangible assets | 182 | 168 | |
Asset Management And Retirement Plan Services | |||
Finite-Lived Intangible Assets | |||
Accumulated amortization on intangible assets | $ 792 | $ 636 |
Intangible assets, net - Summar
Intangible assets, net - Summary of Estimated Amortization Expense on Intangible Assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Intangible assets, net | |
2021 | $ 491 |
2022 | 363 |
2023 | 106 |
Total | $ 960 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other real estate owned | $ 864 | $ 450 |
Investment in low income housing partnership | 6,332 | 6,901 |
Mortgage servicing rights | 838 | 738 |
Restricted equity securities (FHLB and other) | 5,397 | 10,201 |
Net deferred tax asset | 3,768 | 3,362 |
Interest rate floor and swaps | 15,371 | 5,672 |
Total | 38,915 | 34,179 |
Interest Rate Floor | ||
Interest rate floor and swaps | 1,678 | 944 |
Interest Rate Swaps | ||
Interest rate floor and swaps | 13,693 | 4,728 |
Other assets | $ 6,345 | $ 6,855 |
Other assets - Unpaid Principal
Other assets - Unpaid Principal Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other assets | ||
Unpaid principal balances of mortgage loans serviced for others | $ 166,472 | $ 159,587 |
Deposits - Components of Intere
Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits. | ||
Money market accounts | $ 496,634 | $ 365,463 |
Now accounts | 567,087 | 402,999 |
Savings accounts | 431,224 | 370,270 |
Time deposits less than $250 | 221,446 | 231,450 |
Time deposits $250 or more | 98,247 | 138,069 |
Total interest-bearing deposits | 1,814,638 | 1,508,251 |
Noninterest-bearing deposits | 622,475 | 463,238 |
Total deposits | $ 2,437,113 | $ 1,971,489 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits. | |
2021 | $ 223,247 |
2022 | 40,093 |
2023 | 22,905 |
2024 | 15,099 |
2025 | 7,316 |
Thereafter | 11,033 |
Total | $ 319,693 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits. | ||
Aggregate amount of deposits reclassified as loans | $ 245 | $ 343 |
Short-term borrowings (Details)
Short-term borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt | |||
Ending Balance | $ 50,000 | $ 152,150 | |
FHLB advances | |||
Short-term Debt | |||
Ending Balance | 50,000 | 152,150 | $ 86,500 |
Average Balance | 83,716 | 62,941 | 133,834 |
Maximum Month-End Balance | $ 179,199 | $ 152,150 | $ 189,275 |
Weighted Average Rate for the Year | 1.01% | 2.61% | 2.05% |
Weighted Average Rate at End of Year | 0.40% | 1.84% | 2.62% |
Short-term borrowings - Additio
Short-term borrowings - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt | ||
Maximum borrowing capacity | $ 18,000 | $ 18,000 |
Outstanding amount in borrowings | 0 | $ 0 |
Peoples Bank | ||
Short-term Debt | ||
Maximum borrowing capacity | 807,042 | |
Outstanding amount in borrowings | 64,769 | |
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits | $ 218,350 |
Long-term debt - Long-term debt
Long-term debt - Long-term debt advances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term debt | $ 14,769 | $ 32,733 |
Long-term 1.74% fixed rate debt due June 2020 | ||
Debt Instrument | ||
Long-term debt | 5,000 | |
Fixed interest rate (as a percent) | 1.74% | |
Long-term 2.22% fixed rate debt due June 2020 | ||
Debt Instrument | ||
Long-term debt | 6,000 | |
Fixed interest rate (as a percent) | 2.22% | |
Long-term 1.84% fixed rate debt due December 2020 | ||
Debt Instrument | ||
Long-term debt | 5,000 | |
Fixed interest rate (as a percent) | 1.84% | |
Long-term 1.99% fixed rate debt due June 2021 | ||
Debt Instrument | ||
Long-term debt | $ 10,000 | 10,000 |
Fixed interest rate (as a percent) | 1.99% | |
Long-term 4.69% fixed rate debt due March 2023 | ||
Debt Instrument | ||
Long-term debt | $ 4,769 | $ 6,733 |
Fixed interest rate (as a percent) | 4.69% |
Long-term debt - Maturities of
Long-term debt - Maturities of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term debt. | ||
2021 | $ 12,058 | |
2022 | 2,156 | |
2023 | 555 | |
Total long-term debt | $ 14,769 | $ 32,733 |
Long-term debt - Fixed and adju
Long-term debt - Fixed and adjustable rate information (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Debt Instrument | ||
Number of FHLB advances entered | item | 0 | |
FHLB long-term advances | $ 16,000 | |
PPP | ||
Debt Instrument | ||
Long-term debt | $ 0 | |
Minimum | FHLB advance one | ||
Debt Instrument | ||
FHLB advances term | 1 year | |
Minimum | PPP | ||
Debt Instrument | ||
Loan term | 24 months | |
Maximum | FHLB advance two | ||
Debt Instrument | ||
FHLB advances term | 2 years | |
Maximum | PPP | ||
Debt Instrument | ||
Loan term | 60 months |
Subordinated debt (Details)
Subordinated debt (Details) - 2020 Notes $ in Thousands | Jun. 01, 2020USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 33 |
Rate of interest for first five years | 5.375% |
Duration interest rate in effect | 5 years |
Percentage of debt redeemed | 100.00% |
Minimum | |
Debt Instrument [Line Items] | |
Floated interest rate | 4.75% |
Number of days notice to redeem debt | 10 days |
Fair value estimates - Schedule
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | $ 298,158 | $ 332,879 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 18,905 | 24,128 |
U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 65,188 | 87,110 |
State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 55,366 | 34,898 |
State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 56,994 | 60,163 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,000 | |
Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 3,707 | 8,470 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 94,751 | 115,709 |
Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 138 | 423 |
Loan held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 837 | 986 |
Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,678 | 944 |
Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 13,693 | 4,728 |
Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | (14,099) | (4,680) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 19,043 | 24,551 |
Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 18,905 | 24,128 |
Level 1 | Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 138 | 423 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 279,115 | 308,328 |
Level 2 | U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 65,188 | 87,110 |
Level 2 | State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 55,366 | 34,898 |
Level 2 | State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 56,994 | 60,163 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,000 | |
Level 2 | Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 3,707 | 8,470 |
Level 2 | Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 94,751 | 115,709 |
Level 2 | Loan held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 837 | 986 |
Level 2 | Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,678 | 944 |
Level 2 | Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 13,693 | 4,728 |
Level 2 | Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | $ (14,099) | (4,680) |
Level 3 | Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | ||
Level 3 | Loan held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | ||
Level 3 | Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | ||
Level 3 | Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | ||
Level 3 | Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value |
Fair value estimates - Schedu_2
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 2,884 | $ 1,808 |
Other real estate owned | 527 | 283 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 2,884 | 1,808 |
Other real estate owned | $ 527 | $ 283 |
Fair value estimates - Addition
Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Level 3 - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 527 | $ 283 |
Range and weighted average of appraisal adjustments | 29.90% | 43.70% |
Range and weighted average of liquidation expenses | 5.00% | 5.00% |
Other real estate owned | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 3.10% | 20.00% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Other real estate owned | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 58.10% | 63.60% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 2,884 | $ 1,808 |
Range and weighted average of appraisal adjustments | 28.20% | 54.40% |
Range and weighted average of liquidation expenses | 5.50% | 5.20% |
Impaired loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 9.00% | 8.60% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Impaired loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 97.00% | 97.00% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Fair value estimates - Carrying
Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment securities: | ||
Available-for-sale | $ 295,911 | $ 330,478 |
Common equity securities | 138 | 423 |
Held-to-maturity | 7,513 | 7,889 |
Loans held for sale | 837 | 986 |
Mortgage servicing rights | 838 | 738 |
Financial liabilities: | ||
Subordinated debentures | 33,000 | |
Carrying Value | ||
Financial assets: | ||
Cash and due from banks | 228,192 | 31,153 |
Investment securities: | ||
Available-for-sale | 295,911 | 330,478 |
Common equity securities | 138 | 423 |
Held-to-maturity | 7,225 | 7,656 |
Loans held for sale | 837 | 986 |
Net loans | 2,150,638 | 1,915,563 |
Accrued interest receivable | 8,255 | 6,981 |
Mortgage servicing rights | 838 | 738 |
Restricted equity securities (FHLB and other) | 5,397 | 10,201 |
Interest rate floor | 1,678 | 944 |
Interest rate swaps | 13,693 | 4,728 |
Total assets | 2,712,802 | 2,309,851 |
Financial liabilities: | ||
Deposits | 2,437,113 | 1,971,489 |
Long-term debt | 14,769 | 32,733 |
Subordinated debentures | 33,000 | |
Accrued interest payable | 736 | 1,277 |
Interest rate swap | 14,099 | 4,680 |
Total liabilities | 2,499,717 | 2,010,179 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 228,192 | 31,153 |
Investment securities: | ||
Available-for-sale | 295,911 | 330,478 |
Common equity securities | 138 | 423 |
Held-to-maturity | 7,513 | 7,889 |
Loans held for sale | 837 | 986 |
Net loans | 2,145,752 | 1,881,658 |
Accrued interest receivable | 8,255 | 6,981 |
Mortgage servicing rights | 1,269 | 1,444 |
Restricted equity securities (FHLB and other) | 5,397 | 10,201 |
Interest rate floor | 1,678 | 944 |
Interest rate swaps | 13,693 | 4,728 |
Total assets | 2,708,635 | 2,276,885 |
Financial liabilities: | ||
Deposits | 2,441,014 | 1,972,084 |
Long-term debt | 15,073 | 33,075 |
Subordinated debentures | 33,096 | |
Accrued interest payable | 736 | 1,277 |
Interest rate swap | 14,099 | 4,680 |
Total liabilities | 2,504,018 | 2,011,116 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 228,192 | 31,153 |
Investment securities: | ||
Available-for-sale | 18,905 | 24,128 |
Common equity securities | 138 | 423 |
Level 2 | ||
Investment securities: | ||
Available-for-sale | 277,006 | 306,350 |
Held-to-maturity | 7,513 | 7,889 |
Loans held for sale | 837 | 986 |
Accrued interest receivable | 8,255 | 6,981 |
Mortgage servicing rights | 1,269 | 1,444 |
Restricted equity securities (FHLB and other) | 5,397 | 10,201 |
Interest rate floor | 1,678 | 944 |
Interest rate swaps | 13,693 | 4,728 |
Financial liabilities: | ||
Deposits | 2,441,014 | 1,972,084 |
Long-term debt | 15,073 | 33,075 |
Subordinated debentures | 33,096 | |
Accrued interest payable | 736 | 1,277 |
Interest rate swap | 14,099 | 4,680 |
Level 3 | ||
Investment securities: | ||
Net loans | $ 2,145,752 | $ 1,881,658 |
Derivatives and hedging activ_3
Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value | |||
Asset Derivatives | $ 15,371 | $ 5,672 | |
Liability Derivatives | 14,099 | 4,680 | |
Interest Receivable | 8,255 | 6,981 | |
Interest Payable | 736 | 1,277 | |
Net Amounts of Assets presented in the Balance Sheet | 14,099 | 4,680 | |
Interest income | |||
Derivatives, Fair Value | |||
Amount of gain or (loss) reclassified as a increase to interest income (expense) | 150 | 42 | |
Interest Rate Floor | |||
Derivatives, Fair Value | |||
Asset Derivatives | 1,678 | 944 | |
Interest Rate Swaps | |||
Derivatives, Fair Value | |||
Asset Derivatives | 13,693 | 4,728 | |
Credit-risk contract | |||
Derivatives, Fair Value | |||
Posted collateral | 15,360 | 4,140 | |
Net Amounts of Assets presented in the Balance Sheet | 79 | 48 | |
Derivatives designated as hedging instruments | |||
Derivatives, Fair Value | |||
Asset Derivatives | 1,678 | 944 | |
Liability Derivatives | 485 | ||
Derivatives designated as hedging instruments | Interest Rate Floor | |||
Derivatives, Fair Value | |||
Notional amount | 25,000 | ||
Asset Derivatives | 944 | ||
Derivatives designated as hedging instruments | Interest Rate Floor | Other Assets | |||
Derivatives, Fair Value | |||
Asset Derivatives | 1,678 | ||
Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value | |||
Asset Derivatives | 13,693 | 4,728 | |
Liability Derivatives | $ 13,614 | 4,680 | |
Derivatives not designated as hedging instruments | Interest Rate Swaps | |||
Derivatives, Fair Value | |||
Number of instruments held | security | 73 | ||
Notional amount | $ 375,341 | 172,096 | |
Interest Receivable | 235 | ||
Interest Payable | 235 | ||
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other Assets | |||
Derivatives, Fair Value | |||
Asset Derivatives | 13,693 | 4,728 | |
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other Liabilities. | |||
Derivatives, Fair Value | |||
Liability Derivatives | 13,614 | $ 4,680 | |
Cash Flow Hedge | Derivatives designated as hedging instruments | |||
Derivatives, Fair Value | |||
Notional amount | 50,000 | ||
Cash Flow Hedge | Derivatives designated as hedging instruments | Other Liabilities. | |||
Derivatives, Fair Value | |||
Liability Derivatives | $ 485 | ||
Forecast | Cash Flow Hedge | Interest income | |||
Derivatives, Fair Value | |||
Amount of gain or (loss) reclassified as a increase to interest income (expense) | $ 50,000 |
Derivatives and hedging activ_4
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in OCI Included Component | $ 315 | $ 441 | $ 246 |
Amount of Gain (Loss) Recognized in OCI Included Component | 1,002 | 687 | |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (40) | ||
Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 134 | 26 | |
Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | 53 | ||
Amount of Gain (Loss) Recognized in OCI Included Component | 54 | ||
Amount of Loss Recognized in OCI Excluded Component | (1) | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 94 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | 110 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Excluded Component | (16) | ||
Cash Flow Hedge | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | 71 | ||
Amount of Gain (Loss) Recognized in OCI Included Component | 71 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (40) | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | (40) | ||
Cash Flow Hedge | Interest Rate Floor | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | (18) | 192 | |
Amount of Gain Recognized in OCI Included Component | 196 | ||
Amount of Gain (Loss) Recognized in OCI Included Component | (17) | ||
Amount of Loss Recognized in OCI Excluded Component | (1) | (4) | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 134 | 26 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 42 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | 150 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Excluded Component | $ (16) | $ (16) |
Derivatives and hedging activ_5
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) | |||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | $ 315 | $ 441 | $ 246 |
Interest income | |||
Derivative Instruments, Gain (Loss) | |||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | 134 | 26 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 134 | 26 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component | 150 | 42 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component | (16) | $ 16 | |
Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | (40) | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | $ (40) |
Derivatives and hedging activ_6
Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - Derivatives not designated as hedging instruments - Interest Rate Swap Revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income | $ 31 | $ 77 |
Fee Income | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income | $ 2,290 | $ 1,713 |
Derivatives and hedging activ_7
Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 15,371 | $ 5,672 |
Net Amounts of Assets presented in the Balance Sheet | 15,371 | 5,672 |
Net Amount | 15,371 | 5,672 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 14,099 | 4,680 |
Net Amounts of Assets presented in the Balance Sheet | 14,099 | 4,680 |
Net Amount | $ 14,099 | $ 4,680 |
Stock plans - Additional Inform
Stock plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Performance-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares or units vesting period | 3 years | |||
Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares or units vesting period | 3 years | |||
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units | 3 years | |||
Average return on equity period used for conditions for vesting of performance-based restricted stock units | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted shares | 16,269 | 17,345 | 11,468 | |
Vested shares | 8,455 | 2,542 | 114 | |
Number of nonvested restricted stock awards | 31,923 | 25,984 | 12,892 | 1,538 |
Forfeited shares | 1,875 | 1,711 | ||
Unrecognized compensation expense | $ 586 | |||
Weighted average vesting period | 1 year 10 months 25 days | |||
2008 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of nonvested restricted stock awards | 0 | |||
Forfeited shares | 1,327 | |||
Salaries and employee benefits expense | $ 122 | $ 123 | ||
2008 Plan | Non-Performance-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vested shares | 673 | 674 | ||
2008 Plan | Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vested shares | 5,743 | |||
2017 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock available for grant as awards | 56,966 | |||
Forfeited shares | 1,875 | 1,711 | ||
Salaries and employee benefits expense | $ 570 | $ 432 | $ 149 | |
2017 Plan | Non-Performance-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted shares | 3,615 | |||
Shares or units awarded | 3,855 | |||
Number of nonvested restricted stock awards | 1,920 | 1,614 | ||
2017 Plan | Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted shares | 12,654 | 13,490 | ||
Number of nonvested restricted stock awards | 6,535 | 928 |
Stock plans - Schedule of Activ
Stock plans - Schedule of Activity Related to Restricted Stock (Details) - Restricted Stock - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Nonvested, January 1 | 25,984 | 12,892 | 1,538 |
Granted shares | 16,269 | 17,345 | 11,468 |
Vested shares | 8,455 | 2,542 | 114 |
Forfeited shares | 1,875 | 1,711 | |
Nonvested, December 31 | 31,923 | 25,984 | 12,892 |
Employee benefit plans - Salari
Employee benefit plans - Salaries and Employee Benefits Expense - ESOP (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Peoples Security Bank and Trust ESOP | |||
Peoples Security Bank and Trust ESOP | |||
Contribution to ESOP | $ 371 | $ 357 | $ 197 |
Employee benefit plans - Sala_2
Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit Sharing plan | |||
Company contribution | $ 1,207 | $ 1,139 | $ 1,047 |
Safe harbor contribution | 655 | 627 | 578 |
Discretionary contributions | $ 552 | $ 512 | $ 469 |
Employee benefit plans - Sala_3
Employee benefit plans - Salaries and Employee Benefits Expense - SERP and Employee Pension Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 22, 2008 | |
Supplemental Executive Retirement Plans ("SERP") | ||||
Defined Benefit Plan Disclosure | ||||
Maximum annual benefit in excess of federal limits (as a percent) | 6.00% | |||
Employee benefit plan liability | $ 142 | $ 133 | ||
Employee benefit plan expense | 9 | 17 | $ 20 | |
Defined benefit plan accrued liabilities | 2,351 | 2,077 | ||
Salaries and employee benefits expense | $ 461 | 360 | $ 335 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Retirement age period for fixed benefits payable | 65 years | |||
Benefits accrued under employees' pension plan | $ 0 | |||
Increase (decrease) in accumulated benefit obligation | $ 2,159 | $ 1,221 |
Employee benefit plans - Summar
Employee benefit plans - Summary of Pension and Postretirement Life Insurance Plans (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Benefit obligation, beginning | $ 17,491 | $ 16,338 | |
Interest cost | 544 | 639 | $ 623 |
Change in experience gain | (291) | 96 | |
Change in actuarial assumptions loss | 2,159 | 1,221 | |
Benefits paid | (790) | (803) | |
Benefit obligation, ending | 19,113 | 17,491 | 16,338 |
Change in plan assets: | |||
Fair value of plan assets, beginning | 16,930 | 14,919 | |
Actual return on plan assets | 1,488 | 2,814 | |
Benefits paid | (790) | (803) | |
Fair value of plan assets, ending | 17,628 | 16,930 | $ 14,919 |
Funded status at end of year | $ (1,485) | $ (561) |
Employee benefit plans - Schedu
Employee benefit plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts recognized in the accumulated other comprehensive loss consist of: | |||
Net amount recognized | $ 6,302 | $ 5,197 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Liabilities | 1,485 | 561 | |
Amounts recognized in the accumulated other comprehensive loss consist of: | |||
Net actuarial gain | (7,977) | (6,579) | |
Deferred taxes | 1,675 | 1,382 | |
Net amount recognized | (6,302) | (5,197) | |
Accumulated benefit obligation | $ 19,113 | $ 17,491 | $ 16,338 |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Pension Expense (Income) and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net loss (gain) | $ 7,977 | $ 6,579 | |
Pension Benefits | |||
Components of net periodic pension cost: | |||
Interest cost | 544 | 639 | $ 623 |
Expected return on plan assets | (1,236) | (1,084) | (960) |
Amortization of unrecognized net gain | 218 | 227 | 194 |
Net periodic benefit | (474) | (218) | (143) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net loss (gain) | 544 | 639 | (590) |
Deferred tax | (114) | (134) | 124 |
Total recognized in other comprehensive loss | 430 | 505 | (466) |
Total recognized in net period pension cost and other comprehensive loss | $ (44) | $ 287 | $ (609) |
Employee benefit plans - Sche_2
Employee benefit plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Related Expenses (Details) - Pension Benefits | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Discount rate, Obligation | 2.25% | 3.25% | 4.00% |
Discount rate, Expense | 3.25% | 4.00% | 3.75% |
Expected long-term return on plan assets | 7.50% | 7.50% | 7.50% |
Employee benefit plans - Sche_3
Employee benefit plans - Schedule of Pension Plan Weighted-Average Asset Allocations (Details) - Pension Benefits | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure | ||
Weighted-average asset allocations | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Weighted-average asset allocations | 6.80% | 6.20% |
Equity securities | ||
Defined Benefit Plan Disclosure | ||
Weighted-average asset allocations | 63.30% | 61.90% |
Corporate debt securities | ||
Defined Benefit Plan Disclosure | ||
Weighted-average asset allocations | 20.70% | 20.60% |
U.S. Treasuries and Government agencies | ||
Defined Benefit Plan Disclosure | ||
Weighted-average asset allocations | 9.20% | 11.30% |
Employee benefit plans - Fair V
Employee benefit plans - Fair Value Measurement of Pension Plan Assets (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | $ 17,628 | $ 16,930 | $ 14,919 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 1,203 | 1,053 | |
U.S. large cap | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 10,266 | 9,663 | |
International | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 888 | 817 | |
U.S. Treasuries | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 216 | 202 | |
U.S. Government agencies | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 1,400 | 1,713 | |
Corporate debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 3,655 | 3,482 | |
Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 12,357 | 11,533 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 1,203 | 1,053 | |
Level 1 | U.S. large cap | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 10,266 | 9,663 | |
Level 1 | International | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 888 | 817 | |
Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 5,271 | 5,397 | |
Level 2 | U.S. Treasuries | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 216 | 202 | |
Level 2 | U.S. Government agencies | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | 1,400 | 1,713 | |
Level 2 | Corporate debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plan assets | $ 3,655 | $ 3,482 |
Employee benefit plans - Sala_4
Employee benefit plans - Salaries and Employee Benefits Expense - Investment Percentages (Details) - Pension Benefits - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure | ||
Amount of company's common stock included in equity securities | $ 0 | $ 0 |
Industry sector | Maximum | ||
Defined Benefit Plan Disclosure | ||
Maximum diversification (as a percent) | 20.00% | |
Common equity securities. | ||
Defined Benefit Plan Disclosure | ||
Maximum diversification (as a percent) | 10.00% | |
Cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan, target allocation (as a percent) | 10.00% | |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan, target allocation (as a percent) | 40.00% | |
Equities | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan, target allocation (as a percent) | 50.00% |
Employee benefit plans - Sche_4
Employee benefit plans - Schedule of Benefit Payments Expected to be Paid (Details) - Pension Benefits $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan Disclosure | |
2021 | $ 840 |
2022 | 878 |
2023 | 896 |
2024 | 948 |
2025 | 970 |
Thereafter | $ 5,019 |
Income taxes - Current and Defe
Income taxes - Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | |||||||||||
Current | $ 6,600 | $ 2,761 | $ 4,072 | ||||||||
Deferred | (1,779) | 394 | (681) | ||||||||
Total income tax expense (benefit) | $ 1,308 | $ 1,523 | $ 1,311 | $ 679 | $ 446 | $ 991 | $ 957 | $ 761 | $ 4,821 | $ 3,155 | $ 3,391 |
Income taxes - Components of Ne
Income taxes - Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 5,742 | $ 4,762 |
Lease liability | 1,349 | 1,301 |
Defined benefit plan | 1,108 | 815 |
Deferred compensation | 789 | 682 |
Deferred loan fees | 1,368 | 525 |
Other | 170 | 137 |
Total | 10,526 | 8,222 |
Deferred tax liabilities: | ||
Lease right-of-use assets | 1,319 | 1,286 |
Premises and equipment, net | 1,455 | 1,350 |
Merger related accounting | 694 | 850 |
Deferred loan costs | 936 | 716 |
Investment securities available-for-sale | 2,033 | 416 |
Other | 321 | 242 |
Total | 6,758 | 4,860 |
Net deferred tax asset | $ 3,768 | $ 3,362 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Effective Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | |||||||||||
Federal income tax at statutory rate | $ 7,177 | $ 6,067 | $ 5,945 | ||||||||
Tax exempt interest | (1,032) | (1,299) | (1,320) | ||||||||
Bank owned life insurance income | (299) | (159) | (236) | ||||||||
Residential housing program tax credits | (1,094) | (1,094) | (1,094) | ||||||||
Other, net | 69 | (360) | 96 | ||||||||
Total income tax expense (benefit) | $ 1,308 | $ 1,523 | $ 1,311 | $ 679 | $ 446 | $ 991 | $ 957 | $ 761 | $ 4,821 | $ 3,155 | $ 3,391 |
Federal income tax at statutory rate | 21.00% | 21.00% | 21.00% | ||||||||
Tax exempt interest | (3.02%) | (4.50%) | (4.66%) | ||||||||
Bank owned life insurance income | (0.87%) | (0.55%) | (0.83%) | ||||||||
Residential housing program tax credits | (3.20%) | (3.79%) | (3.87%) | ||||||||
Other, net | 0.19% | (1.25%) | 0.34% | ||||||||
Total | 14.10% | 10.91% | 11.98% |
Parent Company financial stat_3
Parent Company financial statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 228,192 | $ 31,153 | ||
Equity securities | 138 | 423 | ||
Other assets | 38,915 | 34,179 | ||
Total assets | 2,883,802 | 2,475,327 | ||
Liabilities and Stockholders' Equity: | ||||
Subordinated debt | 33,000 | |||
Accrued interest payable | 736 | 1,277 | ||
Other liabilities | 31,307 | 18,668 | ||
Stockholders' equity | 316,877 | 299,010 | $ 278,614 | $ 264,976 |
Total liabilities and stockholders' equity | 2,883,802 | 2,475,327 | ||
Peoples Bank | ||||
Assets: | ||||
Cash and cash equivalents | 1,069 | 5,192 | $ 3,736 | $ 3,932 |
Equity securities | 138 | 423 | ||
Investment in bank subsidiary | 348,584 | 293,415 | ||
Other assets | 273 | 19 | ||
Total assets | 350,064 | 299,049 | ||
Liabilities and Stockholders' Equity: | ||||
Subordinated debt | 33,000 | |||
Accrued interest payable | 148 | |||
Other liabilities | 39 | 39 | ||
Stockholders' equity | 316,877 | 299,010 | ||
Total liabilities and stockholders' equity | $ 350,064 | $ 299,049 |
Parent Company financial stat_4
Parent Company financial statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||||||||||
Dividends from subsidiaries | $ 97 | $ 84 | $ 72 | ||||||||
Net gain realized on sale of equity securities | (6) | 132 | 14 | ||||||||
Unrealized holding gains (losses) on equity securities | 35 | (132) | |||||||||
Expense: | |||||||||||
Interest expense on subordinated debt | 1,035 | ||||||||||
Interest expense on subordinated debt | $ 9,493 | $ 9,835 | $ 8,887 | $ 5,960 | $ 5,478 | $ 8,139 | $ 8,101 | $ 7,173 | |||
Income tax benefit | 1,308 | 1,523 | 1,311 | 679 | 446 | 991 | 957 | 761 | 4,821 | 3,155 | 3,391 |
Net income | $ 8,185 | $ 8,312 | $ 7,576 | $ 5,281 | $ 5,032 | $ 7,148 | $ 7,144 | $ 6,412 | 29,354 | 25,736 | 24,920 |
Comprehensive Income | 34,708 | 30,607 | 23,648 | ||||||||
Peoples Bank | |||||||||||
Interest income: | |||||||||||
Dividends from subsidiaries | 10,518 | 10,131 | 9,691 | ||||||||
Other income | 8 | 8 | 72 | ||||||||
Net gain realized on sale of equity securities | 29 | ||||||||||
Unrealized holding gains (losses) on equity securities | (35) | 132 | 13 | ||||||||
Total income | 10,520 | 10,271 | 9,776 | ||||||||
Expense: | |||||||||||
Interest expense on subordinated debt | 1,035 | ||||||||||
Other expenses | 200 | 145 | 214 | ||||||||
Total expenses | 1,235 | 145 | 214 | ||||||||
Interest expense on subordinated debt | 9,285 | 10,126 | 9,562 | ||||||||
Income tax benefit | (255) | (1) | (27) | ||||||||
Income before undistributed income of subsidiaries | 9,540 | 10,127 | 9,589 | ||||||||
Equity in undistributed net income of subsidiaries | 19,814 | 15,609 | 15,331 | ||||||||
Net income | $ 29,354 | $ 25,736 | $ 24,920 |
Parent Company financial stat_5
Parent Company financial statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 8,185 | $ 8,312 | $ 7,576 | $ 5,281 | $ 5,032 | $ 7,148 | $ 7,144 | $ 6,412 | $ 29,354 | $ 25,736 | $ 24,920 |
Adjustments: | |||||||||||
Decrease in other assets | (12,268) | (3,363) | 816 | ||||||||
Increase (decrease) in other liabilities | 13,549 | 2,389 | (1,736) | ||||||||
Stock based compensation | 570 | 554 | 272 | ||||||||
Net cash provided by operating activities | 37,180 | 37,079 | 32,626 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash used in investing activities | (201,240) | (184,721) | (134,806) | ||||||||
Cash flows used in financing activities: | |||||||||||
Proceeds from long-term debt | 16,000 | ||||||||||
Retirement of common stock | (6,893) | (634) | |||||||||
Net cash provided by financing activities | 361,099 | 146,179 | 97,308 | ||||||||
Increase (decrease) in cash | 197,039 | (1,463) | (4,872) | ||||||||
Cash and cash equivalents at beginning of period | 31,153 | 31,153 | |||||||||
Cash and cash equivalents at end of period | 228,192 | 31,153 | 228,192 | 31,153 | |||||||
Peoples Bank | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 29,354 | 25,736 | 24,920 | ||||||||
Adjustments: | |||||||||||
Net losses (gains) on investment securities | 6 | (132) | (14) | ||||||||
Undistributed net income of subsidiaries | (19,814) | (15,609) | (19,814) | (15,609) | (15,331) | ||||||
Decrease in other assets | (255) | (302) | (106) | ||||||||
Increase (decrease) in other liabilities | 148 | (10) | |||||||||
Stock based compensation | 570 | 554 | 272 | ||||||||
Increase in due from subsidiaries | 1,974 | ||||||||||
Net cash provided by operating activities | 10,009 | 12,221 | 9,731 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of equity securities | (234) | ||||||||||
Sale of equity securities | 279 | ||||||||||
Net cash used in investing activities | 279 | (234) | |||||||||
Cash flows used in financing activities: | |||||||||||
Investment in subsidiary | (30,000) | ||||||||||
Retirement of common stock | (6,893) | (634) | |||||||||
Cash dividends paid | (10,518) | (10,131) | (9,693) | ||||||||
Net cash provided by financing activities | (14,411) | (10,765) | (9,693) | ||||||||
Increase (decrease) in cash | (4,123) | 1,456 | (196) | ||||||||
Cash and cash equivalents at beginning of period | $ 5,192 | $ 3,736 | 5,192 | 3,736 | 3,932 | ||||||
Cash and cash equivalents at end of period | $ 1,069 | $ 5,192 | 1,069 | $ 5,192 | $ 3,736 | ||||||
Subordinated Debentures | |||||||||||
Cash flows used in financing activities: | |||||||||||
Proceeds from long-term debt | 33,000 | ||||||||||
Subordinated Debentures | Peoples Bank | |||||||||||
Cash flows used in financing activities: | |||||||||||
Proceeds from long-term debt | $ 33,000 |
Regulatory matters - Additional
Regulatory matters - Additional Information (Details) - USD ($) | Jan. 01, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Capitalization | |||
Capital stock (as a percent) | 100.00% | ||
Period over which the Company may only declare and pay dividends out of accumulated net earnings, including accumulated net earnings acquired as a result of a merger | 7 years | ||
Funds available for transfers | $ 31,002,000 | ||
Loans outstanding | $ 0 | $ 0 | |
Capital conservation buffer | 2.50% | ||
Maximum | |||
Schedule of Capitalization | |||
Net earnings which must set aside as a surplus (as a percent) | 10.00% | ||
Minimum | |||
Schedule of Capitalization | |||
Net earnings to surplus funds (as a percent) | 10.00% |
Regulatory matters - Schedule o
Regulatory matters - Schedule of Bank's Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Consolidated | ||
Common equity Tier 1 capital to risk-weighted assets | ||
Common equity Tier 1 capital to risk-weighted assets, Actual Amount | $ 250,397 | $ 237,280 |
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio | 12.16 | 11.90 |
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 92,631 | $ 89,717 |
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 4.50 | 4.50 |
Tier 1 capital to risk-weighted assets | ||
Tier 1 capital to risk-weighted assets, Actual Amount | $ 250,397 | $ 237,280 |
Tier 1 capital to risk-weighted assets, Actual Ratio | 12.16 | 11.90 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 123,508 | $ 119,623 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 6 | 6 |
Total capital to risk-weighted assets | ||
Total capital to risk-weighted assets, Actual Amount | $ 310,741 | $ 259,957 |
Total capital to risk-weighted assets, Actual Ratio | 15.10 | 13.04 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 164,677 | $ 159,497 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 8 | 8 |
Tier 1 capital to average assets | ||
Tier 1 capital to average assets, Actual Amount | $ 250,397 | $ 237,280 |
Tier 1 capital to average assets, Actual Ratio | 9.28 | 10.14 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount | $ 107,878 | $ 93,633 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio | 4 | 4 |
Peoples Bank | ||
Common equity Tier 1 capital to risk-weighted assets | ||
Common equity Tier 1 capital to risk-weighted assets, Actual Amount | $ 282,104 | $ 231,685 |
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio | 13.73 | 11.64 |
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 92,461 | $ 89,576 |
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 4.50 | 4.50 |
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 133,554 | $ 129,387 |
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50 | 6.50 |
Tier 1 capital to risk-weighted assets | ||
Tier 1 capital to risk-weighted assets, Actual Amount | $ 282,104 | $ 231,685 |
Tier 1 capital to risk-weighted assets, Actual Ratio | 13.73 | 11.64 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 123,281 | $ 119,434 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 6 | 6 |
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 164,374 | $ 159,246 |
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8 | 8 |
Total capital to risk-weighted assets | ||
Total capital to risk-weighted assets, Actual Amount | $ 307,807 | $ 254,362 |
Total capital to risk-weighted assets, Actual Ratio | 14.98 | 12.78 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | $ 164,374 | $ 159,246 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 8 | 8 |
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 205,468 | $ 199,057 |
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10 | 10 |
Tier 1 capital to average assets | ||
Tier 1 capital to average assets, Actual Amount | $ 282,104 | $ 231,685 |
Tier 1 capital to average assets, Actual Ratio | 10.08 | 9.91 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount | $ 111,891 | $ 93,508 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio | 4 | 4 |
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 139,864 | $ 116,884 |
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5 | 5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | ||
Net unrealized gain on investment securities available-for-sale | $ 9,696 | $ 1,835 |
Income tax | 2,036 | 385 |
Net of income taxes | 7,660 | 1,450 |
Benefit plan adjustments | (7,977) | (6,579) |
Income tax benefit | (1,675) | (1,382) |
Net of income taxes | (6,302) | (5,197) |
Derivative adjustments | 1,002 | 687 |
Income tax | 211 | 144 |
Net of income taxes | 791 | 543 |
Accumulated other comprehensive income (loss) | $ 2,149 | $ (3,205) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Other Comprehensive Loss and Related Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |||
Unrealized gain (loss) on investment securities available-for-sale | $ 8,779 | $ 5,109 | $ (2,014) |
Net gain on the sale of investment securities available-for-sale | (918) | (23) | |
Other comprehensive income on available-for-sale debt securities | 7,861 | 5,086 | (2,014) |
Amortization of actuarial loss (2) | 218 | 227 | 194 |
Actuarial gain (loss) | (1,616) | 412 | (785) |
Change in benefit plan liabilities | (1,398) | 639 | (591) |
Net change in derivatives | 315 | 441 | 246 |
Other comprehensive income (loss) | 6,778 | 6,166 | (2,359) |
Income tax (benefit) | 1,424 | 1,295 | (496) |
Other comprehensive income (loss) | $ 5,354 | $ 4,871 | $ (1,863) |
Summary of quarterly financia_3
Summary of quarterly financial information - Summary of Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of quarterly financial information (unaudited) | |||||||||||
Interest income | $ 23,085 | $ 23,346 | $ 23,852 | $ 23,842 | $ 23,616 | $ 23,632 | $ 23,332 | $ 22,801 | $ 94,125 | $ 93,381 | $ 84,661 |
Interest expense | 3,276 | 3,422 | 3,345 | 4,281 | 4,364 | 4,396 | 4,604 | 4,504 | 14,324 | 17,868 | 13,322 |
Net interest income | 19,809 | 19,924 | 20,507 | 19,561 | 19,252 | 19,236 | 18,728 | 18,297 | 79,801 | 75,513 | 71,339 |
Provision for loan losses | 1,050 | 1,050 | 1,800 | 3,500 | 4,000 | 700 | 350 | 1,050 | 7,400 | 6,100 | 4,200 |
Net interest income after provision for loan losses | 18,759 | 18,874 | 18,707 | 16,061 | 15,252 | 18,536 | 18,378 | 17,247 | 72,401 | 69,413 | 67,139 |
Noninterest income | 4,735 | 4,935 | 3,422 | 3,550 | 3,870 | 3,682 | 4,152 | 3,416 | 16,642 | 15,120 | 13,659 |
Noninterest expense | 14,001 | 13,974 | 13,242 | 13,651 | 13,644 | 14,079 | 14,429 | 13,490 | 54,868 | 55,642 | 52,487 |
Income before income taxes | 9,493 | 9,835 | 8,887 | 5,960 | 5,478 | 8,139 | 8,101 | 7,173 | |||
Income tax expense | 1,308 | 1,523 | 1,311 | 679 | 446 | 991 | 957 | 761 | 4,821 | 3,155 | 3,391 |
Net income | $ 8,185 | $ 8,312 | $ 7,576 | $ 5,281 | $ 5,032 | $ 7,148 | $ 7,144 | $ 6,412 | $ 29,354 | $ 25,736 | $ 24,920 |
Per share data: | |||||||||||
Net income - basic | $ 1.13 | $ 1.14 | $ 1.03 | $ 0.72 | $ 0.68 | $ 0.97 | $ 0.96 | $ 0.87 | $ 4.02 | $ 3.48 | $ 3.37 |
Net income - diluted | 1.13 | 1.13 | 1.03 | 0.71 | 0.68 | 0.96 | 0.96 | 0.87 | 4 | 3.47 | $ 3.37 |
Cash dividends declared | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.35 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.36 | $ 0.35 | |
Average common shares outstanding - basic | 7,222,810 | 7,277,189 | 7,341,636 | 7,379,438 | 7,388,488 | 7,394,992 | 7,399,302 | 7,379,438 | 7,304,956 | 7,395,429 | 7,397,797 |
Average common shares outstanding - diluted | 7,257,874 | 7,312,253 | 7,376,700 | 7,405,703 | 7,410,899 | 7,417,403 | 7,413,114 | 7,408,536 | 7,337,843 | 7,412,369 | 7,402,900 |